Can higher gold prices save mining?
(Kitco News) - The gold mining sector faces a major challenge: overcoming dwindling economic reserves, said Brent Cook of Exploration Insights, and higher gold prices may not be what’s needed to keep miners in the black.
“The story is that we are going to run out of gold deposits. That’s not the case. What we are running out of is economic deposits, the discovery of economic deposits. There’s no shortage of marginal deposits or sub-economic deposits, and the question is, is the rising gold price going to fix all that or not?” Cook told Kitco News on the sidelines of the Precious Metals Summit in Beaver Creek.
Importantly, Cook noted his thesis is that 80% of deposits will be marginal at any price because they have fundamental flaws.