.
Search
 Email this articleE-mail this story  Discuss this articleWrite letter to editor  Discuss this articleOrder a classified ad  Print this page

Gold continues steady climb

David Ryan
Northern News Services

Yellowknife (Apr 26/06) - Gold, the mineral that helped forge Yellowknife, hasn't been worth as much as it is today since the early 1980s.

The price has jumped by more than 44 per cent in the past year and currently sits at $620.30US/ounce - almost $200 higher than a year ago.

NNSL Photo/graphic

John Probe, owner of Eldonn Jewellery, said even though the price of gold has jumped above $600 an ounce, consumers won't see jewellery prices climb unless it stays there long-term. - David Ryan/NNSL photo


Higher prices are making it easier for exploration companies, such as Tyhee Development Corp., to advance their projects in a couple of ways.

In Tyhee's case the Yellowknife Gold Project looks a lot better to potential investors when it is economical to mine lower grade ore, said president and chief executive officer David Webb.

"The project looks more economic for us to make money," he said, adding while there are some high-grade parts to the deposit there is more medium- and low-grade ore.

With the price of gold rising, it is profitable to extract more lower grade material, said Webb.

Located 90 km north of Yellowknife, the project has a budget of between $6 million to $6.5 million for the year.

As gold prices continue to rise, more and more investors are backing exploration companies keeping such budgets high, he said.

"Things look very positive," said Lou Covello, president of the NWT/Nunavut Chamber of Mines, adding there could be far more gold exploration going on around the territories given the North's resources. Besides new exploration, Covello said that with skyrocketing prices, gold mines that have operated in the past may have renewed potential.

"Someone may be willing to take a look," he said.

That's not the case around Yellowknife, however, where Miramar Mining Corp. is focused on the future rather than the past, said Nicole Hoeller, director of investor relations. The company owns the Con Mine, which ceased operations in 2003. She said the company is working on getting its Hope Bay gold mine approved and has no interest in re-opening Con now. More valuable gold shouldn't dramatically affect the price of jewelry according to at least one Yk merchant.

"In the short term, the price is not really a problem," said John Probe, owner of Eldonn Jewellery.

If gold prices remain high in the long-term, then the gold supply price may go up at which point necklaces and earrings would follow suit.