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Peak gold production is determined by a combination of availability (amount of gold discovered) and extractability (the amount of discovered gold that’s worth producing). Both extractability and availability are down. For example, only 20 years ago, the cost of mining an ounce of gold was less than $200. Today, it’s more than $700 and rising rapidly. Furthermore, over the past three decades, we’ve seen a decline in the discovery of large deposits of gold.

Philip N. Diehl (35th Director of the U.S. Mint and President of U.S. Money Reserve) says “peak gold” may have already been reached or at the very least is fast approaching. Peak gold is the point at which the maximum rate of gold extraction is reached, after which mining will slowly decline until gold can no longer be mined at a profit. Once peak gold is reached, gold supply will be limited, potentially increasing gold prices.

How much gold has been mined, and how much is left?

Archeological evidence from 4,200 BC indicates that gold mining could be at least 7,000 years old. Gold mining activity has risen exponentially since then. In 2019, the World Gold Council estimated that 190,040 tonnes of gold have been mined throughout history.

Mined gold is used for multiple purposes in multiple industries, such as for asset diversification in finances and in electronics manufacturing and jewelry making. Supplying this gold is expensive for producers because mining is extremely capital intensive.

Because of gold’s ever-growing demand and finite quantity, concerns for depletion of the resource have gradually increased. The World Gold Council estimates that there are 54,000 tonnes of below-ground gold reserves waiting to be mined. As of 2019, approximately 20% of existing gold was yet to be mined, although new technologies and discoveries make this a moving target.

Read Diehl’s in-depth analysis here: https://usmr.com/PR_PeakGold_09282022

Watch the video above to learn more.

U.S. Money Reserve is America’s Gold Authority, and a leading distributor of precious metals.

Small-scale Artisanal Gold Mining constitutes an important economic sector in more than 70 countries of the world, providing livelihoods for more than 50 million people.

Responsible gold mining and its associated activities can have a transformative effect on socio-economic development in countries where gold is found. When produced in conformance to high social, environmental and safety standards, gold provides employment opportunities, improved infrastructure and tax revenues. It can also drive foreign direct investment and generate foreign exchange.

What is TSM?

Towards Sustainable Mining (TSM) is a commitment by the Mining Association of Canada (MAC) to responsible mining. It is a set of tools and indicators to drive performance and ensure that mining risks are managed responsibly at its members’ facilities. Adhering to the principles of TSM, members demonstrate leadership by:

• Engaging with communities
• Driving world-leading environmental practices
• Committing to the safety and health of employees and surrounding communities

The program was established in 2004 and its main objective is to enable mining companies to meet society’s needs for minerals, metals and energy products in the most socially, economically and environmentally responsible way.

TSM’s core strengths are:

Accountability: Participation in TSM is mandatory for all MAC members. Assessments are conducted at the facility level where the mining activity takes place—the only program in the world to do this in the sector. This provides local communities with a meaningful view of how a nearby mine is faring.

Transparency: Members commit to a set of TSM Guiding Principles and report their performance against the program’s 23 indicators annually in MAC’s TSM Progress Reports. Each facility’s results are publicly available, and are externally verified every three years.

Credibility:

TSM includes ongoing consultation with a national Community of Interest (COI) Advisory Panel. This multi-stakeholder group helps MAC members and communities of interest foster dialogue, improve the industry’s performance and shape the program for continual advancement.

Source: The Mining Association of Canada

Small-scale Gold Mining in Ghana

Ghana is the world’s 7th largest producer of gold; producing over 102 metric tons of gold and the 10th largest producer of gold in the world in 2012; producing 89 metric tons of gold. Ghana is the 2nd largest producer of gold on the Africa continent behind South Africa. Ghana has the 9th largest reserves, and is the 9th largest producer, of diamonds in the world

Experience in Proposed Type of Mining Operation/Development and Area of Geographic Interest: Experienced in prospecting for hardrock and alluvial gold/diamonds in the Birimian terrain of Ghana through the use of stream sediment sampling, prospecting for alluvial mineral deposits, grid-based geochemical soil sampling, ground geophysical survey, pitting and trenching. Field data acquired are evaluated and interpreted to delineate anomalies related to gold and diamond ore deposits. The Company has experts with knowledge and experience in the mining of alluvial gold/diamonds by the use of open-pits.

The Pramkese Gold Concession is located near Kade in the Kwaebibirem District of Ghana and covers a total surface area of 7.8 km2. In August, 2010, the Palazzo Mining Ghana Limited was granted a licence by the Minerals Commission to enable the Company prospect for gold and diamonds in the concession.

The Concession is strategically located in the transition zone between the Cape Coast sedimentary basin and the Kibi-Winneba volcanic belt which is considered to be a geologically favourableterrain for primary gold mineralization.

Till date, the Company has carried out intensive exploration work in the concession aimed at assessing its potential for alluvial gold and diamond mineralisations. The data collected so far have been evaluated and the results show that the concession has economic deposits of alluvial gold and diamonds along the valley flats and old terraces of the Forinsara River and Abena stream. The total number of pits dug to collect alluvial concentrate samples is 295.

The estimated reserves of alluvial gold and diamonds in the investigated parts of the concession are 46,521.36 ounces and 3,941,848.20 carats respectively. The average grades of 0.403 g/m3 obtained for gold and 1.01 carat/m3 determined for diamonds were used in the reserve estimations. These grades are above the accepted threshold values of 0.20g/m3 and 0.40 carat/m3 for which gold and diamonds deposits could respectively attract attention for their economic assessment.

The mining operation will largely depend on a fixed washing plant with a capacity of 100m3/hr capacity. The treatment plant is complete with grizzly, separator and concentrator. It is expected that if the volume of 320,000 m3 of ore-bearing gravels is treated in a year by working in 2-shifts each for 10-months per year, the mining project will last for about 12.20 years.

The Capital Cost of the proposed mining project covering the costs of heavy duty vehicles, mining equipment, spare parts, fuel and construction of mine structures is USD 4,500,000. Besides this, a monthly operating cost of USD 733,000 will also be incurred on the mining project.

It is estimated that there will be a daily average operating cost of USD 750/ozfor fine gold and USD 22.08/carat for diamonds. This includes a 3% royalty payment expected to be made to the Government of Ghana.

The expected revenues to be realized from the gold and diamond sales are USD 276,178,722.00. This calculation is based on a gold price of USD 1,700/oz of gold and USD 50/carat of diamonds as at November, 2011.

The cost-benefit analysis of the project yields a positive net benefit of USD 270,945,722.00.It is therefore deduced that the project will be economically feasible and can be implemented.

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