Email this story Print this story Archives

New Boom? Mining, exploration growing in Nevada

By ADELLA HARDING, Staff Writer
Wednesday, June 9, 2004 4:40 PM PDT

ELKO - Gold mining and mineral exploration are picking up steam in Nevada with higher gold prices providing the incentive for new projects.

The London afternoon fixing price today was $386.85, off $3.85, but prices have been above $400 much of the time since last December, a far cry from the lowest London afternoon fixing price of $255.95 per ounce in 2001.

Michele Ashby, chief executive officer of the Denver Gold Group, said she expects the gold price to be in the $390 to $400 range throughout the summer.

"I don't think we will have any major breakout because of the election year. If gold is too high, it means inflation," she said, but she is optimistic about the industry.

"The drum is beating for us. We will continue to see this market thrive," Ashby said.

"My little tea leaves say things are definitely looking up for the industry," Nevada Mining Association President Russ Fields said Tuesday.

His "tea leaves" include the addition of new association members from the supply side of mining and new mining company members, such as Quadra Mining, which has reopened the Robinson copper mine near Ely.

Another good sign is the increase in booth numbers for the Elko Mining Expo that kicks off at 7 p.m. today with a dinner at the Red Lion Inn & Casino, featuring gold analyst Daniel McConvey as speaker.

Miner shortage

Yet another indication that mining is on the upswing is the shortage of miners, especially underground miners.

"It's an universal theme. There is definitely a shortage of underground miners, engineers and geologists," said John Mansanti, general manager of the Turquoise Ridge Joint Venture north of Golconda.

Turquoise Ridge is planning an underground mining academy to make up for the shortage of experienced miners, he said. Plans call for the school to begin in July.

Turquoise Ridge is operated by Placer Dome Inc., which owns 75 percent of the joint venture. Newmont Mining Corp. owns the remaining 25 percent.

There also are increasing numbers of want ads seeking miners. For instance, Carlin Trend Mining Services recently advertised for mechanics, haul pack operators, equipment operators and underground laborers. And DT Workforce's ads seek experienced underground miners for "one of the leading gold producers in the world."

"The industry is extremely tight for labor right now," said Pete Neilans, general manager of Cortez Gold Mines in Crescent Valley.

New studies

Yet another sign of growth is the number of environmental impact statements the U.S. Bureau of Land Management is preparing for new mining projects.

The Elko BLM office is planning an open house from 2 p.m. to 7 p.m. June 16 on Newmont Mining Corp.'s proposed Emigrant Mine south of Carlin.

And the BLM's Battle Mountain office is planning meetings at 6 p.m. June 16 at its office and at 6 p.m. June 17 at the Eureka Opera House on Barrick Gold Corp.'s plans to mine again at the Ruby Hill Mine near Eureka.

Battle Mountain BLM is planning July meetings on Cortez Gold Mines' plans for expanding the Pipeline and South Pipeline operations.

Pam Jarnecke, environmental coordinator for the BLM at Battle Mountain, said today the Cortez announcement was to go in Friday's Federal Register but there is no publication that day because of former President Ronald Reagan's funeral.

Also, Battle Mountain BLM's Tonopah field station recently held meetings on plans for the Gold Hill project at Round Mountain Gold, which is owned by Kinross Gold and Barrick.

In addition, the Winnemucca BLM just released an environmental assessment approving expansion projects at Apollo Gold's Florida Canyon Mine at Imlay.

Apollo Gold also has started development of the Standard Mine to the south of Florida Canyon, following state approval of the project on private land.

New projects

Newmont already has permits for several other projects under way in Nevada, including the Leeville underground mine and Gold Quarry expansion north of Carlin, development of the Phoenix Project near Battle Mountain and the Section 30 expansion at Twin Creeks.

"If you look at the pipeline of projects we've outlined, we feel it's a good time to make further investment. We've got some projects we feel are promising in Nevada," said Newmont spokesman Doug Hock.

Companywide, Newmont is spending $140 million to $150 million on exploration this year, compared with $115 million last year, he said.

"The gold price is driving that," Hock said.

"We've found that growing through the drill bit is the best value for shareholders," he also said about the world's largest gold producer.

Cortez also is planning to mine its new Cortez Hills discovery to the east of current Pipeline operations. Cortez is operated by Placer Dome, which owns 60 percent. The other 40 percent is owned by Kennecott Minerals.

Placer Dome also is gearing up for full gold production by year's end at Turquoise Ridge Joint Venture, according to Mansanti.

In addition, Placer Dome's Bald Mountain Mine is expanding its Top Pit and exploring for gold in White Pine County.

And the Marigold Mine operated by Glamis Gold is expanding its Terry Zone and developing the Millennium Project at Valmy. Barrick owns one-third of Marigold.

Metallic Ventures Gold Inc. is now producing gold at its new underground project near Hawthorne and exploring at Goldfields and at its Converse Project near Valmy.

"Esmeralda is in production now, but not in full production," Rich McNeely, president of Metallic Ventures, said Tuesday.

Busy drilling

Along with new projects, mining companies are drilling for gold around their operations, and exploration companies are busy in the Nevada.

Queenstake Resources has stepped up exploration at Jerritt Canyon Mine north of Elko, for example.

"It's fair to say the level of drilling is the highest its been in almost 10 years," Ted Wilton, who heads district exploration efforts for Queenstake, said in late May.

Queenstake also is developing a new underground mine called Steer.

Doug Driesner, director of mining services for the Nevada Division of Minerals, said Tuesday that exploration is increasing, and he is working on his annual exploration survey that will show that growth.

"It's up, but I can't say by how much without having all the numbers," Driesner said.

He does have the number of mining claims filed over nine months, from July 2003 to March 2004 that shows a 10.25 percent increase, however.

The number of claims filed from July 2003 to March 2004 totaled 112,609, compared with 102,137 claims filed from July 2002 to March 2003.

Driesner said he also is seeing more interest in the state's bonding pool, which provides coverage for mining projects.

Forest permits

On the Humboldt-Toiyabe National Forest in the areas covered by the Elko office, permit applications for exploration drilling have tripled to 15 projects.

"Usually, we had four or five projects a year since the price of gold went down," said Dan Dallas, the Mountain City district ranger and the acting ranger for the Ruby Mountain and Jarbidge districts.

He said several of the new projects are "right around the town of Jarbidge," including Atna Resources Ltd.'s Jarbidge and Deer Mountain projects and Clayton Stocks' Amy Claims Project.

"We've been looking for high-grade gold projects for the past 18 months, and the Jarbidge district fits that definition," William Stanley, vice president of exploration for Atna, said Tuesday.

He said plans call for 30 drill sites, and "we hope to be drilling by late summer."

Permit activity in the Mountain City Ranger District includes Gateway Gold's Big Springs, Island Mountain, Dorsey Creek and Golden Dome exploration projects, Western Exploration's Wood Gulch Project, Concord Minerals' Tipperary Project, Richard Potter's Black Jack Silver Project and Argosy Minerals' Gold Creek Project.

Jerritt Canyon exploration projects also are in the district.

In addition, the Forest Service reported that Cordilleran Exploration Co. has the Overland Pass Project in the Ruby Mountains Ranger District, and Romarco Minerals Inc. is looking for gold at its Buckskin-National Project in the Santa Rosa Mountains.

Stanley said Atna also has the Golden Cloud Project in Elko County near the Hollister Mine with partner Great Basin Gold.

Nearby, Hecla Mining Co. is in partnership with Great Basin Gold on an underground exploration project at Hollister, also known as Ivanhoe. BLM's Elko office recently permitted Hecla's project.

BLM permits

BLM's Elko district saw the biggest jump in permits in the 2003 fiscal year, with 20 permits, according to Mike Brown, spokesman for the Elko BLM office.

So far in this fiscal year, which began Oct. 1, 2003, there have been eight exploration permits issued, Brown said. However, the projects permitted in the 2003 fiscal year are ongoing, which signals continued interest.

There were only two permits issued in fiscal 2002 and one in fiscal 2001, Brown said, "so what you see is a big spike last year."

Brown also reported the Elko office is working on two oil and gas permits for Pine Valley, the first ones in a long time.

By publishing a comment here you agree to abide by our comment policy.

**Your Member ID and password will be required to log in. Your comments will appear under your user name.