AUSTRALIAN RESOURCES & INVESTMENT Feb 2022

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GOLD

Australia’s growing treasure chest Australia’s gold industry is tipped for continued growth, propelled by new gold mines and existing expansions. Soon enough, output is expected to top 374 tonnes, writes Anthony Fensom. Drilling at Superior Resources’ Greenvale project in QLD.

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n 2021, Australia claimed the mantle of the world’s largest gold producer, with rising investment and exploration activity boosting the outlook. Will the strong momentum continue in 2022? Having been the world’s second-largest producer for around a decade, Australia overtook China in the first half of 2021, with production of 157 tonnes compared to China’s 153 tonnes amid reduced output in the Asian giant, according to analysts Surbiton Associates. This followed strong production levels, with 321 tonnes produced in Australia in the 2021 financial year (FY21), according to the Office of the Chief Economist. The government forecaster sees output rising to 362 tonnes in the 2022 financial year, with a further climb to 374 tonnes predicted in the 2023 financial year (FY23) following the opening of new mines and existing-mine expansions. Australia’s gold export earnings are expected to reach $28.4 billion in FY23, up

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marginally from the previous fiscal year’s $28.3 billion, on the back of higher export volumes. Australia’s biggest export markets in FY21 comprised the United Kingdom, the United States, Singapore, China and Switzerland. Boosting the production outlook, gold exploration expenditure increased by 21 per cent year-on-year to reach nearly $430 million in the September quarter 2021, amid high US and Australian dollar gold prices. Western Australia remained Australia’s “golden state”, accounting for 72 per cent of total gold exploration expenditure. Among the WA projects, Red 5’s King of the Hills gold project is expected to start production in the June quarter 2022, while Ramelius Resources’ Tampia mine in WA is seen adding further output. In addition, Newcrest is extending the mine life of its Telfer mine, with other additions including Resources and Energy Group’s Granny Venn mine and Calidus Resources’ Warrawoona mine.

Other emerging WA gold miners include Sayona Mining, which is eyeing Hemi-like targets near De Grey Mining’s 6.8-millionounce discovery. Pending approvals, drilling is planned for 2022 at Sayona’s Mount Dove and Deep Well projects. “The Hemi discovery has highlighted the Pilbara’s potential for major new gold finds. We’re excited by the opportunity to advance our projects, adding to the value of our lithium assets in Canada and Australia,” Sayona managing director Brett Lynch says. Another WA-focused miner, Platina Resources, is planning an air core drilling program at its Challa gold project following encouraging gold assay results, with new drilling also eyed for its Xanadu gold project in the Ashburton Basin. “Western Australia is Australia’s premier gold state and we’re confident we are in the right place at the right time,” Platina managing director Corey Nolan says. On the east coast, Queensland-focused Superior Resources sees potential for


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