According 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 non-producing projects equating to 29% of gold contained in resources under development. Mexico holds the second largest non-producing gold resources and the largest producing resources holding 28% of gold contained in producing resources.
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.
From the report entitled, “Latin American Gold Output Increases in 2011” by Metals Economics Group. Metals Economics Group (MEG) is a trusted source of global mining information and analysis. With three decades of comprehensive information and analysis, MEG has an unsurpassed level of experience and historical data. The information provided herein has been provided to MiningFeeds.com by the author and, as such, is subject to our disclaimer: CLICK HERE.