Loei 'could yield 1 million tonnes of gold'
THE NATION April 1, 2013 1:00 am
http://www.nationmultimedia.com/busines ... 03100.html
Initial data from the Northeast province of Loei indicates the likely discovery of gold ore deposits in quantities large enough to free Thailand from its current and future debt burdens.
The ore was discovered by a foreign company that has been operating in the area for some time, said a high-ranking official from the Natural Resources and Environment Ministry.
"They said the probable mineral reserves were a million tonnes of gold," the source said, asking for anonymity, as the discovery remains classified.
"We are yet to prove the discovery and we don't want to spark premature excitement among the local and global communities," he said.
Gold mining in Loei has been going on for more than a decade, with Tungkum and Akara Mining as major players. About 1,288 rai of Wang Saphung district has been gradually turned into a mining area by Tungkum since 2006, after the company won a government mining concession in 1991. In 2007, Tungkum produced 17,485 ounces of gold. It expects to process about 440,000 tonnes of ore per annum.
If the news proves true, Thailand could be the country with the world's biggest gold reserves, surpassing the US, which holds over 8,000 tonnes. Ranked 25th, Thailand sits on gold reserves of 152.4 tonnes, valued at 4 per cent of foreign reserves, which stood slightly below US$180 billion or about Bt5 trillion.
According to the official, the news could send a shock wave around the world. In theory this could lead to a slump in gold prices, but he believed that gold prices would stay high given the global economic problems.
The gold price ended last week below $1,600 an ounce - exactly matching Goldman Sachs' 2013 forecast, as the reopening of banks in Cyprus eased immediate concerns that Europe's debt crisis might deepen, reducing the precious metal's appeal as a store of wealth. Technical analysts believe gold has been oversold and the price should stage a strong rebound.
Hmmmm...... What day is it? 
