I think the CEO of AEm was referring specifically to the cost of gettin it out of the ground. An ounce of gold that costs $50 to produce is better quality than one that costs $300 ... and they both exist.

I'd say he summed up the reality of pricing a project very sussinctly. It also means that with a high gold price, the more exploration companies that are working away at the next best thing and that majors can be more selective in what projects they acquire (IMO)