Australia’s golden renaissance

Gold is experiencing a resurgence as a reliable and profitable resource, Catalpa Resources managing director Bruce McFadzean told MINING DAILY.

Gold is experiencing a resurgence as a reliable and profitable resource, Catalpa Resources managing director Bruce McFadzean told MINING DAILY.

“In these times everyone is turning to gold,” he said. “It is the only commodity that is either increasing or holding its own in the current environment.”

Catalpa Resources last week announced it had signed a merger implementation agreement with mining company Lion Selection to create an Australian mid-tier gold producer in Western Australia.

Gold prices have remained steadily high in an unstable commodities market, staying near record prices of close to US$1000 per ounce.

Last week’s announcement of the successful applicants for the WA Government’s co-funded Industry Drilling Program underlined gold’s current regard in the market. Seventeen of the 35 successful applicants were for gold exploration.

Western Australia’s Minister for Mines and Petroleum Norman Moore agrees that gold is experiencing a rebirth.

“It is pleasing to see that gold, once the stalwart of WA’s resources industry, is enjoying a resurgence,” he said.

“The (WA) Goldfields and Esperance regions appeared in 16 of the exploration applications,” Moore said.

According to McFadzean, the full influence the current economic downturn will have on gold prices has not yet been felt.

“The impact on gold is actually going to be more significant over the next couple of years than what we have seen recently,” he said.

“I think at worst, the price of gold will stay the same. It certainly will not go down.”

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.