Gold reserves nearing a crisis

Gary Park, PNA Canadian correspondent

Toronto-based Barrick Gold Corp., one of the world’s leading gold producers, warns today’s gold reserves will run out within 10 years unless there is a dramatic increase in exploration spending.

Alex Davidson, Barrick’s senior vice president of exploration, told the Prospectors and Developers Association of Canada on March 10 that world-wide spending slumped to US$900 million last year from US$3.3 billion in 1997.

“The current state of affairs in exploration is untenable for the health of the industry,” he said. Davidson said more money is urgently needed for junior mining companies, which have traditionally been a pipeline for new projects.