Why Nevada?

Starting in 1859 with the Comstock Lode and running through 2013, the state of Nevada has produced approximately 208 million ounces of gold. This represents 3.7% of total world production during this time period. 88% of this total has been produced since the original Carlin Mine owned by Newmont Mining began production in 1965. Nevada truly is “elephant country” when it comes to major gold deposits. In 2010, gold production in the state came from approximately 20 major operations. The news in 2010, 2011 and early 2012 continued to be encouraging from the standpoint of a long-term sustainable gold mining industry. During the first quarter of 2010, Barrick Gold Corporation’s Cortez Hills Mine commenced operation. This operation is located in the Cortez Trend, and the pre-production reserve plus resource totalled greater than 11 million ounces of gold. Carlin Gold’s   Cortez Summit property is located 4 miles (6.4 km) east of Cortez Hills, and its JDS property occurs 18 miles (29 km) to the southeast. In September 2011, Barrick announced two new gold discoveries on the Cortez Trend, Red Hill and Goldrush, which demonstrate the continuing excellent growth potential in this area.  Continued exploration at Red Hill and Goldrush determined that these two discoveries were part of one large resource, which Barrick now refers to as Goldrush.  At year- end 2013, Barrick   reported a 15.6 million ounce gold resource at Goldrush, with an average grade of 0.135 oz/ton gold.  The Goldrush discovery area approaches to within 1 mile of the Cortez Summit property.  Barrick has reported encountering deep mineralization along the northern extension of the Goldrush, including an intercept of 103 feet (29 m.) containing 0.725 oz. per ton gold (24.9 grams/tonne).  Barrick has applied for a permit to construct an exploration decline in order to better define the existing resource and to test for additional mineralization to the north of the existing Goldrush resource (Barrick Q2 2014 Report).  Surface infill drilling continues as Goldrush advances through the prefeasibility stage, scheduled for completion in mid-2015.

The other exciting recent development in Nevada is Newmont Mining’s acquisition of Fronteer Gold Inc. in a deal valued at $2.3 billion. The acquisition includes the new Long Canyon deposit, which is reported to contain inferred gold resources totalling 2.6 million ounces (Nevada Bureau of Mines and Geology, 2012).  The deposit is located in a “new” exploration terrain 90 miles east of the Carlin trend of gold deposits. Carlin Gold’s Willow property is located in this new prospective region, approximately 50 miles northwest of Long Canyon.    Final operating permits for Long Canyon are expected in late 2014.