Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
According to the latest ‘State of the Market’ report from IntierraRMG, gold exploration activity has been trending downward since the end of October 2011.
In the last twelve months it dropped 55%, with activity reported from just 172 prospects in March, compared to 382 in March 2012.
This significant decline was due to growth of economic uncertainties, slumping metals prices and falling equity valuations.
However, as indicated by IntierraRMG, gold is still priced at well above the cash extraction cost of a large part of the world’s production.
Even at the recent two-year low, fewer than 9% of the 235 gold mines monitored by IntierraRMG had average cash operating costs higher than the metal’s price.
The figures for the next few months are unlikely to be better following the precious-metals price collapse in mid-April and a significant drop in recent exploration funding.
Image: albund / Shutterstock.com
