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Companies prospecting for minerals in Jamaica are optimistic that they will find gold and copper in viable quantities, similarly to how gold was found in neighbouring Dominican Republic and is contributing significantly to the economy of that country.
But the multinational entities searching for the valuable minerals here warn that it could be as long as two decades before any mining operation turns a profit, because of the amount of money needed to fund such a venture.
Following the closure of Jamaica’s first gold mine in 2004, hopes are again being raised at the prospect of discovering gold in large quantities which would be a game-changer for the Jamaican economy.
Jorge Sanhueza, acting exploration manager for Barrick in Jamaica and Dominican Republic, said based on the data gathered from rock samples in Jamaica with their similarities with the Dominican Republic, there is reason to believe that gold in commercial quantities is in existence here.
He said much of this data has been gathered by local company Geophysx Jamaica Limited, which is headed by Robert Stewart.
Barrick has an earn-in agreement with Geophysx, in which each party will earn agreed sums if the minerals are discovered.
“We think there are very strong similarities between the Dominican Republic and Jamaica that justify the idea of having a world class deposit in the island. One of the key reasons we decided to enter into this agreement is because of the remarkable amount of good quality data that Geophysx collected since they started the company in 2017,” said Sanhueza.
“We think with the expertise and the track record that Barrick has, it’s a good synergy to hopefully, in a few years, have a major discovery in the island,” he said, at the Minerals Technical Conference and Investor Forum in Kingston last Thursday.
The Pueblo Viejo open-pit gold and silver mine in the Dominican Republic started mining operations in 2012 and is expected to cease in 2041. It is the largest gold mine in Latin America and 13th largest gold mine in the world. The mine is run by Pueblo Viejo Dominicana Corporation, which is 60 per cent owned by Barrick and 40 per cent owned by Newmont, the world’s largest gold mining company.
Pueblo Viejo employs approximately 2,350 employees and 2,500 contractors and its economic activities represent two per cent of the Dominican Republic’s GDP and is the largest corporate taxpayer in that country.
Sanhueza said one of the main challenges to mining in Jamaica is that most of the country is covered with limestone which would have to be removed to accurately determine the levels of gold and copper here. But he said the area that is best known to have the presence of gold is Bellas Gate in St Catherine.
Dan Symons, president and CEO of C3 Metals Inc, said the exploration of minerals was a very capital-intensive, high-risk business. He said his company was more focused on copper than gold, and that the demand for copper worldwide was expected to increase by 70 per cent up to 2050.
Canada-based C3 Metals is actively exploring in several parts of the island particularly in St Catherine, Clarendon and St Thomas where it has identified a range of copper and gold prospects.
C3 Metal also has joint venture agreements with Geophysx, as well as Freeport-McMoRan Exploration Corporation, a leading metals company headquartered in Phoenix, Arizona in the United States.
Commenting on its activities in Jamaica so far, Symons said the signs were positive.
“Thus far, where we sit today, all the ingredients that you want to see, we’re seeing them to warrant further investment,” he said. “We’ve had several drill results that show we’re getting on average about 0.4 per cent copper and 0.2 per cent gold, which gives us what we call a copper equivalent basis, when you add the gold, of around 0.5 to 0.6. Several of the open pit mines today in the copper industry are running around 0.5. So that’s something that’s highly encouraging,” he said.
Symons said mining was a long-term investment involving big money and several phases spanning exploration, granting of permits, environmental issues, construction of the mine and reclamation of land. He said so far his company has invested the equivalent of US$18 million in Jamaica.
“Just because you built a mine doesn’t mean you’re profitable immediately. Often these large mines can take multiple years to ramp up to profitability, to function the way you want, because these are massive investments and big operations,” he said.
In 2001, an Australian company Ausjam set up Jamaica’s first known gold mine in Pennants, Clarendon, providing employment to residents of the surrounding communities. By December 2002, it reportedly yielded 12,000 ounces of gold, and geologists suggested that only another 3,000 to 4,000 ounces remain to be extracted.
The business was said to be plagued with management issues, labour conflicts and low yield due to alleged incorrect projections, and eventually ceased all operations by 2004.
Barrick said that in the fourth quarter of 2024, the company had “commenced on field work, focusing on validating data and observations and defining areas of interest”.
English (US) ·