In 1999, companies with significant exploration programs budgeted a total of $126.6 million on advanced Latin American gold projects — 32% less than in the previous year.
Gold resources under development in the region declined by 12.2% to 117.9 million oz., following a decline of 10% in 1998. Also, 1999 saw a decline of 33.5% in advanced exploration spending, compared with 1998.
The lack of investor interest in gold during most of 1999 continued to restrain exploration spending on gold projects in Latin America, especially among junior companies dependent on stock offerings or private investors for funding.
During the past year, 23 projects containing resources of 25.3 million oz. gold have been put on hold, including Placer Dome’s Las Cristinas in Venezuela and Lyon Lake Mines’ Cerro Crucitas in Costa Rica. Compared with last year’s estimates, resources at active projects declined in 10 of the 18 Latin American countries surveyed. The largest decline was in Bolivia, where four of five projects being developed in 1998 were either discontinued or returned to landowners, largely because of a lack of funding. Ecuador experienced a 62% decline in development; Brazil, 57%; and Venezuela, 52%.
An increase in active gold resources was reported in eight countries, the most significant being in Argentina, where seven projects are being developed with a total resource of 9.4 million oz., compared with five with a total resource of 3.8 million oz. in 1998.
Defined resources rose 8% in Mexico, to 15.7 million oz., 7.4% in Colombia, to 4.9 million oz., and 5.7% in Chile, to 40.7 million oz.
— The preceding is from Strategic Report, the bi-monthly publication of Halifax, N.S.-based Metals Economics Group.
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