There is a recently circulated myth that Pakistan possesses mountains of gold, with reserves valued in trillions of dollars. Alongside this claim arises a question: if this is true, why doesn’t Pakistan use these resources to pay off its $133.5 billion debt and free itself from obligations to the IMF? Whether the debt is addressed or not, the existence of gold-rich mountains has been highlighted by Pakistan’s renowned geologists in their research.
In 2016, the Pakistan Council for Science and Technology formed a group of prominent Pakistani geologists to prepare a detailed report on one of the country’s mineral reserves. Their research, conducted in collaboration with the Australian government, focused on gold deposits in the Indus River. During this study, over fifty locations were identified where deposits of gold, silver, platinum, brass, chromium, zinc, cobalt, and other metals were found. These metals are carried by water from mountain tops to riverbanks.
A Pakistani consortium recently briefed senior officials, revealing that gold accumulated within the Tarbela Dam is valued at approximately $635 billion. Since the dam’s construction, ten billion metric tons of sediment have accumulated. Each ton of sediment contains about 1.5 grams of gold, equating to 15 billion grams of gold extractable from the sediment.
Pakistan is rich in mineral reserves and self-sufficient in many resources. Located at the junction of three tectonic plates, the country experiences tectonic activity that contributes to its wealth of mineral deposits. Several surveys have been conducted to explore these resources, yielding highly promising results. The government is actively working on initiatives to facilitate exploration and extraction, with licensing and related processes expected to commence in the near future.
Evaluating Gold Resources in Reko Diq and Tarbela Dam: Potential, Challenges, and Comparisons
When mining is conducted, some vein deposits are formed. Beneath the earth, molten rocks in the form of magma intrude into fractures in the surrounding rocks due to buoyancy, creating vein deposits, similar to the veins in the human body. Unfortunately, extracting vein deposits is very costly. In Pakistan, however, placer deposits are also present. These are formed through weathering and erosion processes and are transported by rivers. Extracting from these deposits is less expensive compared to vein deposits.
The gold percentage in Reko Diq is 0.3 grams per ton. In Pakistan, policies are already in place to enable the extraction of fine gold from Reko Diq. However, the area of Reko Diq is much smaller compared to that of the Tarbela Dam. Reko Diq spans around 15-20 square kilometres, whereas the Tarbela Dam’s area is significantly larger. The estimated cost of beneficiation at Reko Diq is around $6 billion. The concentrate from Reko Diq will be sent to Australia for smelting and refining.
Silting in the Tarbela Dam has been a continuous process, as is typical for dams. Approximately ten billion tons of silt have accumulated in the dam, with an estimated gold percentage of around 1.5 grams per ton.
In the case of Reko Diq, extensive studies, including 20,000 feet of drilling, were conducted to determine the potential quantity of gold and copper. However, no such detailed studies have been carried out for the Tarbela Dam. Only surface sampling and basic assessments might have been conducted.
The Indus River, which originates from Skardu, carries eroded rocks, minerals, and metals along its course. While some planning activities are being undertaken at various points along the river, the amount of gold extracted is minimal. Currently, daily yields range between 5-6 grams, and even with improved machinery, the output has only increased to 10-15 grams per day—an amount that remains negligible.
As for the Tarbela Dam, while it can be described as a massive deposit of silt and sand, calling it a “gold mountain” or a significant gold deposit requires comprehensive exploration. This would involve drilling over 50,000 feet and conducting extensive studies to ascertain the actual gold potential in the dam. The figures cited for gold extraction can only be classified as inferred numbers and should remain in the inferred category until further exploration is conducted.
Mining on commercial scale is essential to harness economies of scale:
Gold exploration cannot be conducted on a small scale; it must be undertaken on a large scale to be viable. One critical element involved in this process is dredging, which comes with significant costs. For commercial viability, operations must be scaled up appropriately.
The most important aspect at this stage is estimation. There are various terminologies used in estimation, including inferred, indicated, proven, and possible reserves. Currently, the gold deposits in the Tarbela Dam fall into the lowest category, known as inferred reserves. To advance these to the indicated category, substantial technology and resources, likely requiring foreign funding and expertise, would be essential.
The Tarbela Dam does not contain vein deposits; such deposits are present in Reko Diq. Drilling in Reko Diq revealed an average gold content of 0.3 grams per ton. In contrast, estimates for the Tarbela Dam suggest a content of 1.5 grams per ton, which is five times higher than Reko Diq. However, this figure is questionable because river deposits come from various sources eroded along the river’s course, and not all veins or rocks contain the same gold percentage. It is unrealistic to claim a uniform content of 1.5 grams per ton, as there will naturally be significant variations.
To accurately estimate the reserves in the Tarbela Dam, the area would need to be divided into 50-100 blocks, a task that cannot be undertaken by a single company. Additionally, it is important to consider that mining is not an environmentally friendly industry. Mining activities often cause environmental damage, but Pakistan has environmental protection agencies and regulations in place. These include requirements for initial environmental assessments and detailed environmental impact assessments to mitigate potential harm.
Where to start?
Primarily, the reserves, currently classified as inferred, need to be upgraded to a higher category. Why settle for vague estimations when precision can unlock true potential? Geophysical surveys, while effective for identifying magnetic deposits, fall short when it comes to gold exploration. This is where our expertise comes in. Identifying gold requires advanced drilling techniques and comprehensive coverage, areas in which our company excels. With our cutting-edge technology and experienced team, we ensure that no resource goes unnoticed.
Imagine the immense potential hidden within the Tarbela Dam. Its vast area demands a systematic approach to exploration, and we specialize in breaking down such challenges. Dividing the area into 15 to 20 square-kilometers blocks, we apply tailored strategies to ensure thorough and precise exploration. Don’t just explore—explore smart. Partner with us to move your reserves from mere possibilities to actionable realities. With our proven methodologies and innovative solutions, no deposit is beyond reach.
