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Gold Series Part II: Unearthing the World's Gold Supply

GOLDSIPPLY UNEARTHING THE WORLD'S THE GOLD SERIES PRESENTED BY EGOLDCORP PART 2 WITHIN THE EARTH'S CRUST, THERE IS ONLY 1 GRAM OF GOLD FOR EVERY 250 TONNES (550,000 LBS) OF EARTH. • Gold's rarity means that finding economic deposits is extremely difficult. To understand how gold mining and supply work, we must first UNEARTH HOW GOLD DEPOSITS FORM. THE ORIGIN Gold OF • Virtually all gold discovered in the crust was thought to be deposited by METEORITES over time. Because of gold's high density, most of the gold on Earth is thought to have sunk DEEP INTO THE CORE when the planet was still molten liquid. DID YOU KNOW? Roughly 1/3 of all the gold The asteroid that created the ever mined on earth has Vredefort crater helped seed the been extracted from these Witwatersrand basin in South WITWATERSRAND ROCKS. Africa, which is home to the RICHEST GOLD DEPOSITS ON EARTH. • THE GENESIS OF GOLD DEPOSITS • Over time, gold dissolves in hot water deep in the crust under immense pressure. It is then transported and deposited upwards as the water travels up cracks and fissures towards the surface. -FAMOUS PROSPECTOR SAYING "GOLD IS WHERE YOU FIND IT" PLACER TYPES OF GOLD DEPOSITS Deposits are formed when erosion exposes veins of gold. The gold, because of its density, eventually is moved by Earth's forces such as water and gravity. Gold nuggets found with gold panning are created in this manner. VOLCANOGENIC MASSIVE SULPHIDE (VMS) (VMS) deposits are formed at or near the SEA FLOOR by underwater volcanic activity. They can be a significant source of copper, zinc, lead, gold, and silver. • EPITHERMAL Deposits are created close to surface and are deposited by hot fluids. These occur typically in areas where MAGMA is able to move high in the Earth's crust. Gold, silver, copper, and other metals are found in epithermal deposits. PORPHYRY Deposits are the single most important source of COPPER and molybdenum today. Also sometimes containing gold, they form when a column of magma rises and cools in two stages, trapping rich localized zones of minerals. CARLIN-TYPE Deposits occur chiefly in Nevada, where the gold is "invisible" to the naked eye by being disseminated throughout the sedimentary rock. Almost always, these are hosted in CARBONATE rocks. OROGENIC Deposits form during “mountain forming" events when tectonic plates collide. The gold, along with other minerals, is often precipitated in quartz. TYPES OF GOLD MINES HARD ROCK GOLD DEPOSITS CAN BE OPEN PIT MINES • MINED IN TWO Used for deposits close to WAYS: the surface. • UNDERGROUND Used for deposits that are deeper below. DID YOU KNOW? The world's deepest gold mine is in South Africa and reaches 3.9 km beneath the surface. Its tunnels run 380 km long - 50 km LONGER than the NYC subway system. Ltualy eft!? According to a 2013 report by Visual Capitalist and Natural Resource Holdings: THERE ARE 580 GOLD DEPOSITS LEFT THAT ARE 1 MILLION OZ IN SIZE OR BIGGER with a total of 3.72 BILLION OZ (115,700 tonnes) of gold in the ground. Based on best estimates and metallurgical recoveries, only 1.82 BILLION OZ (56,608 tonnes) will ever be recovered and enter the supply stream. MEDIAN GRADE -• OF THE WORLD'S LARGEST GOLD OPERATIONS 5 Trend 2009 2010 1998 1999 2002 2003 2008 2012 Information courtesy of Casey Reseanch and IntieraRMG The average grade of producing mines is 33% HIGHER than that of undeveloped deposits. The trend seems to be continuing. Producing mines today are estimated to have an average grade of 1.18 g/t and undeveloped deposits have an average grade of 0.89 g/t. TYPES OF Mine Supply (Mine production + net producer hedging) GOLD SUPPLY Recydled Gold TOTAL TONNES: sum of mine production and recycling. Does not include net sector sales 2009 2332 1672 = 4004 tonnes 2010 2600,2 1640.7 = 4240.9 tonnes 2011 2850 1649 = 4499 tonnes 2012 2824 1591 = 4415 tonnes 2013 2969 1371 = 4340 tonnes TONNES 1000 2000 4000 4500 With the gold price DECREASING 28% in 2013, ETFS saw massive outflows of 880.8 tonnes. • Central banks became net purchasers of gold in 2010 for the first time in many years. Most recently, central banks added 369 tonnes of gold in 2013. DID YOU KNOW? The market for "paper gold" is actually much, much bigger than it is for physical gold. The London Bullion Market Association (LBMA) estimates that more gold is traded per day than the entire amount mined each year. The paper gold market includes • all gold trades where it is not actually physically delivered to the buyer. CENTRAL BANK NET SALES & PURCHASES Net Sales Net Purchases 800 600 400 200 -200 -400 -600 -800 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Information courtesy of Thomson Reuters GFMS, World Gold Council 10 K TOP GOLD PROD UCING COUN TRIES PRODUCTION (TONNES) (128.3 (237.8 TONNES Canada Russia (226.9 United States TONNES China 437.3 97.8 101.2 TONNES Mexico Ghana 94.8 TONNES, Indonesi (182.2 South Africa TONNES Australia (259.4 168.8 TONNES TONNES • TOTAL WORLD PRODUCTION 2,982.2 tonnes (2013 est.) TOTAL CENTRAL BANK RESERVES 31,890.7 tonnes TOP GOLD RESERVES UNITED STATES 8,133.5 TONNES That's almost 1oz for each U.S. citizen! GERMANY ITALY 3,387.1 2,451.8 TONNES TONNES FRANCE 2,435.4 TONNES SWITZERLAND CHINA 1,040.1 1,054.1 TONNES TONNES RUSSIA 1,035.2 TONNES JAPAN NETHERLANDS 765.2 TONNES 612.5 TONNES INTERNATIONAL MONETARY FUND INDIA 503.0 tonnes 557.7 TONNES ECONOMIC GOLD DEPOSITS are difficult to find and there has been a trend of decreasing grade for miners through the sector. DESPITE THESE FACTORS, THE GOLD SUPPLY MUST ALWAYS MEET DEMAND. It is these fundamentals that drive the price of gold. • THE THESE ARE QUESTIONS WE WILL ANSWER IN... GOLD SERIES PART 3: DEMAND PRESENTED BY EGOLDCORP THANK YOU TO OUR OTHER SPONSORSS WHO HELPED MAKE THIS SERIES HAPPEN: • E FALCO PACIFIC TOP 10 RESOURCE STOCKS TO WATCH THIS SUMMER RESOURCE GROUP See the full report at HORNE 5 DEPOSIT, 80 YEARS IN THE MAKING TICKERSCORES.COM BRAZIL BRIXTON METALS BALMORAL RESOURCES INC EASTMAIN RESOURCES BALMORAL EXPLORES HIGH-GRADE GOLD IN QUEBEC, CANADA PEOPLE, CAPITAL AND STRATEGY TO DELIVER NEAR-TERM GOLD PRODUCTION BUILDING FOR TOMORROW. TODAY FOCUSED ON HIGH-GRADE GOLD AND SILVER VISUAL CAPITALIST Educating a new generation of investors on resource investing and management VISUAL CAPITALIST Grams per Tonne 0007 2001 00S 3000 00SE

Gold Series Part II: Unearthing the World's Gold Supply

shared by visualcap on Apr 04
This infographic, part two in our 2014 Gold Series, covers the full supply picture behind the yellow metal. Within the planet’s crust, there is only 1 gram of gold for every 250 tonnes (550,000 lbs)...


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