Gold mining on the cusp of large-scale production
As the locals and the Roman Empire discovered in that time, Spanish northerners sit on a gold mine literally. However, despite the great interest of international companies, the vicissitudes of politics and economy have resulted in a virtually non-existent gold mining activity in many of the rich deposits. A low activity that might be about to turn a corner.
The Narcea River Gold Belt in Asturias, Spain is the main focus lately. The mine in question was owned by the Rio Narcea Gold Mines company which produced about 1 million ounces of gold before it closed. In 2009 it became the property of Orovalle, a subsidiary of Orvana Minerals Cop. a Canadese gold-copper producer.
The new owners set out their intentions in the last International Mining and Energy Conference. The company aims at expanding the gold mining activity in other deposit in the region after the carried-out research showed the company could extract between 60,000 and 65,000 ounces per year.
Given the estimated useful life of this second deposit is of 6 years and a half, the company will have to keep investing and carrying out researches in the area to ensure their future. All the same, the company is aware that a gold mine needs up to 17 years from the first investment until they recoup every dollar invested.
This gold mine was thought to be closed until the company denied it. According to the president “the gold mine is under maintenance and it will reopen whenever gold prices increase.” The company aims at being profitable, nonetheless the heavy investment in the rest of their gold mines could already turn the Mediterranean country into the largest European gold producer.
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Category: Gold news Publication date: 2015-06-18 15:24
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