Major Mines of Nevada 2006

Transcription

1 Nevada Bureau of Mines and Geology SPECIAL PUBLICATION P-18 Major Mines of Nevada 2006 Mineral Industries in Nevada s Economy By Doug Driesner and Alan Coyner The Nevada Division of Minerals 2007 This is the eighteenth of an annual series of summary reports on major mines of Nevada. Sand and gravel operations are not included. Information on employment and production for the calendar year 2006 was provided by the individual mine operators. The Nevada Division of Minerals maintains a complete register of Nevada mines. For further information, contact them at 400 W. King, Suite 106, Carson City, Nevada or call (775) , fax (775) , or visit their Web site at College of Science University of Nevada, Reno Mackay School of Earth Sciences and Engineering

2 HUMBOLDT WASHOE SECTION II PERSHING ELKO SECTION IV STOREY CHURCHILL SECTION LYONI DOUGLAS LYON SECTION V SECTION III LANDER EUREKA WHITE PINE MINERAL NYE SECTION VI ESMERALDA LINCOLN SECTION VII CLARK 2

3 Contents Major mines Section I Lyon County 5 Storey County 5 Section II Humboldt County 7 Pershing County 8 Section III Eureka County 11 Lander County 12 Section IV Elko County 15 White Pine County 15 Section V Churchill County 17 Mineral County 17 Section VI Esmeralda County 19 Nye County 19 Section VII Clark County 21 Lincoln County 21 Summary of 2006 production 22 Economic impacts of mining in Nevada Major mines, oil fields, and geothermal plants, 2006 (map) 27 Index 28 3

4 Vya Virginia City STOREY 5 Silver Springs 50 Fernley Carson City CARSON CITY Dayton 95 L Y O N Gerlach Empire 395 D O U G L A S Minden Gardnerville Weed Heights ALT 95 Yerington W A S H O E 395 Wellington Smith Nixon 395 Reno Verdi 445 Sparks Wadsworth N Miles Miles 4

5 Section I Lyon County Adams Claim Gypsum Mine (1) Art Wilson Co. P.O. Box Carson City, NV Fax: Company employees: 48 Gypsum - 121,593 tons Limestone Celite Diatomite Mine (2) World Minerals, Inc. 100 Front Street Fernley, NV Fax: Company employees: 16 Diatomite Hazen Pit (3) EP Minerals, LLC 640 Clark Station Rd. Sparks, NV Fax: Company employees: 2 Diatomite NCC Limestone Quarry (4) Nevada Cement Co. P.O. Box 840 Fernley, NV Fax: Company employees: 122 Limestone/Clay Storey County Clark Mine and Mill (5) EP Minerals, LLC 640 Clark Station Rd. Sparks, NV Fax: Company employees: 66 Diatomite Adams Claim Gypsum Mine (Art Wilson Co.) (Mike Visher photo). 5

6 140 1 Denio McDermitt Orovada Paradise Valley H U M B O L D T Winnemucca Sulphur P E R S H I N G 4 13 Golconda Lovelock Miles N 6

7 Humboldt County Ashdown Mine (1) Ashdown Project, LLC 1675 E. Prater Way #102 Sparks, NV Fax: Company employees: 31 Molybdenum - 8,000 pounds Lone Tree Mine (2) Newmont Mining Corp. P.O. Box 388 Valmy, NV Fax: Company employees: 178 Gold - 357,787 oz Silver - 26,601 oz Marigold Mine (3) Marigold Mining Company P.O. Box 160 Valmy, NV Fax: Company employees: 189 Gold - 149,805 oz Silver - 1,986 oz MIN-AD Mine and Mill (4) MIN-AD, Inc. P.O. Box 39 Winnemucca, NV Fax: Company employees: 19 Contract employees: 4 Dolomite Section II Royal Peacock Opal Mine (5) Walter Wilson P.O. Box 165 Denio, NV Precious opal Turquoise Ridge Joint Venture (6) Barrick Gold Corporation HC66 Box 220 Golconda, NV Fax: Company employees: 320 Contract employees: 32 Gold - 233,127 oz Silver - 30,473 oz Twin Creeks Mine (7) Newmont Mining Corp. P.O. Box 69 Golconda, NV Fax: Company employees: 559 Gold - 354,484 oz Silver - 43,467 oz 7

8 Pershing County Coeur Rochester Mine (8) Coeur Rochester, Inc. P.O. Box 1057 Lovelock, NV Fax: Company employees: 181 Gold - 71,891 oz Silver - 5,113,504 oz Colado Mine and Plant (9) EP Minerals, LLC P.O. Box 959 Lovelock, NV Fax: Company employees: 115 Diatomite, Perlite Empire Mine (10) United States Gypsum Co. P.O. Box 130 Empire, NV Fax: Company employees: 131 Gypsum - 369,486 tons Florida Canyon Mine (11) Florida Canyon Mining, Inc. P.O. Box 330 Imlay, NV Fax: Company employees: 100 (Included with Standard Mine) Gold - 16,061 oz Silver - 12,423 oz Standard Mine (12) Standard Gold Mining, Inc. P.O. Box 330 Imlay, NV Fax: Company employees: 100 (Included with Florida Canyon Mine) Gold - 46,070 oz Silver - 64,497 oz W. Glen Sexton Family Trust (13) Nutritional Additives Corp. 415 Wellington Street Winnemucca, NV Fax: Company employees: 3 Dolomite Standard Mine (D.D. LaPointe photo). 8

9 Turquoise Ridge Joint Venture (Mike Visher photo). Twin Creeks Mine (Mike Visher photo). Twin Creeks Mine (Mike Visher photo). 9

10 Battle Mountain Palisade Beowawe L A N D E R E U R E K A Austin 50 3 Eureka N Miles 10

11 Eureka County Section III Betze-Post Mine (1) Barrick Goldstrike Mines, Inc. P.O. Box 29 Elko, NV Fax: Company employees: 1,140 Gold - 1,432,698 oz Silver - 121,033 oz Ruby Hill Mine (3) Barrick Gold Corporation P.O. Box 676 Eureka, NV Fax: Company employees: 103 Contract employees: 4 In advanced development Eastern Nevada Operations (2) Newmont Mining Corp. P.O. Box 669 Carlin, NV Fax: Company employees: 2,124 Gold - 1,310,258 oz Silver - 169,212 oz Ruby Hill Mine (Mike Visher photo). 11

12 Lander County Argenta Mine and Mill (4) Baker Hughes Drilling Fluids P.O. Box 277 Battle Mountain, NV Fax: Company employees: 22 Contract employees: 4 Shipped: Barite - 71,528 tons Battle Mountain Grinding Plant (Greystone Mine) (5) M-I Swaco P.O. Box 370 Battle Mountain, NV Fax: Company employees: 85 Shipped: Barite - 296,567 tons Cortez Gold Mines (6) Cortez Joint Venture HC66 Box 1250 Crescent Valley, NV Fax: Company employees: 510 Contract employees: 6 Gold - 408,255 oz Silver - 25,065 oz McCoy/Cove Mine (7) Newmont Mining Corp. P.O. Box 1658 Battle Mountain, NV Fax: Company employees: 3 Gold - 2,939 oz Silver oz Mule Canyon Mine (8) Newmont Mining Corp. P.O. Box 388 Valmy, NV Fax: Company employees: included with Lone Tree Mine Gold - 30,732 oz Silver - 3,248 oz Phoenix Project (9) Newmont Mining Corp. P.O. Box 388 Valmy, NV Fax: Company Employees: 444 Gold - 67,394 oz Silver - 38,112 oz Copper - 6,235,096 pounds Trenton Canyon Mine (10) Newmont Mining Corp. P.O. Box 388 Valmy, NV Fax: Company Employees: included with Lone Tree Mine Gold - 1,937 oz Silver - 38 oz 12

13 Cortez Gold Mines (Jon Price photo). Cortez Gold Mines (Jon Price photo). Cortez Gold Mines (Pipeline) (Jon Price photo). 13

14 Jackpot Mountain City 93 Midas Tuscarora E L K O Elko 80 Deeth Wells 80 5 Carlin Lamoille 228 Jiggs Wendover Currie ALT 50 N Miles 8 Cherry Creek W H I T E 50 McGill ALT 50 P I N E 9 Ruth Ely Lund Baker 14

15 Section IV Elko County Capstone Mine (1) Newmont Mining Corp. P.O. Box 669 Carlin, NV Fax: Employees: included with Eastern Nevada Operations Gold - 2,019 oz Silver oz Jerritt Canyon Mine (2) Queenstake Resources USA, Inc. HC31 Box 78 Elko, NV Fax: Company employees: 374 Contract employees: 6 Gold - 169,862 oz Sillver - 7,154 oz Meikle Mine (3) Barrick Goldstrike Mines, Inc. P.O. Box 29 Elko, NV Fax: Company employees: 551 Gold - 477,035 oz Silver - 58,345 oz Midas Mine (4) Newmont Mining Corp. HC66 Box 125 Midas, NV Fax: Company employees: 231 Gold - 140,884 oz Silver - 1,694,060 oz Pilot Peak Lime Plant (5) Graymont Western U.S. P.O. Box 2520 West Wendover, NV Fax: Company employees: 57 Limestone, Quicklime, Hydrated lime Rain Mine (6) Newmont Mining Corp. P.O. Box 669 Carlin, NV Fax: Employees: included with Eastern Nevada Operations Gold - 2 oz Rossi Mine Dunphy Mill (7) Halliburton Energy Services/ BAROID 912 Dunphy Ranch Rd. Battle Mountain, NV Fax: Company employee: 41 Contract employees: 41 Shipped: Barite - 204,000 tons White Pine County Bald Mountain Mine (8) Barrick Gold of North America P.O. Box 2706 Elko, NV Fax: Company employees: 188 Gold - 277,615 oz Silver - 32,121 oz Robinson Mine (9) Robinson Nevada Mining Company P.O. Box 382 Ruth, NV Fax: Company employees: 463 Copper - 121,319,197 pounds Gold - 75,074 oz Silver - 156,839 oz Molybdenum - 260,000 pounds 15

16 2 ALT Fallon 121 C H U R C H I L L 116 Cold Springs Middle Gate Schurz M I N E R A L 361 Hawthorne 95 Luning 338 Mina Miles N 16

17 Section V Churchill County Huck Salt Company (1) Huck Salt Company 2900 Phritzie Ln. Fallon, NV Fax: Company employees: 6 Salt - 15,000 tons Moltan Company (2) Moltan Company P.O. Box 860 Fernley, NV Fax: Company employees: 48 Diatomite Mineral County Denton-Rawhide Mine (3) Kennecott Rawhide Mining Co. P.O. Box 2070 Fallon, NV Fax: Company employees: 17 Contract employees: 5 Gold - 26,334 oz Silver - 235,870 oz Denton-Rawhide Mine (Kelly Cluer photo). 17

18 361 Gabbs 4 Ione Currant 318 Manhattan 6 Sunnyside Tonopah Warm Springs Silver Peak 2 Goldfield E S M E R A L D A N Y E Scottys Junction 267 Beatty Amargosa Valley Miles N Pahrump IMV Nevada (Mike Visher photo). 18

19 Section VI Esmeralda County Basalt Mine and Mill (1) Grefco Minerals, Inc Summit Lake Rd. Burney, CA Fax: Company employees: 7 Diatomite Silver Peak Operations (2) Chemetall Foote Corp. P.O. Box 98 Silver Peak, NV Fax: Company employees: 50 Contract employees: 11 Lithium compounds Premier Chemicals (4) Premier Chemicals, LLC P.O. Box 177 Gabbs, NV Fax: Company employees: 79 Magnesium compounds Smoky Valley Common Operation (5) Round Mountain Gold Corp. P.O. Box 480 Round Mountain, NV Fax: Company employees: 660 Contract employees: 46 Gold - 657,911 oz Silver - 644,017 oz Nye County IMV Nevada (3) Mud Camp Mining Co. LLC dba IMV Nevada Route Box 549 Amargosa Valley, NV Fax: Company employees: 31 Specialty clays - 30,000 tons Round Mountain gold (Jon Price photo). 19

20 Pioche 322 Panaca Hiko 4 93 Caliente 317 Alamo L I N C O L N Indian Springs North Las Vegas Las Vegas 1 C L A R K Logandale Overton Mesquite Bunkerville Boulder City 161 Goodsprings Nelson N 164 Searchlight Miles

21 Section VII Clark County Apex Quarry and Plant (1) Chemical Lime Co. P.O. Box North Las Vegas, NV Fax: Company employees: 100 Limestone, lime PABCO Gypsum (2) PABCO Building Products, LLC P.O. Box Las Vegas, NV Fax: Company employees: 178 Contract employees: 3 Gypsum - 1,438,886 tons Simplot Silica Products (3) J.R. Simplot Company P.O. Box 308 Overton, NV Fax: Company employees: 50 Silica sand - 750,000 tons Lincoln County Tenacity Perlite Mine and Mill (4) Wilkin Mining & Trucking, Inc. HC 34 Box 199 Caliente, NV Company employees: 8 Perlite Twin Creeks Mine haul truck (Mike Visher photo). 21

22 SUMMARY OF 2006 PRODUCTION Gold 6,310,000 ounces * Silver 8,494,000 ounces * Barite (shipped) 572,000 tons Copper 127,554,000 pounds Diatomite 270,000 tons (dry) Dolomite 100,000 tons Gypsum 1,930,000 tons Limestone 2,638,000 tons Lithium compounds 10,037,000 pounds Mercury 214,000 pounds Molybdenum 268,000 pounds Perlite 2,400 tons Potassium Sulfate 500 tons Precious opal 95 pounds Quartzite 12,000 tons Salt 15,000 tons Silica sand 750,000 tons Specialty clay 32,000 tons Turquoise 49 pounds *Includes production from smaller mines not listed in this report. Gold Quarry Mine (Mike Visher photo). 22

23 Economic Impacts of Mining in Nevada 2006 Nevada s mining industry set an all-time record in 2006 for total value of all mined commodities. The total value was about $4.9 billion, a $1.2 billion increase over The value was driven by gold, which contributed about $3.8 billion, based on an average price of $603 per troy ounce. Nevada led the nation in 2006 in the production of gold, barite, and lithium as it has for several years. Nevada s mines produced a wide variety of other mineral and energy commodities such as aggregates, copper, diatomite, dolomite, geothermal energy, lapidary and gem stones, and lime and limestone, magnesium compounds, mercury, molybdenum, oil, perlite, potassium sulfate, salt, silica sand, silver, and specialty aggregates and clays. Production Highlights Nevada s gold production was 6,310,000 troy ounces in While the production level is down approximately 8% from 2005, Nevada remains the nation s top gold producer with about 81% of the U.S. total. Underground operations contributed about 24% of the gold production in Silver production dropped to 8,482,000 troy ounces compared to 9,946,000 in Barite production was up to 572,000 tons in 2006, compared to 511,000 in Gypsum production was down slightly to 1,930,000 tons in 2006, compared to 2,182,000 tons in Copper production was up to 127,554,000 pounds in 2006, compared to 126,225,000 pounds in Molybdenum production resumed in Nevada and was 268,000 pounds in Nevada Gold 800 Production, Millions of Ounces production price Average Price, Dollars per Ounce

24 Employment According to the Nevada Department of Employment, Training, and Rehabilitation, the Nevada mining industry employed an average of 11,516 employees in The average pay for mineral industry employees during this time was $69,387 per year, the highest average of any employment sector in the state. In addition, it is estimated that there are about 52,000 jobs in the state related to providing goods and services needed by the mining industry. Mining employment has been on a rebound the past 3 years due to more favorable prices for several mineral commodities. Permitting and Reclamation Before mining can take place, plans of operation must be submitted and permits must be obtained from federal and state agencies to ensure that resources such as wildlife, air, and water are protected. Nevada and federal laws and regulations require that lands disturbed by mining activities must be rehabilitated so they can be used for other activities once mining is completed. This process, called reclamation, returns mined areas to other productive uses such as livestock grazing, wildlife habitat, or other industrial applications. To ensure that reclamation is done, mine operators are required to post reclamation bonds that are held by government agencies. The bonds are released only after the mined area is stabilized and the reclamation goals have been met. According to the Division of Environmental Protection, approximately $847 million in reclamation bonds are currently posted. Mine operators are proud of their efforts and are constantly seeking ways to enhance their reclamation technology. Gold Reserves Nevada s reported gold reserves at or near currently operating mines that can be mined at a profit under current economic conditions stood at about Nevada Silver Production, Millions of Ounces price production Average Price, Dollars per Ounce 24

25 84.2 million troy ounces at the end of The amount of reserves is always in a state of flux, due to some reserves being lost to production, additions of new reserves through new discoveries, and changing economic conditions. The price of gold and the cost of production are the main factors determining whether a reserve is really a reserve or just a subeconomic resource. Extensive gold resources, not currently economic, are known to exist at or near many operations. An increase in the gold price with all else being equal would mean many companies would be able to reclassify their resources into a reserve category. An increase in the cost of regulatory compliance has the same effect as a lowering of the gold price, thus increasingly complex and expensive regulations can reduce reserves. Under current conditions, the existing proven reserves are sufficient to sustain gold production at current levels for about 13 years. Exploration Exploration for new deposits, particularly gold, is an ongoing effort by both the operating companies and many others who do not operate mines in the state. Each year, the Division of Minerals conducts an exploration survey to determine the level of exploration activity and the factors that are responsible for those levels. The respondents to the latest survey indicated they spent $164.9 million on exploration in Nevada in 2006, up from $121.3 million in The respondents reported having 228 geologists on the payroll, up from 190 in Existence of favorable geology and commodity prices are cited as the most important factors influencing exploration levels. Exploration geologists and the drillers, assayers, and others who support their activities represent a significant positive economic impact, particularly in Nevada s rural areas. Minerals Other Than Gold and Silver Minerals other than gold and silver are also important to Nevada s economy. Copper ranked second behind gold in terms of value in Sand, gravel, and crushed stone ranked a close third in terms of value, and are critical to the building of the state s infrastructure. Industrial minerals such as barite, diatomite, dolomite, gypsum, limestone, Production, Millions of Pounds Nevada Copper price production Average Price, Dollars per Pound

26 lithium compounds, magnesite, perlite, salt, and specialty clays are produced in this state. Oil and gas exploration and production are relatively minor when compared to mining, but are nevertheless important to the economy of east-central Nevada. In oil field terms, Nevada is considered a frontier, meaning its potential is yet to be realized. Oil production in 2006 was about 426,000 barrels (42 gallons per barrel). Nevada is rich in geothermal resources and is second only to California in the production of geothermal power. Currently, Nevada has 15 plants at 10 locations that sold approximately 1.3 million megawatt hours of electricity in This is enough to power about 75,000 typical homes. Geothermal heat is also used for a variety of commercial, domestic, and public applications in Nevada. Schools in Elko County and homes in Lincoln and Washoe Counties are examples of public and private facilities using this renewable energy resource. Conclusion With a calculated value of about $4.9 billion, Nevada s mineral industry continued to be a major economic force in the state in This situation should continue for many years to come. Challenges will exist, as they always have, but Nevada s mineral reserves and the potential to add to them will spur the creativity of the mineral industry. Prices of many mineral commodities have improved in recent years, allowing companies to increase their exploration and development efforts. The continued development of new projects will assure that the mining industry will remain strong in the future Production, Millions of Barrels Nevada Oil production price Average Price, Dollars per Barrel

27 1 5 HUMBOLDT Winnemucca PERS HING Elko ELKO 2 17 W ASHOE Reno 10 7 CC DOUGLAS STO REY LYON CHURCHILL LANDER EURE KA 21 2 WHITE PINE 19 M INER A L ESMERALDA 20 NYE 22 LINCOLN Metals 1. Ashdown Mine 2. Bald Mountain Mine 3. Betze-Post Mine 4. Capstone Mine 5. Carlin Operations 6. Coeur Rochester Mine 7. Cortez/Pipeline Mines 8. Denton-Rawhide Mine 9. Florida Canyon Mine 10. Jerritt Canyon Mine 11. Lone Tree Mine 12. Marigold Mine 13. McCoy/Cove Mine 14. Meikle Mine 15. Midas Mine 16. Mule Canyon Mine 17. Phoenix Project 18. Rain Mine 19. Robinson Mine 20. Round Mountain Mine 21. Ruby Hill Mine 22. Standard Mine 23. Turquoise Ridge Joint Venture 24. Twin Creeks Mine Industrial Minerals 1. Adams Gypsum Mine 2. Apex Lime Plant 3. Argenta Barite Mine 4. Basalt Diatomite Mine 5. Celite Diatomite Mine 6. Clark Diatomite Mine 7. Colado Diatomite Mine 8. Empire Gypsum Mine 9. Greystone Barite Mine 10. Hazen Diatomite Mine 11. Huck Salt Mine 12. IMV Nevada Clay 13. MIN-AD Dolomite Mine 14. Moltan Diatomite Mine 15. NCC Limestone Quarry 16. PABCO Gypsum 17. Pilot Peak Limestone Quarry 18. Premier Magnesite Mine 19. Rossi Barite Mine 20. Silver Peak Lithium Carbonate 21. Simplot Silica Products 22. Tenacity Perlite Mine 23. W.Glen Sexton Dolomite Mine 12 Las Vegas CLA RK 2 Oil Fields 1. Blackburn Field 2. Deadman Creek 3. North Willow Creek Field 4. Railroad Valley (Eagle Springs, Trap Spring, Currant, Sand Dune, Grant Canyon, Bacon Flat, Kate Spring, Duckwater Creek, Sans Spring, and Ghost Ranch Fields) 5. Three Bar Field 6. Tomera Ranch Field Geothermal Power Plants 1. Beowawe 2. Bradys Hot Springs 3. Desert Peak 1 and 2 4. Dixie Valley 5. Empire Soda Lake No. 1 and No Steamboat I, IA, II, and III, Galena 8. Stillwater 9. Wabuska 10. Steamboat Hills Major mines, oil fields, and geothermal plants,

28 Index Adams Claim Gypsum Mine 5 Apex Quarry and Plant 21 Argenta Mine and Mill 12 Ashdown Mine 7 Bald Mountain Mine 15 Basalt Mine and Mill 19 Battle Mountain Grinding Plant 12 Betze-Post Mine 11 Capstone Mine 15 Celite Diatomite Mine 5 Clark Mine and Mill 5 Coeur Rochester Mine 8 Colado Mine and Plant 8 Cortez Gold Mines 12 Denton-Rawhide Mine 17 Dunphy Mill 15 Eastern Nevada Operations 11 Empire Mine 8 Florida Canyon Mine 8 Greystone Mine 12 Hazen Pit 5 Huck Salt 17 IMV Nevada 19 Jerritt Canyon Mine 15 Lone Tree Mine 7 Marigold Mine 7 McCoy/Cove Mine 12 Meikle Mine 15 Midas Mine 15 MIN-AD Mine and Mill 7 Moltan Company 17 Mule Canyon Mine 12 NCC Limestone Quarry 5 PABCO Gypsum 21 Phoenix Project 12 Pilot Peak Lime Plant 15 Premier Chemicals 19 Rain Mine 15 Robinson Mine 15 Rossi Mine 15 Royal Peacock Opal Mine 7 Ruby Hill Mine 11 Silver Peak Operations 19 Simplot Silica Products 21 Smoky Valley Common Operation 19 Standard Mine 8 Tenacity Perlite Mine and Mill 21 Trenton Canyon Mine 12 Turquoise Ridge Joint Venture 7 Twin Creeks Mine 7 W. Glen Sexton Family Trust 8 28