Do you know how much gold is in one mine? Here’s how experts find out

Published On 2022-05-23

The popularity of investment assets has shifted over time, from gold and other precious metals throughout much of recent history, to real estate and financial assets such as commodities, and finally, to digital assets and cryptocurrencies over the past few years.

Gold, however, has maintained its status as one of the most valuable assets for investment for generations. The demand for gold investments comprises a large part of the demand for gold, and as a result, roughly half of the gold mined in the world is stored in bank vaults as a backing asset or as collateral. This model is problematic as mining is an energy-intensive and environmentally destructive process. One ounce of gold mined corresponds with emissions of up to 800 kilograms of greenhouse gases on average. That the mining of gold and other metals results in an estimated 180 million tons of toxic waste into water bodies such as rivers and oceans each year is just one example of how the mining process contaminates important ecosystems. Due to the inefficient and environmentally destructive nature of mining, pressure to reduce carbon emissions and collateral damage to the environment is weighing on the gold industry.

That being the case, what if it was possible to unlock the value of gold without ever mining it since many gold investments do not require any allocation of physical gold? We at Nature’s Vault have explored that possibility and now we offer a new approach to gold investment in the form of a new gold-linked asset class that monetizes the preservation of in-ground gold deposits. rOur first token, $LEGACY, is linked to a minimum of 1/100th of a gram of gold preserved in the ground. We refer to this preservation of in-ground gold as NaturesGold™, and we monetize it via tokenization in order to finance the avoidance of unnecessary mining, ultimately reducing its negative impact. $LEGACY token holders have the opportunity to benefit from a gold-linked investment, while also avoiding contributing to the environmental damage associated with gold mining, as well as digital, Proof of Work mining.

But in order to tokenize gold assets they must first be quantified, so how is this done, and, most importantly, how is the amount of gold verified if it is never mined?

At Nature’s Vault, we’ve developed a patent-pending methodology that starts with the acquisition of mining rights to legally stake a claim on in-ground and quantifiable gold deposits. Mining experts in our team first identify and evaluate gold deposits located in pristine areas likely to be targeted for gold mining. Then, to establish control over the mining rights to the area, a dedicated legal entity acquires these rights with a transparent governance framework.

Because we acquire patented mining rights, we own the mining rights in perpetuity. This is pursuant to our commitment not to mine and ensures that the gold deposits we acquire remain unencumbered as the mining rights are irrefutable, owing to their being tracked on the blockchain.

To quantify the gold deposits, we rely on the most trusted methods in the industry that subscribe to globally accepted standards for investors large and small to evaluate public mining companies. These standards outline the minimum qualifications, evidence, and analysis required to produce technical reports estimating in-ground mineral resource quantities. They are governed in Canada by National Instrument (NI) 43–101 and in Australia by the Joint Ore Reserve Committee (JORC).

These reports are based on detailed drilling reports and comprehensive, standardized technical analysis. They are validated by geological experts, are exhaustively documented, and are widely accepted as fit-for-purpose and reliable.

We specifically target gold deposits for which these technical reports already exist. Without them, it wouldn’t be possible for us to provide proof of our claim that the in-ground gold has been quantified, let alone tokenize the preservation of this in-ground gold.

For Nature’s Vault, the purpose these reports serve is not only to quantify the amount of preserved gold linked to each token but also to provide token holders with the transparency that is often not available with traditional gold investments. Blockchain is not only fundamental to securing our ownership of mining rights, but also to ensure that each token is linked to the exact amount of in-ground gold that it represents.

We hope that eventually, our new model of tokenizing and monetizing in-ground gold deposits becomes a dominant investment model, one more popular than its predecessor, traditional gold investment. By preserving gold in the ground and incentivizing the avoidance of mining, we see ourselves playing a large role in helping to reduce carbon emissions and in achieving a net-zero future.

About Nature’s Vault

Nature’s Vault is an ESG finance platform designed to accelerate the funding of impact investments to combat climate change and ecosystem damage. Launched this year, Nature’s Vault expects to be one of the first to create a blockchain-powered platform to tokenize projects focused on preserving Natural Capital — the planet’s natural resources and the ecosystem services they provide. The company’s first project involves avoiding the environmental impact and carbon emissions caused by gold mining while utilizing tokenization to preserve in-ground gold deposits. Nature’s Vault has operations and a presence in North America and Asia.

To learn more about Nature’s Vault, visit:

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