Iceland is a land shaped by powerful geological forces, often recognized for its striking volcanic landscapes and extensive geothermal activity. This unique environment frequently leads to questions about the natural resources hidden beneath its surface, including the intriguing possibility of gold. Exploring Iceland’s geological characteristics can help clarify its potential for precious metal deposits.
The Search for Gold in Iceland
Gold has indeed been sought in Iceland, with exploration efforts dating back to the early 20th century. Small-scale gold mining occurred in the Thormodsdalur vein system between 1908 and 1925, following the discovery of gold-bearing quartz. Early prospectors identified gold-rich locations like Mógilsá and Thormodsdalur, finding multiple quartz veins. These early operations even involved shipping gold concentrate to Germany for processing.
Interest in gold prospecting resurfaced in the 1980s, driven by geological studies connecting deposits to fossil geothermal systems. More recently, companies have actively explored, using historical data and new drilling. Samples from areas like Thormodsdalur show very high gold concentrations, up to 415 grams per ton. While these grades are exceptionally high, the primary challenge remains determining if these occurrences are extensive enough to support commercial mining operations.
Iceland’s Geological Makeup
Iceland’s geology provides a scientific explanation for the general scarcity of widespread gold deposits, particularly when compared to older continental landmasses. The island formed along the Mid-Atlantic Ridge, a divergent plate boundary where the North American and Eurasian tectonic plates pull apart. As these plates separate, magma rises from the Earth’s mantle to fill the void, cooling to form new oceanic crust primarily composed of basalt. The island itself is geologically young, with its landmass emerging above the waves approximately 16 million years ago.
This continuous process of new crust formation results in a bedrock that is overwhelmingly basaltic, contrasting with the older, more chemically complex continental crusts where large, economically viable gold veins often form through prolonged hydrothermal activity. While Icelandic basalt has higher gold concentrations than typical mid-ocean ridge basalt, gold deposition primarily occurs through active geothermal systems. These systems create pathways for mineral-rich fluids, leading to low sulfidation epithermal gold-silver mineralization, common in volcanic environments. However, the relatively young and dynamic nature of Iceland’s crust limits the time for large-scale, concentrated mineral deposits to accumulate.
Other Valuable Resources in Iceland
While extensive gold deposits may not be Iceland’s primary mineral wealth, the country is abundant in other valuable natural resources, particularly renewable energy. Geothermal energy and hydropower are the most significant, providing almost all of the nation’s electricity and heating. This vast renewable energy potential has allowed Iceland to become a global leader in clean energy utilization.
The availability of inexpensive and clean energy has attracted energy-intensive industries, making Iceland a significant producer of aluminum, ferrosilicon, and silicon metal, despite lacking the raw ore for these materials. Beyond energy and manufactured metals, Iceland also extracts various industrial minerals. These include pumice, basalt for crushed stone, diatomite, cement, salt, sand, and gravel, used in construction and other industries. Fisheries also remain a vital part of Iceland’s economy, contributing significantly to exports and overall economic activity.