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NEWGENGOLD REVIEW

For gold we must trust

All eyes were on where the next greenfields discoveries will be made

NewGenGold 2019 showcased the discovery histories of 13 world class gold deposits from some eight
countries, with the 400 people in attendance also presented with keynote addresses on the spectacular
projects hosted in China and Russia. The biennial conference’s closing forum saw exploration experts
discuss the merits of brownfields and greenfields exploration.
The question was posed to panellists about how the current focus on brownfields exploration would affect
future rates of gold discovery.

by Mark Andrews

buoyant gold price over a lengthy period has done “Probably the biggest mistake I have heard coming
A nothing to inspire investors to look towards companies from government agencies, research organisations and
grafting away in greenfields terrain. universities is the idea that you should be going into
Top end gold M&A has been the dominant theme among the greenfields areas and finding Tier 1s. This is just setting up
sector’s majors and mid-tiers while finding ounces in familiar the next generation to do what the previous generation didn’t
pastures to keep raising the bar in production levels has largely succeed with.”
also been favoured over high-risk, high reward exploration Depressed market conditions for juniors has meant
in “frontier” parts of the world. greenfields exploration activity has been stagnant across all
Given the track record of broken promises within industry, commodities.
investors have approached speculative plays with caution The penny has dropped in other sectors with diversified
and instead have shown a willingness to support companies majors BHP Ltd and Rio Tinto Ltd both increasing spending
with production credentials and healthy returns. Therefore, on greenfields exploration, while companies in the rung
maintaining production profiles has mainly been done below have started collaborating with cash-strapped juniors
through near-mine exploration and potential extensions to exploring in prospective but challenging, often never-before
existing mines. explored territory.
It can’t be denied that industry has successfully delivered on However, the trend has not yet fully reached the gold sector,
this strategy, with Callie, Jundee, Bronzewing and Sunrise leaving industry insiders wondering where the next wave of
Dam among Australian examples of projects displaying discoveries will come from.
significant growth from their initial reserve bases. “The exploration scene covers about 60% of the ounces
“Because brownfields [exploration] has been so successful, discovered, so the smarts are out there. The money is also
greenfields can live off that. To find a Tier 1 greenfields there, it is a matter of using that same innovative pull that
deposit; it has to be big enough to mine and get social you use in discovery to complement what you do to raise
licence and the like to operate,” Julian Vearncombe from money,” Breaker Resources NL executive chairman Tom
SJS Resource management said during the NewGenGold Sanders said.
Conference panel discussion. “The exploration industry is high risk and it needs a model

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