Soaring gold prices give a second life to a long-abandoned Welsh mine

Attracted by soaring prices and its royal connection, one company has started to search for rare Welsh gold at the bottom of a long-abandoned mine, almost 50 metres below the surface.

The Clogau-St David’s mine, located in a national park near the coast of Wales, was flooded until its latest licence-holder, Alba Mineral Resources, spent months pumping out water to begin operations. The mine, up to now, has been in the exploration phase and is slowly transitioning to proper operations. From the depths of the mine, they drill, blast, and haul the ore to the surface.

Local legend has it that a miner discovered the first flakes by accident after kicking a piece of rock. After six decades of prosperity, the mine shut in 1911 and only occasionally reopened in the years that followed. At its final shutdown in 1998, gold sold for $300 a troy ounce (31.1 grammes).

Today, the price of gold has soared beyond $3,000 an ounce — and hit a new record on Monday, attracting investors seeking a safe-haven asset as US President Donald Trump’s stop-start tariffs roil global markets. The economics of coming in and finding unworked seams of gold is very attractive.

Clogau gold is prized for its scarcity, Welsh heritage and ties to the British royal family, fetching up to 10 times the standard market rate. Royal family members, including Queen Elizabeth II, King Charles III, Princess Diana and Princess Catherine have all worn a Clogau wedding ring — a tradition that dates back a century to the wedding of King George VI. The royal connection adds, obviously, to the cachet, the allure of the project that we’re involved with. Even with limited production, a few hundred ounces per year, the venture will be profitable.

The company has invested £4 million ($5.3 million) into the site, where 10 people work. Early test auctions of one-ounce pieces have been successful, with the first selling for £20,000 ($26,500) — more than eight times the traded price of gold. Remaining features, like rusty rails and wooden foundations, serve as reminders of the history of this once-thriving mine.

A promising extension to the original quartz vein, around 120-metres long, has been identified in the exploration area measuring 107 square kilometres. World Gold Council market strategist John Reade said it is not the quality of Clogau gold that attracts its premium price but the fact it is a small, “boutique mine”. Only 80,000 ounces (2.5 tonnes) of gold have been extracted throughout the mine’s history. That compares to global gold production of around 3,600 tonnes a year, he said.  But thanks to its royal connection, the Welsh gold may attract “traditionalists, people who may be strong monarchists” willing to pay more, Reade added.