The number of gold projects at the preproduction stage in the U.S. has declined by 67% over the past year, according to Potential New U.S. Gold Production, a study by Halifax-based Metal Economics Group. Only nine of the gold projects included in the survey have reached the preproduction stage, compared with 27 in May, 1989, when the group’s last survey was published. The total annual projected capacity of the projects is down to 491,000 oz. compared with 1.2 million oz. in May, 1989.
Similarly, 74 gold projects, with an average of 489,000 oz. of contained gold, are currently at the development stage, compared with 124 in May, 1989.
In its Annual Review of the World Gold Industry, 1990, Shearson Lehman Hutton concludes that U.S. gold production is likely to level off in the 1990s.
“It seems evident that the `easy pickings’ of the 1980’s heap leach boom are for the time being largely behind us, at least until the next Carlin Trend is discovered,” said Shearson Lehman Hutton in its Annual Review of the World Gold Industry.
“Capacity expansions of existing operations are playing a proportionally greater role than the addition of new operations,” the report said.
The gold price in May, 1989, averaged US$381 compared with about US$380 in Nov., 1990.
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