Gold price making Australian companies dig in old ground.

The gold price seems to be going up every day, currently ranging from $1500 to $1550 an ounce.So what exactly is pushing the gold price to these extraordinary highs? Apparently, the fear of the debt crisis currently taking place in Greece is what’s causing people to invest in gold, creating demand for the precious metal and inevitably making it’s price go up.

One of the countries that have a lot to win from the price of gold going up is Australia, as it is considered a safe investment environment by investors from all over the world, mostly because of the crisis and bad financial situations in most of the other countries.

The gold production and mining industry seem to have flourished in Australia lately, and the gold mining companies have decided to dig up old ground where gold used to be mined by their ancestors, hoping to strike it rich and make sure they haven’t left any gold behind.

In Victoria, Ballarat and Bendigo used to be the heart of the 1850s first gold rush in Australia, and they are steadily becoming the home of the gold rush of our millennium.Finding gold is not even close to being an easy task.To get to the latest Ballarat mine, you have to drive 5km under surface, in tunnels that are 5m wide or less.The Ballarat mine was bought last year for $4.5 million by Castlemaine Gold, at a time when the gold price was $1100 per ounce, making it even a better deal now when the price is much higher than that.

The job is done by drilling machines that cost over $2 million and the speed is not as fast as one would think, each machine being able to dig about 5-6m per day.With the nearest deposit at around 600m away, Castlemaine Gold expects to “hit the jackpot” somewhere in August, with a projected profit of over $30 million per year at the current gold price.

Source: http://newsinabox.net/1510/gold-price-making-australian-companies-dig-in-old-ground.html

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