Australia may be at the cusp of a new gold rush

After a three-decade hiatus, the Australian gold rush era returns to Mount Freda located near Cloncurry.

Australia has the world’s second largest gold industry, accounting for about 10% of global gold production.

A gold rush has revived Queensland, 30 years after it was put on hold, as mining companies capitalize on soaring precious metal prices.

When gold prices fell below $240 per ounce in 1991, the Cloncurry region was nearly deserted.

However, with the spot price more than ten times higher, the Golden Mile is reviving, with a new player in the field with the hope it will once  live up to its historical reputation. Gold has been one of those commodities that has had value to humans throughout history.

Gold prices have been extremely high in recent years, with current spot prices hovering around $2,600. The Mount Fred mine is an open-cast mine with a four-year life cycle. Tombola Gold, a new Australian producer located 39 kilometers south-east of Cloncurry, is expected to begin pouring gold by the end of the year.

Tombola, formerly known as Ausmex Mining Group, owns the Golden Mile’s eight high-grade historical gold mines, and the company acquired the Lorena plant for the purpose of processing  gold ore.

The Mount Freda mine is small in comparison to other operations in the area, but it will have a significant impact on the local economy. At the moment, the mine employs a large number of contractors. It is an opportunity to train the next generation of miners.

Australia has a golden opportunity to be the new leader of the gold rush

Queensland is undergoing resurgence of gold mining. Tombola is one of the many gold companies investing heavily in resource-rich Queensland.

Another mining company Carnaby Resources, based in Western Australia, is looking for gold 70 kilometers  near the town of Duchess south of Mount Isa.

At the moment, the mine employs a large number of contractors. It is an opportunity to train the next generation of miners.

Australia has a golden opportunity.

Mines were also historically identified by the minerals found on the surface, and deep exploration  and the mining of underground ore was not really undertaken. This is why most of the mines are open-cast mines and they don’t go deep underground like the gold mines in South Africa.

Mining companies frequently used gold profits to fund exploration for other minerals, including critical minerals used in renewable projects.

At the moment, the mine employs a large number of contractors. It is an opportunity to train the next generation of miners.

It would seem like Australia might be getting another shot at making great inroads in the gold industry. Whilst most other people believe the amount of gold to be dwindling and talking about  reaching peak gold, it would seem this new discovery of gold in Australia might spark a new age for the gold industry. Whilst many fear that the world might be running out of the precious metals Australia might at the cusp of a new gold rush.

Source 1: https://www.proactiveinvestors.com.au/companies/news/944978/australia-ranks-top-with-highest-gold-reserves-in-2020-followed-by-russia-and-the-us-a-distant-third-944978.html

Source 2: https://www.sciencedirect.com/topics/earth-and-planetary-sciences/opencast-mining