Gold exports on track for historic performance Gold exports on track for historic performance
MBONGENI MGUNI
Staff Writer
The country's gold exports are on track to hit a four-year high this year, with sales of the precious metal by sole producer, Mupane Gold Mine, reaching P494 million between January and August.
The figure, supplied this week by Statistics Botswana, compares favourably to the P545.8 million recorded for the full year 2011. This is currently the highest figure in a calendar year since the last 'boom year' of 2008.Trend analysis based on Statistics Botswana data indicates that quarter-by-quarter, gold exports in 2012 have eclipsed last year's significantly, despite the slowdown in the precious metal's spot price earlier this year.The data indicates that in the first quarter of 2012, gold exports were pegged at P194.2 million compared to P111.8 million for the same period last year. In the second quarter of this year, exports were recorded at P190.7 million, compared to P123.7 million for the corresponding period last year.
In the second quarter of 2012, May recorded the highest monthly exports since 2008 at P84.8 million, putting gold on track for a record-breaking year.Gold prices have continually hit record territory in the years since the global recession, reaching an all time high of $1889.70 per ounce in the second half of last year. Investors eager to insulate their assets against prevailing crises in the US and Euro zone economies have bought heavily into gold, pushing prices up since the second quarter of 2009.For Mupane, which had been facing decommissioning due to declining resources, the gallop in prices was a godsend enabling new owners, Galane Gold Limited, to recoup costs and budget for exploration.
In May this year, the mine's executives announced a $3.4 million exploration budget including a comprehensive programme comprising 16,000 metres of drilling near the existing mine and in other prospecting areas.Mupane also announced plans to revive the long-closed Monarch Mine near Francistown as part of the search for more gold deposits to feed the flagship operation.Prior to its closure in 1998, Monarch was the country's most successful gold mine, among the numerous mostly small-scale operations scattered in the North-Eastern gold belt. Galane Gold estimates that Monarch Mine, a landmark dating back to the 19th century, pumped out approximately 240,000 ounces of gold during its lifespan.The company is studying the mineralisation of the region beyond the 200-metre depth mined previously. Estimates suggest the potential for 250,000 ounces every 200 metres below the region.