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Open in new tab EUROPE has witnessed a resurgence in exploration activity in recent years.This activity has focused on three main regions; the western extent of the Tethyan Belt (extending across central and eastern Europe, Greece, Turkey and into the Arabian peninsular), the Iberian Pyrite Belt (covering Spain and Portugal) and Scandinavia.
However, western Europe, including the UK, is also seeing an increase in exploration activity. Euromines, the European Association of Mining Industries, estimates that total gold exploration in Europe amounted to €30 million (US$38 million) in 2009, with strong growth potential for 2010.
The bulk of these funds are spent in the Nordic countries (Sweden, Finland, Greenland and Norway), which account for some 60% of total European expenditures. A lot of this is generated by local companies raising money on local stock exchanges and privately however.
The Balkans also receive a large proportion of exploration spending (around 35%) while the rest of Europe (the Iberian peninsular and other countries) accounts for just 5% of gold exploration spending.
TETHYAN FOCUS
The European extension of the Tethyan belt has received significantly less attention that the eastern extent, which hosts numerous established mining operations, including Freeport McMoRan Copper and Gold Inc’s Grasberg mine, Inmet Mining Corp’s Ok Tedi and Newmont Mining Corp’s Batu Hijau.
The European extension, which includes Romania, Bulgaria, Greece and Turkey, does however host significant potential as a gold-mining region.
Exploration in Hungary and Bulgaria is still in the early stages, but a few international companies have initiated projects in the region.
NEAR-TERM POTENTIAL
Greece has the potential to become a near-term gold producer with a number of exploration companies active in the country. European Goldfields is developing a project including mining and processing at the Skouries gold-copper project, and the initiation of mining at the Olympias polymetallic project. The company has completed a feasibility study at Skouries outlining potential annual production of 200,000oz of gold and 40,000t of copper.
Eldorado Gold Corp is developing the Perama Hill gold project through its wholly-owned subsidiary Thracean Gold Mining SA. In March, Eldorado submitted a technical report on the project to the relevant authorities and the company anticipates starting construction at the property in 2011, at a capital cost of US$159 million.Once operational, Perama Hill is anticipated to produce 110,000oz/y of gold at a cash operating cost of US$278/oz.
Turkey has the most established gold-mining industry within the western Tethyan region, and the country’sgold production is expected to grow from last year’s 469,400oz to 650,000oz this year. For example, Eldorado is expanding production at its Kisladag mine to a steady rate of 300,000 oz/y, commencing in 2011.Anatolia Minerals Development Ltd mined the first gold ore from the Manganese Mine Zone of its Çöpler project in December 2009. The 1.3Moz project expects to produce 175,000oz/y by 2011 at a cash cost of US$260/oz.Among the junior explorers and developers, Ariana Resources plc and Stratex International plc stand out. Each has advanced projects in the country which they are seeking to develop in partnership with local companies.