MINING FALL 2018 EDITION
Autonomous drilling underway at Marigold
October 2018
MINING
On the cover —
Fall 2018
a publication of Winnemucca Publishing Publisher: Peter Bernhard Special Projects Director: Samantha Andersen Writers: Debra Reid Peggy Jones Shanna Cummings Ashley Maden Ben Jones Advertising Sales: Rhonda Coleman Bobbie Sakurada Ashley Buckingham Advertising Design: Joe Plummer Emily Swindle
Photo by Ashley Maden, Winnemucca Publishing
An view of the Mackay 5 pit at Marigold shows two sets of blasthole patterns currently being drilled. See the story starting on Page 17
In this issue —
Gold records six month losing streak From Kitco ����������������������������������������������������������������������������������������������������������� Page 4
Lithium Nevada’s Thaker Pass project By Shanna Cummings �������������������������������������������������������������������������������������������� Page 6
North Star Mine produces tons of zeolite ore By Debra Reid ������������������������������������������������������������������������������������������������������ Page 10
The art of safety By Ben Jones �������������������������������������������������������������������������������������������������������� Page 15
Man and machine join forces in blasthole drilling By Ashley Maden ������������������������������������������������������������������������������������������������� Page 17
Safety rocks — Coeur Rochester puts people first By Peggy Jones ��������������������������������������������������������������������������������������������������� Page 23
Meet a Nevada mineral: Silica Nevada Mining Association ��������������������������������������������������������������������������������� Page 30
Newmont recognized for excellence in board diversity and innovation 1022 S. Grass Valley Road, Winnemucca, Nev. 89445 (775) 623-5011
Newmont ������������������������������������������������������������������������������������������������������������� Page 32
Comstock receives National Sustainable Mineral Development Award Comstock Mining ������������������������������������������������������������������������������������������������� Page 33
Gold Outlook
Gold records six-month losing streak — U.S dollar continues to weigh on market By Neils Christensen Kitco News
While the gold market is showing some resilience in the final trading day of September, analysts note that the market is remains stuck in a clear down trend as it notches its sixth consecutive monthly drop. While off its lows, gold prices are preparing to end the week and month in negative territory. December gold futures last traded at $1,195.80 an ounce, down 0.50% from the previous week. For the month, gold prices are down nearly 1% from August Since the downtrend started in mid-April gold prices have lost nearly 12%. According to some analysts, gold is seeing its worst losing monthly losing streak in two decades; the renewed selling pressure came after the Federal Reserve maintained its optimistic outlook for the U.S. economy and signaled that it will continue to move forward with interest rate hikes through to 2020. The Fed’s outlook was also reaffirmed during the week as economic data showed the U.S. economy grew 4.2% in the second quarter. While there were little surprises in Wednesday’s Federal Reserve monetary policy decision, currency analysts noted that the U.S. dollar continues to be the most attractive asset among developed nations. “At the end of the day you can’t get away from the fact that the Federal Reserve is the only major central bank that is raising interest rates,” said Neil Mellor, senior currency strategist at Bank of New York Mellon. Not only does the U.S. dollar remain strong, but Mellor noted that growing economic and geopolitical uncertainty, sparked by proposed major deficit spending in Italy is causing significant weakness in the euro.
“In this environment you still have to see value in the U.S. dollar,” he said. David Madden, market strategist at CMC Markets, said that he also sees further strength in the U.S. dollar, which will weigh on gold. “I don’t see any shift in the U.S. dollar’s uptrend and I think we could see it retest its August highs,” he said. “As a result I think we have to expect that gold will retest its August lows.”
Not all doom and gloom for gold
Although gold remains in a downtrend, some analysts see potential for the yellow metal as the market looks severely oversold. Colin Cieszynski, chief market strategist at SIA Wealth Management, said that he sees some technical resilience in gold in the near-term as it looks like the market creates a higher low from August’s price action. “Technically, I think gold is due for a bounce” he said. “All the metals look pretty washed out and there is a lot of negativity priced so we could see a bit of a relief rally.” However, despite his short-term opti-
4 - MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing
mism, Cieszynski, said over the long-term, gold will struggle to break out of its current range as long as there is a strong bid in the U.S. dollar. “I’m cautiously optimistic on gold with an emphasis on cautiously,” he said. “Gold is still in a sideways trend and even if you get a bounce the price will struggle to break through $1,210 an ounce as long as the U.S. dollar remains strong.” Ole Hansen, head of commodity strategy at Saxo Bank, is also not ready to count gold market out. He noted that although the yellow metal fell to a six-week low earlier this week, that softness wasn’t seen in other markets, particularly silver. Gold’s sister metal is seeing significant strength as the price rallies more than 2% Friday. December silver futures last traded at $14.710 an ounce, up 2.5% from the previous week. This is silver’s second consecutive week of gains and the market has ended a threemonth downtrend. “Gold’s weakness appears to be isolated so that could be an indication that there is
underlying demand in the precious metals market,” he said. However, Hansen said that gold still faces significant headwinds. “If gold is going to have a chance, then the U.S. dollar and U.S. equities need to stop rallying,” he said. Investors don’t see the need to build a rainy-day fund as markets are pretty much behaving themselves.”
Rising inflation will also make gold attractive In a recent interview with Kitco News, George Milling-Stanley, head of gold investments at State Street Global Advisors, said that rising inflation pressures is a critical factor that could help gold prices. He explained that rising inflation will keep real U.S. interest rates in low to negative territory as the Federal Reserve indicated that it is no hurry to raise rates faster than it has already signaled. While the latest economic data showed tame inflation pressures in August, markets
will see another key indicator next week. The major event next week will be Friday’s nonfarm payrolls report and economists will be eager to see if wages continue to rise after August average hourly earnings saw its biggest increase in nine years. Economists note that rising wages will continue to push
inflation pressures and expectations higher.
Levels to watch
Although gold fell to a six-week low, the market is still trapped in a range between critical support at August’s lows at $1,160 and resistance at $1,212 and then $1,236. F
MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing - 5
Humboldt County
Charging into the future COURTESY PHOTO
View of the Santa Rosa mountains taken from the Thacker Pass site.
Lithium Nevada’s Thacker Pass project By Shanna Cummings Winnemucca Publishing
Thacker Pass is slated to become the next hive of mining activity in Humboldt County. Lithium Nevada’s program to mine lithium clay deposit in a small part of the McDermitt caldera will initiate permitting in December 2018, and Thacker Pass promises to contain a high-grade lithium deposit that will feed the growing electric car battery industry all over the world. The Thacker Pass mine will produce lithium carbonate and lithium hydroxide, both used in manufacture of batteries for electric cars. The mine will develop in two phases and includes four pits lasting approximately 46 years in total. Phase One is expected to produce 30,000 tons of lithium carbonate equivalent, and Phase Two will double production and would require a rail line.
Construction for Phase One is slated to begin in late 2020, with production beginning in late 2022. Phase Two construction would begin in mid 2025 and production would start in mid-to-late 2026. Thacker Pass rests at the southern portion of the McDermitt caldera not far from the Montana Mountains, near Kings River in Humboldt County. The caldera itself spans the border with Oregon. At a July 2018 community meeting, Lithium Nevada’s senior project geologist, Randal Burns, said the McDermitt caldera, at 28 miles north to south and 16 miles east to west is big enough to hold the volume of 9-10 Crater Lakes, and contains a huge lithium deposit. According to Tim Crowley, Vice President of Government and Community Relations for Lithium Nevada, “the Thacker Pass Project is now the largest known lithium deposit in the United States and the largest known lithium clay deposit in the world.”
6 - MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing
New and familiar territory A caldera forms over millions of years from what remains after a large volcano collapses on itself due to size. Lithium in the magma chamber escapes through cracks in the surface in the form of ash plumes and settles on the ground. Eventually, the crater fills with water and becomes a lake. The water evaporates, condensing the lithium in the soft clay rock. What’s left is high-grade lithium (average 3,000 parts per million, up to 8,000) in a shallow deposit with a maximum depth of 300 feet. Mining the lithium ore is as simple as scraping the layers and transporting the ore to the processing facility via haul truck and overland conveyor. The deposit has a very low strip ratio of 1.5 to 1, meaning one ton of lithium ore requires mining 1.5 tons of waste rock. “To produce lithium products from this world class deposit, we’re using some con-
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ventional practices that are common in mining, mineral processing, and specialty chemical sectors but not necessarily common in Nevada,” Crowley explained. Lithium clay ore is completely different from gold ore. “If you take our ore, and you put it in a glass of water, it’ll dissolve. It’ll disintegrate right down to a sediment. We’re going to take advantage of that in our process,” Zawadzki said. Processing lithium from clay ore shares little with gold processing methods, and more closely resembles processing phosphates, Zawadzki said. Thacker Pass will use methods that differ entirely from another Nevada lithium mine, Silver Peak mine in Esmeralda County. At the Silver Peak lithium mine, lithium is removed from very salty groundwater through evaporation in pools, called brining. This process takes around 18 months and yields a “very dilute” product, Zawadzki said. “What we’re doing in Thacker Pass is conventional pit mining. We mine the ore out, and we send that to a plant where we process it,” Zawadzki said. “The whole thing takes about three days. That’s the big advantage of clay stone over brine.” Shorter processing time allows the mine to adjust to the market quicker, he added. Separating lithium from clay stone involves a leaching process using sulfuric acid in controlled reactors. After separation, the lithium is purified and brought up to grade using industry standard processes. Supplemental products The Thacker Pass mine design includes an on-site sulfuric acid production facility expected to produce enough of the chemical to cover the needs of the mine with enough excess to sell within a 500-mile radius of the site. “Other mines in Nevada need sulfuric acid, but they have long supply chains” and are interested in having local production
Well drilling at the Thacker Pass site.
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facility, Zawadzki said. Also, since production of sulfuric acid generates a high amount of heat which can be converted into electricity, Zawadzki expects to sell some of that electricity back to the system. Phase One of the plant would generate about 30 megawatts (MW) of electricity, enough to run about 15,000 households for a year. Phase Two would generate about 80 MW. The mine’s design also includes a potential solar field.
Human resources
The Thacker Pass project is expected to create over 800 jobs during the construction phases, 290 permanent positions and over 200 indirect jobs in support fields. Zawadzki said the jobs would be filled locally as much as possible, and Lithium Nevada is working with education systems to develop training programs for this unfamiliar mining process. “It’s not just a mine; it is a mine plus a chemical manufacturing facility,” Zawadzki said. “We need to train our operators, we need to train our people, and we’re developing programs to do that,” he added. Natural resources The processing facility is designed to reduce water use. Crowley said the team
“elected to forgo standard cooling towers that lose a significant amount of water vapor to evaporative cooling and replace them with costlier closed-loop cooling finfans. We’ve selected this technology in order to conserve as much water as possible.” The mine is expected to use about 2,000 acre-feet per year in Phase One and 4,000 acre-feet per year. They already have water rights for Phase One. The mine design uses a dry stack tailings method rather than a tailings slurry. This reduces water consumption by 50 percent, requires less space and reduces environmental liability. The waste rock generated by the mining process would still contain significant amounts of lower-grade lithium that can be processed in the future to expand mine life. The waste rock would be used to back fill the pits or stored on site. Though the Montana mountains contain a significant amount of lithium, input from the community and government agencies like the BLM led the team to choose Thacker Pass and avoid the Montana Mountains. Zawadzki said they found no evidence of sage grouse activity in the future mine site. The design includes environmental ele-
ments to keep emissions at lowest possible levels, reduce noise impacts and facilitate rehabilitation of the land. Lithium Nevada is also engaging in environmental service. A partnership with the University of Nevada, Reno and the University of Nevada Foundation through the Great Basin Sagebrush Restoration Fund involves coating sagebrush seeds with an organic material that acts as fertilizer and retains moisture while delaying germination. This way seeding can take place in the fall, but germination wouldn’t begin until spring. The mine will benefit Humboldt County in more than an influx of jobs. “After investing more than $580 million to complete the first phase, we’ll be on our way to consistently generate approximately $24 million annually in Net Proceeds of Minerals taxes, roughly half of which will go to Humboldt County,” Crowley said. “Our property taxes will add another $4.5 million every year to the Humboldt County coffers,” he continued. “And, of course, Thacker Pass will generate significant federal taxes — more than $110 million annually. Lithium Nevada is committed to be a great Nevada business. We’re working hard to build this mine responsibly and to bring it on line soon.” F
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Pershing County
North Star Mine produces tons of zeolite ore Potential economic boost for Pershing County By Debra Reid Winnemucca Publishing
A recent surge in big rig traffic through downtown Lovelock caught the attention of local miner John Heizer. The belly dumps hauled crushed white rock from a mine north of town to a stockpile in the industrial area. Thousands of tons of zeolite ore await shipment by railroad. The term zeolite refers to a family of minerals little known to the public but apparently well known in the industrial world. Some natural zeolites are common, others are rare, but all have interesting names like analcime, chabazite, clinoptilolite, erionite, ferrierite, heulandite, laumontite, mordenite and phillipsite according to an online article by Robert Virta of the USGS. “Zeolites are hydrated aluminosilicates of the alkaline and alkaline-earth metals,” Virta wrote. “About 40 natural zeolites have been identified during the past 200 years... More than 150 synthetic zeolites have been synthesized. Natural and synthetic zeolites are used commercially because of their unique adsorption, ion exchange, molecular sieve and catalytic properties.”
Better well cement
The North Star Mine is 12 miles north of Lovelock and holds a large amount of
DEBRA REID • Lovelock Review-Miner
Thousands of tons zeolite ore will be loaded onto rail cars at the Lovelock Industrial Area. The rock contains ferrierite, a key component of cement designed for geothermal and oil wells. a rare zeolite known as ferrierite as well as the more common zeolite called mordenite according to Geoff Trabits, a consultant for the Trabits Group. Mineral rights are leased from Newmont by Oreana Energy. That company is owned by the Trabits Group and D. R. Smith out of Wasilla, Alaska. Trabits said there’s enough zeolite to keep the North Star Mine operating for years to come. “When the driller was out last week, I had him drill a couple of 40-foot holes which expanded our reserves out to the 12,000,000 ton range!” he wrote in an email. He later confirmed that the Pershing County zeolite mine “is the most economically viable source of ferrierite in the world.” Funded by a more than $2 million Department of Energy research grant, the Trabits Group developed a lighter, stronger and more flexible cement designed for harsh geothermal well shafts with product variations for oil, gas and water wells.
10 - MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing
Ferrierite is one of the key components of FlexCem cements according to a product fact sheet provided by Trabits. “Ferrierite in FlexCem provides improved strength, thermal stability, acid resistance and self-repairing properties...The FlexCem Ferrierite is mined from a deposit located 12 miles north of Lovelock. This Lovelock deposit is the only known minable Ferrierite resource in the world.” Zeolite cement is more environmentally-friendly than ordinary well cement according to Trabits. There’s less of a carbon-footprint during production and the “self-healing” material reduces leaks from geothermal, oil and gas wells resulting in less soil and groundwater contamination. Trabits confirmed that the tons of zeolite stockpiled in Lovelock will be shipped by rail to oil and gas industry markets and could end up in Texas, Oklahoma, New Mexico, North Dakota and elsewhere. Additional ferrierite, and possibly mordenite, could be
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mined as needed next year. Lightweight zeolite minerals occur where volcanic rocks and ash layers interaction with alkaline groundwater. The microporous minerals are called “molecular sieves” due to “a very regular and porous molecular structure” with the ability to sort out other wanted and unwanted molecules. BLM geologist Kathleen Rehberg said zeolite’s physical properties make the minerals suitable for other applications including water purification, wastewater treatment, heavy metal removal, horticulture, aquaculture, odor control, oil absorbent, pesticide carrier, catalysts and cat litter.
Better cat litter
Trabits confirmed that his company is working on a deal with Tolsa, a cat litter production company located in the Lovelock Industrial Area and within sight of the zeolite stockpile.
“Another boon for Lovelock is that zeolite material could be used for cat litter and we’re in negotiations with Tolsa,” he said. “Mordenite is a common zeolite that is used for cat litter.” As well as leasing his land for the zeolite stockpile, Oreana Energy might also lease a nearby warehouse for a zeolite ore mill, said property owner Darin Bloyed. The building used to house a soybean oil mill but that operation has ceased along with Nevada Soy Products, he said. Virta predicted a future increase in the demand for zeolite minerals. “The industry is waiting to see how two major environmental concerns play out,” he wrote. “The first is arsenic in drinking water. In experiments, modified zeolites have been shown to remove arsenic to levels below the EPA’s new 10 parts-per-billion arsenic standard. The potential for a large demand for modified zeolites could occur.”
Natural zeolites could also help clean up animal stockyard waste according to Virta. “Animal waste runoff from stockyards contributes to local stream pollution and, with the advent of supersized dairy and hog farms, has become a major environmental concern. Zeolites have already proven their mettle at controlling odor by solidifying animal waste in small farming situations. If large-scale stockyards are required to more tightly control animal runoff, this could represent a considerable market for natural zeolites.” Zeolite is even proclaimed to be a “master detoxifier” that helps the immune system, alkalizes the body, supports a healthy gut, improves mood and protects from harmful microbes according to Touchstone Essentials. A 60 ml bottle (30 day supply) of liquid zeolite detoxifier costs $79.95. F
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MINING •• FALL FALL 2018, 2018, an an October, October, 2018 2018 publication publication of of Winnemucca Winnemucca Publishing Publishing -- 13 13 MINING
Lander County
The Art of Safety NDOM’s Abandoned Mine Lands program utilizes technology to create safer and environmentally friendly mine sites By Ben Jones Winnemucca Publishing
Technological advancements have made detecting and sealing off abandoned mines quicker, safer, and environmentally friendly. A leader in abandoned mine site management is the Nevada Division of Mineral’s (NDOM) Abandoned Mine Lands (AML) program. The AML was born in 1987 by the Nevada Legislature’s response to growing concerns over accidents and hazards present by Nevada’s mining past. According to AML’s 2017 Nevada Abandoned Mines Land Report, Nevada has “over 300,000” mining features that hail from the state’s 150 year mining history. Out of these some 300,000 features, the 2017 AML report estimated that 50,000 “are significant physical safety hazards that require some type of securing.” Many technological advancements in abandoned mine management see their
COURTESY PHOTO
A polyurethane foam plug (PUF) followed by five feet of native local material helps to seal a hazardous mine site in Churchill County, Nevada. fruition and execution through AML. The AML has utilized technology to detect mines and seal off hazards while simultaneously managing environmental impacts.
Finding and Cataloguing Sites
Keeping an accessible database of site information is crucial to AML’s operations. A major technological advancement for the AML program has been the implementation of mobile field mapping software that has
14 - MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing
helped to record mine sites digitally and instantly access the files. According to AML Chief Robert Ghiglieri, the staff has carried out inventorying efforts utilizing a variety of inventorying materials transported in a backpack. Now, staff utilizes small, handheld tablets, similar to an iPad, with the mapping software that streamlines the inventory processes, increases accuracy, and decreases materials needed in the field. According to Ghiglieri, “We developed
MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing - 15
COURTESY PHOTO • minerals.nv.gov
The Nevada Division of Minerals has been conducting a summer intern program since 2000 in order to assist with the Abandoned Mine Lands (AML) Program. The program helps to advance the AML program while providing the students with valuable field experience in map reading, data collection, and working in group environments. Throughout the summer the interns will work in nearly all of Nevada’s 17 counties and visit as many as 2,500 abandoned mine features. an individual application inside of it that when we’re out in the field, it shows us where we are and trying to get to.” Drones have also helped to find potential sites and reduce the strain of fieldwork in remote desert areas. Ghiglieri cited drones as being “very effective” in “distinguishing and identifying new sites” in less shrub-covered areas that are visible to the drone’s line of sight such as in southern Nevada. Once the drone has discovered a potential location, the AML team can then hike to the new coordinates to investigate.
Sealing Mines: Wildlife Conscious Technology
Sealing of hazardous mines has its own technological art. Once the sites are documented, the AML needs to rank “topoquads,” or areas in their mapping system that present abandoned and dilapidated features. The AML evaluates the risk of danger based on proximity to roads and recreation areas. If the site in on Federal land, this prompts the AML to coordinate with land managing organizations such as the United State Forest Service (USFS) and the BLM to select the best management strategy. According to the 2017 AML report, “Under the guidelines of the National Environmental Policy Act (NEPA), all mine open-
ings proposed for permanent closure on Federal lands must be evaluated for cultural and biological resource impacts.” Several features need to also incorporate special dimensions to accommodate bats that make their homes in such long-abandoned openings. The technological art lies in allowing the correct dimensions for bats to freely enter and exit these shafts while simultaneously preventing danger to humans. The Bat Conservation International (BCI) has designed a five and three quarter inch spacing between bars to accommodate these habitats. According to Ghiglieri, Every AML feature is “uniquely shaped in size,” and “fabricated on site” to ensure that the features fit perfectly and block off any potential entering and hazards. According to the 2017 AML report, 75 of the 378 mine sites hard closed in 2017 “were found to support significant bat habitat and therefore recommended for bat gates or to maintain airflow for roosting conditions.” If sites display no biological hazard, sites are sealed using backfill or PUF (Polyurethane Foam) plugs.
Detecting Claims
If an abandoned mine is detected, it is
16 - MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing
up to the claim or property owner to manage the hazard. According to Nevada state law, if one is occupant of a mine, it’s their responsible to safeguard the mines. Many major mine magnates, like Newmont, will often look to the NDOM for help. According to Newmont’s External Relations Representative Natacia Eldridge, “When an abandoned mine is discovered by Newmont on our private land or claimed public land, the first step we take is to secure the historic hazard by use of fencing materials and warning signs to ensure safety. We would then notify Nevada Division of Minerals (NDOM) about the securement status and for their tracking purposes for their Abandoned Mine Lands (AML) database.” AML has created an ArcGIS open data website that maps current active mine claims throughout the state. According to Ghiglieri, this feature is the “first of its kind available in Nevada.” The feature presents BLM data in a much more accessible feature as opposed to the “very tedious searching method” present in the BLM’s databases, said Ghiglieri. ArcGIS data system can play a helpful role in dictating whose claim the abandoned site lies in and thus what action by who can then be taken. (Sources: Nevada Abandoned Mines Report, 2017) F
Humboldt County
Man and machine join forces in blasthole drilling Autonomous drilling underway at Marigold By Ashley Maden Winnemucca Publishing
Two blasthole drills are expected to operate autonomously by the end of the year at Marigold, an open-pit gold mine owned by SSR Mining located in Humboldt County. This will be the site’s first time using fully autonomous equipment, which is expected to improve safety and efficiency. Blasthole drilling involves drilling a pattern of holes in the ground so explosives can be used to break the rock. The blasted material is hauled away and sorted as either waste or ore. The ore is processed to remove precious metals such as gold and silver. Traditionally, a blasthole drill is operated by an individual sitting in a cab on the equipment, operating the drill to set specifications. A drill that has been outfitted with autonomous equipment can operate on its own with only a remote user in a control room to monitor the drill’s progress and make adjustments as necessary. With autonomous drilling, multiple drills can be operating at the same time with one person monitoring them from the control room. Marigold has partnered with Flanders to equip the drills for autonomous operation. Two Atlas Copco Pit Viper 271 blasthole
ASHLEY MADEN • The Humboldt Sun
The Atlas Copco Pit Viper 271 drills will be outfitted for completely autonomous drilling by the end of this year. MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing - 17
drills at Marigold will be outfitted with autonomous equipment by the end of the year, with the first one to be outfitted and tested in October. “Nobody will lose their job, positions may change,” said Rodney Sample, Marigold general foreman of operations. “We’ll be doing our own sampling, right now the engineering department does the sampling. There will be a command center that an operator will run.” Although the drills will be able to operate completely autonomously, the drill can still be operated manually if issues with the equipment or technology occur. Autonomous drilling is expected to improve safety and production. Without an operator in the cab, drilling can continue drilling through circumstances where it wouldn’t otherwise be safe for a person to do so. Sample said currently the drills must be shut down if lightning strikes within five miles of the mine site. Drillers also must shut down their drill and move away from a blast area within 500 feet of the drilling area for safety. “We’ll be able to run more than one drill with one operator with the command center and monitors, with the goal of having up to
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Once the blasthole drill has completed drilling a set pattern,individuals will collect samples from the mounds of earth around the hole to be tested for mineral content.
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A haul truck finishes being loaded by the P&H electric shovel in the Mackay 5 pit at Marigold. Haul trucks move earth to either the processing area or waste dump area once the drill hole patterns are blasted. 2-3 drills that one operator will run,” said Don Dwyer, Marigold mine manager. “With the new technology, it will measure a lot of pressures and parameters of the drill, so the drill should run a little more efficiently, so we’re hoping to get some productivity gains as well.” The diesel-powered drills are equipped
ASHLEY MADEN • The Humboldt Sun
Individuals go out to the blasthole area once the drilling has been completed to collect samples of the earth at Marigold mine.
with GPS technology, cameras all around the outside and satellite receivers. The base station where the command center is located will be able to communicate with the drills through a dedicated wireless network built in-house just for the drills, separate from the rest of the mine as to not be concerned about bandwidth con-
sumption or latency issues. “We want to make sure we exceed any kind of standard with safety, and with the technology that they’ve been able to provide to me to deploy in the field, I think we’ve done that”, said Lee Wisnoski, Marigold communication coordinator. The autonomous drill will utilize feedback
MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing - 19
from computers to adjust settings to adapt to various ground conditions, something that previously had to be done manually by the operator, based on the operator’s “feel” of the ground they were drilling in. The drillers will go through a training process to become familiar with the new operation panel in the cab of the drill, then move on to learning how to interpret and operate the command center where they are still able to make adjustments to drill settings if appropriate. The drill is equipped with proximity sensors all the way around the machine which will keep it within the specified drill pattern and within the boundary of operation. If there is an issue with the communication signal or network during the drill’s operation, a safety feature powers down the drill in place after finishing the current hole. There is also an emergency stop button in case the drill needs to be shut down immediately. “These machines, as they’re working they’re building an algorithm, so it will get smarter as time goes by. At first we’re still going to be somewhat dependent on operators, but after they start building up a pattern and a rhythm, they will be able to detect when the ground is hard, when to ASHLEY MADEN • The Humboldt Sun
Above: The blasthole drills being equipped with autonomous equipment are given their own exclusive wireless network on the mine site, along with GPS cameras and proximity sensors around the entire equipment. Below: The monitors in the control room show what a blasthole drill operator will now see when managing the drill. There will also be a joystick panel to be able to manually control the drill if necessary.
20 - MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing
apply more pressure or back off or when to go from a rotary to a hammer,” said Wisnoski. Sample said they plan to automate a third autonomous drill next year to run rather than the four currently operated manually. Dwyer said the lead driller from each crew will be involved in evaluating and developing standard operating procedures and performing risk assessments for the new autonomous process. “That’s the biggest key is to get their input, because they’re going to be doing the work so we want to make sure they have a say in how it’s done and they get to put their eyes on it to make sure something hasn’t been overlooked,” said Dwyer. Marigold has two open pits onsite. The Mackay 2 pit, which is expected to be completed by year-end, and the Mackay 5 pit. There are 25 haul trucks in Marigold’s total fleet including four purchased by the company this year. They have two hydraulic shovels and one large P&H electric shovel. Marigold mine is a run of mine heap-leach open-pit gold mine that has approximately 420 total employees. SSR Mining acquired Marigold mine in 2014, but the site has been in production since 1989. The current mine life of Marigold extends to 2027, at approximately 211,000 ounces of gold per year expected production rate. Dwyer said the current gold production cost of Marigold is just under one thousand dollars per ounce of gold produced. Further exploration is being completed with the aim of extending the life of mine. “The drills are a really good way to ease into the technology because they’re isolated out on a drill pattern, so your risk of having it interact with people and other equipment is pretty minimal, so it’s a good way to get a mine used to the technology.” F
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Safety rocks!
Coeur Rochester puts people first By Peggy Jones
Winnemucca Publishing
Rich Wagner pointed to a Komatsu excavator, a hydraulic shovel with tracks as tall as trees. Its operator prepared to dump 160 tons of ore into a haul truck at Coeur-Rochester, 18 miles northeast of Lovelock in the Humboldt Range. “I’ll show you an example of a technological advance that helps keep our people safe,” Coeur’s Health and Safety Manager said. Twenty years ago Wagner started at the mine as a summer intern. In 2003, he began working in the safety department. He remembers when operators climbed rung by rung into the haul trucks, increasing their risk of falls. “Now, as you can see, we put stairs across the front of the
PEGGY JONES • Winnemucca Publishing
Health and Safety Manager Rich Wagner stands outside the Coeur Rochester security office with Scott Taylor, safety facilitator.
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truck,” Wagner said. “The operator Dale Darney’s three-dimensioinal model of Rochester, NV, circa 1916, forms the centerenters and exits the cab by stairs piece of the Marzen House Mseum’s Coeur instead of having to climb rails. The exhibit. rails are still there so they can get out in quickly in an emergency.” As Wagner spoke, the haul truck headed to the crusher with a load of earth and rock. Wagner and Scott Taylor, a safety facilitator at the mine site, followed 200 feet behind in their car. Wagner pointed out some additional safety mechanisms on the haul truck. “For example, if the operator leaves the bed up by mistake the vehicle won’t come out of first gear,” he said. “We’re always working with engineers to find ways to improve our technology to make it safer for our employees.” Mine sites tell a long story of technological change. Before hydraulic excavators, miners used steam shovels. Before steam shovels, they dug for their treasure with spades. In the 1860s a group of hopefuls named the canyon after their hometown, Rochester, New York, over two thousand miles away. In the winter of 1912, Joe Nenzel got lucky. He struck highgrade silver ore. There wasn’t a haul truck in sight, but the junipers made sturdy enough sleds to transport the rocks downhill. Finally, Nenzel convinced a rancher friend, George Pitt, to send teams of horses and mules into the canyon. The beasts of burden
COURTESY OF THE NEVADA HISTORICAL SOCIETY
A miner stands by the entrance to the Big 4 Lease in East Rochester, Nevada. 24 - MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing
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hauled the ore to the railroad for shipment to smelters. The first shipment ran $80 a ton and started a rush for the new camp. The boom gave birth to several townsites including Rochester, East Rochester, Central Rochester, Rochester Heights, Panama and Packard. Miners burrowed underground to extract the ore. Reno artist Dale Darney’s three-dimensional model, on display at Lovelock’s Marzen House Museum, memorializes the early days. At its pinnacle, Rochester boasted a Philharmonic Orchestra, hotels, restaurants and over 50 saloons. By conservative estimates, the population peaked at 2,000, roughly equivalent to Lovelock’s current roster. But within a decade the bust followed the boom. Over time, fires and progress obliterated every trace of the town. A former Rochester blacksmith lives at the Beehive Home in Lovelock. When someone asks Bob Maher, 90, if he’s the last living one-time resident of Rochester, he
Rochester’s population peaked at about 2,000 — 3,000 in the boom years. replies, “I daresay I may be.” An Idaho company, Coeur d’Alene Mines, bought the Rochester mine in 1983 and started surface mining a few years later. In 2013 the company renamed itself and relocated its headquarters to Chicago.
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fields dotted the landscape. An endless and relentlessly blue sky loomed overhead. The safety manager pointed out Coeur’s award-winning reclamation project. Dana Sue Kimball, Coeur Rochester’s environmental manager, aims to restore the area after the shoveling stops. Antelope, jackrabbits and mule deer respond to the welcome mat. “This beats working in a cubicle all day,” said Wagner. “I try to get out and about as much as possible.” The mine site hummed with activity as people did their jobs. Coeur Rochester employs 294 workers and 30-40 contractors around the clock. Each department faces unique safety issues. Nearby, workers drilled in preparation for the next blast, a weekly explosion that rocks the canyon. “We try to reduce noise exposure through engineering control,” said Wagner. “In environments where we don’t have as much control we have all kinds of hearing protection – from soft earplugs, to the earmuffs to the foam plugs. Everybody’s different in their preference. We make sure everyone has a good selection to choose from.” Elsewhere on the site, maintenance workers inspected and maintained heavy
COURTESY OF COEUR MINING • Winnemucca Publishing
Joe Nenzel sits near bags of high-grade ore from his claim equipment. Meanwhile, in the lab, technicians treated ore with chemicals and cooked the flux in 2000 degree ovens “Maintenance people have some of the higher exposures,” said Wagner. “For them it’s about hand safety and working at
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MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing - 27
PEGGY JONES • Winnemucca Publishing
E Clampus Vitus commemorated Rochester, NV., with a plaque. exactly what comes on the property and how much we use. We also know what’s in those chemicals. It’s our employee’s right to know.” Wagner spoke about the mine’s safety record with pride.
A lost-time accident (LTA) results in an employee or contractor’s absence from the workplace due to injury, he explained. Coeur has gone nearly four years without a lost-time accident. “In that time we’ve accumulated 2.5
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million work hours from every employee and contractor on the site without a major injury,” he added. “Going back nine years we’ve only had one LTA, and they were only off for one day,” he concluded. Complacency is the enemy of safety. In Nenzel’s day, going into auto-pilot often meant death or dismemberment for a miner. It still can. “That’s why, along with putting engineering controls in place, we educate people,” said Wagner. “If most of us hopped into that haul truck, we’d say, ‘Holy cow! This is something new. We’d have to consciously think about every move we made.” But over time people get comfortable and start to normalize what began as a novel experience. “That’s how the human brain works,” said Wagner. “If we’re not constantly guarding against it, complacency creeps in. Along with putting engineering controls in place, we teach people about the human brain,” he said. In ‘fast-brain’ thinking, the mind reverts to autopilot. Wagner used the example of tying one’s shoelaces. ‘Slow brain’ thinking is more deliberate, focused and logical. It’s the kind of thought process Wagner hopes
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to see on the job site. That’s why Coeur Mining empowers its employees to take action if they feel unsafe. “If something doesn’t seem right, we want them to back off and reassess the situation,” said Wagner. “Maybe they need to get a different piece of equipment or a different tool. They have to stop the job for that time. If they don’t, that’s where people make mistakes. We don’t want to stumble into that pitfall. Our corporation allows us to make adjustments that lead to continuous improvement.” Even with engineering breakthroughs and educated employees, life remains unpredictable on a mine site. Anything can happen. So, every month, Coeur-Rochester’s 12-person mine rescue team trains for possible crises. “We set up scenarios based around a number of situations,” said Wagner. “We train on firefighting techniques, rope rescue and other potential emergencies.” Wagner and Taylor’s red hard hats let others know that they have the medical training to help in emergencies. Most employees wear white hard hats. Rookies wear green hats their first year on the site, a reminder they may require extra assistance. “In addition to the mine rescue team, we have many on-site medics,” said Wagner. “Coeur provides training to the EMR or EMT level so we can help in an emergency.” The pair remembered a real-life intervention of the safety team. “A couple years ago a contractor had a massive heart attack right outside my office door,” said Wagner. “Our mine rescue group administered CPR and shocked him with an AED (Automated External Defibrillator). He made it. Later on, he came back to work. It was great to meet him again and hug him. Our employees are our greatest resource.” F
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Meet a Nevada mineral: Silica
By Drew McGregor
Nevada Mining Association
Nevada is well known for its gold and silver mining, but the state produces more than 20 minerals we use every day. Here are 4 things you may not know about one of those minerals: Silica
You’ll see it around
Silica is a common mineral and is typically found on the earth’s surface in quartz rock and sand. Silica sand is the form in which most silica is mined. Nevada mined 727,088 tons of silica in 2017.
Nothing to “Glass” over
Though most tend to look right through it, silica is all around us. It’s easy to do though, because silica is the key component of glass. Silica sand is melted, combined with other ingredients and then poured into
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Keeping everything dry
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Holds up under heat
One of the many challenges of space exploration is the extreme range of temperatures shuttles face during missions. Silica based aerogel is used to insulate ships that can withstand high temperatures while keeping components of ship fuel like liquid oxygen (-183 degrees C) and liquid hydrogen (-253 degrees C) at temperatures needed to prevent them from turning into gasses. F
30 - MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing
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MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing - 31
Newmont recognized by NACD for excellence in board diversity and innovation Newmont won Large Cap category for superior articulation of values, diversity and inclusion programs DENVER — (BUSINESS WIRE)— Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) announced today that the Company won the Large Cap category at the National Association of Corporate Directors’ (NACD) inaugural NACD NXT Recognition Awards. Newmont was chosen from among 25 nominated boards of directors for excellence in harnessing board diversity and innovation as a strategy for creating long-term value. “For Newmont, this recognition represents years of focus and hard work embracing and integrating inclusion and diversity as a catalyst for enhanced business performance,” said Noreen Doyle, Chair of Newmont’s Board of Directors. “This
commitment starts at the very top and I’m proud that five of our 12 highly qualified Board Directors are women. Newmont’s core value of inclusion and diversity helps us attract and retain the best and brightest – from the broadest talent pool – so we can achieve differentiated business results today and well into the future.” According to NACD, Newmont was chosen for “superior articulation of its values and the achievement of a wide-ranging diversity and inclusion program from the board level through its global corporate operation that includes metrics and goals for compensation, business resource groups, formal reporting and engagement, and an imaginative board people policy, all of
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which make it a standout in its industry.” The inaugural NACD NXT Recognition Gala & Awards Ceremony was held at the NACD Global Board Leaders’ Summit on Saturday, September 29, 2018, in Washington, D.C. The gala served as the formal announcement and kick-off of NACD NXT, a multi-year initiative to equip board directors to better navigate the rapidly changing business environment and challenges of the future. Last month, Newmont was named the metals and mining sector leader by the Dow Jones Sustainability World Index for an unprecedented fourth year in a row. Earlier this year, the Company was ranked as the world’s leading miner in FORTUNE magazine’s most admired companies list. In December of 2017, Newmont was one of only two resource companies named in a ranking by the Drucker Institute, for The Wall Street Journal’s top 250 best managed companies, based on high scores in the areas of employee engagement and development and social responsibility. F
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Comstock Mining receives National Sustainable Mineral Development Award BLM recognizes the exceptional reclamation of the Historic Silver Hill Mine Shaft
VIRGINIA CITY — Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE American: LODE) announced that it received the United States Bureau of Land Management’s (BLM) 2018 Reclamation and Sustainable Mineral Development Award, in recognition of the complex reclamation, deep shaft sealing and restoration of the Historic Silver Hill Mine shaft, that was completed in conjunction with the realignment and rebuilding of a major por-
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New culverts and guardrails were installed on State Route 342. MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing - 33
tion of Nevada’s State Route (SR) 342. This project included capping of a hazardous, historic mine shaft, the realignment of a major state route away from that mine shaft, safe removal of hazardous materials from legacy mining and the reclamation and beautification of historic mine features and historic mining landscapes in the Historic Comstock Lode Mining District. Corrado De Gasperis, Executive Chairman and CEO of the Company, stated, “Our Comstock team successfully led an unprecedented, multi-agency partnership and process that resulted in an accelerated, efficient, safe and beautifying realignment of State Route 342 that enabled a mas-
sive environmental remediation, mining and enhanced tourism, all in one project. This was a truly remarkable accomplishment.” The BLM’s Reclamation and Sustainable Mineral Development Awards Program showcases the best of the more than two million acres of mined land that has been reclaimed by the U.S. mining industry. It also demonstrates how cooperative conservation can be put to use to provide Americans with energy and minerals that are vital to our economic and national security while restoring the land for use by future generations. Mr. De Gasperis added, “We thank the BLM and the National Mining Association
34 - MINING • FALL 2018, an October, 2018 publication of Winnemucca Publishing
for being great partners and for recognizing Comstock Mining and our entire extended team with this award for excellence in reclamation and sustainability. This is our third environmental excellence recognition in the past four years, so for us, this achievement represents the consistent, reliable commitment of our ‘Comstock Responsible’ team and culture.” This BLM award was presented in Washington, DC last week during a luncheon hosted by the National Mining Association. In 2015 and 2017, the Company received recognition from the Nevada Excellence in Mine Reclamation Awards program. In 2015, the recognition award was for Site. F
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