Infographic: The Re-Awakening of the Golden Triangle
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Re-Awakening of the Golden Triangle

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Golden Triangle in British Columbia

The Re-Awakening of the Golden Triangle

Many years ago, a remote and mountainous region in northwestern British Columbia gained considerable notoriety as an emerging mineral district. With a rich mining history, one of the world’s largest silver mines (Eskay Creek, discovered in 1988), and million ounce gold deposits – this area of incredible wealth became known as “The Golden Triangle”.

However, despite its obvious potential, the vast majority of land in this highly prospective region has been left mostly untouched by humans. A combination of factors, including low gold prices and a lack of infrastructure, has led to the area laying dormant for decades.

Today, things are changing dramatically. The Golden Triangle is a new hotbed for mineral discovery, and over 130 million ounces of gold, 800 million ounces of silver, and 40 billion lbs of copper have been found. The amazing part is that this is only scratching the surface of the region’s ultimate potential.

Skeena Resources and IDM Mining have generously helped us to put together the story on the re-awakening of the famed Golden Triangle.

The New Gold Rush

Why is the Golden Triangle at the center of attention again? There are five main reasons:

1. New Deposits Found

The old adage is that the best place to find a new mine is near an existing one. Here are three major deposits in the Golden Triangle that have geologists and financiers buzzing:

KSM
Seabridge’s KSM Project is the largest gold project in the world. It recently received the green light from Canada’s federal government to go ahead in 2014.

A porphyry-style deposit, it has reserves of 38.8 million oz of gold, 10.2 billion lbs of copper, and 183 million oz of silver.

Red Chris
This $700 million copper and gold mine entered production in 2015.

Owned by Imperial Metals, it will be in production until 2043 based on current mine life estimates. In 2016 alone, it produced 83 million lbs of copper, 47,000 oz of gold, and 190,000 oz of silver.

Valley of the Kings
The latest, and perhaps most interesting, discovery in the Golden Triangle is slotted to reach commercial production in 2017.

The Valley of the Kings, unlike the above porphyry-style deposits, contains extremely high-grade gold. With 8.1 million ounces at a grade of 16.1 g/t, this deposit has some of the richest ore in the world.

2. New Infrastructure

In recent years, the Golden Triangle has received three massively important infrastructure upgrades:

  • Paving of the Stewart-Cassiar Highway (North from Smithers)
  • The opening of ocean port facilities for export of concentrate at Stewart
  • Completion of a $700 million high-voltage transmission line to bring power into the Golden Triangle

3. Declining Snow Cover

Glacial ice and snow has been retreating in many parts of the region, revealing rocks never seen before by human eyes. Especially in a mineral-rich region such as the Golden Triangle, this is a very exciting prospect for mineral geologists.

4. A New Geological Explanation

The Golden Triangle region has complex geology that has befuddled explorers for decades – but recent work has made the picture much clearer. Geologist Jeff Kyba has put forth the following theory: geologic contact between Triassic age Stuhini rocks and Jurassic age Hazelton rocks is the key marker for copper-gold mineralization.

Most of the Triangle’s copper-gold deposits, whether they are large-scale porphyry and intrusion-related, are found within 2km of this contact. It’s been infamously named “The Red Line”, and this new interpretation of the region’s geology could contribute to BC’s next mega deposit.

5. Gold Price Recovery

Since the “sleepy” days of the Golden Triangle, gold prices have increased 3x, even after adjusting for inflation.

Combined with new infrastructure, exciting projects, and world-class mineral potential, and the Golden Triangle is awake again.

What’s Happening Today?

Today, the Golden Triangle is buzzing with activity.

  • The Red Chris Mine is now in operation
  • Valley of the Kings is entering production in 2017.
  • KSM, the world’s largest gold deposit, is nearing potential construction.
  • Historic mines like the Snip Mine and Granduc are being explored using modern methods.
  • New high-grade gold is being found. Red Mountain and the old Premier Gold Mine are the sites of some of these discoveries.
  • Dozens of companies are on the ground performing all phases of exploration.

Many types of mineral deposits are being tested for, including high-grade gold veins, large-scale porphyries, and VMS (volcanogenic massive sulphide) deposits.

The Golden Triangle is once again the center of the attention, and it could be poised to become one of the world’s most prolific concentrations of mineral wealth.

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Mining

Ranked: The World’s Largest Copper Producers

Many new technologies critical to the energy transition rely on copper. Here are the world’s largest copper producers.

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Visualizing the World’s Largest Copper Producers

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Man has relied on copper since prehistoric times. It is a major industrial metal with many applications due to its high ductility, malleability, and electrical conductivity.

Many new technologies critical to fighting climate change, like solar panels and wind turbines, rely on the red metal.

But where does the copper we use come from? Using the U.S. Geological Survey’s data, the above infographic lists the world’s largest copper producing countries in 2021.

The Countries Producing the World’s Copper

Many everyday products depend on minerals, including mobile phones, laptops, homes, and automobiles. Incredibly, every American requires 12 pounds of copper each year to maintain their standard of living.

North, South, and Central America dominate copper production, as these regions collectively host 15 of the 20 largest copper mines.

Chile is the top copper producer in the world, with 27% of global copper production. In addition, the country is home to the two largest mines in the world, Escondida and Collahuasi.

Chile is followed by another South American country, Peru, responsible for 10% of global production.

RankCountry2021E Copper Production (Million tonnes)Share
#1🇨🇱 Chile5.627%
#2🇵🇪 Peru2.210%
#3🇨🇳 China1.88%
#4🇨🇩 DRC 1.88%
#5🇺🇸 United States1.26%
#6🇦🇺 Australia0.94%
#7🇷🇺 Russia0.84%
#8🇿🇲 Zambia0.84%
#9🇮🇩 Indonesia0.84%
#10🇲🇽 Mexico0.73%
#11🇨🇦 Canada0.63%
#12🇰🇿 Kazakhstan0.52%
#13🇵🇱 Poland0.42%
🌍 Other countries2.813%
🌐 World total21.0100%

The Democratic Republic of Congo (DRC) and China share third place, with 8% of global production each. Along with being a top producer, China also consumes 54% of the world’s refined copper.

Copper’s Role in the Green Economy

Technologies critical to the energy transition, such as EVs, batteries, solar panels, and wind turbines require much more copper than conventional fossil fuel based counterparts.

For example, copper usage in EVs is up to four times more than in conventional cars. According to the Copper Alliance, renewable energy systems can require up to 12x more copper compared to traditional energy systems.

Technology2020 Installed Capacity (megawatts)Copper Content (2020, tonnes)2050p Installed Capacity (megawatts)Copper Content (2050p, tonnes)
Solar PV126,735 MW633,675372,000 MW1,860,000
Onshore Wind105,015 MW451,565202,000 MW868,600
Offshore Wind6,013 MW57,72545,000 MW432,000

With these technologies’ rapid and large-scale deployment, copper demand from the energy transition is expected to increase by nearly 600% by 2030.

As the transition to renewable energy and electrification speeds up, so will the pressure for more copper mines to come online.

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Gold

How Gold Royalties Outperform Gold and Mining Stocks

Gold royalty companies shield investors from inflation’s rising expenses, resulting in stronger returns than gold and gold mining companies.

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gold royalty company returns compared to gold and gold mining companies
The following content is sponsored by Gold Royalty
Infographic on gold royalty company returns

How Gold Royalties Outperform Gold and Mining Stocks

Gold and gold mining companies have long provided a diverse option for investors looking for gold-backed returns, however royalty companies have quietly been outperforming both.

While inflation’s recent surge has dampened profits for gold mining companies, royalty companies have remained immune thanks to their unique structure, offering stronger returns in both the short and long term.

After Part One of this series sponsored by Gold Royalty explained exactly how gold royalties avoid rising expenses caused by inflation, Part Two showcases the resulting stronger returns royalty companies can offer.

Comparing Returns

Since the pandemic lows in mid-March of 2020, gold royalty companies have greatly outperformed both gold and gold mining companies, shining especially bright in the past year’s highly inflationary environment.

While gold is up by 9% since the lows, gold mining companies are down by almost 3% over the same time period. On the other hand, gold royalty companies have offered an impressive 33% return for investors.

In the graphic above, you can see how gold royalty and gold mining company returns were closely matched during 2020, but when inflation rose in 2021, royalty companies held strong while mining company returns fell downwards.

 Returns since the pandemic lows
(Mid-March 2020)
Returns of the past four months
(July 8-November 8, 2022)
Gold Royalty Companies33.8%1.7%
Gold9.1%-1.7%
Gold Mining Companies-3.0%-8.6%

Even over the last four months as gold’s price fell by 1.7%, royalty companies managed to squeeze out a positive 1.7% return while gold mining companies dropped by 8.6%.

Gold Royalty Dividends Compared to Gold Mining Companies

Along with more resilient returns, gold royalty companies also offer significantly more stability than gold mining companies when it comes to dividend payouts.

Gold mining companies have highly volatile dividend payouts that are significantly adjusted depending on gold’s price. While this has provided high dividend payouts when gold’s price increases, it also results in huge dividend cuts when gold’s price falls as seen in the chart below.

chart of gold royalty company dividends vs gold mining company dividends

Rather than following gold’s price, royalty companies seek to provide growing stability with their dividend payouts, adjusting them so that shareholders are consistently rewarded.

Over the last 10 years, dividend-paying royalty companies have steadily increased their payouts, offering stability even when gold prices fall.

Why Gold Royalty Companies Outperform During Inflation

Gold has provided investors with the stability of a hard monetary asset for centuries, with mining companies offering a riskier high volatility bet on gold-backed cash flows. However, when gold prices fall or inflation increases operational costs, gold mining companies fall significantly more than the precious metal.

Gold royalty companies manage to avoid inflation’s bite or falling gold prices’ crunch on profit margins as they have no exposure to rising operational expenses like wages and energy fuels while also having a much smaller headcount and lower G&A expenses as a result.

Along with avoiding rising expenses, gold royalty companies still retain exposure to mine expansions and exploration, offering just as much upside as mining companies when projects grow.

Gold Royalty offers inflation-resistant gold exposure with a portfolio of royalties on top-tier mines across the Americas. Click here to find out more about Gold Royalty.

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