Gold Mining in Nevada

Prior to 1980, the United States did not play a major role in the world gold market, producing less than one million ounces a year.  However, over the past 30 years, major discoveries of gold in Nevada have averaged 7 million ounces per year.  In 2006, Nevada’s production of gold, valued at $3.8 billion, was 81% of the U.S. total and helped make the U.S. the third leading gold producer in the world. Nevada alone accounted for 8% of the world’s production of gold.  Only the countries of South Africa, Australia, China and Peru produced more gold than the State of Nevada did in 2006. ¹

 
Due to its favorable geology, Nevada has tremendous potential for the discovery of additional gold deposits.  There has only been limited exploration in areas where prospective rocks are beneath a cover of young, valley-filling sediments and volcanic rocks.  Ore deposits continue to be discovered in and near Nevada’s 526 historical mining districts.  Nevada is a world leader in terms of gold production per unit area. ²

 
Gold is now the leading commodity produced in Nevada.  Production of gold in 2006 came from 22 major mining operations.  The Carlin trend in northeastern Nevada accounted for 51% of the total production.  Nine additional mining operations, not on the Carlin trend, each produced over 100,000 ounces of gold from mostly multimillion-ounce deposits. ³

 
Cumulative gold production in Nevada through 2006, beginning with the Comstock lode in 1859, stood at 5,276 metric tons (169.63 million ounces).  It is remarkable that 86% of that total was produced since the Carlin Mine began production in 1965.  In fact, the Carlin trend alone accounts for 1.3% of all the gold ever mined in the world. By the end of 2006, it was clear that the Carlin trend is one of the most productive gold-mining districts in the world, when cumulative production from the Carlin trend reached 65.6 million ounces. ⁴

 
We are currently in the midst of the biggest gold boom in U.S. history.  The recent surge in production in the U.S. is largely due to discoveries of Carlin-type gold deposits, and other deposits in which gold occurs mostly in grains that are too small to be visible to the naked eye.  These deposits have been found primarily in Nevada. ⁵

 
The average gold price in 2006 was $603 per ounce, well above prices in the previous five years ($440 in 2005, $410 in 2004, $363 in 2003, $310 in 2002, and $280 in 2001).  Geologists are helping to guide exploration for concealed deposits below alluvial or young volcanic cover by using various geophysical methods (seismic, electrical, magnetic, and gravity).  At least 86 companies (ranging from juniors to majors) drilled at least 117 projects in Nevada in 2006, with exploration activity being reported in 14 of Nevada’s 17 counties. ⁶

 
Nevada attracts a large portion of the worldwide exploration expenditures of  companies  because of its favorable geology and regulatory climate. ⁷

 
1 Price, Jonathan G. and Richard O. Meeuwig. “Overview.” The Nevada Mineral Industry 2006.” Nevada Bureau of Mines and Geology Special Publication MI-2006, p.3.

2 Ibid., p. 6.

3 Ibid.

4 Ibid.

5 Ibid., p.7.

6 Ibid., p.8.

7 Ibid., p.9.