Cutting-edge technologies may enable mining operations to get better and more efficient at what they do. At the same time, scientists and entrepreneurs are on the lookout for new places to find the precious metal.
While Earth potentially holds some remaining unexplored gold deposits, many of those regions pose problems for mining operations. For example, its extreme weather conditions and remote location make Anartctica cost-inefficient for mining. West Africa has great underexplored potential but features unstable terrain, uncharted territories, and tightening regulations amidst a growing understanding of the hazards of mining.
For those reasons, prospective opportunities for future gold mining operations tend to focus on the following:
From the Sea Floor
Oceans contain gold, both dissolved in the water and undissolved on the sea floor.
According to Forbes, the world’s oceans contain about 20 million tons of gold in the water. While that sounds like a lot, the concentration is extremely low. In fact, the National Ocean Service reports that oceans in the Atlantic and North Pacific contain only about one gram of gold for every 100 million metric tons of water.
What do all of these numbers mean? It is extremely difficult and expensive to extract gold from seawater. Current technologies do not allow companies to make a profit by doing so.
The ocean floors also pose challenges, but explorations of potential solutions are underway. Most deposits in the seabed are located a mile or two beneath the surface and also encased in rock, making it a cost-ineffective way to mine. Until now, most marine mining efforts have taken place in shallow coastal waters, where resources like sand, tin, and diamonds are more readily accessible.
Most proposed deep-sea mining sites, however, are near polymetallic nodules or hydrothermal vents at 4,600 to 12,100 feet in depth. The vents create massive sulfide deposits on the seafloor that contain valuable metals, including gold. While no commercial deep-sea mining enterprises are currently in operation, the International Seabed Authority has begun granting exploration licenses.
At Lower Densities
All precious metals have a grade depending on the proportion of metal in the ore. When gold ore at a mining site has a high grade, that means its ore has a high density of gold. These mines have a reputation for being of higher quality. The reverse is also true: mines with lower-grade ore are considered lower quality due to their lower density of gold.
Grams per ton (g/t) is the most common metric to indicate gold density. High-quality mines have densities of 8.0 to 10.0 g/t, while lower-grade mines have densities of 1.0 to 4.0 g/t. Numerous countries are home to high-grade mines, including the United States, Russia, Peru, Canada, and Indonesia.
Generally, the most profitable mines have high-grade ore. However, lower-quality mines can also turn a profit if it takes less effort to extract the gold. For example, thanks to lower operating costs, open-pit mines are valuable despite typically containing a lower-grade ore.
Using new technologies to capitalize on lower-density operations might provide opportunities for future growth in gold mining. Another potential source is investment in in junior mining companies — miners that produce less than 1 million ounces a year,
In Space
As the reputed original source of all the gold on Earth, outer space is a potential new source of gold. Scientists believe that gold first came about when neutron stars collided with each other before the solar system was formed. Terrestrial deposits of gold, such as South Africa’s Witwatersrand Basin, are most likely the result of ancient meteorites crashing into Earth.
While mining gold in outer space may prove exorbitantly expensive, that’s not stopping people from trying. Upstart space mining companies are now eyeing potential sources of gold on other planets, moons, and celestial bodies like asteroids. That’s because the potential payoffs are huge: the asteroid belt may hold over $700 billion in mineral wealth.
The possibilities of space mining are so great, in fact, that some proposals are now calling on governments to protect pristine planets from an imminent interplanetary gold rush.
The Future of Gold
The next few decades will likely see substantial changes in the gold industry, including some that we can’t currently predict. Beyond the typical reasons for fluctuating gold prices — including dwindling supplies, geopolitical tensions, and economic pressures, the World Gold Council reports that the following factors will likely impact the future of gold:
- Environmental concerns, social issues, and government regulations will play an increasing role in altering mining production methods.
- The evolving need for gold in the modern energy, healthcare, and technology sectors may place increasing demands on dwindling supplies of the precious metal.
- Economic growth in countries like China and India will have a significant impact on gold demand.
- Mobile apps allowing individuals to buy and sell gold will develop rapidly in India and China, affecting the manner and frequency of gold investment and exchange.
- The gold mining industry will have to confront the challenge of maintaining gold production to match the volume it has historically delivered.
While the future of gold is currently unclear, many experts believe it still makes a solid investment. With high inflation and stubborn interest rates, many investors have continued to turn to gold. As demand rises, prices typically follow.