In the December 2006 quarter alone, mineral exploration (excluding petroleum) rose yet another $36 million (9.5%) to $424 million.

This represents an increase of over 40% on the December 2005 quarter. The biggest gains were made in Western Australia (up $21.7 million) and Victoria (up $3.8 million).

Another major indicator is the number of metres drilled. In the December 2006 quarter, a total of 2,183,000 metres were drilled (up 7%).

All the figures above are seasonally adjusted.

Gold and Coal exploration expenditure had the largest increases, with both recording increases of almost 20%. In fact, not one mineral category experienced a decrease in exploration expenditure in the December 2006 quarter

We know that exploration expenditure precedes the actual mining. Although exploration alone doesn’t ensure that the actual mining takes place, it is one of the best predictors of future mining levels.

My prediction is for some pretty strong growth for some time yet.

Calvin Close
Managing Director
miningreference.com – Australia’s Premier Mining Reference

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