Gold

Gold in Nevada: The Real Golden State

Published

2 weeks ago

May 13, 2020

Nicholas LePan

Gold in Nevada: The Real Golden State

The Real Golden State: Gold Production in Nevada

Thanks to the world famous silver discoveries of the 19th century that unveiled Nevada’s precious metal potential, the state today is known by many as “The Silver State”.

However, it’s possible that nickname may need to be updated. In the last few decades, Nevada has become a prolific gold producer, accounting for 84% of total U.S. gold production each year.

Today’s infographic from Corvus Gold showcases why Nevada may have a better case for deserving California’s nickname of the “Golden State”: we look at the state’s gold production, exploration potential, and even its rich history.

A Defining Era for the American West

The discovery of the Comstock silver lode in 1859 sparked a silver rush of prospectors to Nevada, scrambling to stake their claims. News of the discovery spread quickly throughout the United States, drawing thousands into Nevada for one of the largest rushes since the California Gold Rush in 1849. Mining camps soon thrived and eventually became towns, a catalyst that helped turn the territory into an official state by 1864.

Interestingly, many of the early mines also produced considerable quantities of gold, indicating there was more to the state than just silver.

The Comstock Lode: 8,600,000 troy ounces (270t) of gold until 1959
The Eureka district: 1,200,000 troy ounces (37t) of gold
The Robinson copper mine: 2,700,000 troy ounces (84t) of gold

The Comstock Lode is notable not just for the immense fortunes it generated but also the large role those fortunes had in the growth of Nevada and San Francisco.

In fact, there was so much gold and silver flowing into San Francisco, the U.S. Mint opened a branch in the city to safely store it all. Within the first year of its operation, the San Francisco Mint turned $4 million of gold bullion into coins for circulation.

While California gold rushes became history, Nevada mining was just beginning and would spur the development of modern industry. In 2018, California produced 140,000 troy ounces of gold, just a fraction of the 5.58 million oz coming out of Nevada’s ground.

Nevada Gold Mining Geology: Following the Trends

There are three key geological trends from where the majority of Nevada’s gold comes from.

Cortez Trend
Carlin Trend
Walker Lane Trend

Together these trends contributed nearly 170 million ounces of gold produced in Nevada between 1835 and 2018, making it the United States’ most productive gold jurisdiction, if not the world’s.

The bulk of production comes from the Cortez and Carlin Trends, where mines extract low grade gold from a particular type of mineral deposit, the Carlin Type Gold deposit. It was the discovery and technology used for processing these “invisible” deposits that would turn Nevada into the golden powerhouse of production.

Today, the world’s largest gold mining complex, Nevada Gold Mines, is located on the Carlin Trend. The joint venture between Barrick and Newmont comprises eight mines, along with their infrastructure and processing facilities.

Despite the prolific production of modern mines in the state, more discoveries will be needed to feed this production pipeline—and discoveries are on the decline in Nevada.

Looking to the Future Through the Past: The Walker Lane Trend

The future for gold mining in Nevada may lie in the Walker Lane Trend. This trend is host to some of the most recent gold discoveries, and has attracted the interest of major mining companies looking to conduct exploration, and eventually, production.

Walker Lane stands out with exceptional high-grades, growing reserves, and massive discovery potential. It also played an integral role in the history of the state beginning with the 1859 discovery of the Comstock Lode, and it seems likely to continue doing so in the future.

Related Topics:America exploration gold history mining nevada silver usa Walker Lane Trend

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Base Metals

All the World’s Metals and Minerals in One Visualization

This massive infographic reveals the dramatic scale of 2019 non-fuel mineral global production.

Published

3 months ago

March 1, 2020

Nicholas LePan

All the World’s Metals and Minerals in One Visualization

We live in a material world, in that we rely on materials to make our lives better. Without even realizing it, humans consume enormous amounts of metals and minerals with every convenient food package, impressive building, and technological innovation.

Every year, the United States Geological Service (USGS) publishes commodity summaries outlining global mining statistics for over 90 individual minerals and materials. Today’s infographic visualizes the data to reveal the dramatic scale of 2019 non-fuel mineral production.

Read all the way to the bottom; the data will surprise you.

Non-Fuel Minerals: USGS Methodology

A wide variety of minerals can be classified as “non-fuel”, including precious metals, base metals, industrial minerals, and materials used for construction.

Non-fuel minerals are those not used for fuel, such as oil, natural gas and coal. Once non-fuel minerals are used up, there is no replacing them. However, many can be recycled continuously.

The USGS tracked both refinery and mine production of these various minerals. This means that some minerals are the essential ingredients for others on the list. For example, iron ore is critical for steel production, and bauxite ore gets refined into aluminum.

Top 10 Minerals and Metals by Production

Sand and gravel are at the top of the list of non-fuel mineral production.

As these materials are the basic components for the manufacturing of concrete, roads, and buildings, it’s not surprising they take the lead.

Rank	Metal/Mineral	2019 Production (millions of metric tons)
#1	Sand and Gravel	50,000
#2	Cement	4,100
#3	Iron and Steel	3,200
#4	Iron Ore	2,500
#5	Bauxite	500
#6	Lime	430
#7	Salt	293
#8	Phosphate Rock	240
#9	Nitrogen	150
#10	Gypsum	140

These materials fertilize the food we eat, and they also form the structures we live in and the roads we drive on. They are the bones of the global economy.

Let’s dive into some more specific categories covered on the infographic.

Base Metals

While cement, sand, and gravel may be the bones of global infrastructure, base metals are its lifeblood. Their consumption is an important indicator of the overall health of an economy.

Base metals are non-ferrous, meaning they contain no iron. They are often more abundant in nature and sometimes easier to mine, so their prices are generally lower than precious metals.

Rank	Base Metal	2019 Production (millions of metric tons)
#1	Aluminum	64.0
#2	Copper	20.0
#3	Zinc	13.0
#4	Lead	4.5
#5	Nickel	2.7
#6	Tin	0.3

Base metals are also the critical materials that will help to deliver a green and renewable future. The electrification of everything will require vast amounts of base metals to make everything from batteries to solar cells work.

Precious Metals

Gold and precious metals grab the headlines because of their rarity ⁠— and their production shows just how rare they are.

Rank	Precious Metal	2019 Production (metric tons)
#1	Silver	27,000
#2	Gold	3,300
#3	Palladium	210
#4	Platinum	180

While metals form the structure and veins of the global economy, ultimately it is humans and animals that make the flesh of the world, driving consumption patterns.

A Material World: A Perspective on Scale

The global economy’s appetite for materials has quadrupled since 1970, faster than the population, which only doubled. On average, each human uses more than 13 metric tons of materials per year.

In 2017, it’s estimated that humans consumed 100.6B metric tons of material in total. Half of the total comprises sand, clay, gravel, and cement used for building, along with the other minerals mined to produce fertilizer. Coal, oil, and gas make up 15% of the total, while metal makes up 10%. The final quarter are plants and trees used for food and fuel.

Gold

Silver Series: Perfect Storm for Silver (Part 2 of 3)

In the second part of the Silver Series, we show that the supply and demand fundamentals are potentially shaping up for a perfect storm in silver prices.

Published

3 months ago

February 26, 2020

Nicholas LePan

Silver Series Part 2

The Silver Series: A Perfect Storm for Silver (Part 2 of 3)

In Part 1 of the Silver Series we showed how precious metals can be a safe haven during times of volatility in a debt-laden era.

Today’s infographic is Part Two of the Silver Series, and it comes to us from Endeavour Silver, outlining some of the key supply and demand indicators that precede a coming gold-silver cycle in which the price of silver could move upwards.

Silver Fundamentals

Silver is produced primarily as a by-product in the mining of non-precious metals, and there is currently a dwindling supply of silver as a result of low base metal prices.

However, silver is more than just a precious metal and a safe haven investment. Its industrial uses also create a significant demand on silver stocks.

As the production of green technologies such as solar cells and EVs quickly escalates, upward pressure is being placed on the price of silver, indicating the potential start of a new gold-silver cycle in the market.

Investment Demand

Just like gold, silver has functioned as a form of money for centuries, and its role as a store of value and hedge against monetary inflation endures.

Currency debasement is not new. Governments throughout history have “printed” money while silver’s value has held more constant over time.

In today’s age, the average investor does not own physical silver. Rather, they invest in financial instruments that track the performance of the physical commodity itself, such as silver exchange-traded funds (ETFs).

Until recently, ETF investment in precious metals has been relatively flat, but there has been a surge in the price of silver. Meanwhile, demand for silver-backed financial products have increased the demand for physical silver and could continue to do so.

Industrial Demand

Silver is also helping to power the green revolution.

The precious metal is the best natural conductor of electricity and heat, and it plays an important role in the production of solar-powered energy. A silver paste is used in photovoltaic solar cells which collects electrons and creates electricity. Silver then helps conduct the electricity out of the cell. Without silver, solar cells would not be as efficient.

As investments and the green revolution demand more and more silver, where is the metal coming from?