Aussie gold index adds five companies

Five Australian gold producers have been added to the Australian Gold Council/Macquarie Gold Index.

Oxiana Resources, Sino Gold, Dalrymple Resources, Dominion Mining and the recently listed MPI Mines join 17 gold producers already listed on the index.

The AGC/Macquarie Gold Index gained 987 points, or 98%, from Oct. 16, 2000, to Feb. 4, 2003. In the past six months, it has jumped 250 points, an increase of more than 14%.

The index is a joint venture between Sydney-based Macquarie Bank and the Australian Gold Council. It replaces the Australian Stock Exchange index, which was scrapped in July 2002.

Other emerging Australian gold companies slated to come into production in the current calendar year are Dioro Exploration, Giant’s Reef, and Northern Gold. Several other gold explorers have projects and feasibility studies under way, including Gallery Gold, Oroya Mining, Sedimentary Holdings and Westonia Mines.

“Clearly, it is a time of growth and opportunity for the Australian gold industry and the Australian Gold Council looks forward to adding these companies and others to the gold index as the industry continues to gather momentum,” says Tamara Gorrie, CEO of the AGC.

The AGC expects gold’s rally to continue, driven by the strong likelihood of war with Iraq, a weakening U.S. dollar, volatile equity markets, and continued producer hedge book reduction.

The AGC is in talks with the Australian government to provide exploration tax incentives for junior gold mining companies.

Australia produced 281 tonnes, or 9 million oz., of gold in 2001.