Gold’s 2025 bull run: project economics and cut-off grade shifts for miners
Reviewed by Joe Ashwell

First reported on Australian Mining
30 Second Briefing
Gold ended 2025 at record levels after setting 53 all‑time price highs through the year, signalling sustained investor demand amid persistent inflation and geopolitical risk. Analysts cited strong central bank buying, robust over-the-counter trading in London and COMEX futures positioning as key drivers, with spot prices repeatedly breaking through previous resistance bands. For miners, the extended bull run is supporting higher cut-off grades, accelerated feasibility work on marginal orebodies, and renewed financing appetite for greenfield gold projects.
Technical Brief
- Spot moves widened intraday trading ranges, increasing mark-to-market volatility for hedge books and project debt.
- Higher realised prices improved debt service coverage ratios, supporting larger reserve-based lending facilities for gold producers.
- Several Australian mid-tiers reportedly revisited previously shelved open-pit cutbacks and underground extensions.
- Juniors advanced scoping and pre-feasibility work on low-grade shear-hosted deposits previously considered sub-economic.
- Royalty and streaming structures became more attractive versus equity for funding late-stage gold projects.
- Elevated prices encouraged re-logging and re-interpretation of historical drill core to upgrade marginal resource blocks.
- Tailings retreatment and low-grade stockpile projects gained renewed attention where existing plants have spare capacity.
- For similar projects, long-term price assumptions in pit optimisation and reserve statements are being cautiously revised upward.
Our Take
With 53 all‑time gold price highs already tagged for 2025 in our database, Australian projects are likely to revisit marginal deposits and lower‑grade resources that were uneconomic under the 2018–2020 price deck.
Recent coverage of Larvotto Resources’ Hillgrove gold–antimony drilling in New South Wales suggests that high‑grade polymetallic gold systems may attract disproportionate capital in Australia if the gold bull run persists, as they offer both grade and by‑product credits.
In the 548 Mining stories and 177 gold‑keyword pieces logged, Australian explorers are increasingly pairing gold with other commodities such as silica sand and rare earths, indicating that many new ‘gold’ projects in Australia are being structured as multi‑commodity plays to manage price‑cycle risk.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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