U.S. Gold Mining Overview The USA is the world's second largest gold producer, after South Africa. The country produced 285 t in 2003, representing a dramatic drop from 2000's total of 355 t. Gold was produced at about 53 major lode mines, a dozen or more large placer mines (nearly all in Alaska), and numerous smaller placer mines (mostly in Alaska and in the Western States). In addition, a small amount of domestic gold was recovered as a byproduct of processing base metals, chiefly copper. Thirty mines yielded more than 99% of the gold produced in the United States.
Domestic output continued to be dominated by Nevada, where combined production accounted for more than 80% of the U.S. total. Between July 2002 and August 2003, two gold mines were closed in the United States. During this 12-month period, the average output per mine decreased, companies merged, and the size of gold-mining operations increased. Most of the larger companies were successfully replacing annual production with new reserves, but smaller companies were finding this more difficult.
The Carlin Trend in Nevada has been responsible for most of the USA's gold production and is responsible for forming a stable mining platform for several global major gold producers such as Newmont, Placer Dome and Barrick. Gold mineralization in the Carlin Trend is characterized by a large low-grade sedimentary carbonate hosted gold resource.
The USA is the lowest cost gold producer (cash costs of $185/oz) in the world, followed by Canada, Australia and South Africa. The most significant gold development in the USA is the Cortez joint venture in Nevada, which contributed 35t. However, poor gold price and rising costs have placed several of Nevada's flagship mines under pressure, resulting in job losses and mine suspensions.
Newmont Mining remains the USA's largest gold producer, with 3 Moz being produced from its Nevada Operations near Elko, Nevada in 2000. Newmont was responsible for the discovery of the Carlin Trend in 1961, and has since developed 17 open pit and four underground mines in Nevada, employing a total of 3000 people. It also has a 50% interest (Hecla Mining has the remaining interest) in the underground Rosebud mine situated in Pershing County, Nevada. Production from the Nevada mines has exceeded 1.5 Moz per year for the past seven years. Due to the varied oxide and carbon/sulphide refractory ores that are found intermixed throughout the mine, Newmont has had to employ several methods of gold extraction.
Placer Dome is the second largest gold producer in the USA with most operations in Nevada as well as a single mine in Montana. Placer Dome is one of the world's lowest cost gold producers, with cash costs at the Cortez - Pipeline Joint Venture with Kennecott Minerals (wholly owned subsidiary of Rio Tinto) totaling $58/oz. The Cortez - Pipeline joint venture in Nevada is Placer Dome's flagship mine, along with the Granny Smith mine in Australia. Placer Dome has a 60% interest in both operations. The Cortez - Pipeline joint venture includes the development of three distinctive ore bodies, of which the Cortez Mine is one. Production at the Cortez Mine has ceased, but the remaining two Carlin type deposits at Pipeline and South Pipeline are being developed and have proven and probable reserves estimated at containing 7.7 Moz gold. At present, the Pipeline deposit produces 74% of Cortez' production, with the remaining 26% sourced from the South Pipeline deposit. The joint venture produced 1Moz in 2000. An additional gold resource has been located close to the Pipeline Pit - called the Crossroads deposit it has a resource of some 500 000 oz gold.
The newly merged entity Barrick Homestake owns and operates several operations in Nevada, California and South Dakota. The Goldstrike property, which includes the Meikle and Betze - Poste Mines is situated along the Carlin Trend in Nevada. The Goldstrike property produces nearly 60% of Barrick's gold every year that totaled 3.7 Moz in 2000). The Betze - Poste Mine is an open cast operation that produced over 1.6 Moz in 2000, making it the world's fourth largest gold mine (production). Under an agreement with Newmont, the mine also extracts ore from contiguous ore bodies in the area. The underground Meikle Mine is regarded as one of Barrick's flagship mines, producing 805 000 oz gold in 2000. In addition to Meikle, Barrick are evaluating the Screamer, Rodeo, and Griffin ore bodies that are considered extensions to the Meikle ore body. The Rodeo deposit is located in between the Meikle and Betze - Post operations and has reserves estimated at containing 2.7 Moz gold. Rodeo will contributes about 350 000 oz to Meikle's production. The new merger will also add Homestake's three mines in Nevada, one in California and one in South Dakota. The Ruby Hill Mine near Eureka, Nevada is one of Barrick Homestake's lowest cost gold producers. The company's namesake mine, The Homestake Mine in South Dakota has been in operation for over 120 years and has produced over 40 Moz gold to date. The Round Mountain Mine in Nevada is a joint venture between Barrick (50%) and Echo Bay Mines (50%). It is the largest open pit heap leach operation in North America.
In Alaska, Kinross Gold operates the Fort Knox mine. NovaGold Resources, Placer Dome and Calista Corporation are making good progress on the development of the Donlin Creek Gold Deposit that has a potential gold resource of over 13 Moz gold, making it one of North America's largest unexploited gold deposits. Donlin Creek is located more than 500km west of Anchorage in southwest Alaska. Initial studies suggest an annual production of at least 600 000 oz.
In California, Canyon Resources operates the open cast heap leach Briggs Gold mine that produced 96 100 oz gold and 28 000 oz silver in 2001. Lower gold prices have forced Canyon Resources to re assess the mining of the North Briggs pit, as the current gold price cannot sustain stripping ratios. The company is evaluating the possibility of accessing the ore body using underground methods.
The world's largest gold producer, Anglo Gold also has operations in the USA. Here Anglo Gold operates the Cripple Creek and Victor gold mines. Anglo Gold also has a 70% interest in the Jerrit Canyon gold mine with Meridian Gold Corporation. Jerrit Canyon.
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