Latin American gold output increases in 2011

first_imgAccording to a recent mining industry report by Metals Economics Group (MEG), Latin American gold production should increase more than 10% in 2011. The report states that about two-thirds of Latin American production is from primary gold mines and the rest is from secondary sources, mostly copper and silver mines. Although Chile is Latin America’s fifth-largest gold producer – behind Peru, Mexico, Brazil, and Argentina – it holds the largest share of gold in active nonproducing projects equating to 29% of gold contained in resources under development. Mexico holds the second-largest nonproducing gold resources and the largest producing resources-holding 28% of gold contained in producing resources. Mineweb reported yesterday that Peru’s total gold production for the first nine months of this year from January to September declined 0.93% from 3,992,795 oz during the same period of 2010 to 3,955,699 oz, this year. Unrest in some of the mining areas is having an affect.The pie chart shows active Latin American non producing gold resources by country (Total: 412.3 Moz) Data source: MEG’s MineSearch database.In addition to the advanced exploration projects that are progressing from reserves development to production, early-stage exploration by junior companies is contributing to the Latin American gold project pipeline. Since 2000, junior companies’ allocations to all stages of Latin American gold exploration have increased each year except three – in 2001-02 when gold prices were languishing at the $300/oz level, and in 2009 when the equity markets collapsed. The number of exploration successes (positive drill intersections and resource increases) has followed the same general trend.last_img

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