Finding new mineral deposits for precious metals would almost be impossible in this day and age. That is not necessarily the case in every region. According to Egyptian sources, a new gold deposit has been found with a potential value of up to $1.8 billion.
Cautious Excitement in Egypt
Stumbling across new precious metal deposits of significant value is rare. Not because there aren’t ample places to look, but simply because a lot of gold has been collected from the earth in the past few centuries. In Egypt, a country that one wouldn’t necessarily associate with gold mining, such a deposit may have been found.
The local Ministry of Petroleum and Mineral Resources confirms the news. A gold deposit with an estimated threshold of 1 million ounces has been discovered. At today’s prices, that would make this deposit worth roughly $1.8 billion.
Located in the mineral-rich Eastern Desert, it will be interesting to see how much gold it can effectively produce. There are still some questions as to how the deposit’s size has been measured exactly. Whether that information will come to light in the coming weeks, remains to be determined.
The new deposit is located on a mining concession run by a state-owned firm. Developing the deposit will be done by a new company, formed by Shalateen Mining Company and the Egyptian Mineral Resources Authority.
Following this news, we may see foreign investors flock to Egypt in the coming months. For Egypt’s government, the goal is to attract up to $375 million by late 2022. Canadian Aton Resources secured a gold mining license in Egypt earlier this year. Only two permits have been issued in the country over the past 15 years.
More Bullish Gold Price News
Considering how multiple events and reports may positively influence the price of gold this week, this news is an extra factor. Following the COVID-19 pandemic, it is crucial to see the precious metals industry resume its normal operations.
Albeit most investors have higher hopes for silver compared to gold, it is a matter of time until the gold price pushes much higher. Surpassing $1.800 an ounce is only the first order of business. If some analysts are to be believed, gold will easily push to $2,000 and higher in the coming months.