Attractive Location for Gold Investments
Chile has developed into one of the most attractive locations for gold investments in Latin America over the last few years, particularly in the small-cap segment. The growing interest from investors in the Chilean gold sector and the projected acceleration of this trend by 2025 offer numerous opportunities for investors.
Geological Potential and Production Growth
Chile possesses enormous geological resources that make the country a hotspot for gold exploration and production. In 2024, gold production was around 35 tons with a rising trend. A significant milestone was the production start of the Salares Norte mine by Gold Fields: After an initial production of 50,000 ounces in 2024, this mine is expected to yield around 350,000 ounces in 2025. Other projects such as Rio2 Limited’s Fenix Gold project in the Maricunga gold belt are also in the construction phase; with a resource base of 4.8 million ounces, it is one of the largest undeveloped deposits in the Americas.
Attractive Conditions
Political Stability and Mining-Friendly Regulation: Chile is characterized by strong institutional frameworks, political stability, and mining-friendly policies. The introduction of a “Smart Approval System” and the revision of environmental assessment laws have contributed to the faster approval of new mining projects.
Legal Transparency: The legal transparency of Chile makes the country particularly attractive for international investors. Clear rules and efficient approval processes facilitate market access—especially for smaller operators (small caps).
Opportunities in the Small-Cap Segment
The current focus is on the small-cap segment: Young companies benefit from increased interest of large mining giants like Gold Fields or Lundin Mining in joint ventures or stakes in promising projects of smaller players. For instance, Tesoro Gold Limited with its El Zorro project in Atacama is an emerging gold explorer: With a defined resource of 1.46 million ounces and new high-grade drill results, the project offers further expansion potential.
Conclusion: Why Chile?
- Geological Potential: Large undeveloped deposits like Fenix (Rio2) or El Zorro (Tesoro) offer enormous growth potential.
- Political Stability: Chile is considered one of the most stable countries in Latin America.
- Regulatory Improvements: Faster approval processes thanks to intelligent systems.
- Investor Interest: Large companies are strategically investing in young firms—a trend towards consolidation in the sector.
- Attractive Environment: Diversified projects by experienced management teams make Chile a hotspot for small-cap gold investments.