http://www.bluechip-stocks.

com/gold/some-age-old-techniques-used-for-goldmining Some Age-Old Techniques Used For Gold Mining Gold mining companies are involved in the process of extraction of gold from the earth. This valuable commodity is used in the making of coins, bars and jewelry. Its intrinsic value is the reason for it being a very popular investment choice by many as it is a useful hedge against inflation and during periods of uncertainty; especially when there is devaluation of the U.S dollar. There are various techniques involved in the extraction of gold. They are covered below (Source: Wikipedia). Panning When gold is found in small quantities in sand and gravel, the gold panning procedure is employed. It is done manually and it separates gold from other materials present here. The sand is filled in broad and shallow pans and the latter are submerged in water. After shaking the same, gold, being much denser than rock, settles at the bottom; thus being sorted from the gravel and other items present in the sand. This material is generally removed from the regions where there is concentration due to the gold density, like for example, near the inside turns of streams or from stream beds. When there are exceedingly low costs for labor or in regions where there are significant traces of gold, it is a useful method of gold extraction. Although relatively easy, this it is not feasible commercially, especially when there is requirement of extraction of gold from large deposits. Sluicing Small-scale gold miners use this method to search and mine for gold from placer deposits by the use of sluice boxes. Channels that are man-made and have rifles at the bottom set so as to generate dead zones in the current and enable gold to drop out of the suspension are used. Such boxes are placed in the stream and the flow of water is channeled; with the material that bears the gold being placed at the top of the box. Thus the current carries the box bearing the material and gold, along with other dense materials settles behind the rifles while the other less dense materials flow out. When bigger commercial operations are carried out, trommels (screening plants) are employed to eliminate gravel and boulders and then the remaining material is concentrated in a sluice box. Of course, bigger equipments are used here like earth movers, excavators, bulldozers, etc. This method, though outdated, is still carried out by dredging by miners on a small scale. As a By-Product There are many mines like for example, copper mines that recover not only copper, but gold and some other metals as well in extensive quantities. Sand and gravel pits too recover some gold in their washing operations. Thus gold is also obtained as a by-product. By Cyanidation of Gold Fine gold-bearing rocks are found in some areas. These rocks are finely ground and sodium cyanide solution is mixed with them, after which it is separated from the ground rock as gold or silver cyanide. If zinc is present, it is precipitated out

and removed with H2SO4. What remains is sludge of gold or silver and it is smelted into an ingot. Later it is shipped for the final processing. Some of the gold mining companies in USA and the world are the Barrick Gold, Goldcorp, Newmont Mining Corporation, Newcrest Mining, Delta Consolidated Mining Company, etc. Gold junior mining companies did not suffer much in terms of percentage losses in the year 2012. They can rebound through base-building as they enter into 2013 and so can silver junior companies. Investors would do well to speculate in gold plays in South Africa, where the Rand is losing value and there are geopolitical changes in the region. ***