Gold still dominates U.S. exploration, role of juniors fades

Gold prices may not be what they were several years ago, but that isn’t stopping explorationists from concentrating their efforts on finding more of the precious metal in the western U.S.

Indeed, gold projects continue to dominate exploration news in 1991, although activity funded by junior companies is clearly down from previous years because of weaker equity markets.

But majors are trying to fill the gap. A study released by Metals Economics Group earlier this year showed that senior mining companies are committing more money to early-stage gold projects in the U.S., with the most active players being Kennecott Corp., Placer Dome, Newmont Gold, Amax Gold, Nerco Inc. and Inco Ltd. At the same time, the majors are spending less than they did in the late 1980s to earn into more advanced projects where reserves have already been outlined.

With more emphasis being placed on value for the dollar, mining companies are paying more attention to underexplored states with known mineral potential.