Newmont predicts all major gold miners will see production decline

As gold prices continually break records, Newmont Mining President and CEO Richard O’Brien warned analysts that the number of major gold prospects are declining globally.

RENO, NV - 

With only 800 known gold deposits globally that actually contain 100,000 or more ounces of gold--and as the number of new discoveries declines -- Newmont Mining President and CEO Richard O' Brien warned analysts and fund managers that every gold miner will experience production falls unless a technological breakthrough occurs.

During a presentation Friday to analysts, O'Brien and a number of Newmont executives discussed the dire predicament which is bound to be faced by any major gold company in the future. The number of new discoveries is trending down, fewer and fewer deposits are out there, and it takes much more money to find them.

And, O'Brien declared, it is "more and more unlikely that we are going to find big deposits near the surface that are going to be economical."

"Even if you find something, it's tough to get it over the line and it takes longer."

During the period from 1985 to 2003, 190 deposits were discovered by the international mining industry that ranged from 895 million to 1 million ounces of gold. Approximately five out of 10 deposits may contain about 3 million ounces of gold, while only 14 of the entire 190 deposits contained gold deposits equal to 10 million ounces.