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Gold (Au) is a bright, shiny, yellow metal, notable for its high density (19.3 times the weight of
an equal volume of water) and valued for its extreme ductility, strong resistance to corrosion,
lustrous beauty and scarcity.

A gold dredge, Dawson City, Yukon (courtesy

Aerocamera Services).
Gold Mining
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Gold (Au) is a bright, shiny, yellow metal, notable for its high density (19.3 times the weight of
an equal volume of water) and valued for its extreme ductility, strong resistance to corrosion,
lustrous beauty and scarcity. Pyrite, or fool's gold as it is sometimes known, can be distinguished
from real gold by its brittleness and hardness as well as the fact that it appears black in powder
form.

As it is the least chemically active of all metals, gold usually occurs in a free or uncombined
state. It is found as nuggets, flakes or dust in gravel and sand deposits along creeks and rivers,
but more often gold is recovered from veins (called lodes) in bedrock. Gold is also produced as a
by-product of base-metal mines; about one-fifth of Canada's gold production comes from this
source.
Production

There are various ways to separate and recover gold, depending upon the nature of the ore. When
gold occurs in a relatively coarse, free state, it can be recovered by mechanical means such as
gravity traps and shaking tables, where the gold separates out because of its high specific gravity.
Cyanidation is a chemical process used to recover gold that is very finely distributed in the ore.
The process is complex; it involves adding a cyanide solution to finely ground ore and then
agitating it in the presence of air to dissolve the gold. After a variety of treatment steps, the
solution containing the gold is clarified and the gold is precipitated by the addition of zinc dust to
the solution. The carbon-in-pulp stage of this process uses activated carbon to collect the gold
without having to filter the ground ore slurry. The activated carbon is stripped of its gold in an
acid bath and then recycled.

Once the gold is separated from the ore and is in the form of an impure precipitate, it is placed,
along with a fluxing agent, into a high-temperature furnace. A chemical reaction takes place, in
which the flux and the impurities combine to form a slag and the molten gold sinks to the bottom
of the furnace where it is drawn off and poured into moulds to form doré bars, which contain the
gold and any silver that may have been present in the original ore.

World industrial demand for gold includes jewellery, electronics and official coins. Gold has
been a symbol of wealth from the earliest civilizations to the present. Even though it is too soft
for weapons or tools, people have treasured gold for its decorative and monetary value. Since it
is chemically inert, it has long been popular in dentistry for crowns and caps. Resistance to
corrosion, along with electrical conductivity, make it useful in precision electronic equipment.
When a thin film of gold is applied to window glass, a building's thermal properties are improved
dramatically, reducing the amount of heat gain in the summer and heat loss in the winter, as in,
eg, the Royal Bank building in Toronto.

Gold in Canada

Gold is found across the Canadian Shield, in British Columbia and Nunavut, and on the island of
Newfoundland. It was first discovered in Canada in 1823 along the shores of the Rivière
Chaudière in the Eastern Townships of Québec. In 1858, following the famous rushes in
California and Australia, gold was discovered in the sands of the Fraser River in the interior of
BC, starting the Cariboo Gold Rush. Almost 40 years later, the legendary Klondike Gold Rush in
the Yukon marked the beginning of one of the most productive periods in Canadian gold-mining
history.

The early 1900s saw the establishment of several major gold-mining camps in northern Ontario,
including Porcupine, Timmins, Larder Lake, Kirkland Lake and Red Lake. The gold excitement
swept across the provincial boundary into northern Québec and gold was discovered at
Bourlamaque, Val d'Or, Chibougamau and Malartic. At the outbreak of WWII, Canada's gold-
producing capacity was expanded in order to help meet wartime expenditures. Production
reached an all-time high of 166 tonnes in 1941 but then declined dramatically because of
wartime conditions.
By 1970 rising production costs had forced the closure of many gold mines in Canada and
production dropped to one-third of peak levels. Changes in international monetary policies led to
a startling increase in gold prices in the late 1970s (see Gold Standard) which, in turn,
encouraged increased activity in gold exploration and new mine development. The 1981
discovery and subsequent development of the large Hemlo gold deposit in northern Ontario,
followed by other discoveries and developments in each of Canada's provinces and territories,
resulted in increased production and a renewed importance of gold to the Canadian economy.
Gold production reached nearly 175 tonnes in 1990 and 1997 and 150 tonnes in 2001 before
falling in consecutive years to a 22-year low in 2008, at 94.8 tonnes. The value of gold increased
as production decreased, reaching a record high in 2008 when Canadian gold production
increased 15% in value to $2.82 billion from $2.47 billion in 2007.

Roughly 90% of Canada's gold production comes from hard-rock underground and open-pit
mines. The remainder comes from base-metal mines and placer mining. Most production comes
from Ontario and Québec. The declines in gold production were due to mature mines, reduced
investment in development and a lack of exploration spending. Between 2002 and 2007,
increased spending on exploration resulted in increased reserves and resources related to existing
and new deposits and older mines.

Aboriginal Participation in Gold Mining

The first to prospect and mine in North America were Aboriginal peoples who used minerals,
including gold, copper, silver and cobalt, for tools, weapons, art and other objects. They
discovered gold throughout the Pacific northwest and their attempts to defend their claims led to
the Fraser Canyon War of 1858 and the formation of Indian reserves in British Columbia. In the
1850s the Nlaka'pamux people of the Thompson and Fraser Rivers began to sell gold to
the Hudson's Bay Company. James Douglas, governor of British Columbia at the time, tried to
keep the discovery of gold secret to avoid an influx of American miners, as the British had not
formally colonized the territory, but rumours of gold soon began to circulate and miners began
arriving. In July 1857, the Nlaka'pamux expelled miners from their territory along the Fraser
River. By the summer of 1858 miners had gained a majority and driven the Aboriginal people
from the river. Douglas urged the British government to establish a presence in the area.
Tensions grew between the miners and the First Nations with retaliatory attacks, and armed
troops were called in.

Today there is a close association between the location of First Nations communities, known
mineral deposits and mining activities. There are approximately 1200 Aboriginal communities
located within 200 km of mineral and metals activities, according to Natural Resources Canada.
Since mining was industrialized in Canada, the First Nations have had little say in decision-
making with regard to mining on or near their ancestral lands and have received little benefit
from it. The situation is changing, most importantly because of advances of Aboriginal peoples
with regard to recognizing their rights to land and title, and the negotiation of land claims.
Although there are no recent figures available on Aboriginal employment in gold mining
operations, there are Aboriginal workers in the mines, most commonly employed as labourers,
miners, truck drivers, equipment operators and maintenance operators.
Sustainable Mining

Canada's mining industry is expending tremendous effort to overcome a long history of

environmental damage. One example of mining's environmental impact is gold mining's release
of thousands of tonnes of toxic mercury and cyanide into the environment. In 2004, the Mining
Association of Canada (MAC) began promoting a program called "Towards Sustainable
Mining." The program calls on mining companies to develop a social and environmental
conscience. Among the program's guiding principles are the stated goals of "contributing to
global initiatives to promote the production, use and recycling of metals and minerals in a safe
and environmentally responsible manner; seeking to minimize the impact of operations on the
environment and biodiversity, through all stages of development, from exploration to closure;
and working with communities of interest to address legacy issues, such as orphaned and
abandoned mines."

The program is self-monitored, with measurement criteria established by MAC in the areas of
tailings management, energy management, external outreach and crisis communications
management. MAC members are required to measure and report on their performance annually.
While it is as yet unclear if the program is an innovation to applaud or merely "greenwashing,"
the existence of the program is a somewhat startling development in the industry.

Uses
The most common use of gold is in jewellery (rings, necklaces, watches, etc.).
Approximately 10% of the demand for gold is for use in technology applications, mostly
as a component of microcircuitry in a range of electronic products.
Investors buy gold in the form of wafers, bars and coins, believed to offer a measure of
protection from the risks of inflation and market volatility. Gold-bearing exchange-traded
funds are another source of investment demand for gold.

Gold demand, 2017

Text version
 Production
Canadian mines produced an estimated 176 tonnes of gold in 2017, which represents
an 80% increase over the 2008 production. In 2017, mine production increased in
Newfoundland and Labrador, Quebec, Manitoba, Saskatchewan, Alberta, British
Columbia and Nunavut, which offset declines in Ontario and Yukon.
In 2017, Ontario and Quebec produced more than 75% of the gold mined in Canada.
Other provinces, like British Columbia, and the territories contributed to the overall
Canadian production of gold.

Canadian gold production, by region, 2017 (p)

Ranking Province/Territory Thousand troy ounces Kilograms Pe

1 Ontario 2,449.3 76,182.7

2 Quebec 1,844.3 57,365.8

3 British Columbia 633.8 19,714.9

4 Northwest Territories and Nunavut 398.1 12,381.8

5 Prairies 215.4 6,700.0

6 Yukon 103.5 3,220.6

 Canadian gold production, by region, 2017 (p)

Ranking Province/Territory Thousand troy ounces Kilograms Pe

7 Atlantic provinces 21.7 674.4

Total for Canada 5,666.1 176,240.3

Canadian gold production, 2008–2017 (p)

Text version

International context
The world gold mine production reached an estimated 3,246.5 tonnes in 2017.
Find out more about gold production on an international scale:
The top five gold-producing countries accounted for 43% of the world's annual gold
output in 2017.
 World gold mine production, by country, 2017 (p)

Ranking Country Tonnes Percentage o

1 China 426.1

2 Australia 295.0

3 Russia 270.7

4 United States 230.0

5 Canada 176.2

6 Indonesia 154.3

- Other countries 1,694.6

World total 3,246.5

World gold mine production, 2008–2017 (p)

Text version

World reserves
Mineral ore reserves of gold are generally calculated based on what can be
economically and technically extracted. According to the U.S. Geological Survey, world
reserves of gold ore were estimated at 54,000 tonnes in 2017.
 World reserves of gold, by country, 2017 (p)

Ranking Country Thous

1 Australia

2 South Africa

3 Russia

4 United States

5 Indonesia

6 Canada

- Other countries

Total

The Bank of Canada no longer holds gold as part of its international reserves. This is
the result of a Government of Canada decision to diversify its portfolio by selling its
physical commodities and investing in financial assets that are easily tradable.
 Trade

Exports
 In 2017, the value of Canadian gold exports was $18.6 billion
 Canada's exports of gold in unwrought form increased to 334 tonnes in 2017, up from
315 tonnes in 2016
 The value of these exports increased to $17.0 billion in 2017, up from $16.4 billion in
2016
 The value of Canada's exports of gold in metal ores and concentrates increased to
$754.0 million in 2017, up from $472.0 million in 2016

Imports
 The value of gold imports in Canada was $9.0 billion in 2017
 Canada imported 234 tonnes of gold in unwrought form in 2017, valued at $7.1 billion. In
2016, Canada imported 410 tonnes of gold, with a value of $7.4 billion

Prices
Gold prices in the last decade have seen a steep increase, peaking in September 2011
at US$1,771.85 per troy ounce. The price of gold in 2017 began at US$1,192.6 per troy
ounce, peaked at US$1,282.3 per troy ounce and finished the year at US$1,261.3 per
troy ounce.

Gold prices, monthly average, 2008–2017

(US$/fine Footnote* troy ounce)
Text version

Recycling
Gold is continually being recycled, mostly in the form of old jewellery that is melted
down for its gold content. The main motivation for consumers to sell or hold on to their
gold jewellery is the price of gold in their respective currencies.
When there is a higher local currency value for gold in a country, it usually increases the
scrap supply (recycled gold) available in that country. The scrap supply of gold
decreased to 1,210 tonnes in 2017, from 1,306 tonnes in 2016.
In recent years, the amount of gold recovered from end-of-life electronic products has
increased steadily.
Notes and sources