The price of gold has surged 35% since the beginning of 2024, reaching an all-time high of over $3,000 per ounce. This increase has sent shockwaves through the mining industry.
Rick Van Nieuwenhuyse, CEO of Contango Ore, said, “We’re in uncharted territory. And we’ve gotten here very quickly.” The company is developing several gold deposits in Alaska.
The gold mining industry is a significant sector of Alaska’s economy. The state has a rich mining history, with many mines operating for decades. The recent surge in gold prices has breathed new life into the industry.
Meanwhile, Kinross Gold Corp. reported a 64% increase in sales between 2023 and 2024. The company owns the Fort Knox mine, one of Alaska’s largest gold mines.
Moreover, smaller placer operations are also benefiting from the price surge. Click Bishop, a former state senator and placer mine owner, said, “It’s good for everyone. It’s good for the big mines, small mines.”
The high gold price also attracts new investors to the industry. This influx of capital is expected to lead to increased exploration and development of new gold deposits.
In addition, gold mining is a significant contributor to Alaska’s economy. The nearly 850,000 ounces produced in 2024 accounted for $2 billion.
Furthermore, the high gold price makes it easier for miners to extract gold from lower-grade deposits. This could lead to an increase in gold production in the state.
The gold mining industry also creates jobs and stimulates economic growth in local communities. Many mines are located in rural areas, providing employment opportunities for residents.
Meanwhile, Van Nieuwenhuyse is optimistic about the future. “Anybody with an operating gold mine is in a happy spot right now,” he said.
The record gold prices are a boon for miners like Rick Van Nieuwenhuyse Contango Ore.
News story originally published by Alaska’s News Source.
