An announcement is expected tomorrow from BHP Billiton that the gold reserves at Olympic Dam are 50% bigger than previously thought, which could make it the biggest gold mine in the world.

A spokesman in London said:

“Olympic Dam is a world class deposit and we are going to be releasing an increase in our resource estimates with the annual report on Wednesday”

A report in the Guardian goes on to say:

“Situated 330 miles north of Adelaide, South Australia, Olympic Dam contains deposits of several minerals and is already the home to the world’s largest uranium mine.

BHP has grown in value on the back of the China-fuelled commodity boom. Its stock market value has reached $200bn (£99bn), compared with $30bn five years ago. Yesterday the share price rose 81p to £17.37. Rival mining firm Xstrata was up 146p at £32.90.”

We do not own BHP Billiton but this is great news for those who do own it.

Calling all Australian gold bugs any comments please!