The discovery of a mysterious fungus in WA’s Peel region could be a game changer for the mining industry amid concern over a decline in Australian gold production.

Scientists at national science agency CSIRO had a eureka moment when they discovered a common thread-like fungus in Boddington that actively collects gold from its surroundings.

Lead author of the three-year study Dr Tsing Bohu said the group was proud to be the first in the world to produce experimental evidence of the phenomenon that “had to be seen to be believed”.

“Fungi can oxidise tiny particles of gold and precipitate it on their strands. This cycling process may contribute to how gold and other elements are distributed around the Earth’s surface,” Dr Bohu said.

“Fungi are well-known for playing an essential role in the degradation and recycling of organic material, such as leaves and bark, as well as for the cycling of other metals, including aluminium, iron, manganese and calcium.

“But gold is so chemically inactive that this interaction is both unusual and surprising.”

Camera Icon There is some evidence to suggest a biological benefit as those coated in the precious metal were found to grow larger and spread faster than their cleanskin counterparts. Credit: CSIRO

While researchers are sampling other areas, Boddington has proved fertile ground for the study given its relatively shallow deposits and ample fungi growth.

As for why the fungi interacts with gold, there is some evidence to suggest a biological benefit as those coated in the precious metal were found to grow larger and spread faster than their cleanskin counterparts.

Further investigation into the curious fungus could also prove lucrative if its presence is found to indicate larger gold deposits below the surface.

While the country’s gold production hit record peaks last year, forecasted estimates show production will decline in the near future unless new deposits are found.

CSIRO chief research scientist Dr Ravi Anand said the discovery could have broader implications for Australia given its status as the world’s second largest gold producer.

“The industry is actively using innovative exploration sampling techniques, such as gum leaves and termite mounds, which can store tiny traces of gold and can be linked to bigger deposits below the surface,” Dr Anand said.

“We want to understand if the fungi we studied, known as fusarium oxsporum – and their functional genes – can be used in combination with these exploration tools to help industry to target prospective areas in a way that’s less impactful and more cost-effective than drilling.”

The study was a collaboration between CSIRO, the University of Western Australia, Murdoch University and Curtin University and was published in the Nature Communications journal today.