Gold Mining Discoveries Down Despite Rising Exploration Budget

THE NUMBER of new Gold Mining discoveries has fallen in recent years, despite significantly increased investment in exploration, a World Gold Council (WGC) representative told finance professionals Tuesday.

Speaking on a conference call hosted by etf securities, Eily Ong, WGC's investment research manager, said recent years have seen a "lack of major new discoveries."

She provided data from Metals Economics Group, a mining consultant, showing that between 2002 and 2008 the global gold exploration budget rose six-fold from around $500 million to over $3 billion. 

Over the same period the number of newly discovered ounces – measured as a three year average – fell from 30 million to less than 10 million.

GFMS, the independent precious metals consultant, reported last week that Gold Mining costs rose in 2010.

Average cash costs rose 17% compared to 2009,to $557 per ounce.

Meanwhile all-in costs – which include general and administrative costs, exploration expenses and the cost of maintenance – increased 20%, to $857 per ounce.

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