Gold exploration budgets directed at finding and defining new discoveries — grassroots plus 75% of late-stage — have increased significantly since 1999 and reached an all-time high of more than $6 billion in 2012, according to “Strategies for Gold Reserves Replacement 2013 — Update,” a study recently completed by SNL Metals Economics Group. As it takes three or more years to define a major discovery (at least 2 Moz of contained gold), it is too early to judge the success of recent exploration efforts; however, data for 1990 to 2012 shows that the total gold found in major discoveries fell short of replacing global gold production, particularly over the past 15 years.

As SNL MEG data shows, from 1998 to 2012, gold explorers found 107 major gold deposits, averaging 7.5 Moz each, in 36 different countries, adding 800.8 Moz of gold to global reserves and resources — 56% of the 1.2 billion ounces of gold produced during the period, after allowing for conversion of resources to reserves and recovery losses. Regionally, about 23% of the 800.8 Moz of discovered gold was in North America at a discovery-oriented exploration cost of $49/oz, 21% in Latin America at about $49/oz, 19% in Africa at $33/oz, 10% in Europe at $13/oz, 8% in Australia at $61/oz, 8% in Pacific Ocean Islands at $30/oz, 6% in former Soviet Union countries at $33/oz, 2% in other Asian countries at $75/oz and 2% in the Middle East at $10/oz. Greenfields discoveries accounted for 67% of the gold found, while brownfields discoveries made up 33% of the total.