How gold gets from in the ground to being produced into a coin

Gold is one of the most precious and valuable metals in the world. It has been used as money, jewellery, and decoration for thousands of years. But how does gold get from in the ground to being produced into a coin? The process involves several stages of exploration, mining, refining, and minting.

gold-and-silver-stack

Exploration

The first stage of gold production is exploration, which involves finding and identifying gold deposits in the earth’s crust. Gold deposits can be formed by various geological processes, such as hydrothermal activity, volcanism, metamorphism, or sedimentation 1 Gold deposits can also be classified into different types, such as placer, lode, or disseminated, depending on their shape, size, and location 2

Exploration can be done by various methods, such as geological mapping, geochemical sampling, geophysical surveying, or drilling. These methods help to determine the size, grade, and depth of the gold deposit, as well as its economic viability and environmental impact. Exploration can take several years and require significant investment and expertise.

Mining

The second stage of gold production is mining, which involves extracting the gold ore from the ground. Mining can be done by different methods, depending on the type and location of the gold deposit. The most common methods are open-pit mining and underground mining 3

Open-pit mining involves digging a large hole in the ground and removing the ore and waste rock with trucks and shovels. Open-pit mining is suitable for shallow and large deposits that are close to the surface. Underground mining involves digging tunnels and shafts into the earth and using explosives and machinery to break and transport the ore and waste rock. Underground mining is suitable for deep and small deposits that are far from the surface.

Mining can also have various environmental and social impacts, such as land disturbance, water pollution, noise pollution, greenhouse gas emissions, or displacement of communities. Therefore, mining companies must obtain appropriate permits and licenses from the authorities and comply with environmental and social regulations and standards.

Refining

The third stage of gold production is refining, which involves processing the gold ore into pure gold. Refining can be done by different methods, depending on the type and quality of the gold ore. The most common methods are cyanidation, smelting, and electrorefining4

Cyanidation involves dissolving the gold ore in a solution of sodium cyanide or potassium cyanide. This forms a complex ion of gold and cyanide that can be separated from the other minerals by filtration or precipitation. Cyanidation is suitable for low-grade or finely dispersed gold ores that are difficult to smelt.

Smelting involves melting the gold ore in a furnace at high temperatures and adding fluxes such as borax or silica to separate the impurities from the molten gold. This forms a slag that can be removed from the furnace and a doré bar that contains gold and other metals such as silver or copper. Smelting is suitable for high-grade or coarse-grained gold ores that are easy to melt.

Electrorefining involves passing an electric current through an electrolytic cell that contains an anode of impure gold and a cathode of pure gold. This causes the impurities to dissolve from the anode and deposit on the cathode as slimes or powders. Electrorefining is suitable for refining doré bars or other forms of impure gold into pure gold.

Refining can also produce various by-products or wastes, such as cyanide solutions, slag, slimes, or tailings. These by-products or wastes must be treated or disposed of properly to prevent environmental or health hazards.

Minting

The fourth stage of gold production is minting, which involves producing coins from pure gold. Minting can be done by different methods, depending on the design and quality of the coins. The most common methods are casting, striking, or minting by press5

Casting involves pouring molten gold into a mould that has the shape and pattern of the coin. Casting is suitable for producing large or irregular coins that have low relief or simple designs.

Striking involves hammering a blank piece of metal between two dies that have the shape and pattern of the coin. Striking is suitable for producing small or regular coins that have high relief or intricate designs.

Minting by press involves squeezing a blank piece of metal between two dies that have the shape and pattern of the coin using a hydraulic press. Minting by press is suitable for producing large quantities of coins that have uniform quality and precision.

Minting can also involve various steps such as annealing, rolling, blanking, rimming, cleaning, polishing, or packaging to ensure the quality and appearance of the coins.

Disclaimer: This article is intended as an opinion piece and does not constitute financial advice. Investing in bullion carries risks, and individuals should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

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