As gold prices have skyrocketed over the last few years, so have the costs of extracting gold. Mines in Northern Nicaragua are producing lots of gold, but the cost to produce this gold has been growing each year. In a 2006 annual report, the Limon mine claimed a manufacturing cost of $469.00 per Troy ounce.
Currently gold prices on the International market are on the rise once again, with recent numbers ranging from $1700 to near $1800 per Troy ounce.
As a consequence of our contacts, connections and gold experience, the Company can purchase gold at substantially reduced prices from the very poor indigenous communities and small companies that have stockpiled gold in the Northeast Atlantic region (RAAN) and the Central Region of Nicaragua. This is a heavily forested area with many rich gold mines and other natural resources.
For many years, the indigenous tribes and other natives of the area have been panning and picking for gold throughout the ore-rich area. Many of these “wildcat” miners have stockpiled gold, or sold the gold to others in the area. This is an ongoing practice and gold is constantly being panned, mined, and traded in the area, mostly by the indigenous peoples of the area, which means that the Company will have a steady supply of gold for an indefinite period of time. As the company proceeds, they will be able to analyze and discern the amounts available on an ongoing basis.
The Company’s team has extensive knowledge and experience in working with the indigenous peoples in these remote areas of Nicaragua
Gold is a dense, soft, shiny, malleable and ductile metal. It is a chemical element with the symbol Au and atomic number 79.
Gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a transition metal and a group 11 element. It is one of the least reactive chemical elements solid under standard conditions. The metal therefore occurs often in free elemental (native) form, as nuggets or grains in rocks, in veins and in alluvial deposits. Less commonly, it occurs in minerals as gold compounds, usually with tellurium.
A total of 165,000 tonnes of gold have been mined in human history, as of 2009. This is roughly equivalent to 5.3 billion troy ounces or, in terms of volume, about 8500 m3, or a cube 20.4 m on a side. The world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry.
MAXAM Gold Corporation. © 2012