Solid gold prices give miners a bullion reasons to smile

No money and no job prospects during the Great Depression led many people to try their luck on the Queensland gold fields.

Mines and Energy Minister Geoff Wilson said today it was a case of history repeating itself as gold prices continue to soar in the worst economic crisis since then.

“It’s the upside of the downside. The gold mining industry in Queensland has not lost its lustre. It’s as strong as ever,” Mr Wilson said.

“There’s never been a better time than now to explore Queensland’s gold fields,” he said.

Minister Wilson said gold prices were hovering around $1350 an ounce, about one third higher than they were this time last year.

The current high prices are largely reflective of a weakened Australian dollar against the Greenback.

“Until recently, gold had generally not been favoured by investors, but the global financial crisis and uncertainty in the market has changed all this,” he said.

“Gold is now one of the banks most favoured commodities.

“It’s encouraging news for Queensland gold miners. High prices and relatively low production costs will more than help them through troubled economic times.

“Mining companies around the world are shedding staff. What we’re seeing is the human face of the global economic crisis and the harsh reality that we are indeed in tough economic times.

“Mining is important to Queensland and so are the 37,000 men and women who work in our mines. That’s why the Bligh Government took swift action to help protect their jobs.

“We will ride through this storm together. Queensland’s mining industry is resilient with a strong long-term future.

“In the meantime, I’m encouraged by the current high gold prices. It’s good to know that business has picked up strongly for gold miners,” he said.

The Minister said a major gold rush at Gympie, 130km north of Brisbane eased the new colony’s economic problems in 1868 and during the Great Depression, the discovery of gold at Cracow in Central Queensland helped line miners’ pockets.

Gold was first discovered in Queensland in 1857 on Canoona, a sheep station north of Gladstone.

Mr Wilson said that in the current financial climate he expects it to become easier for explorers to raise finance for gold mining as investors scan the market for safe havens.

The Bligh Government has a number of grants for junior explorers keen to make their mark in mining in Queensland.

“Today’s exploration can lead to tomorrow’s mines and that means more local jobs,” he said.

Already, a number of junior explorers have leapt at the chance to take up State Government grants.

There are encouraging signs for Citigold Corporation’s deep drilling program near Charters Towers. It has led to the discovery of significant gold mineralisation close to the Brilliant West structure.

Gold mineralisation has also been discovered from drilling tests by Renison Consolidated Mines NL at their Friar Tuck prospect east of Georgetown.

Gold Aura Limited has put one of the State Government’s grants to good use by exploring two of the state’s most highly prospective areas for gold and copper – the Georgetown and North West mineral provinces where they converge near Croydon.

Drummond Gold Limited is working on a project to give explorers a better understanding of the nature of granite in minerals in the Drummond Basin in Central Queensland.

Media Inquiries: Ellen McIntyre 3225 1819

Simon Hamill 3224 7332