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  Gold: Difficulties In Going ?Under Cover? To Find Hidden Deposits Are Great BUT So Are the Rewards  
  Lorimer Wilson on 2018-06-17 15:16:34.0
 
 

Today's infographic comes to us from Nevada Exploration, and it identifies the problem behind finding ?hidden? deposits of gold that do not leave a helpful trail of clues on the surface.

The original article has been edited here for length (…) and clarity ([ ]). For the latest ? and most informative ? financial articles sign up (in the top right corner) for your FREE tri-weekly Market Intelligence Report newsletter (see sample here)

…Almost all early-stage prospecting methods are still based on the same key principle: trying to find areas of exposed bedrock, called outcrops, that indicate an orebody is near…[so] what happens when a geological system doesn't come in contact directly with the surface - when deposits are trapped underneath large amounts of soil and gravel in what geologists call a "covered" setting?…They must first find a way to ?see through? the cover in order to identify what geological systems really exist below and seeing through cover can be expensive and difficult to do, but it also has big potential upside. [That being said,]…many geologists think that the next game-changing gold deposit could be found under cover.

For every industry problem, there is often a precedent to be found elsewhere ? and an interesting situation that is analogous was faced by the oil exploration industry years ago. They had reached diminishing returns with shallow water deposits, and developed technology to go deeper. Suddenly, monster deposits were being found again. Experts involved in mineral exploration see the same thing happening with cover. In other words: whoever can figure out how to explore under cover could be reaping big benefits.

In the world's most prolific gold jurisdictions, there are massive amounts of land that have not yet been explored because of cover. In Canada and in Australia, over 70% of land is covered. In Nevada, which produces the most gold ounces per square kilometer, about 55% of land is covered….Imagine what gold could be hidden under soil and gravel within the valleys of the state and global data so far suggests that deposits discovered under cover tend to be 2-4x bigger.

While the idea of unlocking this potential is extremely exciting, it also poses a significant technical challenge. Conventional tools are poorly suited to covered settings, and existing techniques for systematic exploration don't work. The end result is high-risk, high-cost exploration. To successfully explore through cover, companies need:

  • New technology to see through cover
  • A way to lower the costs of testing targets
  • A way to directly test covered bedrock

So far, a few ideas have been pioneered for seeing through cover ? and it will be interesting to see what results they bring in. If any of them are able to unlock the secret of exploring through cover, it could be the catalyst for industrywide change, as well as the discovery of the monster deposits that will meet our mineral needs of the future.

[Below is an] infographic from Nevada Exploration that identifies the problem behind finding these ?hidden? deposits that do not leave a helpful trail of clues on the surface…

Related Articles From the munKNEE Vault:

1. Gold Production to Drop By 50%; Few New Discoveries Will Exacerbate Problem

The amount of gold becoming available for production in the near term will be well under 50% of that currently being produced and the longer-term downward trend in discoveries will likely continue for at least the next few years.

2. Where On Earth Is the World's Gold?

Within the planet's crust, there is only 1 gram of gold for every 250 tonnes (550,000 lbs) of earth. Gold's rarity means that finding economic deposits is extremely difficult. To understand how gold mining and supply work, we must first unearth how gold deposits form. This infographic, part two in our 2014 Gold Series, covers the full supply picture behind the yellow metal.

3. An Infographic on Gold Mining & Supply

From ancient times to the famous gold rushes, gold was first discovered in placer deposits?.Today, however, most gold comes from hard rock deposits where gold is disseminated or associated with other metals and mined either through open pit or underground mining. This infographic tells (shows) you everything you need to know about gold mining and its supply from around the world.

4. The World's Deepest Gold Mine Is 2.5 Miles Down!

Humans will do almost anything for gold. In fact, they will even suspend themselves 2.5 miles into the Earth ? braving extreme temperatures, armed thieves, and constant seismic activity ? just to mine a 30-inch gold reef. Welcome to another day at Mponeng, the world's deepest gold mine.

5. Mining Costs Depend on Better Comminution ? the Process of Grinding & Crushing Ore ? Here's Why

On average the most energy intensive process in mining operations is comminution and with rising energy prices and decreasing ore grades, this is an area that smart producers are focusing on. Benefits of improving comminution efficiency include higher potential earnings, better overall environmental impact, and increased outputs as the very enlightening infographic below illustrates.

6. Exploration for Minerals ?to boldly go where no man has gone before? ? Here's Where

With growing global demand and declining mine grades commodity prices continue to rise. As such the exploration for minerals is taking on both new heights and new depths. This infographic outlines 5 of the most far-reaching and interesting ways of exploring for mineral wealth.

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The post Gold: Difficulties In Going "Under Cover" To Find Hidden Deposits Are Great BUT So Are the Rewards appeared first on munKNEE.com.

 
 
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