by Richard (Rick) Mills, Ahead of the Herd:
As a general rule, the most successful man in life is the man who has the best information
There’s an interesting interview done by Geoff Candy over on mineweb. com. In the interview Geoff asks Gold Fields CEO, Nick Holland “What went wrong with the gold industry?” Holland’s reply is very informative.
“I think if you go back to the late ‘90s when gold was at a low of about $250 per ounce the industry at that time was really hanging on by its teeth and in order to do so was high grading and if you look at the average grades companies were mining it exceeded the reserve grade and that was never sustainable.
The other thing is exploration was cut back quite a lot and there’s typically a timeframe of anything up to ten years or even longer between initial grassroots exploration and discovery and construction of a new mine.
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