South Australia accounts for more than a quarter of the country’s gold resources, but only 4 percent of gold production.

Australia is one of the world’s top gold miners, most recently producing 325.1 tonnes in 2019 and securing either second or third place for global production, depending on who you ask. From 2012 to today, the country has seen consistent increases in production year-on-year.

The most famous jurisdiction for mining output is Western Australia, which accounts for more than 60 percent of national output. The state of South Australia accounts for over a quarter of the country’s gold resources, but only 4 percent of production, according to South Australian government data.

The state is sitting on a lot of potential, with a major geological region — the Gawler Craton — identified by the government and mineral explorers as being of extreme interest for miners the world over. Indeed, it’s home to one of the premier mines of sector giant BHP (ASX:BHP,LSE:BHP,NYSE:BHP).

Taking up 440,000 square kilometres, the Gawler Craton covers roughly half of the state, with South Australia’s three producing gold projects all located in the region, including the Olympic Dam mine.

The outlook for the area to increase its share of raw gold production in the coming years is positive thanks to the exploration and development projects around existing mines and within the Gawler Craton. They are putting the as-yet-untapped quarter of Australian gold resources well within reach.

The state shares the geographical benefits of Western Australia in that it’s sparsely populated and covered with desert, making exploration somewhat easy to carry out.

Investing in South Australian projects is another relatively easy prospect — within Australia, which is itself an attractive and safe jurisdiction, the state comes second behind Western Australia in investment attractiveness, according to the Fraser Institute.

The three producing and active mines within the state are run as polymetallic projects, with all of them operating as copper-gold mines.

Top South Australian gold stocks by market cap

1. BHP

Market cap: AU$180 billion

The owner and operator of the world-famous Olympic Dam polymetallic mine is none other than global mining giant BHP. The company has operated the copper-uranium-silver-gold mine since 2005, though it’s been in operation since 1988.

While Olympic Dam is known primarily for its copper and uranium output, the mine represents almost half the gold output in South Australia, accounting for 146,000 ounces of gold, according to BHP’s most recent annual report.

2. OZ Minerals (ASX:OZL)

Market cap: AU$4.92 billion

OZ Minerals is another of the big players in South Australia, with two operating copper-gold mines and exploration tenements across the state. The company produced 122,763 ounces of gold from its Prominent Hill mine in 2019, and has a second mine, Carapateena, that is in the process of ramping up production following a successful construction phase in 2019.

Prominent Hill is itself ramping up further. It produced 51,629 ounces of gold in 2020’s third quarter, and the company has increased its gold production guidance through the year.

South Australia is the star jurisdiction for OZ Minerals, being home to two of its operational mines. It also has interests in Brazil, Peru and Sweden, though Australia remains the focus of its operations.

3. Terramin Australia (ASX:TZN)

Market cap: AU$114.29 million

Terramin Australia is a development company with assets in South Australia and Algeria. Within South Australia, it has interests inside the Gawler Craton and near the capital city of Adelaide, where it has 12 exploration tenements in the Adelaide Hills focused on gold.

The company’s flagship asset is the Bird-in-Hand project, which is a historical gold mine that Terramin estimates still holds 265,000 ounces of gold, despite being closed in the late 1800s.

Bird-in-Hand is one of multiple mines located within the Adelaide Hills that was a target for exploration in pre-Federation days in Australia.

The company is working on reopening the mine, which was originally shut due to technological shortfalls. According to the company, restart operations should cost around $25 million, and it is working through a staged approval process in order to get a mining lease.

4. Havilah Resources (ASX:HAV)

Market cap: AU$56.89 million

Havilah Resources is currently billed as an exploration company, with a raft of exploration and development projects dotted through Eastern South Australia against the border with New South Wales, where the nearest city and famed mining town of Broken Hill is located.

The company currently estimates its assets hold 3.2 million ounces of gold split between the Kalkaroo and Mutaroo projects — both located within South Australia outside of the Gawler Craton.

Kalkaroo, which is the company’s flagship project, sits on 3.1 million ounces of gold, according to its measured, indicated and inferred JORC mineral resources.

5. Rex Minerals (ASX:RXM)

Market cap: AU$50.79 million

Rex Minerals is an exploration and development company with assets in South Australia and Nevada, with its Australian interest being its Hillside copper-gold project on the Yorke Peninsula.

The Hillside project is a proposed mine, and was only discovered recently in 2008. In the most recent feasibility study for the project, the company envisages production of 24,000 ounces of gold annually for its first 12 years of production.

INNdepth

For more on gold and gold stocks in Australia, click the links below:

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Scott Tibballs, currently hold no direct investment interest in any company mentioned in this article.

In exceptional market conditions, Rio Tinto achieves record financial results and declares total interim dividend of 561 US cents per share, 75% of underlying earnings

Rio Tinto Chief Executive Jakob Stausholm said “Government stimulus in response to ongoing COVID-19 pressures has driven strong demand for our products at a time of constrained supply resulting in a significant spike in most prices. We focused on safely running our world-class assets and supplying products to our customers. This enabled us, despite operational challenges, to deliver record financial results with free cash flow of $10.2 billion and underlying earnings of $12.2 billion, after taxes and government royalties of $7.3 billion. We are further strengthening the portfolio with our commitment to fund the high-quality Jadar lithium project, which signals our large-scale entry into the fast-growing battery materials market. We will pay an interim dividend of 561 US cents per share, representing 75% of underlying earnings.

“We are making progress on our four priorities, identifying opportunities for operational improvement, advancing our ESG agenda, taking important investment decisions and stepping up our external engagement. We are making real and lasting changes to the way we engage, interact and operate and are committed to ensuring that we have strong and positive relationships wherever we do business. We have identified what we need to do to make Rio Tinto a better company for the long term, with the right teams in place to unleash our full potential.”

Keep reading... Show less

Lake Resources NL Bonus Issue to Shareholders

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF), in recognition of the support received from its shareholders, wishes to advise that it intends to undertake a bonus issue of options (Bonus Options) to all shareholders with an address in Australia or New Zealand (Eligible Shareholders) at 5:00 pm (Sydney time) on the Record Date (set out in the indicative timetable set out below*).

As the Bonus Options will be issued for nil consideration, Lake is raising no capital from their issue. For every ten (10) shares held at 5:00 pm (Sydney time) on the Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option.

The Bonus Options will have an exercise price $0.35 each, expiring on 15 October 2021 and, if exercised, each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake will not seek listing of the Bonus Options on ASX.

Keep reading... Show less

Lake Resources NL Argentina based Director Strengthens Board

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF) has strengthened its Board, announcing today the appointment of experienced energy/natural resources lawyer, Sra. Amalia Saenz as a Non-Executive Director.

Based in Buenos Aires, Sra. Amalia’s appointment will assist Lake and its local team in Argentina in engaging with local stakeholders and preparing for the development of clean lithium production in Argentina.

Sra. Saenz is a partner at the law firm, Zang, Bergel & Viaes in Buenos Aires, where she leads the firm’s energy and natural resources practice.

Keep reading... Show less

Classic Minerals Limited Quarterly Activities Report

Perth, Australia (ABN Newswire) – Classic Minerals Limited (ASX:CLZ) has made significant progress at Kat Gap during the quarter as it strives to become a gold producer.

Highlights of the quarter include:

– Assay results returned for infill RC drilling testing the gap between oxide and deeper fresh rock high-grade gold mineralisation at Kat Gap.

Keep reading... Show less

Rio Tinto commits funding for Jadar lithium project

Rio Tinto has committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. The project remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities, the Government of Serbia and civil society.

The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.

Keep reading... Show less

In exceptional market conditions, Rio Tinto achieves record financial results and declares total interim dividend of 561 US cents per share, 75% of underlying earnings

Rio Tinto Chief Executive Jakob Stausholm said “Government stimulus in response to ongoing COVID-19 pressures has driven strong demand for our products at a time of constrained supply resulting in a significant spike in most prices. We focused on safely running our world-class assets and supplying products to our customers. This enabled us, despite operational challenges, to deliver record financial results with free cash flow of $10.2 billion and underlying earnings of $12.2 billion, after taxes and government royalties of $7.3 billion. We are further strengthening the portfolio with our commitment to fund the high-quality Jadar lithium project, which signals our large-scale entry into the fast-growing battery materials market. We will pay an interim dividend of 561 US cents per share, representing 75% of underlying earnings.

“We are making progress on our four priorities, identifying opportunities for operational improvement, advancing our ESG agenda, taking important investment decisions and stepping up our external engagement. We are making real and lasting changes to the way we engage, interact and operate and are committed to ensuring that we have strong and positive relationships wherever we do business. We have identified what we need to do to make Rio Tinto a better company for the long term, with the right teams in place to unleash our full potential.”

Keep reading... Show less

Lake Resources NL Bonus Issue to Shareholders

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF), in recognition of the support received from its shareholders, wishes to advise that it intends to undertake a bonus issue of options (Bonus Options) to all shareholders with an address in Australia or New Zealand (Eligible Shareholders) at 5:00 pm (Sydney time) on the Record Date (set out in the indicative timetable set out below*).

As the Bonus Options will be issued for nil consideration, Lake is raising no capital from their issue. For every ten (10) shares held at 5:00 pm (Sydney time) on the Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option.

The Bonus Options will have an exercise price $0.35 each, expiring on 15 October 2021 and, if exercised, each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake will not seek listing of the Bonus Options on ASX.

Keep reading... Show less

Lake Resources NL Argentina based Director Strengthens Board

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF) has strengthened its Board, announcing today the appointment of experienced energy/natural resources lawyer, Sra. Amalia Saenz as a Non-Executive Director.

Based in Buenos Aires, Sra. Amalia’s appointment will assist Lake and its local team in Argentina in engaging with local stakeholders and preparing for the development of clean lithium production in Argentina.

Sra. Saenz is a partner at the law firm, Zang, Bergel & Viaes in Buenos Aires, where she leads the firm’s energy and natural resources practice.

Keep reading... Show less

Classic Minerals Limited Quarterly Activities Report

Perth, Australia (ABN Newswire) – Classic Minerals Limited (ASX:CLZ) has made significant progress at Kat Gap during the quarter as it strives to become a gold producer.

Highlights of the quarter include:

– Assay results returned for infill RC drilling testing the gap between oxide and deeper fresh rock high-grade gold mineralisation at Kat Gap.

Keep reading... Show less

Rio Tinto commits funding for Jadar lithium project

Rio Tinto has committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. The project remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities, the Government of Serbia and civil society.

The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.

Keep reading... Show less

Lake Resources NL Appoints New CFO

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF) has appointed Peter Neilsen as Chief Financial Officer (CFO). The Company is ramping up its international project funding and development activities.

A key focus of the new CFO will be to guide a panel of international project financiers to successfully secure funding for Lake’s lithium production.

His other key role will be to develop and assist Lake’s team in Argentina to organise development activities and lithium production. He will also serve as joint Company Secretary.

Keep reading... Show less

Top News

Related News