The gold rush era has restarted in outback Queensland after a three-decade hiatus
The gold rush has resurfaced in northwest Queensland 30 years after being abandoned as mining companies profit from soaring prices for the precious metal.
Key points:
- Exploration and mining has resumed in the gold-rich Cloncurry area of northwestern Queensland
- The gold industry contributes $23 billion to the Australian economy in 2021
- Australia is the world’s second largest gold producer, lagging behind China
The Cloncurry region was once home to a thriving gold mining industry, but was almost deserted when gold prices fell below $240 an ounce in 1991.
But now, with spot prices more than 10 times higher, the area known as the Golden Mile is starting to come to life, with new players on the field hoping it will once again live up to its reputation.
Director of mineral resources advice and promotion at Geoscience Australia, Allison Britt, said gold was seen as a “safe haven” in difficult times.
“Over the last few years, we have had high gold prices and the current spot price is around $2,600.”
At Mount Freda, 39 kilometers southeast of Cloncurry, new Australian producer Kuncia Gold is expected to start pouring gold by the end of the year.
Kuncia, formerly the Ausmex Mining Group, owns eight historically high-grade gold mines that make up the Golden Mile and the company also recently acquired the Lorena gold processing plant to process gold ore.
Mount Freda mine project manager Dan Mundy said although the complex was small compared to other operations in the area, it would make a significant contribution to the local economy.
“We don’t have a camp on site, so we transit from Cloncurry, which is good because [workers] spend money in the city,” he said.
“Our key personnel are fly-in fly-outs, but the rest we are trying to hire locals and local contractors.
“We like to train young people and [are] really wanted young field assistants and truck drivers to give them a start, which they could then move on to bigger projects later on.”
Golden opportunity for Australia
Australia has the second largest gold industry, producing about 10 percent of the world’s gold, far behind China’s 12 percent.
The industry will contribute $23 billion to the Australian economy by 2021.
Britt said the unstable economy, caused by the COVID pandemic, and historically high gold prices have prompted more people to turn to the precious metal for investment.
He said mining companies often use profits from gold to finance the exploration of other minerals, including essential minerals used for renewable projects.
“These high prices have driven increased exploration, expansion of existing mines and reactivation of existing mines and development of new mines right across Australia,” said Britt.
The Golden Mile consists of several historic small-scale copper and gold mines most of which were mined before 1960, when infrastructure and transportation were lacking by ox or camel trains.
Historic mines in the area are also commonly identified by minerals on the surface and deep exploration is rare.
Kuncia is one of several companies exploring resource-rich northwest Queensland with renewed vigor.
Western Australia-based company Carnaby Resources is looking for gold 70km south of Mount Isa near the Duchess township.
Another company, C29 Metal Limited, is looking to acquire the Mayfield Copper-Gold site 25km east of Mount Isa.
The only thing holding back the project, according to Mount Freda’s Dan Mundy, was the labor shortage.
“Currently we have around 18 people on the scene, but we are looking for 20 more personnel and we will try to find as many local residents as possible,” he said.
“It’s very difficult to recruit technical personnel, engineers and geologists. It is very difficult to get them.”
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