Gold News

Gold finds 'greatly reduced'

A spokesperson for Newmont Mining has announced that gold reserves are becoming increasingly difficult to find and mine all over the world.

Adriaan van Kersen said that Newmont plans to spend approximately $250 million on exploration this year, but said that he is not optimistic that the situation will improve.

The news could be good for investors in gold, as demand for the precious metal is still high, especially in the jewelry sector, and a decrease in output could drive prices higher.

"Exploration is not only becoming tougher and riskier but more expensive and it is becoming more and more difficult to find gold in any surface quantity," said Mr van Kersen, who is Newmont's general manager for Australia.

"Newmont depletes its reserves at ten ounces a minute and needs a replacement discovery rate of near 14 ounces a minute."

The government of one of the world's largest gold producers, Zimbabwe, announced that its output for February 2008 was 58.9 per cent down on the same month last year, according to the Herald.

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