MINING S 2016 E PRING
Silver Standard rolls on with a process that works at their Marigold Mine
DITION
May 2016
On the cover —
MINING SPRING 2016 a publication of Winnemucca Publishing MICHAEL MICHAELSEN • Special to Winnemucca Publishing
A 320-ton haul truck at Silver Standard’s Marigold Mine on its way to the next ore load. Number 484 is one of 21 haul trucks in operation at the mine site, along with the world’s largest shovel to load them with, the P&H 4100.
INSIDE THIS EDITION:
Mining continues to push ahead with new tech, bigger tools, and an optimistic mindset. CONTENTS
Cover Story
Silver Standard shows steady growth with Marigold Story by Aly Guaman with photos by Michael Michaelsen
Page 4
EP Minerals digs for diatoms Story by Peggy Jones
Page 10
More resources, capital for Relief Canyon Mine Story by Debra Reid
Page 14
The Geological Society of Nevada brings mining’s geologists together Story by Joyce Sheen Page 20 Goldrush: a $1B marriage of the past & present Story by Cheryl Upshaw with photos by Michael Michaelsen
Page 26
Women in Mining: Katie Marten, Technical Services Superintendent Profile by Cheryl Upshaw Page 32 Technology in mining Story by Dana Bennett, President of the Nevada Mining Association
Page 34
Nevada’s enduring industry Story by Dana Bennett, President of the Nevada Mining Association
Page 38
Turquoise Ridge provides free MSHA refresher training Barrick Gold press release
Page 39
A visit to Belmont Mill & Hamilton Story reprinted with permission from David Toll of NevadaTravel.net
Page 40
Newmont’s interactive approach to safety training Newmont press release
Page 42
General Manager: Holly Rudy-James Special Projects Director: Brittany Shober Writers: Joyce Sheen Cheryl Upshaw Debra Reid Peggy Jones Aly Guaman Advertising Sales: Rhonda Coleman Lora Mattingly-Enget Mildred Ferraro Amy Quiring Advertising Design: Joe Plummer Brittany Shober Layout Design: Brittany Shober
1022 S. Grass Valley Road, Winnemucca, Nev. 89445 (775) 623-5011 • (866) 644-5011
MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing - 3
MICHAEL MICHAELSEN • Special to Winnemucca Publishing
At Silver Standard’s Marigold Mine, located three miles south of Valmy and Interstate 80, a P&H loader fills 320-ton haul trucks. Currently the largest loader in the world, it takes three loads to completely fill a 320-ton haul truck. A crew cab work truck sits in the middle ground for scale.
Silver Standard shows steady growth with Marigold By Aly Guaman | Winnemucca Publishing
Silver Standard Resources Inc. is a Canadian-based company that produces precious metals with two wholly-owned and operated mines: the Marigold gold mine in Valmy, Nevada and the Pirquitas silver mine in Argentina. In March, Silver Standard acquired Claude Resources, a public gold exploration and mining company based in Saskatchewan, Canada. Silver Standard’s Marigold Mine is located in southeastern Humboldt County, just three miles south of Valmy and Interstate 80, and eight miles south of the Humboldt River. Marigold Mine is a 24/7, 365 daya-year operation. It has shown steady growth in employment despite the price of gold dropping in 2012. There are approximately 365 day-to-day employees and about 15 long-term contractors today. Some 65 percent of the mine’s employees reside in Humboldt County, where it is the fourth-largest employer.
It is the third-largest employer in Lander County. As the mine grows, the company plans to hire primarily more haul truck operators and maintenance employees. Marigold prides itself on strong community partnerships and contributions. They donate about $200,000 to the community each year. Neighbors are important to Marigold. They see their donations as investments in youth, education, health, arts and senior citizens. Marigold Mine has been around since 1988. They continue to do what they did in the beginning, and that is explore and develop property.
MINE HISTORY
Marigold Mine started as an open pit mining and milling operation. In 1991, heap leaching was added. By the late 90s, heap leaching became the primary processing facility, and the mill ran only intermittently. By 1999, the mill was shut down, and Marigold became the open pit, run-of-mine heap leaching operation that it is today.
4 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
Marigold Mine is a very low-grade mine. It must be very efficient in order to succeed, so economy of scale matters. In order to be profitable, miners must move many tons at a low cost. They started with 80-ton trucks, worked up to 190-ton trucks and now use 320-ton trucks. Currently, they have 21 haul trucks. Because they increased their hauling capacity, it only made sense to increase their loading capacity as well. In 2004, they purchased hydraulic shovels that were the world’s largest at the time. In 2013, they purchased a P&H 4100 shovel, which is still currently the largest in the world. General Manager Duane Peck said size is important to them. He said, “We can’t do anything about the price of gold, but we can do something about our operational costs.” They strive for operational excellence. Marigold must drive cost downward to survive in this economy. >>
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MICHAEL MICHAELSEN • Special to Winnemucca Publishing
MICHAEL MICHAELSEN • Special to Winnemucca Publishing
LEFT: General Manager Duane Peck explains the maps entailing the Mackay Optimization Project, one which has been approved and the other which is currently going through the permitting process. RIGHT: The heap leach pad at Marigold Mine.
2015 was a banner year for Marigold Mine. It moved more dirt than ever before, and was more efficient with shovel and drilling equipment. It placed more ore on the leach pads than ever before. And, Marigold produced a record 207,000 ounces in 2015, Peck said.
MICHAEL MICHAELSEN • Special to Winnemucca Publishing
MACKAY PROJECT
MARIGOLD PROCESS
Environmental Manager Ginger Peppard explained the method Marigold uses to extract the ore from the rock. On the heap leach pad, a cyanide solution is dripped onto the ore that is stacked on top of lined pads. The solution percolates down through the pads attracting gold, dissolving it into the solution. At the bottom, it flows towards a system of collection pipes. Once the solution is carrying gold, it is referred to as “pregnant solution”. The pregnant solution is pumped over activated coconut shell carbon in Carbon in Column (CIC) tanks. Marigold has five sets of five CIC tanks. Each tank contains approximately one ton of coconut shell carbon. Naturally precious metals like gold and silver will bind to this carbon
ery that purifies it into gold bullion. Marigold’s process circuit is a zero-discharge system with only a small amount leaving through evaporation.
This photo shows the ‘before and after’ of a gold bar: the bucket of dark sludge contains the precious metal precipitate before it is dried in the retort, combined with silica and run through the furnace. After the melting process it is formed into a doré bar.
as the solution flows through the system. At this point, the solution is no longer “pregnant,” and it is recycled back into the heap leach pad where it is continuously reused. When the carbon is fully loaded with metals, it is taken to the processing building and put into large pressurized strip vessels. There, a tremendous amount of heat and pressure are applied, causing the precious metals to release from the carbon and form a concentrated pregnant solution. This solution is run through electro-winning cells where a chemical reaction occurs with the help of steel wool
6 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
and an electrical current. The reaction causes precious metals to drop out of solution and form a precious metal precipitate. The precipitate is dried in a retort (a special piece of equipment used for removing and capturing mercury before it enters the atmosphere) and it is combined with silica and other inert materials and placed in the furnace. Once melted, the silica and other inert materials help pull the impurities out of the metals. This produces a doré bar and slag, a glass-like byproduct of the melting process. The bars are sent to a third-party refin-
Peck is excited about a new project called the Mackay Optimization Project, which is currently in the permitting process. The plan of operations entails going “deeper and wider,” Peck said. When approved, it could extend mine life another ten years beyond the currently projected horizon of ten years. The public comment period on the scoping period for BLM’s environmental impact statement (EIS), the first of three opportunities the public will have to provide input on the project, was set to end on April 4, and permits are expected to be in place by the end of 2017, Marigold hopes. The Mackay Project would consolidate six existing and approved pits into two primary pits. It would also increase exploration by 95 acres and add additional space for the processing pads and waste rock storage facilities. >>
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MICHAEL MICHAELSEN • Special to Winnemucca Publishing MICHAEL MICHAELSEN • Special to Winnemucca Publishing
ABOVE: A panorama of the Trout Creek Dam, which held water for the first time this year since its construction in 2013. AT RIGHT: Equipment Operator Rebecca Cole demonstrates the equipment simulator, used to train operators of haul trucks and other heavy equipment around the mine site. BOTTOM RIGHT: Senior Operations Supervisor Rodney Sample and Environmental Manager Ginger Peppard check out the northeast expansion behind them, which is set to be mined in the near future.
As we are in a drought, water is always an issue. Marigold Mine has not been a heavy water consumer since the mill operation ended in the 90s. What water it does use is recycled to process more ore, according to the company. At some point in the future, the operation will encounter water, since plans do call for digging below the groundwater table. The company plans to dewater in advance by installing dewatering wells or sumps. The clean ground water would be pumped into on-site rapid infiltration basins to allow re-absorption within the same water basin. Marigold is working on acquiring non-consumptive water rights for the purpose. Marigold Mine has an outstanding compliance record and is highly regarded by regulators and inspectors. It uses best management practices, and was the first operating mine to receive the International Cyanide Management Code certification in 2007. They have kept it ever since.
VALMY PROJECT
Additionally, Marigold recently acquired eleven square miles from Newmont Mining Corporation’s Trenton Canyon Project. Marigold calls it the “Valmy Property.” It is located southeast and west of the property. Peck says the acquisition will help grow reserves and make operations more efficient by having more property to develop. Marigold’s reclamation plan is ongoing. Once waste rock storage facilities are full, top soil and a growth medium are added. They re-vegetate with native species, with the aim of replacing what was there while minimizing erosion. Peck says they see a large number of deer, so it must be working. In 2013, they built the Trout Creek Dam. This dam allows the mine to divert water away from their rock waste storage facility. This year, for the first time since construction, there is water in the dam. Peppard said she looks forward to partnering with surrounding ranchers on using this water for ben-
8 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
MICHAEL MICHAELSEN • Special to Winnemucca Publishing
eficial uses, such as helping support water tanks for livestock. Peck said, “At Marigold we are very excited about our future prospects. Silver Standard Resources has demonstrated their commitment and confidence in our operation by investing in three additional haul trucks in 2016 and acquiring the
adjacent land package. Safe production growth through a robust Operational Excellence program will enable our company to financially benefit. This growth is key to enabling Marigold’s role as a sustainable employer in Northern Nevada, as well as continuing to be a good neighbor and member of the local communities.” <<
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COURTESY PHOTO
COURTESY PHOTO
Diatomaceous Earth is surface-mined from deposits located outside of Lovelock. INSET: EP Mineral’s deposits consist exclusively of freshwater diatoms with up to 98% of the Melosira Granulata species. They are natural filters.
EP Minerals digs for diatoms
Lovelock plant is world’s largest producer of DE By Peggy Jones | Winnemucca Publishing
In August, when tens of thousands of Burners gather in the Black Rock Desert, they’ll wear masks to keep the dust of a dead lake out of their eyes and noses. Between nine and ten million years ago, Lake Lahontan extended through Northwestern Nevada into parts of California and Oregon. Some nine thousand years ago, it dried up into smaller lakes. In time, they evaporated too. Besides the playa, Lahontan’s remains include Nevada’s Pyramid Lake and Walker Lake. And, the diatoms. The ancient lake teemed with microscopic plants with no leaves, stems, roots or flowers. They lived in the plankton that floated on the water’s surface. Chub and suckerfish feasted on them. Then cutthroat trout swallowed the hungry little fish whole. The cutthroat got their name from the red slashes on their throats. They too were vulnerable. Pelicans swooped out of the sky and scooped them up like salty snacks. The diatoms were the base of the food chain. They quietly fed themselves through photosynthesis.
When they died, their skeletons sank to the bottom of the lake. They rested in a shell made of silica, a natural glass. In some places, the skeletons piled several hundred feet thick. Volcanoes erupted and spewed rocks. Volcanic ash protected the diatoms. Lake Lahontan vanished. But striations on the mountainside reveal its secrets to the naked eye. Edgar and Stephen J. Conkling launched a more commercial chapter of the story. The Cincinnati brothers began making paint pigments under the brand name Eagle in 1843. In 1916, Oliver Picher joined them. He merged his lead mining company with the Eagle Paint Company to form Eagle-Picher Lead. In 1945, the company bought diatomaceous earth (DE) deposits outside Reno. Today, the Clark plant makes soil amendments, absorbents, natural filter aids, insecticide, and an animal feed additive. And, it is home to a herd of over sixty Desert Bighorn Sheep (see sidebar, page 12). EP Minerals is headquartered in Reno
10 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
and also has offices in Munster, Germany and Singapore. They operate plants in Lovelock; Fernley; Clark, Nev.; Vale, Ore.; Middleton, Tenn.; and, Blair, Neb. The company expanded to Lovelock in 1959. The Colado plant, on Coal Canyon Road, became the world’s largest producer of DE. In 1993, EP Minerals tapped another of the desert’s secrets: perlite, a volcanic glass. Water molecules trapped inside the rocks turn to steam when superheated. The vapor makes the rocks pop like popcorn as they expand up to twenty times their original size. Hundreds of tiny air pockets dot the rocks after they pop. As a result, they are extremely light-weight and have large surface areas to catch moisture. So, they are popular with home gardeners. They’re also used to make lightweight concrete, in plaster, as insulation and in ceiling tiles. The Lovelock plant mines a grade of perlite suited for filtration of sweeteners and swimming pool water. Builders use it as an insulator in fire-proof steel >>
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FILE PHOTO
EP Minerals provides habitat for a herd of Desert Bighorn Sheep
EP Mineral’s Colado Plant, in Lovelock, is the world’s largest producer of diatomaceous earth (DE).
COURTESY PHOTO
Desert Bighorn Sheep have made themselves at home in the area south of the Clark Plant in Reno. Rams rear up on their hind legs and charge each other in prolonged battles of up to two days. They rush at each other at speeds of up to 40 mph. The collision of their horns sounds like a rifle shot. Eventually, the loser walks away, and the victor takes possession of the ewes. Some will give birth to one or two lambs in the spring. EP Minerals provides habitat for the growing herd of bighorns. The herd has grown from twenty to over sixty since the Nevada Department of Wildlife (NDOW) and Nevada Bighorns Unlimited relocated them in October 2011. “We were originally approached by NDOW about providing habitat, because the area south of our mine was suitable terrain and used to have herds of bighorns,” said a spokesperson from EP Minerals, Skylar Burdette. “NDOW continues to bring in additional bighorns, as they trap a half-dozen at a time. They bring them in a horse trailer to go free with the existing animals. Plus, the bighorns are doing well
and have reproduced.” Observant motorists on I-80 have caught sight of Nevada’s state animal clambering up the mountainside. For the first time in over a century, the animals are established in the mountains east of the greater RenoSparks urban area. Both rams and ewes break cactus open with their horns before eating it. As ruminants, bighorns have complex four-part stomachs. After they eat the cactus, soft grasses or other vegetation, they retreat to a cliff to regurgitate and digest their meal. This adaptation gives them some safety from coyotes, bobcats, lynxes, bears, wolves and cougars who want to make a meal of them. The bighorns also absorb moisture during this process so they can survive prolonged periods without water in the hot desert ecosystem. But, water is essential to life. That’s why NDOW provided the herd with a guzzler. These metal or fiberglass structures collect rainwater or snowmelt and store it in a tank. The tanks feed the water to a drinker that can be accessed by wildlife.
12 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
doors. Nothing is as fireproof as volcanic rock. The mineral deposits of a long dead lake keep three kilns churning on Coal Canyon Road. They operate twenty-four hours a day, seven days a week. The plant employs roughly 155 people. About 98 percent of Lovelock’s DE deposits are the cylindrical and porous species, Melosira Granulata (see photo, page 10). The one-celled plant’s pores are natural filters. Beer makers rely on DE to filter out yeast, hops, and other particles. Wineries use them to remove dead yeasts and solids. In the process, a byproduct called ‘spent cake’ is created by the ton. Spent cake presents a challenge, according to Andrew Welford, EP’s director of commercial sustainability. He wants to divert it from landfills. In the EU, customers recycle 90 percent of spent cake into compost, fertilizer, or animal feed. But in the US and Canada, some 65 percent of the byproduct still heads for the landfill, Welford estimates. “Comparative cost of landfill, available recycling infrastructure and logistics are the main CONTINUED PAGE 15 >>
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MINING â&#x20AC;¢ SPRING 2016, a May 2016 publication of Winnemucca Publishing - 13
DEBRA REID • Winnemucca Publishing
Relief Canyon Mine Process Manager Nick Ricci, left, and Equipment Operator Zack Simantel inside the state-of-the-art gold and silver extraction and recovery process facility.
More resources, capital for Relief Canyon Mine Mining start date to be announced later this year By Debra Reid | Winnemucca Publishing
Five years after purchasing the Relief Canyon Mine, Pershing Gold Corporation officials said they may announce a schedule for re-commencement of mining and precious metal production later this year. Pershing Gold’s Vice President of Investor Relations Jack Perkins outlined the plans for 2016. “We are currently planning on an updated 43-101 resource estimate, a PEA and an expanded mining permit to include the deposit above the water table, all in the second quarter of this year,” Perkins said. “Once we have these in hand we intend to make a formal announcement on the timing of production at Relief Canyon.” According to the company’s annual report to the Securities and
Exchange Commission, however, more external financing will be needed before mining and production will commence at Relief Canyon. “Additional external financing could be obtained by the sale of equity or debt securities, asset sales, product or project financing or strategic alternatives which could include third party purchasers of an interest in the mine or other projects or business combinations which could include a sale of the mine or the Company. There are no assurances that we will be successful at raising sufficient financing to commence production at Relief Canyon or to continue our business,” the company’s report states. On March 29, after the state-
14 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
ment above was made, Pershing Gold announced it collected net proceeds of approximately $6 million in a private sale of 1,850,000 shares of Pershing Gold Common Stock. The capital will be used “for advancement of the Company’s Relief Canyon project and for general corporate purposes.” Meanwhile, work continues in 2016 to update the mine’s estimated mineral value, a new mine economic study, another round of exploratory drilling and more permit applications for further proposed mine expansions. The activities will cost about $1.1 million beyond the normal costs. “During the first half of 2016, we plan to conduct geophysical surveys over the mine and areas >>
EP Minerals (cont.) reasons for the differences in figures,” he says. “In the EU, financial incentives and high landfill taxes drive and support the development of recycling infrastructure and energy production.” Welford says his job is to make people aware of sustainable recycling solutions. The ultimate goal is complete reuse of the byproduct. Sustainability can seem like a vague concept at times. But for Welford, it boils down to long-term thinking. “Decisions we make today impact the world tomorrow, so doing the right thing now ensures the future for our children,” he says. He emphasizes that sustainability and good business practices are mutually inclusive. “I help our customers find sources and advise them
on how to be sustainable,” he said. “People are busy. They’re focused on their jobs, and they don’t always know what to do or have time to determine what’s possible. I help them look at other ways to do things, mostly with diatomaceous earth spent cake, whether that’s for composting, fertilizer, animal feed or some other use that we’re testing.” Welford has explored different ways of recycling the spent cake. For example, EP Minerals helped wineries in California produce compost from their spent cake and shredded yard debris. They diverted 200 tons of the byproduct from a landfill. Iowa’s landfills are filled almost to capacity. So, Welford helped farmers recycle their spent cake into fertilizer.
In one trial, this effort potentially diverted 9,000 tons of waste from the landfill. Welford sees the spent cake as a resource, not a waste product. “At the moment we’re running several DE spent cake recycling programs using varied sector-specific technologies for a variety of different industries,” he said. Giving back to the community is another aspect of sustainability. EP Minerals sponsors scholarships for Pershing County High School grads every year. And, they recently funded upgrades to the school’s weight room. The company donated several tons of DE to boy scouts in Lake Tahoe. The troop put it to good use in an ambitious Eagle Scouts Project. They repaired a nine-
mile segment of a bike path that will follow the Truckee River from Lake Tahoe to Pyramid Lake. EP Minerals teaches people about the history and geology of the area. They offer hands-on lessons about their mineral deposits. K-12 teachers regularly dig for stickleback fish fossils at the company’s Hazen mine. They display them in their classrooms when they teach about mining. Diatoms survived the loss of Lake Lahontan. Today they can be found in oceans, lakes, rivers, marshes, fens and bays. They live in damp moss, rock faces and on the feathers of some diving birds. Scientists estimate that they give us every fifth breath by liberating oxygen during photosynthesis. <<
MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing - 15
PHOTO COURTESY PERSHING GOLD
ABOVE: An existing ore processing area and leach pads at Relief Canyon Mine. RIGHT: An aerial photo/graphic shows the existing mine pits and processing areas at Relief Canyon Mine.
south and southeast of the pits,” the SEC report tells investors. “Drilling for 2016 will be determined based upon the results of these surveys and available funding.” The mine consists of three open pits, heap leach pads, two solution ponds and an ore processing facility completed in 2008 by the Firstgold Corporation that produced gold until it filed for bankruptcy in 2009. To meet strict environmental standards, Pershing Gold will add mercury pollution control equipment. Relief Canyon Mine Process Manager Nick Ricci explained the mercury pollution control devices capture mercury that would otherwise be released to the atmosphere during the extraction process. The equipment is a major investment of about $75,000 but it should save costs in the long run by allowing on-site production of gold/silver
doré bars rather than off-site refinement. The doré bars will then be shipped to a facility in Utah for further refinement into higher grades of silver and gold. In January 2015, Pershing Gold acquired 74 unpatented mining claims on 1,300 acres previously leased from Newmont and signed new mining lease agreements directly with New Nevada Resources and New Nevada Lands on 1,600 acres previously leased from Newmont. The acquired claims and fee land could allow expansion of mineral resources, waste rock storage and other parts of the operation. “These properties include land to the south and west of the existing mine pits that the Company believes are prospective for potential expansion of the mine deposit and lands that could be used for new or expanded mine support
16 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
GRAPHIC COURTESY PERSHING GOLD
facilities including potential waste rock storage,” the report states. While current mine permits are limited to ore extraction activities above the water table at Relief Canyon, future environmental permits might be required for extraction from below the water table. In a December report on the mining industry by Cantor Fitzgerald Canada investment analyst Rob Chang, Pershing Gold was one of his top candidates for gold and silver producers that could survive a gold price of $1,050 per ounce and a silver price of $15 per ounce. Chang predicted the price of gold could fall to $1,173 per ounce in 2016. >>
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“Let’s start with the Pershing Gold Corporation,” Chang told The Gold Report in December. “It has the past-producing Relief Canyon Mine which has 809,000 ounces of gold measured, indicated and inferred. The project has a shortterm path to production: six to eight months once the decision is made. It is fully permitted and will require capital expenditures of only about $12 million.” In addition, Chang recommended Pershing Gold for its discovery of “spectacular” gold intercepts just north of the mine of 9 grams or about 0.32 ounce of gold per ton over 14 meters and 7.03 grams or 0.25 ounce per ton over 16 meters of exploratory drilling to expand the mine’s precious metal resources. “Pershing’s management actually thinks that it might be hitting a feeder system that could be a source for millions of ounces of gold,” Chang told TGR. During his frequent visits to various mines, Chang said he looks for clean, well-maintained equipment, happy employees and good community relations. “I try to discover the actual conditions on site by having good conversations with the employees. I look for good infrastructure and for a sense of how projects are perceived by area residents,” he said. “If community relations are poor, that could sidetrack a mine no matter how good the other metrics are.” Pershing Gold also has the advantage of a “safe jurisdiction,” unlike mines operating in places like Mexico or Colombia with potential interference by drug kingpins or radical politicians, Chang said. “At Cantor, we look for companies in world-class areas, such as the Carlin and Battle Mountain trends and Red Lake: places where you don’t worry that you’ll wake up one morning to find your asset nationalized.”
PHOTO COURTESY PERSHING GOLD
An aerial winter-time view of the exisiting mine pits at Relief Canyon Mine. Exploratory drilling has expanded the potential mineral resources in and around the pits according to Pershing Gold officials.
PHOTO COURTESY PERSHING GOLD
Core samples from exploratory drilling at Relief Canyon Mine are examined. The samples have expanded the potential gold and silver resources at the mine according to Pershing Gold officials.
Chang elaborated on why Nevada is always good bet for those looking to invest in gold mining. “As they say, when you want to find a mine, the best place to look is in the shadow of a head frame,”
18 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
he told The Gold Report. “Nevada is the home of many world-class mines. You have the Carlin and Battle Mountain trends. It’s easier to find elephants there because Nevada is where the elephants roam.” <<
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COURTESY PHOTO
Donald Hudson has taken GSN members on trips to Virginia City. In this photo, he said he was showing GSN members the exposure of the occidental vein visible from the surface and talking about the geology of that particular ore deposit area. The location is the Occidental Lode east of the main Comstock ore body outside of Virginia City. The old workings are typical for open cuts of the time period. The miners worked out the mineralized rock up to the surface or down from the surface, shoring up the hanging wall with timbers or whatever else they could find to keep the ground from falling in on them.
The Geological Society of Nevada brings mining’s geologists together
Learning and networking with other industry professionals By Joyce Sheen | Winnemucca Publishing
There is an organization in Nevada where “rock lickers” get together for fun, for networking, to hear all kinds of presentations about geology, and to enjoy tours of interesting locations both in and nearby Nevada. A careful search of Internet sources assured this writer that calling geologists “rock lickers” is not pejorative. It’s a term geologists use to refer fondly to themselves and to each other. It gives the (correct) impression that geologists have an uncommon fondness for the rocks they study. But the roots of the term come from the apparently longheld practice of using spit to clean off a
small section of a geologic specimen to get a better look at it. The organization is the Geological Society of Nevada (GSN). It is headquartered in Reno, and there are three other chapters — in Southern Nevada, Elko and Winnemucca. The current statewide GSN president is Elizabeth Zbinden. Elko’s chapter president is Mark Travis. Josh Bonde is the president of the Southern Nevada chapter. Winnemucca’s GSN chapter is headed by intrepid geologist Jim Carver, a very fun, seldom serious guy out of whom it is barely possible to get a straight answer.
20 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
Carver was quick to give an invitation to join the local GSN group for their monthly meeting in March, saying it would be a good opportunity for a journalist to get an idea of what the organization is all about. He quipped that if the police had already arrived by the time I did, I was too late. The group’s meeting in the banquet room of The Martin in Winnemucca was a relaxed and enjoyable evening. March’s meeting topic was “Finding Work in a Tough Market,” something with which nearly all geologists have had some experience. On that subject, Carver opined, “If you haven’t been laid
COURTESY PHOTO
GSN Secretary Steve Weiss and Elizabeth Zbinden are shown looking at core samples during the fall 2014 GSN field trip to Castle Mountain Mine in California near the border with southern Nevada.
off a few times, you don’t know enough about the job to be employable.” According to the presenter that evening, “networking” was one of the most effective strategies for finding work in a tough market, and networking is an important benefit of GSN, said Erin Hart. Hart is the Winnemucca chapter’s volunteer membership chairman. In her full-time job she is a senior geologist working for Newmont’s exploration department. She enjoys GSN’s professional and social opportunities. “The meetings are great for professionals to stay up to date on different mines, technology in the industry, and research conducted by the universities, among other things,” said Hart. “The chapters host field trips to different locations we normally wouldn’t have the opportunity to visit as professionals in the industry. For example, GSN tours exploration projects at other companies. The Winnemucca Chapter is a really close-knit group of geologists and the meetings are fun.” GSN was organized almost 60 years ago. The executive committee for GSN is based in Reno. The organization’s one paid employee, Executive Manager Laura Ruud, works out of the Reno office. Everyone else in the organization does what they do on a volunteer basis. Ruud said the organization got its start in 1957, when two Mackay School of Mines professors at UNR brought about six people together for the first meeting. “It didn’t really grow until the 1980’s when gold mining really boomed in Nevada,” Ruud said. “In 1987, we had our first symposium. That kind of put us on the map internationally.” Two luminaries of Nevada gold-mining history were both members of GSN. One was Ralph Roberts, whose research predicted microscopic gold deposits and is said to have led >> MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing - 21
COURTESY PHOTO
This photo was taken at a Geological Society of Nevada (GSN) field trip in the late spring of 2014. The location is outside of Lovelock at Rye Patch Gold’s claims near the old Willard Mine at the Wilco exit. The large shark-fin-like rock outcrop can be seen from the east side of the freeway. The outcrop is a silicified conglomerate that sticks up toward the sky west of the old Willard pit, according to GSN Winnemucca President James Carver. GSN Winnemucca Chapter Membership Chair Erin Hart, a senior geologist for Newmont, is shown looking back at the camera.
to the discovery of the Carlin and Cortez-Battle Mountain gold belts. The other was John Livermore, sometimes called “the father of the Carlin Trend.” Livermore followed Roberts’ research to track down what would become one of Nevada’s longest-lasting and richest gold mining districts. “GSN’s meetings focus on gold mining in Nevada, because that’s where most of our members work and what they’re interested in,” said Ruud. “We have almost 1300 members around the state and neighboring states and even some in Canada. Among the members are investors, geologists, mining engineers, and drillers. “Companies don’t join the organization, just the individuals who work for them,” she explained. The southern Nevada chapter is the smallest, said Ruud, at about 127 members. The Winnemucca GSN
chapter has about 280 members, the Elko chapter has 427, and headquarters in Reno has “probably 900 members,” though only about 150 attend most meetings, she said. Winnemucca’s meetings are held the second Wednesday of the month. Elko’s are on the third Thursday, and southern Nevada’s are held the last Thursday of each month. The Reno meeting is held in different locations the third Friday of the month. For the location of GSN meetings, check the organization’s website at gsnv.org. While the majority of GSN members live in Nevada, there are also members from all over the United States and a number of foreign countries. Most members are geologists, but there are also geophysicists, geochemists, engineers, prospectors, educators and students as well as associated consultants, advisers and suppliers.
24 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
Monthly meetings of the four chapters start with cocktails, followed by hors d’oeuvres or dinner, usually sponsored by a geology-related business. Speakers and topics are decided by the chapter presidents, Ruud said. “The monthly meetings have presentations about various aspects of geology, typically related to ore deposits,” said Donald Barr, a geologist who has been a member of GSN since 1975. “I’ve learned a great deal from those.” In addition to learning from the presentations, Barr said the social aspect and making good industry contacts has been valuable. “You get to meet new people and catch up with people you haven’t seen for awhile,” he said. “Plus, it’s fun to talk to people who like what you like.” GSN organizes field trips twice a year, held over a weekend in the spring and fall. A May 2016 field trip will visit Goldstrike and Gold Quarry mines. Last fall, GSN members went to the Glass Mountain pumice deposit in northern California and to the lava beds in Klamath Falls, Oregon. A past field trip toured geologic sites in the Humboldt and Trinity Ranges and the Majuba Hills north of Lovelock. During a field trip in 2012, GSN members toured sites all over Humboldt County, including the Buckskin epithermal system, moonlight uranium deposit, McDermitt Caldera, and the lithium deposit formerly owned by Western Lithium. The group has visited historic mines including the Nevada Quicksilver Mine. Barr headed up one of GSN’s field trips to a historic Comstock mining site outside Virginia City and gave a short course on the geology of the area and how it was historically mined. Barr’s membership is in the Reno chapter, but like many other members, if he’s in Winnemucca or Elko, he often attends a chapter meeting there. In addition to the monthly meetings, socials, and GSN field trips, GSN holds a state symposium every few years. The symposiums include eight to 10 field trips, and many presentations on topics of interest. The technical proceedings, notes and photos from the symposium speakers and presenters are published by GSN. Anyone who is interested can purchase them. “They look like textbooks,” Ruud said. “A lot of the large companies like to be
published. It’s all about sharing information and getting attention for your property to attract investors. GSN is a group who likes to share information.” Sales of the technical volumes help support GSN. So do the $50-a-year dues paid by members. GSN has developed a secondary mission, through the GSN Foundation, of funding a number of earth science-related charitable programs. Ruud said those include grants to pay for field trips for students K-12. There are also university scholarships. Grants are available to help fund geologists interested in mapping Nevada. “There are many areas in Nevada that aren’t mapped yet,” commented Ruud. GSN’s members are as varied as the rocks they love. Their society is, appropriately, very unpretentious and “down to earth.” Without the exploration work geologists do, gold mining would not have begun, nor would it continue. “When a geologist looks at a rock, we whisper to it and then look carefully for any words that God may have left there for us to figure the geology
JULIO PIÑERO
This 2013 GSN field trip photo shows GSN President James Carver outside Lunar Crater, at the edge of a natural formation in southeastern Nevada near the test site. GSN member Joe Laravie is nearby with his back to the camera. The group also saw some man-made craters on that trip from past underground nuclear tests, said GSN member, Julio Piñero, who took the photo.
out,” Carver said, whimsically. “The world is just too big and wonderful to even pretend that we have much understanding of this blue marble flying through space. But we try, and even though it is impossible, we are able (if we shrink the scale down) to decipher
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MICHAEL MICHAELSEN • Special to Winnemucca Publishing
Manager of Operation Support George Fennemore motions to the site of the future Goldrush twin portal holes.
Goldrush: a $1B marriage of the past & present By Cheryl Upshaw | Winnemucca Publishing
George Fennemore pointed to a slightly-flattened portion of dirt on the side of a mountain. There, he said, is where the twin portal holes for Barrick Gold Corporation’s new underground gold mine, Goldrush, will go. The Goldrush Mine site is located in the Cortez Mountains, near the Cortez Hills Open Pit and Underground Mines and the Pipeline Mine. It didn’t look like much, but according to Fennemore, under all that dirt is where his team would create a 12,000foot gradual decline that would allow them to access 8.6 million ounces of gold. The portal site lay surrounded by historical sites abandoned in anticipation of a time when the technology would catch up with the glittering hopes of the miners who worked there . Goldrush is currently a late-stage exploration project. “We know we’ve got a great ore-body over there,” said Fennemore early in his discussion with this writer, “The question is, how do
you turn a great ore body into a great mine?”
PERMITTING
Water, cultural resources and natural habitats were the main concerns when it came to obtaining permitting for Goldrush. The plan of operations for the portal site was submitted in February. The environmental assessment would be submitted to the Bureau of Land Management in Lander County by early April. If there were no delays as a result of permitting, Fennemore speculated that significant work on the portal could begin as early as the end of 2016. More realistically, though, he guessed a starting date sometime in 2017. Fennemore was hesitant to put a timeline on the start date, however. “You need to let these processes work,” he said, “and get a good permit.” Initial permitting would cover explo-
26 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
ration and be relatively simple. The proposed decline would not require dewatering, and the initial surface disturbance was relatively small at 10 acres. As production commenced, the size of the site would grow to accommodate dewatering and electrical needs. The permitting would become more complex proportionately. The site was in the vicinity of traditional Western Shoshone use. It was likely, according to Fennemore, that a tribe member participated in the initial surface survey conducted by the BLM. Additionally, several historical mine sites were located in the area, including at least one over 100 years old. According to Fennemore, mining existed in the Cortez District as early as 1862. Moreover, Barrick would have to be cognizant of the presence of wildlife, as the Goldrush site was the location of a perennial stream. Fennemore mentioned mule deer and mountain lions among the wildlife native to the area. >>
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MICHAEL MICHAELSEN • Special to Winnemucca Publishing
ORE
George Fennemore points out the approximate location of the Goldrush deposit across the valley from where he stands. The ore body trends north-south and is at least 500 feet beneath the surface.
The carbon refractory ore from Goldrush Mine will not be processed at the Cortez site. Since the carbon in the ore from Goldrush interacts poorly with cyanide processing done closer to the site, Goldrush ore must be shipped to the Goldstrike Mine, a Barrick site further away. There, the carbon in the ore could be burned away and the cyanide leaching process could begin. Barrick would mine the same type of limestone ore body at Goldrush that is common in the Carlin Trend. While the gold found at the Goldrush site wasn’t itself visible, the high carbon content of the ore makes it appear almost black. Fennemore called the ore “fairly striking and fairly obvious.”
LOCAL IMPACT
MICHAEL MICHAELSEN • Special to Winnemucca Publishing
The workforce required for Goldrush would be roughly 300 direct employees. The site’s total number of employees is slightly smaller than comparable underground sites like Turquoise Ridge. Goldrush can “share” departments like Human Resources and Environmental with the surround- An abandoned lime kiln that was in use in the 1800s. The kiln is near the Goldrush portal site. ing Barrick mines. >> 28 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
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Fennemore was excited about the possibility of a generational mine – one where a father could begin work, and his children could continue working at the same mine once they grew up. “You like these nice big deposits, because you can invest your money, set it up once, and keep mining from the same project for a long time,” said Fennemore. Early estimates gave Goldrush a mine life of roughly 20 years.
small open pits along the haul road to Goldrush, Horse Canyon Mine and South Silicified Mine. The two mines had shallow deposits mined between 1985 and 1987. “We tend to come back to the same areas, as things evolve,” stated Fennemore. Drilling in Horse Canyon resumed in the late 1990s. “We knew there was a system out there,” said Fennemore. However, the difficulty with the Goldrush deposit lay
once the decline was complete – perhaps there was more hidden even deeper. After the portal was built and the decline was sunk, the detailed planning would begin to collect the gold hidden deep in the Cortez Mountains. Fennemore pointed out 16 silver mines that dated between the 1860s and the 1930s, all located along the hillside outside Cortez Hills Open Pit. The silver was closer to the surface, but
MICHAEL MICHAELSEN • Special to Winnemucca Publishing
of the first cyanide process mills in the world, according to Fennemore. Within a stone’s throw of the portal is the Robinson Mill, built in the 1930s. “There’s been active mining out here for a little more than 100 years. All the old mills and the old towns are still here. We design our mines to avoid disturbing these old things, because it is pretty neat out here, with all the history,” said Fennemore. “This is the latest in a 150 year history of successful mining in this area.”
RECYCLING
A haul road from those past projects leads up to the future portal site – and will be re-used for the new project. “If the ground has already been disturbed by previous mining operations, we try to take advantage of that existing work,” said Fennemore, disturbing the “smallest amount of native footprint as we can.” The portal holes for Cortez Hills Underground. The Goldrush site will have similar twin portal holes.
Barrick would spend $1B in capital investment at Goldrush before they ever saw an ounce of gold. The first production was estimated to be in 2021, and cost to extract the ore was estimated at $665 per ounce, according to a Barrick press release sent out in February 2016. The budget for the initial project that will occur in 2016 and 2017 was $28 million. Another $1B would be invested throughout the life of the mine.
HISTORICAL MINING
The Cortez Mountains are dotted with mine sites. There are several projects in operation in 2016. But the area around the proposed Goldrush site is littered with historical sites that have been set aside. There were two
in the depth and shape of the ore body - it was narrow, and long, and deep. “That ore body can actually thread the needle between your exploration holes, and you can have a nice eight to nine million ounce ore body, which you never see until you get the hole in the exact right place.” Eventually, though, the deposit was found, and serious delineation on mining the north-south trending ore body began between 2009 and 2010. According to Fennemore, advances in exploration drilling allowed Barrick to prove the existence of gold at the Goldrush site. The shallowest portion of the deposit was 500 feet deep, and extended to 1500 feet. Of course, the deposit would speak for itself
30 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
was created by the same system that allowed the deeper deposits of gold to develop. The Goldrush project would produce an estimated 95 percent gold ore, but Barrick planned to also remove and sell residual silver. “We have a fantastic mineral resource in this area. As new technology evolves, and new ways of doing things evolve, it helps us to continue to unlock that resource,” said Fennemore. Fennemore pointed out a lime kiln from the 1800s, about half a mile from the Goldrush portal site. The kiln would have been used to cook limestone for use in processing silver ore. Very near the kiln was the Old Cortez Mill, which was in use from about 1870 to 1930, which was one
HOW TO MAKE A GREAT MINE
While the Goldrush project is still in its infancy, Fennemore seems to have answered his own question. How do you turn a great ore body into a great mine? Careful permitting, respect for history and nature, and an eye toward the future, suggested Fennemore.
ABOUT GEORGE FENNEMORE
Fennemore began work at Cortez in 1996 as a contractor. A short while later, he was hired by Cortez. For most of the following 20 years, Fennemore worked in the Elko area. His current title is Manager of Operation Support. His responsibilities include management of dewatering, electrical power delivery, life of mine budgeting and mine exploration. <<
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Women in Mining Make sure your voice is heard, says Katie Marten. Marten is the Technical Services Superintendent at the Cortez Open Pit, outside of Elko. Her team of 30 consists of engineers, surveyors, geologists, hydrologists, surveyors, and dispatch technicians. The team does outlines and forecasts of the running plan for the operations crew, according to Marten. The Detroit, Michigan native received her bachelor’s degree from Michigan Technological University. While she had originally planned to pursue chemical engineering, scholarships in the mining engineering department encouraged her to switch paths. Once she started the program, she found that she enjoyed the field so much she decided to stick with it. She particularly liked the balance between working outside and working in the office. “I didn’t understand the true depth of the technology that went into it until I started taking the classes,” said Marten, “So it was pretty eye-opening, and I really liked it.” Marten never specialized, but her study focused on construction and civil projects. When she graduated in 2004, she says that mining was in decline. Her first job out of school was not at a mine, but rather, at a consulting company in Denver, Knight Piesold. Marten rotated through
A profile of Katie Marten, Technical Services Superintendent at Barrick Cortez By Cheryl Upshaw | Winnemucca Publishing
Katie Marten
several different portions of the mining process since the beginning of her tenure with Barrick in 2006. She was involved with dump planning, ore control, drilling and blasting, short range planning, and projects engineering before she worked her way to her current position as Technical Services Superintendent. Marten also worked at both underground and surface mines with Barrick. Marten acknowledged that she had been given many opportunities to succeed and that she’d had a good support system in her professional life. That said, she also stated that she’d had to combat her naturally quiet nature to succeed. “One day, you do find that you just have to speak up a little bit louder,” said Marten, and to “kind of interject.” She clarified that when she did speak up, she had no issues with being ignored.
32 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
Marten stated that she had seen her peers posture for attention and respect in the mining industry. Marten didn’t recommend it. Instead, she suggested that people looking to enter the industry cultivate authenticity. “I’ve found that just being honest with everyone and having a genuine interest in everyone’s well-being and welfare has gotten me pretty far. It goes a long way with commanding respect and having that sense of authority in the workplace, just being genuine,” said Marten. On her own success, Marten commented, “I walked into a great environment with Barrick. Everyone has been really good about providing me with opportunities to grow and develop.” She spoke of a strong support system and of three people who helped her to climb: Jami Dwyer, Jerry Johnson and Mark Rantapaa.
“They were really good about getting me opportunities. I always said ‘yes’ to them. Sometimes they sounded a little intimidating, a little challenging. But I think when you say ‘yes’ to those challenging experiences, and succeed in them, that builds up the confidence of the people around you,” said Marten. She felt it was a good practice not to shy away from difficult tasks, or from additional work. After nearly a decade, Marten’s passion for the mining industry hasn’t waned. “It’s such a dynamic field. It’s constantly evolving,” said Marten. She was particularly excited by the ways that technological advances helped make mining faster and safer. One example she gave was the newly-implemented Deswik software, which helped her engineering team to put out the mine plan more quickly. This has allowed the team more flexibility in the plans they produce. Marten is working with Barrick’s Mining Technology Group, based in Henderson. She hopes to get tablets for front line supervisors, to make accessing important information in the field easier. “Getting them out in the trucks and out in the field where they would be able to give realtime feedback? We’ll be better off with that in the long run, with supervisors outside with eyes on the operation,” said Marten.
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MINING â&#x20AC;¢ SPRING 2016, a May 2016 publication of Winnemucca Publishing - 33
PHOTO COURTESY NEVADA MINING ASSOCIATION
Nikkayla Simon at the Barrick Meikle Mine operating a mucker remotely.
Technology in mining By Dana Bennett | President of the Nevada Mining Association From that ancient time when stone tools first scratched the ground, mining has been an innovative industry that continually develops new technologies. Initially, such advancements focused on producing metals and minerals as quickly as possible. Today, technology is employed to make mining safer and more sustainable for both the industry and the environment. Science, technology, engineering, and mathematics (STEM) are all the rage today as Nevadans look toward the New Nevada and the promise of innovative economic sectors, but few industries rely on all four disciplines as mining does. Nevada mining is the state’s oldest and most enduring STEM industry. As a result, the Nevada mining industry is a global leader in the development of new mining methods and equipment. Such leadership is not new, however. Each of Nevada’s major mining stages—the Comstock Lode in the late 19th century, the Tonopah and Ely districts of the early 20th century, and the Carlin Trend that began in the mid-1960s—developed new technologies that shaped mining’s future.
A quick historical overview demonstrates mining’s ongoing innovation.
Historical Innovations The development of the Comstock Lode in the 1870s introduced new mining challenges and instigated innovative solutions. To reach the unprecedented depths of the ore bodies, square-set timbering was designed to support the earth as deep shafts were dug. Much of that timber reached Virginia City through v-shaped flumes that were specifically designed for the rapid transport of large amounts of lumber. When this famous mining region slowed in the 1890s, a new type of extraction method was developed in partnership with the University of Nevada. The invention of the zinc-cyanide extraction process allowed the Comstock Lode to produce again in the early part of the 20th century. It proved much safer than the old mercury method and is still used today. These and many other early innovations, especially in surface mining, com-
34 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
bined to make the development of the Carlin Trend feasible in the 1960s. In particular, surface mining methods had been enhanced by Reno’s Isbell Construction Company, and Nevada’s Mackay School of Mines had demonstrated the viability of heap leaching as a process method for low-grade ores. Nevada mining’s scientists and engineers have continued to use and develop cutting-edge technology that has sustained this industry’s production for over half a century in order to meet the demands of a rapidly urbanizing world.
Contemporary Mining Technologies Today’s mines continue to use technologies developed in the past and, in the process, improve them for the future. One such example is the extraction of metals through the application of a cyanide solution in a heap leach system. These systems are now being used to process old waste dumps and tailings. There are hundreds of other examples of both improved and new technolo-
gies being utilized in Nevada’s 21st-century mines—many more than can be catalogued in this article. All aspects of mining utilize new technologies. Exploration geologists refer to satellite imagery to determine the location and extent of mineralized areas. Satellites can now provide constant geographic information and updates on a real time basis. They are even improving to the point where they can identify ore beds below the surface and color code different minerals. Handheld analyzers are also being developed that can x-ray rocks on-site instead of taking them back to a lab for analysis. Remote piloted vehicles (more commonly known as drones) also have the potential to affect nearly every aspect of the mining industry. Data collection that once took days or weeks for human surveyors can now be completed in hours through the use of small
PHOTO COURTESY NEVADA MINING ASSOCIATION
Drilling a blast pattern at Barrick’s Cortez Mine.
machines that can be flown over an area. These remotely piloted vehicles can also assist with the planning of haul truck roads and leach pads and the mapping of watershed tables. Drones have the advantage of being able to access difficult-to-reach areas, such
as steep inclines. Testing is underway to develop drones that can operate underground and be sent into places where it is too hazardous to send a human. The use of drones underground would be the latest in a long line of technological
advancements that improve miners’ safety. Wireless devices have greatly improved the ability to communicate in underground mines and with people on the surface. Some mines are currently exploring the use of wireless tags to track who is underground >>
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MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing - 35
at any particular time. It is expected that such a wireless system will eliminate human error that is possible with the current brass tag system and will also pinpoint miners’ locations within the mine. Rescue robots are also being developed for use in situations where sending in a human rescue team would cause additional safety hazards. As large industrial sites, mines have a number of opportunities to implement new technologies. One critical example includes updating lighting fixtures in mines and buildings in order to reduce the consumption of electricity. In 2014, NV Energy announced that the installation of LED lights and motors with variable speed drives (VSD) had reduced electrical consumption to the equivalence of the energy needed to power 155 northern Nevada homes for a year. At Coeur Rochester near Lovelock, new LED lights are projected to save over 8,400 kilowatt hours annually. Efficient lighting at the Dunphy Mine near Battle Mountain will realize a savings of over 143,000 kilowatt hours. EP Minerals’ use of VSD motors is expected to yield an annual savings of over 1.8 million kilowatt hours.
NASA/GSFC/METI/Japan Space Systems, and U.S./Japan ASTER Science Team PHOTO COURTESY NEVADA MINING ASSOCIATION
Information Technology in Mining Every industry utilizes computers and digital technology, and mining is no exception. For a site that depends on the movement of large equipment, such as haul trucks, computer technology is essential. Over the past several years, haul trucks have evolved in a number of ways. The operators’ cabs are safer, quieter, and more comfortable than in years past. A central dispatch station tracks the trucks as they move through the mine. At Newmont’s Phoenix Mine near Battle Mountain, remote sensing devices monitor haul truck operators for signs of distraction or drowsiness and can remotely shake the seat to get a driver’s attention. During the testing phase of the device, Newmont reported a 90 percent reduction in fatigue-related events. Digital sensors also monitor a mine’s equipment. Devices placed in individual tires monitor these expensive giants for signs of excessive heat or wear and allow for both improved safety and maximum use. Not that long ago, truck loads were gauged and counted manually. Now, both the shovel operator and truck driver have digital tools that indicate when the
TOP: An infrared image of the Freeport-McMoRan Morenci Mine in Arizona from the ASTER satellite. The pink areas are associated with copper mineralization. ABOVE: Holley Samper at the Barrick Cortez Mine surveying the underground tunnels to ensure they’re safe to use.
truck has been optimally filled. With the central dispatch system fully engaged, the days of a haul truck dumping its load in the wrong spot are long gone. All of these computers also require programming, monitoring, and repairing, and every mining company maintains a department for information technology (IT). Nevada’s growing status as a cutting-edge location of high-tech and sophisticated IT is also helpful to mining. In 2015, Barrick located its entire global technology function to Henderson, Nevada, because of the data centers, such as Switch, now operating in this state.
36 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
Protecting the Environment Technology has also mitigated the effects of mining’s footprint as environmental scientists continually seek solutions for mine site challenges. Some of those solutions can be complex; for example, the industry has developed ways to safely contain mercury produced as a byproduct. Some solutions, such as bird balls, are deceptively simple. In order to dissuade birds from landing on ponds that might be harmful to them, bird balls were developed. These
PHOTO COURTESY NEVADA MINING ASSOCIATION
Collecting water samples at Barrick’s Turquoise Ridge Mine.
plastic spheres cover the surface of a pond and, from a bird’s eye view, appear to blend into the surrounding ground. Should a bird try to land, the balls shift and move, encouraging the bird to fly on to a firmer, less potentially hazardous landing spot. Recently, this mining
technology was adapted by Los Angeles County as a way to minimize evaporation from its reservoirs during the California drought. Innovation continues as a mine ceases operation and goes into closure. The successful reclamation of a closed mine relies on thorough plan-
ning and the study of the affected area’s soil composition and slope angles to prevent erosion and ensure the survival of plant life. Hydroseeding machines are used to make that process shorter and smoother. Instead of relying on workers to plant and nurture the reclaimed areas, hydroseeding machines can quickly spread a mix of area-native plant seeds and mulch to prevent seeds from blowing away. These machines are also able to measure and minimize the amount of water needed in an area.
Research Right Here at Home Established in 1908, UNR’s Mackay School has long been internationally recognized as a leader in mining innovation and research. Currently, the school’s dedicated faculty and impressive students conduct cutting-edge research to
better understand Carlin-type deposits, earthquakes, and geothermal energy, among many other topics. In addition, the School’s Mining Lifecycle Center approaches mining environmental questions through a network of academic disciplines; other sections focus on exploration geophysics and computational geosciences. The Mackay School has been instrumental in Nevada mining’s past success and holds many of the keys to a positive mining future. Applying science and utilizing technology are daily occurrences in mining, and many more examples could be provided. As the mining industry continues to strive toward sustainability, controlling costs, and minimizing impact, innovation will continue to drive technological advancements that benefit both the mining industry and many other industries around the world. <<
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Nevada’s enduring industry By Dana Bennett | President of the Nevada Mining Association
Nevadans love their ghost towns. These remnants of communities that failed, for whatever reason, to sustain life in the desert quietly continue to reflect people’s unending capacity for optimism. Regardless of race, creed, or gender, humans share an enduring trait of building community in places that make sense to them at the time. When that place is no longer viable, humans move on, often leaving behind artifacts that speak to a once-vibrant and hopeful community. In Nevada, many ghost towns— including those that are now just a dot on a map—testify to the state’s dependence on the mining economic sector. Sometimes, a tent camp popped up around a mine that turned out to be just a flash in the pan. These camps quickly vanished. Sometimes, a full town developed as ore deposits continued to be found and processed. Many of these towns faded slowly along with the deposits. The ubiquity of mining-related ghost towns has led to an assumption that the industry is ephemeral. But Nevada’s mining industry is anything but fleeting. Miners and prospectors are constantly finding new
deposits all over the state; advanced technologies lengthen the lifespans of mines; and new uses for minerals (today’s best example: lithium) all contribute to the continuation of Nevada’s bedrock industry. The industry’s endurance is clearest in the continued mining of deposits
first located well over 100 years ago. Near Battle Mountain, Newmont operates in a district where deposits of copper and silver ore were initially claimed in the 1860s. A few miles to the east, Barrick mines an area where the claims date back to the 1870s. Near Lovelock, mining continues in an area where gold and silver claims date back to the 1860s. Near Carson City, a gypsum mine that helped to rebuild San Francisco after the 1906 earthquake continues to produce that essential mineral. The resilience of the industry is also
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reflected in Nevada families who have worked in mining in this state for generations. Many Nevada families can trace their mining lineage to the Comstock Lode. Other families arrived during the Tonopah boom of the early 1900s. Ghost town maps indicate that people once lived much closer to these historic mines than they do now. The towns’ buildings may be gone, but the ore—and the miners—remain. Nevada mining is unquestionably part of Nevada’s heritage. At each stage of the state’s development, mining yielded the products, the people, and the stories that populate Nevada’s vibrant and interesting history. Through tangible reminders of the past, mining has contributed to the development of a thriving tourism sector. Nevada mining is also proudly a vital part of Nevada’s future. Nevada’s development efforts are expanding economic sectors in manufacturing, energy, defense, IT, and health care. Every one of them require minerals and metals produced in Nevada in order to be successful. Of the cutting-edge companies newly calling Nevada home, not one of them could survive without our mining industry. Mining shaped Nevada’s history. Mining is making Nevada’s future.
Barrick Gold Turquoise Ridge provides free MSHA refresher training Special to Winnemucca Publishing WINNEMUCCA, NV — Barrick Turquoise Ridge recently stepped in to assist the Winnemucca community by developing and teaching a free U.S. Mine Safety and Health Administration (MSHA) Refresher Training program for 30 miners who were laid off as a result of closures at nearby competitor operations. “Our employees were eager to assist these miners in fulfilling their mandatory MSHA requirements,” said Nancy Flowers, Human Resources Superintendent at Barrick Turquoise Ridge. “Not only are safety and occupational health and wellness critical values to our workplace culture, so is service to our community.” Federal law requires all miners to attend a refresher training annually. If training lapses, the miner has to attend courses to get re-certified often costing more than $150 per person. Following multiple mine layoffs in the Winnemucca area, where Barrick’s Turquoise Ridge is located, the Nevada Department of Employment, Training & Rehabilitation and Nevada Job Connect reached out to Turquoise Ridge to ask if Barrick could facilitate refresher training to assist displaced miners in keeping their certifications current. Nevada Job Connect, which provides workforce development services to employers and job seekers, did not have funding to pay for the training so Turquoise Ridge’s training department, with the assistance of their Safety & Health Department, put the courses together as a community service. “Nevada JobConnect appreciates the efforts of Barrick providing these classes,” said John Parel, Nevada JobConnect Business Services Manager. “Our business partnerships are invaluable in supporting our job seeker community. These classes are extremely important to helping these workers find employment in mining. We are grateful for Barrick’s support.” Barrick Turquoise Ridge trainers were given time away from work to facilitate the training which was offered at no cost to the attendees. The first two classes hosted by Barrick Turquoise Ridge were held on March 7 and 8 at the Winnemucca Armory. The courses covered all subjects required for surface annual refresher training. Barrick Turquoise Ridge continues to work with DETR and Nevada Job Connect and will offer additional training sessions if the need arises.
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Elizabeth Sanchez-Scher teaching a section on emergency first aid and CPR.
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Tom King Kicks reviews miner’s rights and responsibilities.
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MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing - 39
A visit to Belmont Mill & Hamilton
DAVID TOLL
By David Toll NevadaTravel.net | NevadaGram
Tramway cables extend down towards the lower terminus, transporting ore long ago.
In Nevada, even in our Age of Tesla, it is still possible to venture as deep into history and prehistory as you care to go. Here’s a day trip from Ely or Eureka that will take you off the pavement and into the scenery, out of sight of the modern world. We’re going to visit Hamilton, once and briefly a thriving city of 10,000 people at 8,000 feet above sea level in the White Pine range, and on the way we are taking in the Belmont Mill and the mine that supplied it with ore when it was a minor wonder of the mining world. To do this, bring the survival essentials: digging implements, jacks and wrenches, fluids, and the 3 Bs: blankets, books and beer. Then get yourself onto US 50 where the Green Springs Road takes off to the south at the far eastern edge of Newark Valley. If you’re coming from Ely that
Monday - Friday 8am - 5pm
means driving about 10 miles west of the marked road to Illipah and Hamilton until you see the sign pointing south toward the Belmont Mill and Green Springs. That’s where you turn. Coming from Eureka you’ll see the turn-off just before the road begins its climb to Little Antelope Summit. It’s a 9-mile drive, with no real rough spots, well-marked and undemanding, and after merging with another dirt road, markers appear announcing that you are now driving on the Lincoln Highway. You are now experiencing highway travel just as your great-grandparents did, only faster and with NPR on the radio. The Great Automobile Race came this way in 1908, with mechanic George Schuster at the wheel of the Thomas Flyer leading the pack from Ely to Tonopah, San Francisco and Paris via Hamilton and Railroad Valley. But we are
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not in a race, and with stops for photographs we take a half hour to get to the Belmont Mill. The mill is located near the mouth of McEllen Canyon, between Pogonip Ridge and Mount Hamilton immediately to the west and Babylon Ridge to the east. The mill is not named for the community northeast of Tonopah, but for the company that built it in 1926. The Tonopah Belmont Development Company was a major mining company with properties in Tonopah and Goldfield, which by then were in decline. The mill was built using parts and machinery scavenged from the company’s operations there. The structure is a rare survivor from those earlier times, relatively intact with the major exception of the Power House that stood next to it with a huge diesel engine inside. This supplied the
motive power that turned the wheels to activate the gyres, the gimbals, the aerial tramway with buckets dangling, the paddles in the big cyanide tanks turned by belts, even the electric light bulbs overhead. The engine turned a shaft that extended from the powerhouse into the mill itself and turned the gears that kept the aerial tramway reliably delivering ore from the mine, one bucketful at a time, no matter what the weather. When we visited on this beautiful autumn day, the place was deserted at midmorning. We’d seen no-one on the road coming in, and there was no-one here either. There was no sound except the sounds of the earth, and no notion of the wider world. In fact, the only sign of an active presence is the evident amount of recent work that has been invested by the federal government. Less effort seems to have been made to preserve lesser structures, and some of them are losing their shapes as they merge down into the earth. We wandered freely through the old structures, marveling over them. We made note of the stout concrete footings and new timbers thoroughly braced, and studied the mechanism
DAVID TOLL
The tramway cable wheel that helped deliver ore from the mine portal to the mill.
that pulled the cable down, emptied the buckets, and sent it back three miles up the mountain for more. We prowled around separately, figuring things out as we went. Mercifully, there are no informational plaques to interfere with the experience. After a while we had lunch underneath the great tree that provides shade on hot days, and then we drove to the mine at the other end of the tramway. This requires backtracking to the first intersection and turning right, onto the road that climbs higher and higher up the mountain. And higher and higher. It’s a good road, but near the top there is a narrow squeeze between the steep cliff on one side and the abyss on the other. It’s quite passable but somewhat discombobulating if you are susceptible to altitudinal-disparity discombobulation. Whatever unease you feel on the way up is rewarded by the opportunity to explore the mine undisturbed. It is so high up on this remote mountainside that it seems utterly unlikely to have been found. Who was climbing around up here, looking for silver in 1867? Enough of them to have established the White Pine Mining District a couple of years before. Here we explored the upper terminus of the tramway and followed the trail of the ore from the portal of the mine down to the structure where the cable was pulled around and sent back down again with its buckets full. Their extra weight minimized the amount of energy needed to operate the system.
Once again we were grateful for the lack of helpful information on the site. This is not an exhibit, not a pinned butterfly, not a pressed flower, it is a real thing, seemingly abandoned, and we have just discovered it. Don’t burden us with factoids, we are exploring it for ourselves, and having fun doing it. It’s not a teachable moment anyway, it’s an exaltable moment. We clambered around snapping photos, marveling over our discoveries and wondering out loud. By the time we headed back down the mountain we had thoroughly devoured and digested the place without knowing a single thing about it. From here we retraced our route down the steep side of the Pogonip Ridge, and continued past the road to the mill to the next junction and made a right turn. Now we are back on the Lincoln Highway again, making for Hamilton just three miles away at 30 mph and filled with anticipation. What a beautiful day! To read more of David Toll’s writings, including the second half of this story (which won “Best Online Writing” at the 2015 Nevada Press Association Awards), please visit nevadatravel.net and/or subscribe to the NevadaGram.
MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing - 41
Newmont’s interactive approach to safety training
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Special to Winnemucca Publishing At the beginning of each year, Newmont Mining Corporation’s Health and Safety Department, along with selected members of our Nevada workforce, conduct Annual Refresher Training (ART) for all Newmont Nevada employees. As required by the Mine Safety Health Administration (MSHA) every year, each ART attendee completes a 10-hour day full of mining-related safety training and review relevant to his or her work area and discipline. Newmont’s Nevada workforce is divided into several groups of up to 200 employees each and distributed throughout the ART schedule, which runs from January to March. When first arriving on their designated day, each group is then subdivided further into teams, which rotate through five 80-minute classes during the day. But unlike ARTs of decades past, that day seems to flash by. Over the years, Newmont’s Health and Safety Department has steadily improved the ART experience for employees. Long, dull days of lectures, slideshows, and oneway communication from an instructor to a largely inert audience have evolved into entertaining and informative modules of interactive, hands-on exercises and games that test employees’ knowledge of various safety topics, some that should be familiar and some that are taught during the classes. This method encourages employees to be actively engaged in learning and remembering the information. Employees also tend to show more interest when people they know—or with whom they share a common, professional reference point—are among those teaching. So, Newmont ART instructors now include employees from departments outside Health and Safety, providing new perspectives and innovative ideas that resonate well across the diversely skilled population of ART attendees. Across northern Nevada, Newmont employs about 3,500 people, all of whom are required to complete MSHA training. Considering our remoteness and the distances separating our homes and workplaces from the nearest medical and
emergency facilities, it is comforting to know that so many people from among our local communities are taught basic first-responder skills, such as CPR, first aid, and fire extinguisher use. At this year’s ART, the Newmont Mine Emergency Response Team (MERT) conducted a realistic, fully interactive emergency simulation in which employees had to apply first aid to one victim, conduct CPR on another victim, and put out a fire. Classes like this have actually helped employees in real-life crisis situations. Newmont has seen several examples in which our employees have taken the lead in responding to real life-or-death emergencies and saved lives—on and off the mine site—and equipped only with skills they learned at ART. In late 2014 a Newmont employee resuscitated a man who had collapsed while running. Thanks to the employee’s quick action and basic CPR training learned during ART, he saved the man’s life. Newmont thanks all of our ART instructors for the hard work and creativity they put into making the interactive safety classes both fun and educational for everyone! We also thank our Nevada employees for keeping safety at the forefront of all they do – at work and at home. They are another reason our ART program has been exceedingly successful for so many years!
42 - MINING • SPRING 2016, a May 2016 publication of Winnemucca Publishing
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We know the safety and health of your employees is your top priority. But that doesn’t mean maintaining on-the-job wellness has to be complicated. Humboldt General Hospital is proud to introduce its new Occupational Health Services department—just one more help for our neighbors in industry as you try to maintain your most safe and healthy workforce. Our program has been certified through the National Institute of Occupational Safety and Health. Monday through Friday, our Occupational Health Services staff is available to offer your employees: Ÿ hearing screenings Ÿ occupational pulmonary function tests Ÿ respiratory fit tests
Whether your industry is mining, construction or drilling, or whether you operate a smaller stand-alone business, Humboldt General Hospital is ready to meet your needs—and your expectations. Let us customize an Occupational Health Services package for you today.
We believe in being helpful and caring for those in need.
We are very excited to announce Humboldt General Hospital’s Occupational Health Services department to northcentral Nevada. We are committed to caring for each individual personally while helping companies maintain their entire workforce’s safety and health. Our goal is to help ensure optimum productivity. Welcome to this next chapter in the partnership between local industry and Humboldt General Hospital! —Louis Mendiola, Coordinator Occupational Health Services Humboldt General Hospital
118 E. Haskell Street Winnemucca, Nevada 89445 775.623.5222, ext. 1740