Despite the prevailing market pressures, gold prices have demonstrated remarkable resilience, maintaining a robust position in the global economy. This strength in gold prices has seen mining companies working harder than ever before to search for new gold deposits, with big finds hitting the headlines in recent months.
Ma’aden (TADAWUL: 1211):
First on our list of golden discoveries comes from Ma’aden, a Saudi Arabian mining company, which recently let its shareholders know about a new gold reserve discovery. The discovery extends along a 100km strip from the existing Mansourah Massarah gold mine in the Makkah region.
Drilling results from multiple sites in Uruq South mark the first substantial results from Maaden’s extensive exploration programme, initiated in 2022 to enhance its production pipeline.
The newly discovered deposit shares geological characteristics and chemistry with the company’s Mansourah Massarah deposit, which currently holds approximately 7Moz of known gold reserves as of the end of 2023. The Mansourah Massarah mine also boasts a nameplate production capacity of 250,000ozpa.
According to the company, the findings indicate a potential strike length of 125km, suggesting that this discovery could evolve into a major world-class gold belt within Saudi Arabia.
Robert Wilt, Maaden’s CEO, expressed excitement about these discoveries, envisioning the company as a focal point for the world’s next gold rush and a pivotal part of the growth strategy. Additionally, the find aligns with Ma’aden’s ambition to elevate mining to the third pillar of the Saudi economy.
Lavras Gold Corp. (TSXV: LGC):
Next is Lavras Gold Corp’s promising new gold discovery at its LDS Project in southern Brazil, the Matilde target, which was confirmed through drilling and assay results.
The discovery at Matilde comes just two months after Lavras Gold announced bonanza gold grades at Zeca Souza, and three months after a NI 43-101 compliant resource for the Cerrito Deposit increased the company’s consolidated gold resources to 1Moz. Drilling has confirmed that gold mineralization extends over an east-west strike length of at least 250m.
In addition to the Matilde discovery, Lavras has identified the southwest surface extension of its Cerrito Gold Deposit at the Vila Marieta claim block. The average gold grade from the surface mineralization at Vila Marieta is 85% higher than the average grade of Cerrito.
These discoveries have bolstered Lavras Gold Corp’s position in the gold market and offer promising prospects for the future. The company is continuing with its 16,000m drilling programme.
Santana Minerals (ASX: SMI):
Over to the Aussies, ASX listed Santana Minerals has informed investors that substantial deposits of high-grade gold may lie beneath the remote farmland situated between the Bendigo and Dunstan Ranges in Central Otago.
The Rise and Shine site, which is part of the company’s 272km2 Bendigo-Ophir Project, near Cromwell, has been promoted in an investor package this week as “the most significant single gold discovery in New Zealand in four decades.”
Experts estimate that the site could yield between 100,000 to 150,000oz of gold annually, equivalent to a minimum value of A$325M per year based on current gold prices.
Santana CEO, Damian Spring said, “We are thrilled to reveal some preliminary economics for part of this fantastic new discovery at the RAS prospect. To be able to show that just a part of our Bendigo-Ophir Project is capable of generating such positive conclusions from these initial mining assessments is a fantastic outcome for our shareholders.”
Barrick Gold (NYSE: GOLD):
Finally, Barrick Gold Corp’s Tongon mine in the Côte d’lvoire is set to continue operations until at least 2030, thanks to a substantial discovery of new deposits, as reported by Reuters. The mine began production in 2010 and was scheduled to close in 2020 prior to the golden discoveries.
Barrick also has plans to process gold mined in Boundiali at the Tongon mine. Additionally, if the deposit in Boundiali turns out to be larger than Tongon’s, the company will consider building a new mine there by 2025.
The mine’s output is projected to rise above 200,000oz of gold in 2023 and continue increasing gradually until at least 2026. In 2021, production stood at 206,000oz of gold, followed by 200,000oz in 2022.
This comes as the Côte d’lvoire is actively developing its long-neglected mining sector to diversify its revenue. Gold output has been steadily climbing, reaching a record high of approximately 48t in 2022, a 14% increase from the previous year. With the start of production from two mines owned by Roxgold, as well as a new mine from Endeavour operating in 2024, production is expected to reach 50t this year and 55t in the near future.
