Why Nevada?

Total historical gold production in the state of Nevada through 2017 is approximately 230 million ounces. 93% of this total has been produced since the original Carlin Mine owned by Newmont Mining began production in 1965. Nevada’s production of 5.64 million ounces in 2017 accounted for over 75% of total U.S. gold production with only China, Australia and Russia producing more gold. Nevada truly is “elephant country” when it comes to major gold deposits. Through 2015, cumulative gold production on the Carlin trend exceeded 86 million ounces (Special Publication MI-2015, The Nevada Mineral Industry, Nevada Bureau of Mines and Geology. The Cortez Trend is a fast-growing gold district where the overall gold endowment (production/reserves/resources) exceeds 50 million ounces. District production by Barrick Gold in 2018 exceeded 1.5 million ounces. In early 2017 Barrick announced plans to expand underground mining into the Deep South area of the Cortez Hills underground mine, as well as announcing plans for development of an underground mine at the nearby Goldrush reserve/resource, located adjacent to Carlin Gold’s Cortez Summit property. The Goldrush probable reserve stands at 1.99 million oz grading 9.7 grams per tonne, with 9.35 million ounces grading 9.4 grams/tonne reported in the measured and indicated category (Barrick 2018 annual report). Barrick has advanced Goldrush through the prefeasibility stage and contemplates a mine life of 21 years with production beginning as early as 2021. Annual production is envisioned at 450,000 ounces at average all-in sustaining costs of $665/oz. The permitting process has commenced, and construction of the twin exploration decline is in progress (Barrick Q2 2019 webcast). The Goldrush discovery area approaches to within 1 mile (1.6 km) of the Cortez Summit property.

In 2016 Barrick also announced two high grade holes at their “Fourmile” target 1 km north of the Goldrush resource and similarly located adjacent to our Cortez Summit property. Barrick states that these holes have encountered mineralization “well above the average grade of the indicated and inferred resources at Goldrush”. Drill results include 16.6 meters (m) grading 71.6 (gpt) and 16.8 m grading 57.9 gpt (Barrick Q2 2018 webcast). Barrick geologists have stated that the mineralization style at Fourmile is slightly different than that at Goldrush, and Carlin geologists are encouraged that Cortez Summit holds promise for both Goldrush and Fourmile mineralization styles (see section on Cortez Summit property on this website). Barrick has rapidly advanced Fourmile, and in 2018 announced an initial inferred resource of 0.7 million oz grading 18.58 gpt.

Another exciting recent development in Nevada is Newmont Mining’s commencement of production at the Long Canyon gold deposit, which is reported to contain measured, indicated and inferred gold resources totalling 2.0 million ounces (Newmont Q4 2016 Report). The deposit occurs in a “new” exploration terrain 90 miles (145 km) east of the Carlin trend of gold deposits, representing further demonstration that the large “Carlin-type” gold deposits are not confined to the established Carlin and Cortez trends. Carlin Gold’s Willow property (see section on this website) is in this new prospective region, approximately 50 miles (80 km) northwest of Long Canyon.