Bloomberg News

Gold Poised to Reach $3,000 in 2013, Oro Mining’s Brownlie Says

September 14, 2011

Sept. 14 (Bloomberg) -- Gold will rise to $3,000 an ounce by March of 2013, driven by currency devaluation and central banks buying the metal, said John Brownlie, chief executive officer of Oro Mining Ltd., a company developing gold mines in Mexico.

“People got over the sticker shock of paying $1,000, people got over the sticker shock of $1,500,” Brownlie said in an interview yesterday in New York. “Once they cross that $2,000 sticker shock, it can get significantly higher.”

Brownlie, who sold his last Mexican gold mine, Capital Gold Corp., to AuRico Gold Inc. for $338 million in April, said gold will fall to $1,750 by the end of 2011. In his 30-year career, Brownlie has developed mines in Mexico, South Africa and Uzbekistan.

Oro Mining, which is based in Vancouver, will begin production in 2013 with operating costs of $300 to $400 an ounce, Brownlie said. Preliminary economic analysis and feasibility studies will be completed by the end of this year, he said.

Gold futures for December delivery gained $16.80, or 0.9 percent, to settle at $1,830.10 yesterday on the Comex in New York.

--Editors: Charles Siler, Simon Casey.

To contact the reporter on this story: Sonja Elmquist in New York at selmquist1@bloomberg.net.

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net.


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