BHP Billiton Ltd. (NYSE:BHP) is seeing shares up more than 5% in pre-market activity at $76.65 at what will be new 52-week highs for its ADR’s. The word is out that the world mining giant is going to announce on Wednesday what may be the world’s largest gold resource at its Olympic Dam mine in southern Australia. You can read the full story at the Herald Sun site where the news came out.
There are some interesting ongoing events that surround this location. BHP has been reportedly been operating up to 20 drilling rigs at the mine to justify the major expansion of more than $6 billion expanding the mine. This mine already sits atop the world’s largest uranium resource and is among the world’s largest copper and silver deposits.
As far as if this is the "Largest" is still not known. In a world where gold is harder and harder to find and where supposedly most of the "known finds" close to the surface have been made, you have to wonder how much hype has been added in on this story by eager analysts and demanding goals.
BHP Billiton hopefully won’t ever allow itself to get into Bre-X situation, and we don’t think this is anywhere in the same light at all. This company is far too large and too reputable for that. But when you hear about "the largest find in the world" it’s hard not being at least a little skeptical when you know how demanding the expectations are on the company.
Jon C. Ogg
September 24, 2007