Iceland is a wild and sparsely populated Nordic island nation located in Northern Europe. The entire country has a population of just 356,991 people, less than even a modest-sized city. Two thirds of them live in the capital Reykjavik.
Iceland is considered a volcanically and geologically active land mass but it has a very diverse landscape.
There are mountains, plateaus, hot springs, and even glaciers in this country. Iceland is also rich in minerals but despite being one of the most developed countries in the world, its mineral wealth is still poorly mapped. However gold discoveries have been made in some parts of this volcanic island and this will be our focus.
History of Gold Research in Iceland
Before we look at current gold discoveries in island and their commercial viability, let ys delve a little bit into the history of gold prospecting here. Gold exploration in Iceland goes back to the early twentieth century after gold-bearing quartz was discovered along the Seljadalsa River.
Early prospectors would investigate the area further and found significant gold deposits there. Mining then kicked off in 1908 and continued to 1925 before operations halted.
Since then, any gold prospecting seemed to stop in Iceland for decades. Prospecting however started all over again nearly 60 years later in the 1980s. Geological studies of volcanic gold deposits appeared to suggest that this island nation could in fact have a rich wealth of both gold and silver within its borders.
Later, the Icelandic government created a task force to start investigating gold potential in the country. This led to the establishment of Málmís hf, a government owned prospecting company that is responsible for the investigation of mining prospect across the country.
The government led company would also partner with several private companies with interest in gold mining to expand its capacity further. Eventually, all these efforts paid off as gold discoveries started to be reported in Iceland.
Gold Discoveries in Iceland
Gold has been discovered in several parts of Iceland in recent years. The first one is the Hoth District which is located about 300 miles east of the capital Reykjavik. While there is definitely gold here, there is very little data to tell us just how much gold.
There are also some reports that the small town of Stykkisholmur could have its own deposits too. The town is located in eastern Iceland and just like the Hoth District, we are still not sure how much gold is there. Several private companies have also been involved in exploration for gold in Iceland since the early 1990s.
For example, the Teck Exploration Limited did extensive exploration in 1992 and made some discoveries. Additionally, the Icelandic Gold Corporation in partnership with other companies investigated possible gold deposits around the country from 2004. Since then, the company has a total of 14 claims that cover a land of nearly 15,500 square kilometers.
It is only recently that we are starting to see any significant investments in prospecting and gold mapping in Iceland. There could be a lot of gold here no doubt, especially when you look at the geological profile of the country. But until such deposits are found and mapped, it’s still a bit hard to have a clear picture of the overall mineral wealth.
Ireland Gold Prospecting Areas
Increasing Interest from Private Companies
Perhaps one of the clearest signs that Iceland has massive gold potential is the increasing number of private companies showing interest in gold prospecting. Until 2004, the government had only issued one single permit for gold exploration in Iceland by a private company. But things have changed ever since, with more and more private prospectors entering the fray.
For example, in 2010, Platina Resources, a major Australian mining company, applied for consent from the local government to do prospecting of gold for 2 years covering large tracts of land.
There was also significant exploration in 2013 by the North Atlantic Mining Associates Ltd in areas around Reykjavik. The company has so far found relatively higher gold deposits than it previously expected.
High Yielding Gold Ore
But one thing that perhaps makes Iceland a hot prospect is the possibility of finding high yield gold ores. Just a few years ago, a prospecting company found gold along the Bormóðsdalur Valley, a volcanic region south of the country. However, what made this discovery interesting is the fact that a ton of ore was estimated to have a potential yield of 400 grams of gold. This would be extremely high-grade and surely a profitable venture if these ores were extensive enough for large-scale mining.
This is by far one of the highest yields anywhere in the world. If indeed Iceland has such high yielding ore, then there is a possibility that it could soon become a major gold producer.
So far, prospectors are still looking and mapping resources with the help of the government in Reykjavik. Let’s also not forget that a big portion of Iceland is still very remote and this could pose significant logistical challenges for prospecting companies.