Nevada Division of Mineralsminerals.nv.gov/uploadedFiles/mineralsnvgov/content...Jan 31, 2020 ·...
Transcript of Nevada Division of Mineralsminerals.nv.gov/uploadedFiles/mineralsnvgov/content...Jan 31, 2020 ·...
Nevada Division of Minerals
NEVADA MINERAL PRODUCTION NEW MINES, EXPLORATION, CRITICAL MINERALS,
TRENDS AND PREDICTIONS
VISION 2020: College of Business, UNR Peppermill, Reno
January 31, 2020 Richard Perry, Administrator
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Nevada Gold
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2018 NEVADA METAL PRODUCTION 2018 NEVADA METAL PRODUCTION, BY PRODUCER - FinalRanked by gold productionOperator Gold (ozs) Silver (ozs) Copper (lbs) Moly (lbs)Barrick 2,425,512 105,360Newmont 1,808,484 1,107,493 32,102,979Kinross 660,100 820,042SSR Mining 205,161 4,315Jerritt Canyon Gold 145,064 NRHecla (Klondex) 109,614 516,312Coeur 54,668 5,037,983Florida Canyon Mining (Alio Gold) 46,878 31,775KGHM International 38,990 171,679 112,552,787 459,959Fiore Gold 37,403 NRPremier Gold (40% of S. Arturo) 20,980 NRRawhide Mining 15,444 208,875Mineral Ridge Gold 7,497 3,444Ruby Hill Mining 4,648 3,584Borealis Mining 420 394Sunrise Minerals 268 150Geo-Nevada 14 NRNew Gold Nevada 14 2
Totals 5,581,160 8,011,408 144,655,766 459,959
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New Operation for 2019, #1: McEwen Mining – Gold Bar
Groundbreaking – November 2017 First gold pour – February 2019 Full Production achieved May, 2019 Production target – 60,000 Au oz/yr Avg. Au grade - 1.0 g/t Current mine life – 7 years
New Operation for 2019, #2: Gold Resource Corp. – Isabella Pearl
Groundbreaking – June 2018 First gold pour – April 2019 Production target – 40,000 Au oz/yr Avg. Au grade - 3.7 g/t Current mine life – 5 years
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2009 - 2018 Annual Gold Production in Nevada
9% 24%
BARRICK
NEWMONT
ALL OTHERS
NEVADA GOLD MINES
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2018 Production 8.02 Moz, -5.4% vs. '17 22 mining operations 14 operators
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144.7M lbs, -0.8% vs. '17 2 mining operations
• First Concentrate Production was in December 2019 • 5,000 tpd underground mine and surface process plant. • Employs ~ 300 people • At least 2 other deposits being explored in the District
New Operation for 2019: Nevada Copper – Pumpkin Hollow, Yerington District
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2018 405,500 tons shipped + 4% vs. '17 4 producers
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Nevada Diatomaceous Earth Production 4 producers 399,358 tons +44% vs ‘17
Other Industrial Minerals Produced in 2018
• 12,900,000 lbs of lithium compounds • 716,000 tons of silica sand • 348,600 tons of magnesite • 19,900 tons of salt • 17,087 tons of perlite
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Lithium Clay Projects Exploration regulations same as hard-rock Notice or plan-level under BLM No permitting of boreholes needed as no water pumped
Mine permitting same as any mining project On Federal lands, BLM or USFS lead agency On Private lands, NDEP-BMRR is lead agency
Two projects have completed PFS reports which include metallurgical studies and proposed flowsheets: Lithium Americas - Thacker Pass Project in Humboldt County Ioneer Ltd. - Rhyolite Ridge Project in Esmeralda County
Lithium Americas – Thacker Pass Project
Lithium Americas – Thacker Pass Project
Reserves – 3.1M tonnes LCE at 2,358 ppm Li
Strip ratio – 1.6:1
Mine life – 46 years
Processing time - <24 hours
Lithium recovery – 83%
Pilot plant operational in Reno
Final Mine PoO submitted
Ioneer’s Rhyolite Ridge Project
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Unpatented Mining Claims By Year in Nevada
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October 2014 October 2015 October 2016 October 2017
NDOM has been gathering active claim data from LR2000 at the end of October for the last six years. The purpose of this graph is to show claims data and statistics from the same snapshot in time.
Li = 2.1% Li = 0.7%
10,524
October 2018
13,228
Li = 0.8%
October 2019
9,298
Assessment Year
195,804 Active Mining Claims (Assessment
Year 2020) in Nevada as of 10/28/2019, and
increase of 1.1% from October, 2018
2019 Exploration Outlook
About the Same 34%
Less 9%
Much Less 10%
More 33%
Much More 14%
RESPONSES TO THE QUESTION: COMPARED TO 2018, DO YOU EXPECT YOUR COMPANY TO SPEND MORE OR LESS IN 2019 ON NEVADA EXPLORATION?
“Exploration is the R & D of the Minerals Industry”
TRENDS • Metals mining is increasingly underground.
• > 30 percent of gold produced from underground
• Copper is now #2 in gross value, increasing • limitation is lack of downstream smelting and refining
• Industrial Mineral production increasing • easier to permit and put into operation in Nevada,
markets in CA and other neighboring states
• Consolidation of the two major miners: Barrick and Newmont, into “Nevada Gold Mines” JV
• to capture synergies in ore hauling and processing • Overall G&A expenses reduced with one operating
entity
• Increased use of autonomous equipment
Fluid Mineral Resources • Geothermal well
permitting and compliance NRS 534A
• Oil and gas well permitting and compliance NRS 522
• Dissolved Mineral
Resource Exploration well and borehole permitting NRS 534B
Ormat Geodrill #1 at Tungsten Mtn, 2018
Geothermal Operators There are currently 17
geothermal fields in Nevada being operated by 5 operators: Ormat Nevada: Steamboat,
McGinness Hills, Brady, Desert Peak, Wild Rose (Don Campbell), Jersey Valley, Tuscarora, Tungsten Mountain and San Emidio
Terra-Gen: Dixie Valley and
Beowawe Cyrq Energy: Soda Lake, Patua, Blue
Mtn Enel North America: Stillwater and
Salt Wells Star Peak Geothermal: Wabuska
458 permitted wells 60% on private property >513,832 acres in authorized
BLM leases From: NBMG MI-2017
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Nevada Mineral and Energy Production Values 1978 - 2018
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$8.4 Billion in 2018, same as 2017
Critical Minerals Exploration 2017 Executive Order 13817: A
Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals.
35 minerals identified as “Critical Minerals” by D.O.I. in May, 2018.
Minerals selected are deemed “vital to the Nation's security and economic prosperity.”
Nevada contains known occurrences or deposits of 20 of the 35 critical minerals 2
NV is a current producer of: barite, lithium, magnesium
Exploration for cobalt, graphite, REE, Tungsten, Vanadium in progress.
1Tingley, Joseph V. (1998). NBMG Report 47, Mining districts of Nevada (second edition) 2 Martin, Gary. “Mining of 20 ‘critical’ minerals in Nevada could be streamlined”, Las Vegas Review-Journal, 21 May, 2018. Accessed 9 August, 2019.
Figure 1:
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2020 MINERALS PREDICTIONS • Gold will remain #1 commodity produced, but copper
production will increase. • Commodity prices drive exploration and production.
Au, Ag, Cu, Li prices set on global markets.
• If one or more Li clay projects progresses, NV will produce >10% of world production, expect vertical integration with a cathode plant built in NV.
• Availability of Venture Capital - Nevada competes on
a global stage for capital investment in exploration and new mines.
MINERALS PREDICTIONS • Most industrial mineral producers sensitive to
construction industry, general economy (gypsum, aggregate, limestone, etc.)
• Nevada rated #1 in “overall investment attractiveness
index” in 2019 Fraser Institute annual survey of mining jurisdictions. Changes in the mining law, taxation, or permitting times can negatively affect this.
• Fluid Minerals – steady increase in geothermal power
production, very little oil exploration at current prices, possibly another Li brine producer.
Nevada Mining In 2019 Nevada Mining provided
32,976 Nevada Jobs.
$2.6 Billion in total paid salary
• 20+ minerals are produced in Nevada at over 100 mines
• 5th leading producer of GOLD in the WORLD!
• The mining industry has an overall low injury rate and high safety record
Nevada produced 10% of all U.S. mineral production
Mines operate on less than ¼ of 1% of
Nevada’s 70,798,080 acres $12.4 billion
impact to Nevada’s economy,
3.1% of it’s GDP
Source: Nevada Mining Association
Publications
www.minerals.nv.gov