CEO RAMBLINGS - FEBRUARY 14, 2019
I see a gold supply crunch coming. Gold output for 2019 in the USA and Canada is expected to decrease slightly. Gold is not a renewable resource. Each producing gold mine operating today has a specific shelf life. Every mine will eventually close down once the ore body has been exhausted. For example, just a couple of gold mines in Canada have opened over the past ten years. Sugar Zone Gold Mines is one and Amarug Gold Mine will begin production in a few weeks but here is the "kicker". The ore body is expected to last only for four years and then the mine is slated to close down.
While global demand for gold continues to increase as the world's population increases the supply of new mines opening up is a growing issue. The world needs more gold mines to open and here is the challenge. Most of the easy gold has already been discovered and most new gold mines are often remotely located and very expensive to develop. For example, the average all - in - sustaining cost to develop a gold mine in 2019 in Canada is $877.00/ ounce. Today's price for gold is $1311.55. Many potential gold mines have estimated all in costs in the $1,200 -$1,400 range which makes them uneconomical to mine. They have to be put on hold and wait for a better day.
All of this is why I, as CEO of Atacama Resources International, am optimistic about our gold future. With all the required mining infrastructure readily available and located close to one of the richest currently producing gold mines in the world I am keen to get our next phase of exploration underway. I am Glenn Grant CEO of www.acrlintl.com