Big 10 gold deposits

January 22, 2013

The Virtual Capitalist has published its list of the world’s largest gold deposits. Three of ten are north of 56 and none is in production. They represent 216 M oz. of gold valued at $3.57 trillion.

A few interesting points:

• There are 439 Mines & Deposits in over 1 million ounces in-situ
• In Canada the Virtual Capitalist was able to find only 59 undeveloped deposits over 1mm ounces owned by 49 companies (41 Independents). In the United States they found only 33 deposits owned by 26 companies (23 Independents)
• Realistically, 50% or more of the deposits in the database will most likely remain deposits 25 years from now for a variety of factors including: permitting, ability to finance a mine, and attractiveness to a producer (producer balance sheets are so large they require significant projects to be accretive , making even most 1mm-2mm ounce deposits unattractive).
• The average grade of undeveloped deposits is 66g/tonne.

Commentary

All three of the top ten deposits north of 56 are still undeveloped. Donlin is just starting the permitting process. KSM is similarly advanced. Pebble is controversial and faces a tough road to production—it would be at years away from development.

Sources

• a)http://www.visualcapitalist.com/portfolio/global-gold-mines-and-deposits-ranking-2012#comments