Gold into the Nineties, Opportunity & Challenge Introduction

ecent events have demonstrated the extraordinary impact of politics on the price of gold.... A rise from the $350/oz. level to $400 has a far greater impact on profitability of a gold mine than does, say, the invention of a way to cut the cost of gold extraction by $1.00 per ton, which in itself would represent a major achievement. Likewise, the discovery of a big, high-grade, easy­to-extract gold ore deposit would have a bigger impact on the fate of a mining company than, say, finding a way to double the energy efficiency of a grinding circuit.