You know the gold market is getting tight, when you read stories like this:
"AngloGold Ashanti and De Beers say their joint
venture’s exploration phase for gold deposits off South Africa’s west
coast has kicked off.
The two companies, which entered
into a joint venture to find and ultimately mine gold under the waters
of the Atlantic a year ago, are now researching whether the project will
be economically viable"
While I wish them luck, I suspect I would have a better chance striking out Albert Pujols than they have building a profitable ocean-based gold mine. Mining is an extraordinarily difficult business under the best of circumstances. I've read estimates that only 1 in 1000 exploration projects turn into an actual mine. Keep in mind, land based projects would theoretically have a much higher chance of success versus a sea-based project because of readily available equipment and infrastructure plus the experience that is so important in finding a potential site. Moreover, since when is De Beers a gold company?
De Beers and Anglo Hunt for Offshore Gold
