Trend of the Canadian Gold Exploration Costs, 1946-2000

2006

Is it more expensive to find an ounce of gold in Canada today than that half-century ago? Did the Canadian gold industry find more gold than they mined? What is the future sustainability of the Canadian gold industry? The study examines the trend of the Canadian gold exploration costs between 1946-2000. During the period, the gold discovery costs in real terms increased dramatically over time. The Canadian gold industry also mined more ounces of more gold than they discovered (gold in the developed mines). If gold in the undeveloped deposits is taken into account, however, by 2000, the deficit was merely 12.57 million ounces (391 tonnes). While it is evident that depletion is present in the Canadian gold industry in the past half-century, which posts a challenge to the Canadian exploration sector, the Canadian gold mining industry would still be sustainable in the foreseeable future, particularly, given the overwhelming predicted promising gold market in the long run.

Keywords: Gold, 1946-2000, Cost, Canadian, Exploration, Trend