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P U BL I S H E D BY T H E E L K O D A I LY F R E E P R E S S

UARTERLY

High-Grade Beginnings

W in ter

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Hazel Reynold, Klondex staff geologist at Fire Creek, examines a core sample.

A core sample from Fire Creek Mine that has visible gold.

Ross Andreson/Mining Quarterly


— INSIDE — KLONDEX —

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Midas Mine improves safety

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Old pits given new names

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Elko County’s newest mine

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Super-rich ore at Fire Creek

NEWMONT

BARRICK Bald Mountain plans expansion

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Goldstrike continues to improve —

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FOCUS ON SAFETY Companies get progressive

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BLAST FROM THE PAST Take a tour of Virginia City

— Page 69

Employment

ELKO — The mining industry conSince areas of Nevada have been tinues to grow not only in northeastern mined for more than 150 years, I Nevada, but throughout the state. thought the only visible gold I would Both Barrick Gold Corp. and see would be in jewelry, not in a freshly Newmont Mining Corp. are expanding drilled core. their operations at various mines. Expansion wasn’t the only notable For this issue of the event this year. Mining Quarterly we have A few of Nevada’s delved into the expanmines also were honored sions and improvements for their records on safety. in the works at Barrick’s Barrick’s Ruby Hill Bald Mountain and GoldMine and its mill and strike mines and at Newautoclave at Goldstrike, mont’s Genesis, Midas and Small Mine Developand Emigrant mines. ment at Fire Creek were Yet the larger mining all honored with the companies aren’t the only Sentinels of Safety award ones in on the action. from the National Mining Comstock Mining Inc. Association. poured its first silver and Newmont also earned gold bar at the end of a national award for its September. This mine is Legacy Fund, which helps near the historic town of sustain local nonprofit Virginia City. organizations now and This mine site was one in the future. This fund ARIANNE of the more unique propis growing and the parerties I have seen because OBAK C OWN ticipation of Newmont’s of the proximity of the employees has also active mining to the general public. I grown this year. can’t think of any mine in Nevada Last year 69 percent participated where someone can see miners digging and this year it went up to 70 percent, up the ore as they drive by on a public but the amount of money raised far road. surpassed that 1 percent increase. Another smaller company working The Legacy Fund donations went toward production is Klondex. They from $937,000 to $2.16 million. are still exploring their Fire Creek You can find the details on all of underground mine, but the assayed these stories in this Mining Quartcores are promising some very high- erly. grade ore. ——————— The assayed amount was 85 ounces Marianne Kobak McKown is editor per ton. It was such a huge number I of the Mining Quarterly and mining had the geologist repeat the amount. editor for the Elko Daily Free Press. The grade is so high I could see the vein She can be reached at of yellow metal in the core samples. mining@elkodaily.com.

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COMSTOCK REVIVAL New mine continues tradition

Past, future come together

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Find the job you want — Pages 130-131

Advertiser Index on pages 133-135 MINING QUARTERLY John Pfeifer. . . . . . . . . . . . . . . . . . . . . . . Publisher Marianne Kobak McKown . . . . . . . . . . Editor To advertise, call 775-738-3118 Mining Quarterly is published in March,June, September and December by the Elko Daily Free Press (USPS No. 173-4320) at 3720 Idaho Street, Elko, Nevada 89801, by Lee Publications Inc., a subsidiary of Lee Enterprises. Periodical postage paid at the Elko Post Office. For change of address write 3720 Idaho St., Elko NV 89801

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Ross Andreson/Mining Quarterly

Steve McMillin, chief geologist for Klondex’s Fire Creek project, shows a core sample with visible gold, mined from Fire Creek.

Klondex finds 85 oz.-per-ton gold at Fire Creek By MARIANNE KOBAK McKOWN

Mining Quarterly Editor CRESCENT VALLEY — The majority of mines today have microscopic gold, but the yellow metal is quite visible in core samples from Fire Creek Mine. Fire Creek, owned by Klondex Mines Ltd. is near Crescent Valley in Lander County. It is the flagship of Klondex’s four Nevada properties. Steve McMillin, chief geologist for Fire Creek, said the assayed cores held surprising amounts of gold. 2 MINING QUARTERLY, Elko, Nevada WINTER 2012

“It is very, very high-grade gold, 85 ounces per ton,” he said. “You don’t see that very often — visible gold found in the basalt.” All 10 core holes Klondex completed encountered gold mineralization. The best results were 85 ounces per ton of gold over 4.8 feet down to 1.7 ounces of gold per ton over 3.7 feet. The intercept with 85 ounces of gold also contained 174 ounces per ton of silver. McMillin said the site has a high-grade intersection, and it lines up over 450 feet in length. “The rocks are flood basalts, similar to what you see

in the Hawaiian islands today,” McMillin said. “It’s a different style of mineralization. Basalts are volcanic rock.” The exploration has shown fairly linear mineralized zones. Fire Creek is part of the Cortez Trend, McMillin said, “So, it’s a very good neighborhood.” Klondex’s flagship mine is 26 miles north of Barrick Gold Corp.’s Cortez Mine and about 8 miles southeast See KLONDEX, 4


Ross Andreson/Mining Quarterly

Staff geologist Hazel Reynolds (a.k.a. “Geo Girl”) examines a core sample up close at Fire Creek.

Paul Redford, SMD lead miner, bolts a heading in Fire Creek’s underground. Redford has 30 years of mining experience and has been at Fire Creek since it opened. Ross Andreson Mining Quarterly

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Ross Andreson/Mining Quarterly

Steve McMillin, chief geologist for Klondex’s Fire Creek project, talks about mineralization in another part of the underground.

Klondex ... Continued from page 3

of Mule Canyon. McMillin said Mule Canyon has the same type of rock. “We have bonanza-grade mineralization,” McMillin said. “The deposit is pretty much under-explored. We’re planning a detailed drill program underground.” The mine has surface and near surface mineralization. McMillin said the miners are “getting a good handle on the alteration of the rock.” He said the system is different from the large through-going veins found in other mines, such as Newmont Mining Corp.’s Midas Mine. “The Midas veins are very wide and through-going. These veins don’t appear to be that wide and don’t have the

same longevity,” McMillin said. “Midas’ veins came from repeated fluid movement. Fire Creek’s mineralization is more like the popping of a champagne cork. It was one shot of fluid going up the cracks and depositing the gold, and done.” “We’re developing tools to help understand where the gold is at in terms of rock alteration,” McMillin said. While Klondex owns the mine, Small Mine Development does the work underground. SMD has a total of 21 employees and four on each shift for the mining crew. Klondex has 16 employees at Fire Creek. Klondex acquired the property in 1975. ——————— More photos on page 8

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Paul Redford, SMD lead miner, bolts a heading in Fire Creek’s underground. Redford has 30 years of mining experience and has been at Fire Creek since the beginning. Ross Andreson Mining Quarterly


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Klondex ...

Ross Andreson/Mining Quarterly Ross Andreson/Mining Quarterly

Jose Chapa, a Klondex employee, splits a core sample at Fire Creek Mine.

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Steve McMillin, chief geologist for Klondex’s Fire Creek project, talks about mineralization in a part of the underground.


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NEVADA MINING ASSOCIATION

Positive effects seen throughout Nevada’s economy TIM CROWLEY Nevada Mining Association President The year 2013 will be important for Nevada as the state takes continued steps to recover from the Great Recession. While Nevadans throughout the state still feel the well-documented effects of the downturn, there have been several areas of positive growth in the last year, one of which is mining. With high demand for precious metals and other minerals found in abundance in Nevada — mining — through its continued growth, is adding jobs to the state’s economy, providing the highest average salaries in the state, investing billions directly into the state and paying significant taxes that are increasing year after year and helping to fund essential public services. Currently, the industry provides direct employment to nearly 11,000 Nevadans, who are making the highest average salaries in the state at $88,000 per year — double the state average of $43,000. The industry’s workforce is highly skilled and consists of engineers, electricians, machine operators, mechanics, geologists, and more. In addition to providing the state’s best salaries, 97 percent of Nevada mining employees have health insurance and benefits, which also dwarfs the 69 percent of those with health coverage throughout the state’s broader workforce. The industry is taking care of our workers not only through wages and benefits but also through a devotion to safety and safety instruction. We recently wrapped the eighth annual Mine Safety and Health Conference, which was held Oct. 23 and 24 in Reno. The industry is committed to sending home every worker safe and healthy after every shift, and the conference was another opportunity for industry professionals to share best practices in

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Currently, the industry provides direct employment to nearly 11,000 Nevadans, who are making the highest average salaries in the state at $88,000 per year — double the state average of $43,000.

safety, learn about the latest safety technologies, and foster relationships between the industry and federal agencies. Entire communities are supported by the industry with unemployment numbers in mining counties well below a state average that exceeds 12 percent. A few examples of this effect can be seen in mining counties such as Lander, Elko and Humboldt with respective unemployment rates of 5.5 percent, 6.1 percent, and 6.6 percent. Another added benefit throughout the state from mining’s employment growth is an expansion of the industry's supply chain, which now includes more than 2,300 Nevada businesses supported by their work with mining. In addition to providing these communities with low unemployment, mining also supports civic

engagement in communities throughout Nevada through a wide variety of charitable means. Industry-wide charitable efforts in 2011 supported more than 600 organizations with 7,000 volunteer hours and more than $5 million in donations. The industry’s statewide investments also extend beyond the charitable arena. Growth across the industry creates the need to expand operations, purchase new equipment, and fund new projects. In 2011, $1.6 billion was invested directly into the state as a result of an expanding industry with new projects such as Allied Nevada’s Hycroft expansion, Barrick Gold’s Bald Mountain expansion, and Nevada Copper’s Pumpkin Hollow investment among the many that are supporting businesses throughout Nevada. What's more impressive is despite the notion of mining being Nevada's second largest industry we are making all these contributions as only the ninth largest industry when it comes to total economic output. Mining’s employment base makes up only 1 percent of the state’s total workforce, yet the industry generates nearly 5 percent of the state’s gross domestic product and contributes 8.3 percent of tax contributions to the state’s general fund. Our 2011 tax contributions of $417 million were a 28 percent increase from 2010 numbers, which are numbers the entire industry should be proud of. Nevada’s mining industry is in position to play a pivotal role in the advancement of the state's economy to a more prosperous position as we head into 2013. Hiring, project development, average annual wages and benefits, and tax contributions are all on the rise, while on-the-job injuries and fatalities are at all-time lows. The trends all point in a positive direction, and now is the time for mining to capitalize.


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Mining industry accounts for one in every three jobs added statewide since June 2009 ELKO – The mining industry has accounted for 33 percent of jobs added statewide since June 2009, according to a recent study by Applied Analysis. In the past year the mining industry has accounted for 14 percent of the state’s new jobs, said the Las Vegas-based company. At a time when unemployment in Nevada sits at 11.8 percent, mining has supported entire communities by providing jobs and fostering low unemployment rates, such as 4.9 percent in Esmeralda County, 5.4 percent in Lander County, 5.5 percent in Elko County, 5.9 percent in Humboldt County and 5.9 percent in Eureka County. In addition, the industry has added 1,200 jobs over the past 12 months, which represents an 11 percent increase in mining’s total workforce, and the number of Nevadans now directly employed in mining is more than 12,000. Mining’s economic contributions are put into greater perspective when noting the industry’s entire workforce is currently only 1 percent of the total Nevada workforce – even after 10 years of long-term growth in which mining’s share of the total Nevada

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workforce has nearly doubled. However, this small niche of Nevada’s workforce has created one out of every three new jobs added in the state since June 2009 and is driving economic development through a growing supply chain that now supports 2,300 Nevada-based businesses. “While accounting for just 1 percent of Nevada employment and 5 percent of Nevada GDP, the mining industry was responsible for 33 percent of the jobs added in Nevada since the end of the Recession. Furthermore, these were not jobs recovered that had been lost; rather, they represented real growth. Industry representatives have indicated that there is unfulfilled demand for even more employees to join the industry,” said Jeremy Aguero, principal analyst for Applied Analysis. This industry-wide growth comes during a period when Nevadans need jobs, and mining provides highly-skilled positions paying the highest average salaries in the state at nearly $88,000 per year. These

family-sustaining wages for mining employees are more than double the average annual salary for all other business sectors throughout the state, and Nevadans employed in mining received a total of more than $1 billion in wages and salaries during the past 12 months. “These numbers support what the industry has known for some time,” said Tim Crowley, president of the Nevada Mining Association. “We have been adding jobs throughout the industry, and the Nevada Mining Association is seeing a record number of outside suppliers joining our membership ranks. “The industry’s direct and indirect reach will only continue to grow and help Nevada recover in the coming years with several new projects set to begin operations.” The full Applied Analysis study of mining employment and wages can be found on the Nevada Mining Association’s website http://www.nevadamining. org/issues_policy/pdfs/NMA-Brief-Employment_ Oct_2012.pdf.


BLM partners with Barrick, NDOW on fire rehabilitation ELKO — The Bureau of Land Management, Elko District has begun Emergency Stabilization and Rehabilitation work on the seven largest 2012 fires within the Elko District that consumed more than 75,000 acres. Elko BLM is partnering with Barrick’s Goldstrike Mine and Nevada Department of Wildlife to conduct ESR work on the 2012 Willow Fire, which consumed a large portion of priority greater sage grouse habitat as well as affected Lahontan cutthroat trout habitat. Barrick’s Goldstrike Mine contributed more than $490,000 toward treatment costs in a cooperative agreement to treat private lands with the Elko District BLM contributing $565,000 toward the treatment costs of public lands. “The BLM appreciates Barrick’s participation in this important effort,” said Ken Miller, BLM Elko District Manager. “Wildlife doesn’t care if it is public or private lands. When private land owners like Barrick’s Goldstrike work with BLM and NDOW it provides for the rehabilitation of northeastern Nevada rangelands on a landscapelevel basis.” “Our investments in fire recovery and habitat improvement pay dividends that benefit wildlife and the many people who enjoy and make their living in Nevada’s high desert,” said Andy Cole, general manager at Barrick’s Goldstrike Mine. The Nevada Department of Wildlife is providing Ruby Pipeline Mitigation funding of $250,000 to be used to facilitate greater sage grouse habitat rehabilitation on private and public lands on the 2012 burned areas. Recent weather conditions have allowed for BLM crews to get a start on seeding treatments of 2012 burned areas. The seeding treatments include

Barrick’s Goldstrike Mine contributed more than $490,000 toward treatment costs, with the BLM contributing $565,000 and NDOW adding $250,000 from a pipeline mitigation fund. both rangeland drills and aerial application and focus on the rehabilitation of greater sage grouse and other critical wildlife habitat, such as Lahontan cutthroat trout, mule deer and pronghorn. Treatments include the ground and aerial application of grass, forb and shrub seeds as well as fence repair, erosion control structures and noxious weed treatments. There will also be temporary protective fence construction to ensure recovery of native vegetation protecting public land user’s investment in range rehabilitation. In addition, aggressive noxious weed detection surveys and treatments will be conducted across the burned areas to prevent any potential weed infestations occurring as a result of the fires. BLM weed crews will work treating weeds through an integrated approach using both chemical and mechanical methods. The fire areas being rehabilitated are: Kittridge, five miles north of Elko; Chimney, on the South Fork Indian Reservation; Willow, five miles west of Tuscarora; Lime, seven miles southeast of Wilson Reservoir; Morning Star, one mile south of Jackpot; 20-Mile, 40 miles northeast of Wells; and Stud, seven miles southeast of Charleston. WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 13


Newmont’s Midas improves safety with programs By JOHN RASCHE Free Press Staff Writer

Ross Andreson/Mining Quarterly

Newmont’s Midas Mine underground superintendent Ivan Castellanos talks about mining near a richly mineralized vein.

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ELKO — Several department managers and supervisors are gathered in the conference room of Newmont Mining Corp’s Midas facility to discuss safety one recent workday. “We begin our meetings with a ‘safety share,’” Mine Manager Tim Sirotek told the group. “Now is the opportune time to get the preparations you need for if your vehicle gets stuck in the snow.” He cited the example of Albert Chrétien, whose body was found recently in the Nevada wilderness after being stranded in the snow over a year ago. The Midas Mine is located more than 90 miles northwest of Elko, near the small town of Midas. The closer one gets to the mine, the more isolated the road becomes. “It’s a challenge for us to drive to and from work in the dark,” Sirotek continued. “That’s why (our employees) have to stay on their toes.”


Ross Andreson/Mining Quarterly

Newmont’s Midas Mine Manager Tim Sirotek begins meetings with a safety share in the conference room of the site.

To discuss the safety of driving home may sound like a minute concern for any mining company, which typically must address more pressing topics like equipment management, on-the-job injuries and standard safety procedures. But the Midas supervisors believed that those fields of concern are more easily managed than the incidents that can occur outside the facility, where the unpredictable environment is neither controlled nor regulated. The drives home are “our biggest risk,” added Rhonda Zuraff, manager of Newmont’s external relations. Midas is currently operated by 268 employees (including contractors) and has a mine life up to 2015, but is expected to continue for a few more years if drilling continues. As of Nov. 6, the Midas site had gone 1,077 days without a lost-time injury, or injuries that cause employees to miss the following scheduled work shift. Those days account for nearly 2.5 million man-hours. This impressive record could be considered the product of a few initiatives

that the Midas team enacted to support safety amongst its workforce. Critical MASSE One such initiative is the Critical Maintaining an Active Support Safe Environment program, which is driven entirely by Midas’ hourly workforce. Critical MASSE safety leaders are designated to each work crew in the maintenance and processing departments of the mine. Two leaders are also appointed for every large operational crew. Overall, Sirotek estimated that there were about 16 safety leaders in Midas. These safety leaders receive feedback from their fellow crew members and present the findings during a weekly meeting in which employees from all departments of the mine are present. “To me, it’s been an excellent program because all the employees involved in it are stepping up to the plate and presenting issues through our weekly meetings,” Safety Specialist See MIDAS, 16

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Ross Andreson/Mining Quarterly

Newmont’s Midas Mine underground miner Vai Fuli operates a jackleg drill near a mineralized vein.

Midas ... Continued from page 15

Chris Dobmy said. “The employees took it upon themselves and designed this program. They’re going through improvements, talking and addressing problems. It’s starting to get legs ... and evolve.” The idea behind the program is that by reporting to fellow crew members 16 MINING QUARTERLY, Elko, Nevada WINTER 2012

and by having their voices heard during weekly meetings, employees will be more comfortable reporting concerns and finding solutions together. So far, the program has been a success. “Some people didn’t want to speak up (in the past), they would ask others to do it for them,” said Vai Fuli, underground miner and Safety Leader. “But


Ross Andreson/Mining Quarterly

Newmont’s Midas Mine Safety Specialist Chris Dobmy talks about the Critical MASSE initiative.

those people are doing it themselves now in this program.” Critical MASSE is less than a year old, but Midas has already made changes in operations based off of feedback the company received from employees in the program. The changes, which are archived in an office display case, really boil down to practical thinking and comfortable alternatives to the traditional method of certain operations. Employees, for example, thought that vehicles transporting explosives should be marked by attached red lights to signal caution — the idea was eagerly accepted by management and transformed into a reality. Other changes include improvements on the water truck fill station as well as the relocation of mucker lights on vehicles to make the drivers a little more comfortable. “Pinch” stickers were also placed on vehicle doors to

remind drivers to watch where they place their hands. Although Critical MASSE only exists in the Midas operation right now, documentation of the program is accessible on the global Newmont online network. Vital Behaviors Midas has also adopted a Vital Behaviors program, which was originally piloted by the Newmont Twin Creeks mine, to help analyze (and fix) the problems mining employees face. “We go to the workers and collect their stories of accidents,” Senior Metallurgist Anne Bogadi said. “We analyze each story and identify what behaviors may have caused (the accident). Then, we figure out ways to target those behaviors.” Fatigue is just one of the conditions See MIDAS, 18

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Ross Andreson/Mining Quarterly

Newmont’s Midas Mine underground miner Vai Fuli talks about safety not far from the portal.

Midas ... Continued from page 17

that the program targets. The team at Twin Creeks emphasized the philosophy of “if you are tired, take a break.” The message seems obvious, but employees who work hard can some-

times overlook their need for rest. To emphasize the point, the Twin Creek Vital Behaviors team scheduled a family picnic for the mine’s employees. By allowing the family to be involved in the employee’s workplace, the idea of

Ross Andreson/Mining Quarterly

Newmont’s Midas Mine mobile maintenance general foreman James Kestle talks about equipment in the underground.

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safety becomes far more personal. Midas plans to initiate projects like these to reinforce positive behavior and establish safe practices. The Critical MASSE and Vital Behaviors programs are all part of Newmont’s “Safety Journey,” an effort to eliminate potential dangers through open communication and safe practices. “We’re seeing more people speak up, (therefore) there are more improvements,” Dobmy said. “The ultimate goal of the program is to have zero accidents.” That goal seems to be within reach. Midas’ total reportable frequency rate (of reported accidents) goal for 2012 was 2.79. As of Nov. 6, the TRFR was only at 2.46, an indicator of continuous improvement in safety. In addition to Midas’ own achievements, the mine was recognized by the Nevada Mining Association earlier this year. NMA presented the Midas Mine with a Safety Award for first place in the medium-sized underground operations category at its annual convention in September at Lake Tahoe. “We want to continue this trend,” Sirotek said. “Our employees like the results they’re seeing. (Midas) is a great environment to be in for safety. I don’t think there’s an end to what they can do.”

Ross Andreson/Mining Quarterly

A Midas Mine underground miner carries bolting material into a drift.

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Nevada mining: A look back and forward Nevada’s mining began on the Comstock. Then there was the Tonopah and Goldfield rush, followed by the beginning of Nevada’s copper industry near Ely, and then the modern gold rush,” which was referred to at the time as the third renaissance of Nevada mining. As the fourth decade of the “gold boom” begins, it is interesting to look back to the 1980s when it started. On a personal note, in 1985 I was senior editor for a study on economic diversification funded by the state of Nevada. When I brought up the mining industry with the Director of the State Department of Economic Development I was politely told that mining didn’t matter and that I shouldn’t bring it up again. Almost 30 years later, that director is long gone and the mining industry is still here — still diversifying the state’s economy. Those of us who have witnessed this history unfold can attest to the fact that it has not been a smooth ride. There have been growing pains in affected communities, political fights over taxes, the environment, and everything in between. Thirty years on, the industry has been buffeted by world and local events and has boomed and busted at least three times, but it carries on. So what is going on now? In the short term, Nevada’s mining industry and affected businesses have a rare

commodity in the current economy, and 2012 average around $1,660 and appear to I’m not talking about gold, I’m talking have stalled out around the first of about economic momentum. Where else in September. Prices are still high enough to the U.S., outside of the Marcellus oil and continue the local momentum but those gas fields of Pennsylvania and Ohio, or the outside the northern “suburbs” of Las energy rich oil and gas fields of the Dakotas Vegas are less sanguine. and Texas are you going to find the ecoOne indicator of broader perspective on nomic opportunity that we have in norththe sector comes from the XAU, an index of ern Nevada’s gold fields? Indeed, where 16 precious metals producers’ stocks that else in the world with Asian growth slowing is traded on the Philadelphia exchange. and Europe in the tank? Even a Las Vegas The major Nevada producers are all in the Newspaper has claimed Elko as a “suburb.” index. Since producers’ stock prices are Go figure. forward looking evaluations of producer The main thing going on now is momenearnings, the chart on the next page does tum: ramping up production when pos- By JOHN DOBRA not reflect any of the local momentum and sible, investing in new capacity, exploexuberance. The index stands below where ration and infrastructure to support all of the above it was a year ago. The major reason the XAU isn’t plus the socio-economic infrastructure to support showing much exuberance is that the cash flow being more workers, suppliers and businesses. In classic generated by mining is not making it down to the “boom” style, everyone wants to “make hay while the bottom line of producers’ income statements. They sun shines.” But before becoming overcome with exu- are investing the money in expanding production as berance let’s look a little closer at the macro landscape. noted above. First, although prices are well above production Much of the lack of exuberance about gold procosts — and that is what is attracting the investment ducers displayed by investors reflect broader conmentioned above — short term prices seem to be stuck See DOBRA, 22 around $1,700. Prices are not significantly over the

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Dobra ... Continued from page 21

cerns - the coming “fiscal cliff” in the U.S. which, if Congress doesn’t act soon, will result in tax increases for individuals and large cuts in federal spending that are disproportionately focused on defense spending beginning in January 2013. Conventional analysts view the “cliff” as a recipe for economic disaster, a double-dip recession and maybe worse. The President assured that this wouldn’t happen — at least the spending cut part — in his last debate with challenger Romney. But the market is not so sure, and individuals and corporations are hanging on to their cash — except gold companies, who are spending as fast as possible. Another broader issue dampening market enthusiasm comes from the ongoing events in Europe. European banks have spent the last few years restocking their vaults with gold after dumping it and driving down prices in the 1990s. This was a reasonable defensive strategy that actually paid

off well as gold prices rose in the 2000 to 2010 decade, but it is a strategy that they may not be able to afford in the current situation. The banks are worried about solvency issues in Greece, Spain, Ireland, etc. so they are not really willing to provide short term stimulus to gold markets by increasing their holdings. So, while local momentum is washing over Elko like hurricane Sandy rolling over Manhattan, the rest of the world is holding its breath. The market wants to know what will happen in the U.S. elections next week, will the U.S. avoid the “fiscal cliff,” what will happen in the European banking crisis, and how much will the Chinese economy contract. At this point, investors are not eager to take a flyer on gold and gold producers — at least in the short term while we are waiting for all this stuff to get sorted out. What difference will the election make? I’m writing this before the election but I think the answer is not much. Neither presidential candidate

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will have much impact on what Congress does about the fiscal cliff or what the Europeans do. So stand by for more of the same. The long view is very different, however. The U.S. Federal Reserve Chairman Ben Bernanke and, to a lesser extent, his counterparts at the European Central Bank, have declared a willingness to create as much money as it takes to “cure” U.S. and European economic problems. Whether they can

actually “cure” anything is a matter of debate, but what is not is that if history is any guide, the bankers will overshoot their monetary targets and give us a good heavy dose of inflation. That would be very bullish for gold, although not for ordinary citizens. ——————— John Dobra is an associate professor of economics at the University of Nevada, Reno and director of the Natural Resource Industry Institute.


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Ross Andreson/Mining Quarterly

An Hitachi hydraulic shovel mines hard rock at Barrick’s Bald Mountain.

Bald Mountain plans expansion By MARIANNE KOBAK McKOWN Mining Quarterly Editor

WHITE PINE — Expansion is the plan for Barrick Gold Corp.’s Bald Mountain Mine. The company is working with the U.S. Bureau of Land Management to consolidate the site into two plans of operations so it can expand. Darek Huebner, environmental superintendent, said he submitted plans to the BLM to consolidate into North and South operations. The North plan would consolidate three operations into one, Huebner said, the existing North, Casino and Winrock and White Pine plans into the North Operations area. This change would expand 24 MINING QUARTERLY, Elko, Nevada WINTER 2012

the disturbance footprint from 8,899 acres to 13,631 acres. The expansion will increase the life of the mine to 2032. The South area, about 10 miles south of North Operations, would include Aligator Ridge and Yankee Mine plans. It would expand the ground disturbance from 90 acres to 3,644 acres, Huebner said. A new area called Gator Pit will be added. These changes will increase the workforce by about 100 people. Huebner said the South Operations will be autonomous from the North Operations and have its own offices. Huebner submitted both plans to the BLM in October 2011, so they could be analyzed in one EIS. He anticipates the draft EIS approval in the first

quarter of 2013. The main issues to deal with for the study were mule deer and sage grouse, Huebner said. “The size of the expansion is what is driving the EIS,” he said. The final EIS is expected in 2014 and a record of decision is expected in 2015. “Those are conservative deadlines,” Huebner said. Once the plan is approved, a new leach pad will be built. The drive from the pit to the current leach pad is 61⁄2 miles and it takes about an hour to pick up the ore, dump it on the heap leach pad and then go back for another load, said Richard Curnow, engineering superintendent.


Ross Andreson/Mining Quarterly

Steve Martinez, Barrick’s Bald Mountain process supervisor, shows carbon that is shipped out to be refined.

Once the new pad is built the drive will be 20 to 25 minutes. Current Operations Bald Mountain Mine is 70 miles south of Elko in White Pine County. It is in the southern most end of the Ruby Mountains and 95 miles southeast is Ely. Even before the expansion, it is the largest mine site by area in the U.S., said Richard Curnow, engineering

superintendent. It stretches 25 miles north to south and 10 miles east to west. The employees live throughout the area: 70 percent live in Elko or Spring Creek; 13 percent live in Ely; 5 percent in Eureka; and 13 percent live somewhere else. Mining has occurred in the district since the late 1800s. Placer Dome conSee BALD MTN, 26

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Bald Mtn ... Continued from page 25

solidated the district in the late 1970s and large scale mining began in 1980. Barrick acquired the property in 1999, and 99 percent of the site is on BLM land. Bald Mountain has a run of mine heap leach operation, Curnow said. The oxide reserves total about 5.1 million ounces. Bald Mountain does not pour gold, but sends its carbon to Goldstrike to be refined. Steven Martinez, process supervisor, said the process plant was built in 2010. It uses cyanide to obtain the carbon, which holds the gold, from the ore. The site employs 392 people. Bald Mountain is expected to produce 180,000 ounces in 2012. The site has ongoing exploration and had $8.4 million in the budget for last year, mostly for expanding existing pits. The Top Pit wall will be more than 2,000 feet high, and it holds 50 percent

of the reserves, Curnow said. The satellite pits are about 200 feet deep. “We will be mining in Top Pit pretty much the life of the mine.” The equipment used on the property includes two electric shovels, four 150ton haul trucks, two 190-ton haul trucks and the rest are 240-ton haul trucks. The electric shovel has a 46-cubic yard bucket and can fill a 240-ton truck in four passes. The hydraulic shovel has a smaller bucket, about 22cubic yard, but it is more mobile. Open Pit Safety When driving around the Bald Mountain site, people will see small buildings that the miners call hot dog stands. These stands are taking data off prisms that are scattered throughout the high walls to monitor its stability. “The building is to keep the theodolite in a temperature controlled area,” Curnow said.

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See BALD MTN, 28

Ross Andreson/Mining Quarterly

A haul truck moves hard rock at Barrick’s Bald Mountain.


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Ross Andreson/Mining Quarterly

Drills create a blast pattern on a pad in Top Pit at Barrick’s Bald Mountain.

Bald Mtn ... Continued from page 26

The theodolite takes readings from the prisms every six minutes to make sure there is no accelerated movement on the high wall. There are about 80 prisms on the high wall, said Dave Pierce, chief mine geologist. He said the theodolite is in a robotics shack, but most people just refer to the building as a hot dog stand. If the monitoring system starts to see accelerated movement, it can send an alarm back to the office, but the system also can be monitored manually. A part of the high wall in the Top Pit has already experienced accelerated movement, or what is more commonly called a landslide. Curnow said the high wall became unstable because two fault zones came together. “The ground was already very broken up and weak, and when you cut the high wall you make it weaker,” he said. “If we have accelerated movement, we set up a berm and move away to monitor the area. It’s a pretty stable area now.” To help the prisms with the monitoring, Barrick bought a radar system for the Bald Mountain site. The $600,000 unit was installed at the end of October. A prism helps monitor one point on the wall, but a radar system monitors the areas in-between and on either side 28 MINING QUARTERLY, Elko, Nevada WINTER 2012

of those prisms, Pierce said. “It monitors the full wall and gives real-time movement,” he said. “It gives a fuller picture and a little earlier.” Pierce said a rock the size of a person’s fist falling “is going to happen all the time,” but a rock the size of a boulder not as often. He said the slope of the pit is engineered to help strengthen the wall and to catch the majority of what might have been missed in the drilling. Barrick Earnings Barrick Gold Corp. reported the company’s shares dropped almost 55 percent in its third-quarter net earnings because of rising costs. Net earnings decreased to $620 million or 62 cents per share compared with net earnings of $1.37 billion or $1.37 per share for the same quarter the year prior. Adjusted net earnings were $850 million compared with $1.38 billion in the third quarter of 2011. Barrick reported gold and copper production of 1.78 million ounces and 112 million pounds respectively. The company reported gold total cash costs of $592 per ounce and net cash costs of $537 per ounce. The company expects 2012 gold production of 7.3 to 7.5 million ounces. “We are on track to achieve our pro-


Bald Mountain 2012 predictions • 71 million total tons • 15 million ore tons duction guidance with higher production expected in the fourth quarter,” Barrick President and Chief Executive Officer Jamie Sokalsky said. “Despite some cost pressures, Barrick remains the lowest cost senior gold producer. We poured first gold on schedule and budget at Pueblo Viejo (in the Dominican Republic) and made substantial progress at Pascua-Lama, which remains our top priority. Both are world-class assets that together are expected to produce about 1.5 million ounces at low operating costs. We’re also making progress in support of our disciplined capital allocation framework. We’ve cut or deferred significant capital expenditures that were previously budgeted and we’re continuing to work toward optimizing our asset portfolio.” Nevada Operations North America produced 800,000

• 190,000 ounces delivered to pad • 180,000 ounces of gold produced ounces at total cash costs of $508 per ounce in the third quarter. Cortez, in Lander County, produced 230,000 ounces at total cash costs of $293 per ounce. The company said this was in line with expectations, and is anticipated to return to higher production levels in the fourth quarter primarily as a result of mine sequencing. Goldstrike, north of Carlin, produced 350,000 ounces at total cash costs of $507 per ounce. Barrick said the mine benefited, as anticipated, from increased productivity following maintenance improvements in the first half of the year and from access to higher grades in the open pit. The company expects full-year production for the region to be 3.425-3.55 million ounces at total cash costs of $475-$525 per ounce, both within the previous guidance ranges.

Ross Andreson/Mining Quarterly

Steve Martinez, Barrick’s Bald Mountain process supervisor, left, and Dusty Ott, site industrial hygienist, talks about the cyanide process circuit in the process plant.

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ScrapDV working with mines to stop domestic violence By JOHN RASCHE

Free Press Staff Writer ELKO — Mary Inman was shot and killed by her ex-husband on April 30,

2011, in the front room of her workplace, a contractor for the mining industry in northeastern Nevada. Safety has always been a concern for mining companies. Many employees are required to attend ongoing safety meetings that emphasize proper use of equipment and appropriate behavior at the workplace. But sometimes the hazards are not found at work, they are angrily waiting in the home. Scrap Domestic Violence, a newly established nonprofit organization in Nevada, seeks to prevent tragedies such as Inman’s murder from occurring in the future. In addition to promoting awareness through various programs, ScrapDV aims to unite Nevada’s mines in an effort to stop domestic violence. Centered in Winnemucca, ScrapDV uses recycled scrap steel received from mine partners to help raise funds in an effort to promote domestic violence awareness. “Our ultimate goal is to receive money from our Nevada mining companies, because domestic violence is such a serious problem (in the state),” ScrapDV Executive Director JoAnn Casalez said. “The more money we have, the more money we’ll be able to give to other nonprofits through grants and other donations.” As of November, the organization has partnered with three mines — Goldcorp’s Marigold, Great Basin Gold’s Hollister and Allied Nevada Gold Corp’s Hycroft — and three contractors — CarWil Engineered Mining Solutions, Boart Longyear and Alternative Maintenance Solutions LLC. 30 MINING QUARTERLY, Elko, Nevada WINTER 2012

Since its launch in June of 2012, ScrapDV has raised approximately $60,000 in donated steel. The funds were then distributed to 16 other domestic violence awareness-based nonprofits across Nevada, either to help finance awareness campaigns or to pay for training. “We help fund nonprofits in Nevada that are already established, but are at financial risk,” Casalez said. “Due to state and budget cuts, we thought that we should help (the other organizations). The problem is that domestic violence programs have to fall under anonymity, so they can’t go out and promote everything they’re doing.” For its No More, Know More campaign, also known as “Paper the Town,” ScrapDV produced materials such as fliers and distributed them to 14 different programs across Nevada. The fliers contained information regarding domestic violence as well as contact information for area agencies. “The more we can talk about domestic violence, the more people will learn about it and the more we’ll be able to get rid of it,” Casalez said. In October, Casalez was invited to attend the 41st Annual Peace Over Violence Humanitarian Awards in Los Angeles on behalf of ScrapDV. Since the event, ScrapDV has been taken under the wing of Peace Over Violence and they will begin collaborating on future projects. In addition to promoting awareness campaigns, ScrapDV also offers classes that define signs of domestic abuse and how to address them. Some of ScrapDV’s contributing mines have already embraced the classes. “If someone is being abused at home, it will affect their work,” Casalez said. “They aren’t going to work 100 percent,


John Rasche/Elko Daily Free Press

ScrapDV Executive Director JoAnn Casalez, center, thanks Goldcorp-Marigold mine for its contribution of a mining shovel bucket, which can be seen in back. The scrap donation, worth $10,000, was awarded in front of Winnemucca Mountain.

because they’ll be thinking about how they’ll survive at home. “We don’t teach that we want the families to break up. We teach that the abusers should be held accountable for their actions and to seek help. If they don’t, the victim needs to leave. We want to break the cycle (of domestic

violence), but you can’t break it without trying to help everyone.” By spreading information about domestic abuse, ScrapDV hopes to save many victims from sharing the same fate as Inman. “That’s why we’re always very happy to reach out to people,” Casalez

said. “We want people to hear real life stories from their communities. It has a huge impact on them and gets them to understand that domestic violence is a serious issue ... that’s why it’s imperative that the rest of the mines stand up and say ‘no’ to domestic violence, too.”

More information about ScrapDV can be found at www.scrapdv.com. Any companies interested in becoming partners with the organization should call Casalez at 775-544-7376. “ScrapDV is not all about doom and gloom,” she said, “because there can be a light at the end of the tunnel.”

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Heigh ho, it’s off to work they go ... Coach USA embraces family aspect By JOHN RASCHE Free Press Staff Writer

ELKO — Amid the large headlights of charter buses at the Coach USA depot off of Interstate 80, glowing embers from lit cigarettes blink in a small circle like incandescent, blood-shot eyes in the early morning November darkness. Driver LuAnn Whalen pulled up the sleeve of her jacket and looked at her watch: 4:45 a.m. Time for work. She left her group of fellow smokers and prepared for the day’s journey. “I like to get here early and make sure everything is running well and that the bus is clean,” she said. “I hate a stinky bus. It should be nice for them, you know, because they’re the ones riding on it.”

Whalen will begin her bus route around 5:10 a.m., picking up miners in the Elko area before transporting them to the Barrick Goldstrike Mine in Eureka County. Whalen has been a Coach USA driver for over a year, working two sets of four-hour shifts each weekday — early morning and afternoon. “I love it,” she said, checking her rearview mirror. “You have your same crews and you see them pretty much every day. You develop a sort of bond with them and get to know them by their first names.” One of Whalen’s pick-up locations is just across from the Smith’s Food and Drug along Mountain City Highway. Each rider greets Whalen with a “good morning” before finding their seats and closing their eyes.

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John Rasche/Elko Daily Free Press

Empty coach USA busses idle in the parking lot of the station, warming up for the morning’s next mining crews.


After every one of the men had wearily piled into the bus, many would spend the remainder of the trip asleep. About three-quarters of the interior lights were turned off so the workers could rest in pure darkness. The rising sun would only greet them once they arrived at the mine. Others, however, used the 80-minute drive to share stories, jokes and occasional rants. “It’s like an hour-long therapy session,” said Matt Stramel, an equipment operator for the mine. “We bring whatever we got up to the table today ... and everybody has something unique to bring. We’re not all cut from the same cloth. We all have a different deal. (At work) our communication is really through a radio; this is our hour to talk personally.” For 10 to 12 years, Stramel has been riding in the front portion of the bus with a group of fellow equipment operators and technicians, he said. “The groups in the buses are like little families,” he said, after passing a vacation photo of the aurora borealis to fellow equipment operator Guy Eldringhoff. “We just spend so much time together. The more I think about it, the more it’s like that scene John Rasche/Elko Daily Free Press

See COACH USA, 34

Coach USA driver LuAnn Whalen heads back toward Elko after dropping off the early shift miners at Goldstrike.

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John Rasche/Elko Daily Free Press

Drivers arrive at the buses before 5 a.m. most days to drive early-shift crews.

Coach USA ... Continued from page 33

from ‘One Flew Over the Cuckoo’s Nest.’” He’s talking about the scene from the 1975 film when “Mac” Murphy, played by actor Jack Nicholson, commandeers a bus from the mental institution with a group of fellow patients to escape for a day of fishing. Whalen laughed. “You guys are my best crew,” she said, warmly. “Everybody says that,” Eldringhoff chuckled. The group of equipment operators have a good rapport with Whalen, which is not the case with every bus driver that the group has been assigned. “She’s great,” Eldringhoff said. “She never goes over the rumble strips.” Rumble strips are the rutted lines along the road that are designed to alert inattentive drivers of possible danger. “If a bus driver swerves onto the 34 MINING QUARTERLY, Elko, Nevada WINTER 2012

rumble strip, the whole bus gets pissed,” Stramel said. “It’ll wake the whole bus up and the guys will give the driver the ol’ stink eye.” Aside from her ability to drive well, Whalen goes the extra mile in maintaining the family-like atmosphere of the bus group. “It’s interesting to hear the guys talk about the mines and their families,” Whalen said. “I’ve grown to know and love all of them.” Occasionally, the operators will pool together some money to pay for breakfast on the road: Whalen’s homemade cinnamon rolls. As the bus entered the Goldstrike facility, other passengers began to rouse from their sleep. The early morning sky was much lighter than it had been only an hour or so ago. “We’re home?” a groggy voice asked aloud from the back of the bus. Whalen smiled as she guided the bus through the mine’s entrance. “Yes, we’re home,” she said, affectionately.


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Marianne Kobak McKown/Mining Quarterly

Mark Neumann explains how the new Ansul fire suppression system needs less piping and wiring in mine equipment.

Tyco’s Ansul fire products take the heat By MARIANNE KOBAK McKOWN Mining Quarterly Editor

LAS VEGAS — Ansul has been in the fire suppression business for 100 years and it and its parent company, Tyco, have continued to make their products better. Tyco manufactures Ansul fire suppression units for all types of equipment for both underground and surface mines, said Jay Thomas, general manager of special hazards products. They range from 10-pound to 250pound units. The design and installation parameters of the units accommodate vehicles of any size operation, and the wet chemical agent is effective with Class A and B fires. Ansul has two different agents, a dry 36 MINING QUARTERLY, Elko, Nevada WINTER 2012

chemical and LVS or liquid vehicle system, said Mike Stromberg. The dry chemical provides the rapid flame knockdown. The LVS knocks down the fire quickly but it also has a cooling effect, Stromberg said. The cooling effect avoids reflash. “You want to prevent the reflash,” he said. The two chemicals were used in conjunction for years, but further testing and development allowed the LVS to be used as a stand-alone system, Stromberg said. Using just one instead of two makes for an easier installation of the fire suppression system, Stromberg said. The engineers installing the units don’t have to deal with as much piping or wiring. This makes the system more efficient and simpler.


Photos by Marianne Kobak McKown/Mining Quarterly

Tyco has several sizes of Ansul fire suppression units, ranging from 10-250 pounds.

Tyco ... The product was launched in January. The detection units are all electronic instead of pneumatic. Tyco should have a fully supervised detection unit launched in 2013. “The operator will have more control of what’s going on,” Stromberg said. “It should make the products safer and more efficient.”

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Elko Wire Rope pulls its weight By DYLAN WOOLF HARRIS Mining Quarterly Staff Writer

ELKO — The size of mining equipment is on a scale hard to grasp until viewed up close. And when taken all at once, it’s easy to overlook the many small pieces that render large hunks of metal into operable

machines. Towering electric shovels are used to scoop piles of dirt into haul trucks so gold can be extracted. But it’s the relatively narrow wire rope, with each pull called a cycle, that positions the shovel closer to a truck for loading. Elko Wire Rope supplies the rope that lifts the shovel bucket and supports the long, crane-like arm, called a boom, that positions the shovel. In northeastern Nevada, it’s pretty much a guarantee any shovel rope one comes across is Elko Wire Rope’s. “Our shovel rope is on every shovel in the state of Nevada,” Neely Hammond, general manager, said. This will hold true, she added, until someone starts running a brand new electric shovel, but after some wear-and-tear, they’ll come to Elko Wire Rope for replacement product. Ross Andreson/Mining Quarterly

See WIRE ROPE, 40

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Ryan Douglass uses a forklift to move a large spool of wire rope that is used on electric shovels at area mines.


Ross Andreson/Mining Quarterly

Nathan Lara forms a loop on a 7/8 sling at Elko Wire Rope.

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Wire rope ... Continued from page 38

“It’s orange rope on everything,” she said, referring to the distinct orange exterior of the company’s rope. Elko Wire Rope, Hammond said, has the largest wire rope inventory in northern Nevada. The success of its business can be attributed to dedicated customer service, Hammond said. Hammond and Bartholomew also cited a motto — “ownership of inventory” — which has helped establish the company’s stellar reputation. Bartholomew said they strive to know exactly what the mines need and provide it quickly. Elko Wire Rope stocks the rope, cuts the necessary lengths when orders come in, and is able to get the product where it needs to be within 24 hours. “We have 24-hour on-call service,” Hammond said. “The mines have our cellphone numbers. They can call in the middle of the night and we’ll answer.” Bartholomew’s experience in the trade doesn’t hurt either. “I was a rigger in Salt Lake City for 13 years,” Bartholomew said. In those formative years, he learned how to build wire slings. From there, he transitioned into sales. He soon developed a rounded experience in the wire rope industry. “One day I woke up and said I want to do this on my own,” he said.

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Ross Andreson/Mining Quarterly

Nathan Lara uses presses a collar down on a sling at Elko Wire Rope.

He opened a small facility in Salt Lake City of about 2,900 feet and started making sales calls and selling product. Fast forward to 2012 and Bartholomew’s once tiny operation — now certified by federal standards for its quality — is in three states, each housing a warehouse facility of about 10,000 feet in size. It only took three years after his business opened in Salt Lake City for a Nevada expansion. An Elko office opened in 1996. The company also has an office in Arizona.

“Our primary product was shovel rope for the electric shovels,” Bartholomew said of the company’s beginnings. Today, shovel rope, wire rope slings and all the fittings are big sellers for the company. Slings are sold for multipurpose use, such as hauling. Employees unravel one end of braided steel rope until it’s flexible enough to loop back into a cylindrical sleeve, creating an eye at one end. With the expansion of the inventory came a need to expand the warehouse space. Elko Wire Rope purchased the long defunct Silver Dollar Saloon on East Idaho Street. As of the beginning of November, architectural designs were still being developed. “We’ll be putting in a 15,000 square foot warehouse and then 4,200 feet of office and training facility for the rigging institute,” Bartholomew said. Elko Wire Rope likes the location and being in the community. The good business Wire Rope strives to provide for the mines has been reciprocal, Hammond said. “We would like to thank the Nevada mining, drilling and contract workers who have made us successful since ’96 and we look forward to their continued support,” she said. Elko Wire Rope is located at 4280 E. Idaho St. For information call 775-777-3824.


Newmont Mining Corp. employees pledge record amount to ‘Legacy Fund’ ELKO — Newmont Mining Corp. announced in November that its employees have pledged more than $1.08 million to the NMC Legacy Fund for 2013 through its employee giving program. These pledges will be matched dollar for dollar by Newmont, bringing the total funding for local nonprofit organizations to $2.16 million. “Our employees are the driving force that continues to make this program so successful. They routinely give back to the communities in which we live and work, by volunteering time, energy and their talents as well as the monetary donations and pledges to the NMC Legacy Fund,” said Tom Kerr, Newmont’s North America regional senior vice president. “Since inception in 2010, the NMC

Legacy Fund has been a very successful program, and we are pleased that it continues to grow to insure the Legacy of Newmont and our employees in our communities for future generations,” he added. In April 2010, Newmont Mining Corp. announced the decision to focus on long-term community investment sustainability by moving toward a more inclusive strategic community investment program. The NMC Legacy Fund program encompasses a direct employee giving campaign, community contributions program and a community endowment fund to assist in meeting future community social service needs. The employee giving portion of the program allows Newmont employees to allocate their personal contributions

Employees pledged $1.08 million, which will be matched by the company for a total $2.16 million gift to nonprofit organizations. to nonprofit organizations that meet the social service needs in local communities. “This has been a critical aspect of the program, as people want to direct their personal donations to organizations that support programs and services that are important to them,” said Mary Korpi, director of external relations for Newmont’s Nevada operations. “In 2010, our employees pledged

$640,000 and they witnessed the positive impact that these donations made in our communities. Their generosity has grown every year and Newmont is proud to partner with our employees in our 100 percent match of all donations.” More than 150 nonprofit organizations in the northern Nevada communities where Newmont operates, including Battle Mountain, Carlin, Elko, Wells, West Wendover, Wendover and Winnemucca, will benefit from the 2013 NMC Legacy Fund. The Legacy Fund program was cited as an industry-leading example of demonstrating leadership in social responsibility when it received the Bureau of Land Management Hard Rock Mineral Community Outreach and Economic Security Award.

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Submitted

Newmont Mining Corp. staff hold a banner in front of their North American Regional Office on Mountain City Highway to celebrate the company’s $2.16 million Legacy Fund. The money will be distributed to more than 150 Northern Nevada nonprofit groups.

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Safety first

Mining companies take progressive approach to welfare of their employees By MARIANNE KOBAK McKOWN Mining Quarterly Editor

ELKO — Whether they drive a haul truck, operate a hoist or sit at a desk, safety is on the mind of every miner. Everything from the clothing people wear on the sites to the large equipment have safety protocols. Both Barrick Gold Corp. and Newmont Mining Corp. have instituted programs to make their mine sites safer. All mining companies must follow Mine Safety and Health regulations, but Barrick and Newmont have gone beyond the MSHA protocols to involve their employees in finding the best techniques to stay injury-free. “Ultimately our goal is no harm,” said Paul Jensen, Newmont’s regional director of health, safety and loss prevention. “We can be immediate and talk about injuries and we can be long term and talk about health.” Newmont’s Safety Journey kicked off in 2009. The journey covered five phases: awareness, consent, participation, ownership and integration.

Ross Andreson/Mining Quarterly

Richard Curnow, Barrick’s Bald Mountain engineering superintendent, talks about safety features added to Top Pit.

“When we look at the five phases, ultimately we want to look at integration,” he said. “Safety is part of everything we do. Everything we do goes home with you as well.”

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Last year, Newmont geared up more to individual safety through its My Safety Journey. It started the program at Twin Creeks. “We looked at vital behaviors,” Jensen

said. “It was recognition that folks in the field and on the floor know best when it comes to health and safety.” See SAFETY, 46


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Safety ... Continued from page 44

Ross Andreson/Mining Quarterly

A theodolite is housed in a temperature-controlled building across from Top Pit at Barrick’s Bald Mountain. Using a series of prisms, it measures any movement of the walls at the west wall of Top Pit, as seen in the background.

46 MINING QUARTERLY, Elko, Nevada WINTER 2012

Barrick Gold Corp.’s Goldstrike mine, along with other Barrick properties, have a courageous safety and leadership program. “You’re responsible for your own safety,” said Al Plank, Goldstrike manager of administration. “If you see something that doesn’t seem safe, question it.” Matt Murray, of Newmont, said the new safety programs started with everyday tasks. “The employees looked at a task and asked, ‘is this the right way to do this?”’ Jensen said the company has gone to employees and asked them to share stories of issues they have seen on sites. “Management doesn’t know best when it comes to how things are done on the floor or in the field,” Jensen said. Newmont looks at vital behaviors and the personnel at Twin Creek came up with four of them, he said. These vital behaviors include speaking up when an employee sees something is unsafe; don’t compromise safety for time; when doing a task that is unfamiliar, the employee should ask for help, and when starting to become tired or fatigued, the employee is encouraged to take a break.


Jensen said the old mining culture didn’t focus on safety. “There was an impression that they (the employees) couldn’t take a break,” he said. While Twin Creeks started examining the vital behaviors, TS Power Plant, Phoenix mine site and Leeville Mine also set up vital behaviors. Excluding vital behaviors, Newmont has 14 employee-driven programs. By having an open dialogue with employees, the management learns firsthand what issues are affecting the mine site. “The ones that really surprised me were those positive stories where someone intervened for safety and then just went back to work,” Jensen said. Newmont will focus on vital behaviors well into the next year, he said. Tom Bassier, manager of safety, health and security for Barrick Goldstrike, said the site has numerous types of safety issues because it has open pits, a roaster, mill and autoclave, Meikle and Rodeo underground, and Storm underground. “The large scale open pit and large scale underground and process can be a challenge,” Bassier said. The safety culture is “to foster a culture of hazard and risk identification and eliminate the risk if we can or control where we can’t,”

Bassier said. “We have a number of procedures in place to foster the culture of control.” The leadership program also fosters strong visible leadership. Jensen said visibly felt leadership is also important at Newmont’s facilities. “We’re all miners,” Jensen said. “If you work for a mining company, you’re a miner, so you need to know what’s going on out there.” Safety for the employees comes before production. There are similar programs at Barrick. Andy Cole, Barrick Goldstrike general manager, said all the employees are encouraged to speak up on protocols. “What we ask them is, if they see a safety issue, they fix it right away and don’t leave it for someone else,” Cole said. “If you see an unsafe behavior, we expect you to speak up. In essence, you’re your brother’s keeper.” Everyone on the site receives the safety training. The full-time Barrick employees receive the full course and the contractors receive a two-day course, Cole said. Barrick has trained about 5,000 contractors on site — whether they are embedded contractors See SAFETY, 48

Ross Andreson/Mining Quarterly

Dave Pierce, Barrick’s chief mine geologist at Bald Mountain, talks about using prisms for movement in mine pit walls.

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Safety ... Continued from page 47

or just part-time on the site. “You can go anywhere in Barrick and talk the same language for safety, whether you are in the U.S., Australia or Africa. All Barrick employees have that foundation,” Cole said. The program went active in 2005, Bassier said. Evidence of this safety culture was seen a few months ago in the Meikle Underground. Employees thought there might be seismic activity in the underground. “We didn’t know exactly where anyone was in the mine, so we got them out of the mine and then inspected the mine,” said Roger Hoops, manager of the underground. In the end, no one was injured and there was nothing wrong in the mine, but the incident was dealt with in the safest way possible. Jensen said MSHA started in the 1970s and the culture of safety has changed a great deal through the years. Miners used to weigh safety against

getting the job done, he said. However, today’s safety culture has changed the miners’ thinking. Now, if employees are not sure if it’s safe, the site might do everything from stopping production temporarily or sending people home until the task is re-evaluated. “This is evidence of production not coming before safety,” Jensen said. Matt Murray agreed. “Without safe production we have nothing,” he said. It isn’t just the corporations who have helped develop safety protocols. A Talking Safety program was started by the Carlin Surface crews. The program started as a toolbox meeting — where employees gather together to discuss any issues — and then spread from there, Jensen said. Talking Safety program has a 70 percent success rate of safety suggestions, he said. The protocols came from the bottom up and were approved to change how the site does the task. “Who’s going to make a difference in

safety? Not the managers, but the guys on the ground doing the work,”Jensen said. Taking the Training Home Many of the safety issues or training goes home with the miners as well. The safety behaviors on the mine site help set good examples for family at

home. Murray said he never has to tell his children to put on their seat belts, because they learned he won’t start the engine until they are properly secured, which is just one example of mine safety protocols affecting people outside the industry. Some safety signals can be heard in places other than a mine site. Just

Ross Andreson/Mining Quarterly

One of 67 prisms is visible on the west wall of Top Pit at Barrick’s Bald Mountain.

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being near a gas station or school, people may hear someone honking the horn on his or her vehicle because they are used to honk signals when driving on a mine sight. “When I pick up the kids at school, I honk the horn three times and the kids back up,” Murray said. “They move because they know the vehicle is backing up.” For those who don’t know, one honk means the vehicle is starting, two honks means it is moving forward, and three honks tells people the vehicle is backing up. Honk signals are used above and below ground, but in an underground mine the employees also use cap lamp signals. The light on a miner’s hardhat is spun counterclockwise to tell another driver to “come toward”; when the light is moved up and down it means to go away or back up, and when it is moved side to side the signal means stop. Fatigue is another safety concern miners can pass training along to others. In February, Barrick’s Bald Mountain employees were placed in a fatigue management program, said Joe Kemp, Bald Mountain’s safety, health and security superintendent.

“The results came back that we’ve been managing fatigue really well,” Kemp said. Everyone he talked to in the program made small adjustments. Darek Huebner, Bald Mountain’s environmental superintendent, said the training on fatigue included useful techniques, such as how to take effective short naps. “We learned it is best to take a 15minute nap or a 90-minute nap, since you sleep in 90-minute cycles,” Huebner said. Safety recognition To win a safety award, such as the Sentinels of Safety, a mine site has to complete the year without a medical report of injury. Both Barrick Goldstrike’s roaster and mill and autoclave reported no injuries in 2011, but since the mill and autoclave have more employees, that portion of Goldstrike won the Sentinels of Safety award. The mill and autoclave beat the roaster by 8,000 employee hours. To determine safety at a mine site, MSHA looks at the frequency rate per

Richard Curnow, Barrick’s Bald Mountain engineering superintendent, stands next to a “hot dog stand.” Ross Andreson Mining Quarterly

See SAFETY, 52

WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 49


This electrically trolled stairway new addition to rick Goldstrike’s trucks.

conis a Barhaul

Ross Andreson Mining Quarterly

Ross Andreson/Mining Quarterly

50 MINING QUARTERLY, Elko, Nevada WINTER 2012

This fold-up stairway is a new addition to Barrick

Goldstrike’s haul trucks.


Ross Andreson/Mining Quarterly

Josh Bonner, Barrick Goldstrike’s electrician and leadman, demonstrates the use of a new stairway on a haul truck.

WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 51


Safety ... Continued from page 49

200,000 man hours. Kemp said 100 employees will work 200,000 man hours in one year. Equipment Safety Sometimes, how to perform a job isn’t enough to keep people safe on the site. Just getting on and off the large equipment can be hazardous and cause someone to fall. In one year, Barrick’s Bald Mountain site had two lost-time incidents, one medical reportable incident and eight workers compensation incidents, said Kemp. Most of those incidents were caused by trips or falls. One employee fell from the bus and another employee tripped on a rock and twisted his ankle. To prevent some of these falls, Barrick is installing moving stairways onto the mining equipment, such as haul trucks and shovels. The stairway is placed on the front of the vehicle and allows the driver to walk up to the cab instead of climbing a ladder. “We should have this installed on half the trucks by the end of 2012,” Thompson said. “The goal is to have them on all the fleet.” Once the driver is safely in the cab, the stairway can be raised up toward the engine, so it doesn’t stretch down to the ground. The ladders that are typically used on the large equipment remain hanging down. If a driver hits a rock, it can knock off the Ross Andreson/Mining Quarterly ladder. Since the stairway folds upward, there is nothing for the Newmont’s Paul Jensen, regional director of health, safety and loss prevention talks in his office about the 2009 Safety Journey Kickoff. rocks to knock off.

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“This is how we get people up and off the equipment safer,” Thompson said. Another way Barrick focuses on employee safety is with the Inthinc system, said Dale Thompson, general supervisor of the open pit. The Inthinc unit is a driver-mentoring system and coaching device mounted in every Barrick vehicle. It tells drivers to slow down if they drive over the speed limit. It also monitors aggressive drivers and seat belt use.

Ross Andreson/Mining Quarterly

Joe Kemp, Barrick’s Bald Mountain safety, health and security supervisor, talks about what’s new at the site.

Health The welfare of the employees doesn’t end when they leave the site. “We are also very engaged in health as well as safety,” said Aileen Pajunen, manager of Goldstrike’s human resources. During the month of October, Barrick turned pink to raise money for breast cancer research. Every employee who wore pink secured a $5 donation from Barrick, Pajunen said. “We were surprised by the amount of participation,” Cole said. “We had whole divisions who wore pink.” Since the October health program went so well, the site decided to participate in “Movember.” During the month of November employees either grew a mustache or wore a fake one to raise money for men’s health. The company also provides biometric screen-

ings and onsite screening and testing for hearing. Barrick is also focusing on fatigue management. The sites also spend a fair amount of time on stress in the workplace, said Roger Hoops, Goldstrike manager of the underground division. “We teach how to manage stress at home as well,” Hoops said. In November, Barrick kicked off a program for the reduction of soft tissue injuries, said Mike Eiselein, Goldstrike manager. “To reduce stress on joints and ligaments, the new program is called safety in motion,” Eiselein said. “It will teach 12 to 15 techniques to reduce injuries. Everything from lifting to ergonomics and minimized movements such as lifting and twisting.” Bassier said the sites aren’t at the ultimate goal of 100 percent injury free, but the goal is attainable. “We’ve been unrelenting in attaining it,” Bassier said. “We’re doing quite well statistically. We don’t get hung up on the numbers because we’re not at zero yet.” Newmont also has a wellness program that goes beyond sampling. Wellness was not always a top priority, Jensen said. The first wellness committee started in the late 1990s. Newmont has a wellness program and employees can get body scans.

WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 53


Ross Andreson/Mining Quarterly Barrick Goldstrike General Manager Andy Cole discusses the safety leadership program at the site. Ross Andreson/Mining Quarterly

Radar scans the high wall of Top Pit looking for movement at Barrick’s Bald Mountain.

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Mustache ‘Movember’ Submitted

Barrick Cortez Hills Underground celebrates “Movember” in support of men’s health issues, such as prostate and testicular cancer. Movember is celebrated with the wearing and growing of mustaches, such as the one painted on the side of this underground haul truck.

Submitted

WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 55


Stillwater Mining gets OK for more exploratory drilling By BRETT FRENCH Billings Gazette writer

BILLINGS, Mont. — The Beartooth Ranger District has approved a second proposal by the Stillwater Mining Co. to conduct exploratory drilling west of Dean in the Beartooth Mountains, despite objections from some surrounding landowners that the project could devalue their property, harm water supplies and disrupt the recreational appeal of the area with drill site noise and helicopter flights. A June decision memo allowed Stillwater Mining to drill at two sites in the Beartooth Mountains that were accessible by road. Drilling began in October at one of those sites and is expected to continue until December. A second decision memo, delayed while the Forest Service sought an opinion from the U.S. Fish and Wildlife Service about helicopter flights in grizzly bear habitat, allows Stillwater Mining to drill at four other sites accessible only by helicopter. All of the six drill sites are on the

Custer National Forest in the vicinity of the old Benbow chrome mine. The area is popular with elk and deer hunters, accesses the Absaroka-Beartooth Wilderness area for hikers and also is the site of a much-used ATV and jeep trail. Stillwater Mining already operates the only platinum group metals mine in North America, which includes shafts on the west and east sides of the Stillwater River, just to the west of the drill sites, as well as in the East Boulder River drainage farther north. The drilling is to determine the potential for expanding the mine farther to the east. According to the company’s proposal, “Depending upon the results of this exploratory drilling program, possible future development and implementation of the Blitz Mine Expansion has the potential to add an additional 25 years or more of mine life to Stillwater Mining Company’s operation.” In written comments to the Forest Service, some residents have voiced concerns that little information has been revealed about what the mine’s expansion might mean to the area.

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“There should be a clear picture of their future intentions, not just the immediate actions to be taken,” wrote William and Sigrid Schramm. But any plans by Stillwater Mining were beyond the scope of the Forest Service’s environmental review, the agency said. Although most of the comments received by the Forest Service sought further regulation, or a complete halt to the drilling, a few people spoke in favor of the jobs the operation might create. The Stillwater County commissioners endorsed the project. During the drilling, the bulk of which would be likely to occur between April and October, a helicopter would be used daily to fly in equipment and personnel to the four remote sites. Two of the drill sites can be reached by roads. One would be right next to the main Forest Service access road to the area. No new roads would be built and no forest road closures are envisioned. Helicopter flights could occur up to five times a day, seven days a week. In addition, the old Benbow mill site would be used as a remote helipad from which

to haul equipment and supplies. The drill sites will use about 25 to 30 gallons a minute of water pumped from nearby springs and streams to cool the drill bits. Little Rocky Creek, Burnt Creek and Prairie Dog Creek watersheds were named as water sources. Two to five drill holes from 2,000 to 6,000 feet deep could be punched at each site. Water flushed from the drill holes would be contained and recycled. Two drill rigs would be running concurrently, manned by a 10-person crew that would be flown or driven in. Stillwater Mining has proposed to reclaim all of the drill sites. To ensure compliance, the Forest Service would seek a reclamation bond. The Forest Service’s two decision memos can be accessed by going to www. fs.usda.gov/custer and clicking on the right-hand quick link to NEPA projects, then scrolling down to the Blitz Project. The Forest Service decision is subject to appeal. For additional information on the project or the appeals process, contact Dan Seifert, assistant geologist for the Custer National Forest, 406-446-2103.


Chelsea Anderson, environmental specialist for Barrick’s Ruby Hill Mine, talks about reclamation at the site. Ross Andreson Mining Quarterly

Three mines win reclamation awards LAKE TAHOE — Three companies received awards for their efforts in mine reclamation during the Nevada Mining Association convention at Lake Tahoe. The Nevada Excellence in Mine Reclamation Awards are given cooperatively by the Nevada Division of Minerals, Nevada Division of Environmental Protection, Nevada Department of Wildlife, the U.S. Bureau of

Land Management and the U.S. Forest Service. Since the program began in 1990, 72 projects and three individuals have been recognized. • Round Mountain Gold Corp. — a Kinross and Barrick joint venture was given an award in the category of offsite wildlife habitat enhancement for their work at the Round Mountain Mine in Nye County. Bat gates were installed in historic mine workings in

nearby Jefferson Canyon to provide long-term habitat protection to ensure public safety. • Newmont Mining Corp. was given an award in the category of reclamation design and planning for its work at the Twin Creeks Mine in Humboldt County. The Pinon Tailings Facility is one of the first tailings facilities in the state to achieve all closure and reclamation milestones.

• Coeur Rochester was given an award in the category of cooperative partnership in wildlife protection for its work at the Rochester Mine in Pershing County. Coeur implemented wildlife protective measures beyond best management practice requirements and also voluntarily constructed an off-site big game water feature to attract wildlife away from active mining areas.

WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 57


GUIDING THE FUTURE OF MINING SAFETY A need to shift from R&D to DNA By THOMAS E. (TED) BOYCE, Ph.D. In my previous article, I used recorded music as a metaphor to talk about the need to revisit the past. And, we can learn a lot from what we and others have done in the past to help us to be more successful in the future. Musicians often cite the influence of those that came before. And, sometimes we will even duplicate recordings that we’ve purchased so that we can share a part of ourselves with others (many of you likely remember the “mix-tapes” that were once very popular — at least when I was in school!) So, if you make a tape, burn a cd, or share a playlist with a friend, you may be guilty of copyright infringement, but you’re not likely to kill someone. In the field of mining safety, it is not quite that simple. Sure, we can also learn from what others have

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done to successfully reduce or eliminate recipient are closely matched) requires injuries at their mine sites. And we “anti-rejection” medication in order for should. However, that is not to say that the transplant to be successful. I want to we should simply duplicate what others suggest the same kind of “anti-rejechave done without regard for the uniquetion” for the mining industry. ness of our own work cultures and proThus, I encourage you to move from a cesses. perspective of R&D to one of DNAEach work culture has a distinct set of Duplicate with Necessary Adjustments, a variables that constitute its make-up. model I developed and first introduced as Think of it as a sort of “corporate DNA” Duplicate when Necessary and Analyze that is made up of existing rules, regulaat the 2012 New Mexico Mine Health and tions, processes, beliefs, and informal Safety conference. Either theme will cultural norms. We must account for work to guide safety. these factors whenever we’re introWhat does this mean? Put simply, it ducing a program or process to prevent means take time to do things right. First, injuries or, for that matter, any other Thomas Boyce evaluate aspects of your current safety aspect of our mine’s performance. program and be honest about those aspects of it that Having said this, a theme that I have seen at mining are working, those that have merit, but could be conferences over the past decade has me concerned. working better, and those that add little value. Then, This is the mining industry’s cavalier fondness for for those that could be working better or add little R&D (rip-off & duplicate). Transplanting a program value ask: is there something wrong with the prothat has worked in one culture into another that is gram or is it possible that there was something faulty different can render the program less effective, inef- with the implementation or in how the program is fective, or even dangerous. Consider that in medi- administered? I assure you that in many instances, cine, organ transplantation (even where donor and programs that have merit often fail because less care


was taken in how to put them in place and manage them. This is a negative side-effect of R&D. Rather than working together, sometimes programs that could be working better are in competition with other programs that could also be working better. In this case, each renders the other less effective. It is also possible that the new program simply duplicates another that is already in place, another failure to consider DNA. I can assure you that great ideas you obtain at conferences (with the encouragement to R&D) do not come with enough information regarding the challenges of implementing such programs and processes. Let’s consider an example. I recently presented a keynote address at a large mining conference. A common theme at the conference was: “this information is free, please rip-off and duplicate.” The evening keynote speaker, a well-respected executive in the mining industry, took this to the extreme. He handed out a 20-page booklet that he had “obtained at another conference from another mine operator.” As he distributed it, he admitted that his talk would be based on the principles in the booklet and that his company was “struggling” with them as they tried to improve safety. He proudly exclaimed the industry mantra of R&D and encouraged everyone in attendance to take the manual and to “rip-off and duplicate.” A majority of the principles discussed in the booklet had merit. But, there was not a single word about “how to get people to do” what was being suggested. It’s likely that those who published the manual did not know. And, it was only through trial and error that things evolved the way that they did. My questions are the following: how many people in that organization were hurt or killed during the period of trial and error? Is it possible that the industry’s failure to eliminate injuries and fatalities is driven in part by its penchant for R&D? Why will mines invest millions of dollars to implement programs and processes to boost production, but would “rip-off and duplicate” where safety is concerned? Perhaps our employees take shortcuts in safety because that’s the way we treat the programs we use to keep them safe. Indeed, for help obtaining buy-in for

Each work culture has a distinct set of variables that constitute its make-up. Think of it as a sort of “corporate DNA” ... — Thomas Boyce

a safety program and for assurances that it will work well with other things you are already doing, a behavioral scientist such as myself becomes a valuable partner. I can recall a client I worked with in Nevada that asked me to help them implement a field-levelrisk assessment program (FLRA, which were becoming popular at the time) together with a Behavior-Based Safety (BBS) process. A lot of thought was put in to how these two programs would work together and what would be the impact of one on the other, given that both required effort from the employees doing the work. With careful thought, planning, preparation, and education of the workforce, we made both programs work. The BBS process was implemented first and earned that large surface mine the Nevada Mining Association’s award for most improved safety record that year. Subsequently, the FLRA program was appended to the BBS process. This addition helped to earn that same mine the Nevada Mining Association’s award for best overall safety record the subsequent year. In conclusion, I urge you to learn from what others have done to prevent injuries. However, be careful in how you use this knowledge because failure to take into account your mine site’s DNA could cause you to hurt or kill someone who’s life or injury might have otherwise been spared. ——————— Dr. Thomas E. (Ted) Boyce is a behavioral strategist and President and Senior Consultant with the Center for Behavioral Safety, LLC. The Center is a Nevada-Based Safety and Leadership consulting firm that turns managers into leaders and helps companies create an injury-free workplace. Learn more at www.cbsafety.com or contact Dr. Boyce directly at ted.boyce@cbsafety.com. WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 59


Marianne Kobak McKown/Mining Quarterly

Barrick Ruby Hill Mine, open pit division, won a Sentinels of Safety award for 232,809 injury-free hours. From left: Tim Rosener, Shane Moyle, Dave Fisher, Paul Bowling, Kim Starr, Jerry Johnson, Steven Yopps and Pete Vojvodich.

Sentinels of Safety Barrick, SMD among award winners By MARIANNE KOBAK McKOWN Mining Quarterly Editor LAS VEGAS — Safety was the focus as two Barrick of North America mines and Small Mine Development at Fire Creek won awards in September during MINExpo International at Las Vegas. The National Mining Association honored several metal, nonmetal and coal mines with Sentinels of Safety awards. Barrick’s Ruby Hill Mine open pit division earned the award for 232,809 injury-free hours in 2011. Ruby Hill’s Open Pit Superintendent Jerry Johnson, Maintenance General Foreman Shane Moyle and Drill and Blast Supervisor Paul Bowling

accepted the award. “It’s a nice recognition and source of pride,” Johnson said. Bowling said the last lost-time injury was in December 2010. “At the site, we don’t talk about the numbers, we just focus on safety,” he said. Moyle said the mine went without a lost-time injury for more than a year because of the awareness, training and communication at the site. Johnson agreed. “It’s everybody walking the talk,” he said. Moyle added, “Work as a team and you can accomplish anything.” Barrick Goldstrike’s mill and autoclave operations earned the Sentinels of Safety award for

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Small Mine Development gave this lantern-shaped trophy to its employees for winning the 2011 Sentinels of Safety Award. Ross Andreson Mining Quarterly


318,853 injury-free hours. Process Maintenance Superintendent John Herbert and Process Operations Superintendent Kip Slaybaugh accepted the award. Herbert said the injury-free time could be attributed to “a whole gamut of things.” “It’s training and courageous leadership,” he said. “It’s the employees and the contractors both having a say if they don’t think things are right.” Just as with Ruby Hill, Goldstrike’s mill and autoclave injury-free hours stretched through more than 2011. The operations went without a lost-time injury from 2010 and into 2012. Herbert said the award was earned by all the employees. “It’s because of all the employees that we were able to make this happen,” he said. ——— Small Mine Development at Fire Creek Mine won the Sentinels of Safety 2011 award in the Underground Metal category. The company has 27,250 injury-free hours at Fire Creek, which is owned by Klondex Mines Ltd. SMD does all the underground work at Fire Creek and Klondex does the surface work. David Bixler, safety and security supervisor for Klondex, said the SMD and Klondex See SENTINELS, 62

Marianne Kobak McKown/Mining Quarterly

The mill and autoclave operations at Barrick’s Goldstrike Mines won a Sentinels of Safety award for 318,853 injury-free hours. From left: Barrick employees Steven Yopps, John Herbert, Kip Slaybaugh and Steve Cashin; and President and CEO of the National Mining Association Hal Quinn.

WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 61


2011 Sentinels of Safety award winners

Sentinels ... Continued from page 61

employees were “pretty thrilled” with the award. “They have their own safety people too,” Bixler said. “We just work together on it. If they need something, I go over and if I need something they help out.” SMD Safety Superintendent Clay Gines said receiving the Sentinels of Safety award was “a different experience. It was pretty neat having it down in Vegas.” He has worked for SMD for almost three years. Fire Creek is “a totally different project. A lot of different ground conditions and water. It just varies a lot and changes day to day. Every day is different. We don’t get complacent. You have to stay on your toes here,” Gines said. When SMD won the Sentinels of Safety award the company gave each of the employees an award shaped like a

flame safety lamp. It was for everyone who was with the company in 2011 and for the Klondex employees. “This award is basically for guys that are here 24/7, the ones who are here night shift and weekends away from families,” Gines said. “Those are the guys who deserve it.” Kent Hansen, SMD mine superintendent, has worked for the company for 12 years and in the mining industry for 30-plus years. He said this was the third award for SMD, which also received the award when the company worked at Cortez and at Exodus. “I thought it was great,” Hansen said about receiving the award. He said the biggest challenge with safety at Fire Creek is the water. “It’s not really a problem, we just have to watch it for now,” Hansen said. “We’re in a monitoring stage right now.”

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Large Company Award Winners

Small Company Award Winners

Coal Processing Facility – McElroy Prep Plant, McElroy Coal Co., Moundsville, W.Va.

Coal Processing Facility – EME Homer City Generation, EME Homer City Generation, Homer City, Pa.

Surface Coal – Rosebud Mine & Crusher/Conveyer, Westmoreland Mining LLC, Colstrip, Mont.

Surface Coal – Centre County Strips, Amfire Mining Company LLC, Latrobe, Pa.

Underground Coal – Dugout Canyon Mine, Canyon Fuel Co. LLC, Wellington, Utah.

Underground Coal – Bergholz 7, Rosebud Mining Company, Bergholz, Ohio.

Bank or Pit – Preferred Sands of Wisconsin, Preferred Sands of Wisconsin LLC, Blair, Wis.

Bank or Pit – (Tie) Portable Crushing Plant No. 2, Carr Brothers & Sons Inc., Albion, Mich.; and Starrette Trucking Co. Pit, Starrette Co. Inc., Augusta, Ga.

Dredge – Irwindale Rock Plant, Hanson Aggregates Pacific Southwest Inc., Irwindale, Calif.

Dredge – Grove, Cornejo & Sons LLC, Wichita, Kan.

Metal-Nonmetal Mill – Mill Autoclave Operations, Barrick Goldstrike Mines Inc., Carlin, Nev.

Metal-Nonmetal Mill – Milton Plant, Hanson Aggregates Pennsylvania LLC, Montoursville, Pa.

Open Pit – Barrick Ruby Hill Mine, Open Pit Division, Homestake Mining Company of California, Eureka, Nev.

Open Pit – Kaufman-George Pit, New NGC Inc., Fort Dodge, Iowa.

Quarry – Three Rivers Quarry, LaFarage West Inc., Smithfield, Ky.

Quarry – Malllard Creek Quarry, Martin Marietta Materials Inc., Charlotte, N.C.

Underground Metal – Pend Oreille Mine, Teck Washington Inc., Metaline Falls, Wash.

Underground Metal – Fire Creek, Small Mine Development LLC, Crescent Valley, Nev.

Underground Nonmetal – Cayuga Mine, Cargill Deicing Technology, Lansing, N.Y.

Underground Nonmetal – Parkville Mine, Hunt Martin Materials LLC, Parkville, Mo.


WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 63


Submitted

Dialight’s LED equipment illuminates a mining process plant.

Dialight offers proven LED technology By JOHN RASCHE Free Press Staff Writer Light-emitting diode might sound like a new technology. To many lighting companies, it probably is. As a forerunner of the LED development, however, Dialight Corp. has been offering the technology to industrial clients for 40 years. “People think LED is a relatively new technology,” Director of Marketing Michael Schratz said. “But in the early ’90s, we were the first (company) to introduce LED traffic signals. A lot of what we’re up against are the traditional lighting companies that are just getting into LED technology.” LED lights serve a wide range uses, especially in mining operations. Barrick Gold Corp. and Newmont Mining Corp. are just two of Dialight’s mining clients. The company’s LED products are also used by power companies, processing plants, oil and gas producers, industrial manufacturers, warehouse facili64 MINING QUARTERLY, Elko, Nevada WINTER 2012

ties and more. So what makes LED technology special? Well, everything, according to Dialight. The benefits of using LED lights as opposed to traditional lighting methods are astounding. The LEDs are proven to have a longer life and higher efficiency than standard light bulbs, Schratz said. “Our fixtures are rated for 60,000 hours,” Schratz boasted. “We have been able to replace 400-watt fixtures with 170-watt LED fixtures.” They can also withstand extreme shock and vibration — a characteristic that is highly regarded in the mining industry — as well as intense climates. “Our lights are capable in both hot and cold temperatures,” Schratz said. “Our fixtures are rated from -40 degrees Celsius to 55 degrees Celsius. We have customers in the mining world who will buy our products just for the temperature rating.” LED technology offers improved visibility and pre-

cise optical control, since the lights are smaller and emit a brighter light. They are energy-efficient, nonhazardous and can be recycled. Unlike other lighting sources, LEDs do not require a “warm-up” period in order to cascade light, nor does the on/off switch dictate their lifespan. Dialight offers a five-year continuous performance warranty on its LED High Bays, commonly used by mining operations, so that “maintenance becomes a thing of the past,” according to an online presentation dated October 2011. “On average, 100 Dialight DuroSite LED High Bays can reduce carbon dioxide emissions by 125 tons per annum, so your organization can be greener.” In addition, “many installations see payback in less than two years and the LED lights can last for 10 years or more.” For more information about Dialight or to browse through the products it offers, visit www.dialight.com or contact the North America office at 732-919-3119.


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MSHA: Mining fatality, injury rates fell to historic low in 2011 ARLINGTON, Va., — Mining fatality and injury rates fell to an all-time low in 2011 according to data recently released from the U.S. Department of Labor's Mine Safety and Health Administration. The fatal injury rate for mining as a whole was .0114 per 200,000 hours worked, and the all-injury rate was 2.73 per 200,000 hours worked, down from .0234 and 2.81, respectively, in 2010. In the metal/nonmetal mining sector, the fatal injury rate was .0084 per 200,000 hours worked, and the all-injury rate was 2.28 per 200,000 hours worked, down from .0129 and 2.37, respectively, in 2010. In the coal mining sector, the fatal injury rate was .0156 per 200,000 hours worked, and the allinjury rate was 3.38 per 200,000 hours worked, down from .0384 and 3.43, respectively, in 2010. MSHA also released a third-quarter summary of mining deaths across the country. From July through September 2012, 11 deaths occurred in work-related accidents — six in coal mining and five in metal/non-

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metal mining. Of the six coal mining deaths, one miner was killed as a result of a machinery accident; two miners were fatally injured as a result of fall of rib, roof, face or back accidents; and three miners were killed in powered haulage accidents. Of the five metal/nonmetal mining deaths, two miners died as a result of falls, one miner died in a machinery accident, one miner lost his life due to falling material, and one miner was killed in a powered haulage accident. “Even though the mining industry has achieved historic low fatality and injury rates, we know that more needs to be done, and that fatalities and injuries are preventable,” said Joseph A. Main, assistant secretary of labor for mine safety and health. “Many mines operate every shift of every day, year in and year out, without a fatality or a lost-time injury. Fatalities can be prevented through effective safety and health management programs in the work-

place. Pre-shift and on-shift examinations can identify and eliminate hazards that kill and injure miners. And providing effective and appropriate training will ensure that miners recognize and understand hazards and how to control or eliminate them.” To identify mines with health and safety problems, MSHA has undertaken a number of outreach and enforcement initiatives such as special impact inspections and “Rules to Live By,” a fatality prevention program that highlights the safety and health standards most frequently cited during fatal accident investigations. “We believe these actions, along with those adopted by the mining industry, can make a positive difference,” said Main. An analysis of third-quarter mining fatalities, along with best practices to help mine operations avoid such fatalities, is available on MSHA’s website at http://www.msha.gov/fatals/summaries/summaries.asp.


MSHA reports rise in discrimination complaints ARLINGTON, Va. — When it came to discrimination complaints, 2012 was a record-breaker for the U.S. Department of Labor’s Mine Safety and Health Administration. Thirty-nine requests were filed during fiscal year 2012 with the Federal Mine Safety and Health Review Commission for temporary reinstatements on behalf of miners who submitted complaints of discrimination in the form of a suspension, layoff, discharge or other adverse action. From October 2009 through September 2012, the department filed 79 temporary reinstatement requests – an average of 26 per year – compared to an average of seven per year from October 1993 to September 2009. Additionally, the department filed a total of 84 discrimination complaints with the commission during the same period, compared to 28 during the three prior years combined. According to Section 105(c) of the Federal Mine Safety and Health Act of 1977, a miner cannot be discharged, discriminated against or interfered with in the exercise of statutory rights because he or she has engaged in a protected

activity such as filing a complaint alleging a health or safety violation, or refusing to work under unsafe or unhealthy conditions. “MSHA strongly encourages miners to exercise their rights under the Mine Act and maximize their involvement in monitoring safety and health conditions,” said Joseph A. Main, assistant secretary of labor for MSHA. “In turn, we will vigorously investigate all discrimination complaints.” If MSHA finds that a miner’s complaint is “not frivolously brought,” the agency, at the request of the miner, will ask the commission to order immediate reinstatement for the miner. Issues relating to fears of discrimination and retaliation came to light during congressional hearings held in the wake of the Upper Big Branch Mine disaster. Statements from miners and family members of the miners who died indicated that mine employees had been reluctant to speak out about safety conditions in existence prior to the April 2010 explosion, fearing retaliation by management. Testimony from UBB employees presented during MSHA’s investigation also supports those claims.

Montana Supreme Court: Stricter permit needed for Rock Creek Mine By ROB CHANEY The Missoulian A four-judge majority of the Montana Supreme Court agreed that Revett Mining Co.’s permit for a road to its proposed Rock Creek Mine in the Cabinet Mountains Wilderness wasn’t strict enough to protect threatened bull trout there. The decision affirms a Montana District Court decision from 2011 sought by the Clark Fork Coalition, Earthworks and the Rock Creek Alliance. The environmental groups argued Rock Creek held a crucial breeding population of bull trout that fed into the Lower Clark Fork River. Dirty runoff from road construction

would choke the spawning beds and feeding pools the trout used. The Montana Department of Environmental Quality had given Revett a general water discharge permit to build a road to its underground copper and silver mine. Opponents argued the project needed closer supervision to protect the already struggling Rock Creek bull trout population. The judges agreed DEQ made a mistake and should have required a more specific permit with greater public review. However, dissenting Justice Jim Rice argued Revett’s road plan actually cleaned up more sediment than the construction would produce. He wrote the majority should have given more deference to the agency’s review. WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 67


68 MINING QUARTERLY, Elko, Nevada WINTER 2012


BLAST FROM THE PAST SERIES

Virginia City

Marianne Kobak McKown/Mining Quarterly

The historic Gold Mill still stands in Virginia City.

The silicon valley of its time

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

for gold, according to the book “Going Deep: Hardrock Mining on the Comstock.”

VIRGINIA CITY — Many U.S. towns can trace their history back to the 1800s, but very few capitalize on the nostalgia of yesteryear like Virginia City. This town among the Virginia Range sprung up around mine claims from the Comstock Lode. In the late 1850s, a handful of placer miners worked the Comstock with hand tools and rockers searching

Digging Out Comstock The Comstock Lode was discovered in 1859 in the Virginia Range and it changed the miner’s environment. Instead of mining the surface, the miners followed the ore underground, according to “Going Deep.” “The Lode was a mineralized zone of silver and

gold veins estimated to have been 0.5 mile wide and 7 miles long,” stated “Going Deep.” The first shafts were only 100 to 200 feet in depth and the early miners had to carry the ore and waste rock out of the mines in bags while climbing up ladders or walking up inclines. The only other power available to them was generated by hand or animals. One of the first mines to install a small 15-horseSee VIRGINIA CITY, 70

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Marianne Kobak McKown/Mining Quarterly

The historic Gold Mill is a double stamper. It is still in working order.

Virginia City ...

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Continued from page 69

stated “Going Deep.”

power steam engine for hoisting men and tools and pumping water out was the Ophir Mine. “By 1866, the Comstock mines were becoming the deepest in the world with more than 40 operating mines and 60 mills for processing the ore,”

Silicon Valley of the Old West As the mines had continuing problems with water and heat, new technologies were developed to solve the See VIRGINIA CITY, 73


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Relics of the mining past are displayed at the Fourth Ward School in Virginia City. Marianne Kobak McKown Mining Quarterly

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Virginia City ... Continued from page 70

problems underground. “This was an industrial complex,” Barbara Mackey, executive director of the Historic Fourth Ward School Museum said about Virginia City. “What always fascinated me about Virginia City is it was the hot bed of new invention, kind of like Silicon Valley today,” Mackey said.“Square-set timbering was invented in Virginia City.” By 1860, the Ophir Mine was so large it could not keep the ceiling from collapsing with ordinary mine timbering. As the mine became more dangerous, miners started to refuse to work in the underground. One of the mine’s directors, W.F. Babcock, contacted the German-born engineer Phillip Deidesheimer to help save the mine, according to “Going Deep.” “In less than six weeks, Deidesheimer invented a totally new system of mine timbering called square sets, that could be extended vertically and horizontally to fill in and stabilize the openings that resulted from excavating the mines,” stated “Going Deep.” “Square sets are made up of timbers from 4

to 6 feet long, interlocked at the ends by means of mortises and tenons so that they may be constructed into a series of cribs, added indefinitely side by side, or built one on top of the other, so as to fill in any orechamber as fast as the ore is taken out. The square cells can withstand pressure equally from all six directions without spikes or nails.” Hoisting works with flat braided cables and the Cornish pump also were developed because of the needs in Virginia City. The Cornish Pump forced the water out of the mines. “Going Deep” states, “The Cornish Pump is a steam driven flywheel with a main pump rod and a series of attached pumps that siphons water from mine shafts. Steam presses down the piston of the flywheel mechanism that raises the main pumping rod, which descends by its own weight. As the piston is pulled upward, water at the bottom of the shaft usually contained in a sump is sucked into the piston chamber. At the end of the up stroke, the weight of the Marianne Kobak McKown/Mining Quarterly

See VIRGINIA CITY, 74

This is the oldest headframe on the Comstock. It is near the Gold Hill Hotel.

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Marianne Kobak McKown/Mining Quarterly

Gary Teel is the stagecoach driver for TNT Stagelines. He has been driving teams for 65 years. Teel gives tourists a taste of Old West life through his business thrill ride.

Virginia City ... Continued from page 73

water closes the chamber value. On the down stroke, this water forces open a clack valve in the main column line. The water advances up the column until the clack valve closes and traps the water. This motion continues up 74 MINING QUARTERLY, Elko, Nevada WINTER 2012

the shaft until the water is discharged.” In 1864, the round wire rope was replaced by the flat braided wire cable, according to “Going Deep.” It was invented by Andrew S. Hallidie, an English See VIRGINIA CITY, 75


Virginia City ... Continued from page 74

immigrant. The flat cable was vastly superior to the round rope. “The flat cable would wind flat on the barrel of the hoist, was less likely to slip, and provided better control when lowering buckets or cages,” states “Going Deep.” Changing the Process The way gold and silver was processed also changed because of Virginia City. Since massive amounts of ore were coming out of the mines, it needed to be processed faster and this led to the Washoe pan process. “The California Pan Mill, which practiced the Washoe pan milling process, had a 600-horse-power engine operating 80 stamps, each weighing 984 pounds to crush the ore, 46 pans, 4 agitators and 20 settlers, all of which could process 380 tons of ore daily,” stated “Going Deep.” Marianne Kobak McKown/Mining Quarterly

The shotgun view from a TNT Stagelines stagecoach while it is moving. Stagecoaches could travel from 10 mph to top speeds of 25 mph.

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Marianne Kobak McKown/Mining Quarterly

The Fourth Ward School is famous for being the last standing four-story wooden school building in the country.

Virginia City ... Continued from page 75

One of these types of mills can still be seen today in Virginia City. The old Comstock Gold Mill is a double stamper and it is still in working order. People who visit Virginia City can receive a tour of the mill from the man who keeps it running, “Outlaw Dave.” He said the mines in the 1800s ran every day of the week, just like now. “They shut things down for one day, 76 MINING QUARTERLY, Elko, Nevada WINTER 2012

when President Grant thanked Nevada for funding the Civil War,” Dave said. Life was tough for miners in those days, Dave said. The life expectancy of miners in Virginia City was 38 years old. The mill Dave maintains originally ran on steam and later was run by a vehicle engine. See VIRGINIA CITY, 78


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Virginia City ... Continued from page 76

The Comstock mines also integrated the latest and greatest inventions to make the mines more efficient. “When Bell invented the telephone, the mines hopped onto that idea right away,” Mackey said. “The mines installed switchboards before most people had phones in their home.” In 1867, dynamite was invented and was soon used in the Comstock mines since it was safer and easier to use than black powder. Another key tool was the Burleigh mechanical drill invented in 1869, which eliminated the task of operating rock drills by hand, according to “Going Deep.” Industrial mining took another step forward when the Burleigh drill was combined with the diamond rock drill bit.

Marianne Kobak McKown/Mining Quarterly

Desks, chalkboard and stove appear just as they did when the Fourth Ward School was used by students.

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Unions on the Comstock When the mines changed because of industrialization, the miners no longer worked for themselves. “Work schedules became highly


Marianne Kobak McKown/Mining Quarterly

“Outlaw Dave” explains mining in the 1800s in Virginia City. In background is a historic double stamp mill.

standardized, impersonalized, rigid and imposed by the mining companies,” states “Going Deep.” Mining jobs became specialized once it became more industrialized. The men were employed as hoist operators, unskilled laborers, mechanics, engineers, shift super-

visors, carpenters and skilled miners, states “Going Deep.” By 1863, underground miners formed some of the first unions in the West. Through the unions, the miners earned better wages and See VIRGINIA CITY, 80

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Virginia City ... Continued from page 79

working conditions. Miners worked 3,200 feet underground in temperatures above 100 degrees for $4 a day. This was the highest wage for miners in the 1800s. Modern Frontier City While many may picture a mining town as being small and full of tents housing single men, Virginia City was very metropolitan for its day. It began small with young bachelors populating the area, but as the mines and their technology advanced, the need for a larger and experienced workforce also grew. By 1880, Virginia City had a number of married men with children. In 1876, Virginia City and Gold Hill’s population was 19,500 compared with the Sacramento, Calif., population of 18,500 and Reno’s population of 3,900, according to the 1875 Census. Virginia City was full of all the latest and greatest pieces of 1800s civiliza-

tion. The city consisted of mine offices with mills, tailings piles, foundries and a vast infrastructure of roads, utilities, communication and supply lines. However, it didn’t stop with just mining conveniences. The city had hotels, merchants, saloons, restaurants, livery stables, stock exchanges, fraternal clubs, lodging houses, schools, churches, an orphanage, a hospital and firehouses. The homes also ranged in type and size from cabins to mansions, stated “Going Deep.” “In 1875 most of the town burned,” Mackey said. It is believed the fire started after someone knocked over a lantern. “It was quickly rebuilt because San Francisco depended on this economy in Virginia City,” Mackey said. “The stock market was also dependent. The earthquake in 1906 in San Francisco destroyed many of the buildings associated with Virginia City.” Fourth Ward School One of the buildings built after the

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fire was the Fourth Ward School. The structure is the only four-story wooden school building standing in the U.S., Mackey said. She has been the director of the museum for 12 years. All multi-story wooden schools were torn down because of fire codes. The only other wooden schools still around are one-story buildings, she said. The Fourth Ward operated as a school for 60 years — from 1876 to 1936. “It was abandoned for 50 years and left as it was, almost like a time capsule,” Mackey said. In the 1980s, people started to renovate the school and made one room into an interpretive center. It was eventually restored and two floors were open to the public. The bottom floor contains the offices and storage. The fourth floor is not open to the public because it doesn’t have a fire escape, Mackey said. The architectural style of the

building is called second empire, a revival of the empire style. When the building was used as a school, every floor had four classrooms. The second and third grades were in the basement; the entrance level held the fourth, fifth and sixth grades and the top floors held seventh, eighth and ninth grades. The Fourth Ward was not the only school in Virginia City during the 1800s. There were 12 other public schools. There were 3,000 schoolchildren in the city. A couple of times, people thought about tearing the building down, but something always stopped them, Mackey said. Today, the Fourth Ward School houses several exhibits, from antique printing presses and a display about Mark Twain to a mining exhibit that teaches the history of mining from the 1800s to modern day.

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Virginia City ... Continued from page 80

Decline of Mining Production in the Comstock mines started to decline in the late 1870s, according to “Going Deep.” The last great ore body was found in 1873. By 1886, only a few of the mines continued pumping. These mines were processing the low-grade ore through a cyanide milling process. When the decline occurred, no great ore body had been found since 1873, stated “Going Deep.” At one point $40 million had been spent in 10 years and had not paid a dollar in dividends, according to “Going Deep.” The Cornish pumps were unable to handle the water when the shaft began making connections to adjoining mines. “The pumps were then lifting 5.2 million gallons every 24 hours, or 3,600 gallons a minute,” stated the book. “On Oct. 16, 1886, the combination pumps ceased to operate and within 36 hours the water had risen to the 2,400-foot level, flooding the entire working of the Collar-Potosi, Hale & Norcross and the Savage Mines.” Today’s Virginia City While most of the buildings were built in the 1800s, they all have been upgraded with modern conveniences, but still retain their Old West charm.

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Patrick Gilmore, tourism and marketing manager for Virginia City, said he has lived in the historic town for 13 years and has worked at the center for eight. “The neatest thing when people discover us, they can’t believe it’s a real town,” Gilmore said. “That people really live here and most of the buildings date to 1876.” Gilmore said the mines aren’t the only historic highlights of the town. The first time Samuel Clemens used his pen name Mark Twain was in Virginia City. “There’s a saying that Samuel Clemens was born in Missouri, but Mark Twain was born in Virginia City,” Gilmore said. Diamond Jim Caravallo has lived in Virginia City for five years and has worked at the visitor’s center for four. “It’s a lot of fun,” Jim said. “I moved here to move back in time. Soon as I moved here, I felt I was home. They do say Virginia City does pick who lives here. “I was not made for the (modern) city,” he continued. “I was born 150 years too late.” Guide for Visitors The Visitors Center is located on C Street in the Crystal Bar, one of the 110 saloons that was built in Virginia City in the 1800s. While there are numerous historic buildings to see in the town, there are also two unique rides. Visitors can

Marianne Kobak McKown/Mining Quarterly

Photos of miners in the 1800s can be seen in the basement windows of the Fourth Ward School.


hitch a ride on the Virginia and Truckee Railroad or buy a ticket for the TNT Stagelines’ stagecoach. Gary and Nancy Teel operate the stagecoach. Before anyone climbs aboard, they receive a short history lesson. The average speed of a stagecoach was 10 mph, but it can go up to 25 mph. Those who ride can experience the slow and top speeds. The Concord Stagecoach driven by Gary is the same model that was used to haul mail and newspapers, as well as paying customers. “This was first class accommodations,” Gary said. When people rode the stagecoach in the 1800s they traveled 2,075 miles in 22 days. The coach traveled 24 hours a day and seven days a week, Gary said. While Virginia City is a historic mining city, it is no longer without an active mine site. Comstock Mining Inc. is mining for gold once again in the hills near Virginia City. It is no longer just a historic mining town, but a mining town with a very visible link to its past.

Marianne Kobak McKown/Mining Quarterly

Historic mining equipment is displayed for tourists in Virginia City.

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BACK TO THE

COMSTOCK Marianne Kobak McKown/Mining Quarterly

Comstock President and CEO Corrado DeGasperis talks about the company’s plans after its first gold pour.

Continuing the mining tradition Marianne Kobak McKown/Mining Quarterly

The Comstock property is seen in the background before a blast. The historic New York shaft is in the foreground in this photo from October. In bottom photo, dust blows in the wind after the blast.

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

VIRGINIA CITY — Active mining near Virginia City is no longer a thing of the past. Comstock Mining Inc. poured its first silver and gold bar Sept. 29. The pour created three bars and one button, for a total of 16,060 ounces, of which 14,802 ounces were silver and the remaining 1,258 were gold. Comstock President and Chief Executive Officer Corrado De Gasperis said not everyone believed the company would be able to mine in the area, but now the mine is up and running. “We don’t accept the standard,” De Gasperis said. “We very much care about the territory. We feel we have to care about the territory more than anyone else.” “I felt relief with the first pour,” he said. “People are starting to appreciate there is something different about the Comstock. It is a brand. ... Don’t judge us by what other people say. Judge us by what we do.” Comstock Mining is a Nevada-based corporation and employs more than 100 people, said Doug McQuide, director of external relations. The company has acquired 6,000 acres of property and mining claims across the Comstock. The company estimates the identified mineral values at nearly $5 billion. The Lucerne Pit is at Gold Hill in Storey County, and mining can be seen from State Route 342. The ore is taken See COMSTOCK, 86

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Marianne Kobak McKown/Mining Quarterly

Doug McQuide talks about Comstock’s plans for preserving historic mine sites around Virginia City.

Comstock ... Continued from page 85 from the pit to the company’s processing site 2.6 miles away at American Flat. Because of the high clay content of the rock, cement is added to the ore before it is placed on the heap leach pad, said Cindi Byrns, Comstock’s director of environmental and regulatory management. Then a series of conveyors or “grasshoppers” place the ore on the heap leach pad. Most of the equipment used at Comstock is small when compared to mines in other parts of the state. The company uses 50-ton haul trucks to negotiate the mine site. “We will never have a large pit,” Byrns said. “We have a fracture-driven ore body, so we will follow the fault line.” The ore is high-grade, at about 1 ounce of gold equivalent per ton, she said. After Lucerne, the company plans a

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second mine in Lyon County called the Dayton Resource, McQuide said. There are also three areas for underground mining. McQuide said the Dayton site has about 500,000 gold equivalent ounces. Lucerne’s mine life is 20-plus years and Dayton’s estimated mine life is 10 years. Identified mineral values are estimated at almost $5 billion. “The average cost is $100 for an ounce of gold, but our cost is $6 per ounce,” McQuide said. The company is also exploring the Spring Valley area and has assayed gold just 38 feet under the surface, McQuide said. BLM Issues Despite being able to mine and pour silver and gold, Comstock is still dealing with issues at the site.


The site is using about a mile of State Route 342 for its haul road. Trucks were re-routed onto the public highway because of a dispute between Comstock and the U.S. Bureau of Land Management. The BLM is disputing the ownership of lot 51, which the off-highway haul road runs through. “We do not believe we should be restricted from using private lot 51 and don’t believe we should be restricted from using the right of way,” De Gasperis said. “The BLM is working with us on working around the issues, but we don’t understand why we have to. It is costing us more money, about $3 million more per year. “Making the company use the state route is creating more traffic for the community and less revenue for the county,” he said. “Because this one lot is in the very center of the haul road, it disables us and forces us to use the state route. Although we appreciate that they’ve given us an alternative, we don’t understand why we need to use it.” De Gasperis said his company is working with the BLM to permit the road. “If it all goes through, we will be all contained,” he said. Marianne Kobak McKown/Mining Quarterly

See COMSTOCK, 88

Comstock’s first gold pour, on Sept. 29.

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Comstock ... Continued from page 87

Marianne Kobak McKown/Mining Quarterly

The historic New York shaft is in left foreground, and the Comstock Mine site is in the background.

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Lawsuit Comstock Mining and Storey County are also facing a lawsuit from the Comstock Residents Association. The association wants to stop the mine from using the state route and claims the county is improperly allowing the company to use the road to haul ore, according to the Associated Press. In addition to safety concerns, critics say the mining runs counter to the best interests of protecting the area’s history, AP reported. The company and its employees disagree. McQuide said Comstock Mining is continuing the history of mining in the area. “Mining today is not what it was 20 or 30 years ago,” McQuide said. “We’re going above and beyond minimal levels. We want a sustainable community.” Opponents of the mine say the historic mines were all underground, however, surface mining was done in the 1920s, ’30s and as late as 1968, McQuide said.


Marianne Kobak McKown/Mining Quarterly

A conveyor piles ore on Comstock’s heap leach pad on the company’s mine site near Virginia City. “The state doesn’t require reclamation of the pits, but the community we’re in cares about that,” he said. “It may not be appropriate in other areas of Nevada, but it is appropriate here.” When mining is done, the company will reclaim most of the pit. It will leave part of the pit exposed so students and tourists can see what mining looked like on the Comstock. However, Comstock is already working to restore and preserve historic buildings and mining equipment in the area. “Most of the historic shafts are falling apart,” McQuide said. “Who loses if that goes away? The

Marianne Kobak McKown/Mining Quarterly

This illustration shows how Comstock Mine will reclaim the pit after mining is completed.

tourists. ... The historic structures on the Comstock are decaying, and we want to fix them.” The company’s first venture into tourism was the purchase of the Gold Hill Hotel, built in 1861. It is Nevada’s oldest operating hotel, according to the Virginia City Convention and Tourism Authority. Comstock also bought the Cabin in the Sky and is restoring the building. It will house a restaurant with a view of the mine site, so when tourists visit they can see modern mining while experiencing the historic community. These same people also will have a view of the historic New York Shaft, which sits across from the Comstock mine site. A mining museum also may be constructed

near the shaft, Byrns said. The company won’t stop at those few structures. Comstock Mining is committing 1 percent royalty to preservation and restoration. “We look at this as an investment,” McQuide said. De Gasperis said the pour enables some of the restoration process. “We’ve committed to be tourism-friendly mining,” Byrns said. “As we have more time and more money, we will do more with tourism. “This is a totally cool place. What we really want people to do is come here and stay here and play here, don’t just come for a day.”

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Goldstrike

Barrick’s flagship mine continues to improve By MARIANNE KOBAK McKOWN Mining Quarterly Editor

CARLIN — Barrick’s flagship, Goldstrike Mine on the Carlin Trend, is finishing its 25th anniversary with continued improvements in equipment and facilities. The Rodeo Paste Backfill Plant will soon be operational. This plant is the first of its kind in Nevada. The surface plant manufactures a paste from a mixture of tailings from Goldstrike, fly ash and cement. The mine should be sending the paste down through a piping system by Dec. 10, said Roger Hoops, manager of the underground. As areas are mined out, Barrick will fill them with paste instead of backfill.

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“We’ll be piping the (paste) backfill down, instead of taking it by truck,” Hoops said. “This creates less human and machine interaction.” Along with surface improvements, a new machine is being tested out underground. The Alpine, also called a Sandvik roadheader, is being tested out in the Rodeo underground. “The main advantage to this machine is so we can cut continuous,” Don Dwyer said. “Typically we have to cut and blast. We usually blast at the end of the shift, but with this machine, we don’t have to blast.” Jeff Laughter, alpine operator, said he has been working with the machine for four months. He said the roadheader can be operated by remote control and inside the cab. Laughter said he usually re-

motely drives it into position from the outside because it is easier to line up the vehicle with the correct area to be cut. While he cuts the rock, he sits inside the cab because of the rock temperature. Dwyer said the rock temperature is usually about 120 degrees. “Right now we are renting the machine to see how effective it is,” Dwyer said. “The advantage to the machine is we can mine an area we normally wouldn’t be able to blast. The rock is too hot and dangerous to blast. “The roadheader also gives a smoother profile, so we won’t have to do as much bolting to keep the ceiling up. See GOLDSTRIKE, 92


Ross Andreson/Mining Quarterly

LEFT: Sandvik Alpine roadheader operator Jeff Laughter moves the underground machine toward the rock face at Barrick’s Rodeo underground. ABOVE: The roadheader cuts hard rock at the rock face using transverse cutter heads.

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Goldstrike ... Continued from page 90

in about six minutes, Dwyer said.

While the rock is cut at the front of the roadheader, a truck is backed up behind the machine. A conveyor system on the roadheader takes the rock from the front of the machine to the back. The roadheader can load 26 tons into the truck

Maintain the Equipment While Barrick is making improvements above and below ground, it is also maintaining the hoists that connect the surface to the Meikle and Rodeo underground.

Ross Andreson/Mining Quarterly

Technician Matthew Armuth checks tightness of fasteners on a bolter in the Rodeo underground shops at Barrick Goldstrike.

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Part of the maintenance includes taking care of the five hoists on the property. “My main job is listening and making sure the hoist is working properly,” said Art Harris, hoist operator. Leadman hoist operator Steve Elliott said two of the hoists have to be operated manually because they haven’t been updated yet. “Every week we have maintenance done on the hoists,” Elliott said. Some of the maintenance includes an X-ray of the cable every six months, and cutting the cable. Elliott said maintenance on the hoists is similar to rotating the tires on a vehicle. “The more it’s maintained, the better it operates,” he said. The hoist operators also help to control the traffic underground and monitor temperatures. Elliott said the refrigeration plant — the biggest in North America — pushes air down the shaft to keep it cooler. The surface isn’t the only place for maintenance on the property. There are two shops about 1,225 feet underground. Ross Andreson/Mining Quarterly

See GOLDSTRIKE, 95

Barrick’s Goldstrike hoist operator Art Harris listens to noises and watches monitors to make sure the hoist is working properly.

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Goldstrike Facts WORKERS: About 56 percent of the employees live in Elko; 31 percent live in Spring Creek; 5 percent live in Carlin and 8 percent outside the county. TAXES: In 2011, Goldstrike paid $3.7 million in property taxes; $38.1 million in net proceeds; 26.4 million in sales and use; 1.3 million in MBT; $115 million in federal, and 9.9 million in payroll taxes. The site also had $36.4 million from internal royalties and 56.2 million from external royalties. INVESTMENT: The mine made an investment of $1.9 million in rural Nevada for 2011, excluding housing. The site has invested more than $70 million since 1987. Ross Andreson/Mining Quarterly

Underground crews analyze the Sandvik Alpine roadheader with operator Jeff Laughter at Barrick’s Goldstrike mine.

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Goldstrike ... Continued from page 93

“We try to do the maintenance in house,” said Allen Moore, general supervisor for Rodeo mobile maintenance. The shops run three to four shifts and every day is scheduled for maintenance. “The shop usually fills up pretty fast,” Moore said. Open Pit While 40 percent of production comes from the underground, 60 percent comes from the open pit. Goldstrike has a blast about once a day on the surface. The site can blast on the weekend, but typically sticks with Monday through Friday, said Dale Thompson, general supervisor of open pit. The mine averages 500 holes for each blast, but has done a record of about 1,000 holes. Sometimes the mine also does small blasts, such as 50 holes. Ross Andreson/Mining Quarterly

See GOLDSTRIKE, 96

Goldstrike’s leadman hoist operator, Steve Elliott, shows part of the refrigeration plant for Barrick’s underground north of Carlin.

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Goldstrike ... Continued from page 95

The mine has 109,219 total mineral reserves, and has 1,800-plus employees on site, said Al Plank, Goldstrike manager of administration. “We have a small footprint for 40 million ounces,” Plank said. The mine site is on 10,372 acres, and of those, 1,922 acres are on public land and 8,450 acres are on private property. “In 2006, we produced our 30 millionth ounce,” Plank said. Goldstrike operations include Storm underground mine at the Dee property nearby. Barrick is 60 percent owner and Goldcorp Inc. owns 40 percent of Storm. Goldstrike has produced more than 2 million ounces each year from 1993 to 2003 and again in 2005. In 2004, the site came real close to 2 million ounces. Goldstrike has 37 percent of employees with less than three years of service; 31 percent have 11-plus years. The site has an 8 percent turnover rate and an average of 12 percent overtime.

Ross Andreson/Mining Quarterly

Dale Thompson, Barrick Goldstrike’s open pit general supervisor, talks about the installation of safer stairways instead of ladders on heavy equipment, including haul trucks and shovels. (See story on safety beginning on page 44)

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Blasting for ore at Goldstrike

Ross Andreson/Mining Quarterly

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SHOVEL THIS:

Miners dig Carlin burritos By CALEY COOK Mining Quarterly

Caley Cook/Mining Quarterly

Luis Carlos opened Rigoberto’s two years ago. He makes around 80 burritos, and other dishes, every day for mining employees and contractors.

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CARLIN — When Luis Carlos opened Rigoberto’s Mexican Food in Carlin two years ago, he had no idea how much miners liked burritos. The 32-year-old moved out from Southern California looking to open a fast food Mexican restaurant and he designed the menu to look like the many cantinas from that area. But it was the burritos — self-contained and easy to transport to a mine site — that

really took off. “The miners love these burritos,” Carlos said. “I can’t make them fast enough sometimes during rushes.” It also doesn’t hurt that his food is notoriously delicious. Mining contractors and employees from Newmont’s Emigrant mine and Barrick’s Goldstrike mine seem to be embracing the self-contained meal during morning and evening rush hours. Carlos says most of his regulars are in the mining industry. It’s an easy meal for people who


Caley Cook/Mining Quarterly

Luis Carlos brought employees from his uncle’s California Mexican restaurant to help him open Rigoberto’s two years ago.

don’t always have access to food on mine sites, he said while prepping burritos for a large order for workers at a mining contractor’s office. His black apron was dusted in white tortilla flour and he smiled broadly while tossing stacks of carne asada around the hot grill. Carlos said he recently filled two

200-burrito orders for underground workers at Goldstrike and he’s got more large orders on the way. To fulfill these huge take-outs, he gets to work around 3 a.m. to have them ready in time. “It’s just really well-made food and See BURRITOS, 102

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Burritos ... Continued from page 101

Caley Cook/Mining Quarterly

Luis Carlos marinates meat for hours before he uses it in carne asada burritos and other dishes.

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the portions aren’t bad either,” said Jared Pierce, who is a Human Resources Superintendent at Barrick Goldstrike. “There are quite a few people who started eating there because it’s tasty and it’s on the way to work, which makes it easy.” Carlos has been working in the Mexican restaurant business for a decade, starting at his uncle’s joint in Fullerton, Calif., and later when he tried to open a similar place in San Bernardino, Calif. His efforts to strike out on his own weren’t successful, mostly, he said, because there were dozens of fast food Mexican places within a few miles that were just like it. In Carlin, however, Rigoberto’s is one-of-a-kind, so Carlos knew there was a market for good, fast, portable food for the workforce. “People here understand good Mexican food,” Carlos said. “A lot of them come here from California or Arizona, especially the Phoenix area, and they

want to have those ingredients and that menu.” These types of Mexican food restaurants — cuisine bordering on full-on cantina fare and fast food, like a Mexican equivalent of take-out Chinese food — are famous in California. So famous that they’re nicknamed “bertos,” for their common surname. There are Umbertos, Adalbertos, Humbertos, Obertos, Abertos, Filibertos and others. Carlos named Rigoberto’s after his uncle’s restaurant in California, which has been successful for decades. With five employees that help him through different shifts, Carlos has seen an uptick in business in Carlin since midsummer, especially with larger orders from mining contractors and offices. “Right around July, business started to pick up,” Carlos said. “I think people are talking about it.” To cater to the mining crowd he opens at 5:30 a.m. for breakfast — most people take out an egg, meat and potato burrito — but he wishes he


could open earlier to accommodate workers who have to be out at a site by 5 or 6 a.m. “Everyone asks if I can open earlier, but I can only do so much,” Carlos said. “It’s not always easy for me running this business so I have to do a few things at a time. I just started this business so I’m not always sure where to start.” He says that he makes about 80 burritos a day and during rushes, he can pump out two burritos per minute. The key to a great burrito? “It’s about the tortilla,” he said. He gets them from a Salt Lake City company, along with the special carne asada meat he uses in his burritos and other beef dishes. The tortillas are raw when they come in, allowing for a softer, fresher texture when they’re cooked. Most restaurants in town use pre-cooked ones that crack and dry after being rolled. He tried five different carne asada samples from the company before he settled on the right taste. Other keys to his magic burritos? Fresh ingredients from La Unica market as well as the marinade he uses

on his meats. When he first started Rigoberto’s, he brought two guys with him from California to help for a couple months as he opened. They helped him pick out his products, get the building up to code, and perfect the recipes he uses. They eventually went back to work for his uncle in California, but his uncle, who has been running his restaurant since 1984, comes to check in on his work every once in a while. Carlos said he does miss his family back in California, but he’s grown accustomed to a quieter life in Elko County. “It’s nice to raise a family here, even if everyone knows your business in a small town,” he says. “In California, I knew my neighbors just enough to wave at them, but here I really know people.” As a small business owner, Carlos sometimes worries when he sees lulls in business during certain weeks or seasons, but so far, business seems to be picking up. “I think I’m doing fine,” he says. “I pay my bills and my rent and I have just a little left over for myself. Of course, it’s not easy, but it works. I like what I do and I like the people I meet.”

Luis Carlos says the key to a good burrito is the tortilla. He ships in fresh, raw tortillas from Salt Lake City and cooks them on the griddle for each dish. Caley Cook Mining Quarterly

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Ross Andreson/Mining Quarterly

Drill rigs operate on top of Pay Raise at Newmont’s Genesis project.

From Genesis to Silverstar Newmont renames old pits when new mining begins By MARIANNE KOBAK McKOWN Mining Quarterly Editor ELKO — Coming this January: expansion and new names for the pits at the Genesis district. Genesis is Newmont’s oldest historic district in Nevada, said Nathan Bennett, senior short-term planning engineer. Newmont acquired the property in

1975, but mining goes back to 1972 when TS&S owned the property. The Genesis district consists of Genesis, West Genesis, Bobcat, Payraise, Beast, Bluestar Ridge, Northstar and Sold pits. By 2000, the Genesis district was depleted with the exception of Payraise. However, Newmont will expand mining in the area and with the growth comes new names.

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In January, the Genesis Pit will be called Silverstar, Bennett said. “Genesis is fairly big,” he said. “What we have permitted allows us to mine 650 million tons.” Before the name change, Genesis is being mined for backfill for Newmont’s Leeville Mine. It produces about 4 million tons of backfill per year. “Most of the backfill we use is limestone material,”


Bennett said. “Too much clay is bad for backfill in underground. As the mine stopes out then backfill it with concrete and flyash. It’s more of a safety technique.” A few of the other pits also will receive a name change. West Genesis will be called Goldstar and production from that pit should start in 2014 or 2015, Bennett said. All of the name changes seem to pay homage to Genesis’ original name — Bluestar — when it was a turquoise mine. “Occasionally we do turn up turquoise, but it’s not enough to do anything with,” Bennett said. “It’s just flecks of blue on the rock.” He said Genesis has 3 million ounces of gold in reserves in Genesis. Bennett said those reserves should be extracted in the next decade. The expansion will begin in Silverstar, then Goldstar and then Bobstar (the renamed Bobcat Pit). The fourth part of the expansion will be Bluestar Ridge Pit. There are no current plans to expand the underground mine, Deepstar, which is at the bottom of the Genesis Pit. It was depleted. The pits were renamed for tax accounting purposes, Bennett said. The only production drilling currently is on the top of Payraise. Perrin Slepsky, short-term planning engineer for the North area, said the largest blast pattern done on Payraise was 1,500 holes. “We try to split up all the holes on a bench,” she said. “Usually we try to do 500 to 600 holes per pattern. “Four drills can put 40 to 50 holes in the pattern per shift,” See GENESIS, 106

Ross Andreson/Mining Quarterly

Newmont’s Tristan Worsey talks about drilling patterns on the Genesis project Pay Raise pad.

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Genesis ... Continued from page 105

she said. “After each blast, it takes a week and a half to move the ore off the bench,” Slepsky said. “Then we do it all over again.” Most benches are 40 feet high. However, if there is high-grade ore a smaller bench height can be used, Slepsky said. “But, it is cheaper to do one 40-foot bench than two 20-foot benches,” she said. Before any blasting is done, the pattern is planned out on a computer. “We do everything on mid-bench when planning it,” she said. “The planning software makes it easier.” Earnings Newmont Mining Corp. reported a 26 percent drop in its third-quarter net income because production fell and operation costs increased. Net income decreased to $367 million in the third quarter, compared with $493 million for the same quarter in 2011. The attributable net income from continRoss Andreson/Mining Quarterly

Perrin Slepsky, short-term planning engineer for North Area at Newmont’s Genesis Mine, shows a map of pits and the description of benches.

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Genesis ... Continued from page 106

Ross Andreson/Mining Quarterly

Drill rigs operate on top of Pay Raise at Newmont’s Genesis project.

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uing operations of $400 million, or 81 cents per share, was down 19 percent from $493 million or $1 per share in the third quarter of 2011. Adjusted net income was $426 million, or 86 cents per share, compared with $635 million or $1.29 per share, for the prior year quarter. “Balanced performance from our operating portfolio allowed us to deliver results that were on track with our expectations for the quarter with strong performances at both our Nevada complex in North America and Yanacocha in Peru offset by weaker performance in our Asia Pacific region, primarily at Boddington and Tanami in Australia,” Newmont Chief Executive Officer Richard O’Brien said. “We are also seeing clear progress on our commitment to deliver profitable ounces from new projects including our Akyem project in Ghana, which is 65 percent complete and proceeding on budget and on schedule to begin production in late 2013, and in Nevada


where our Emigrant mine commenced production this quarter.� Newmont now expects to be at the low end of its previously announced attributable gold and copper production for the year. It expects to produce 5 to 5.1 million ounces of gold and 145 to 165 million pounds of copper. It is maintaining its 2012 attributable capital expenditure outlook of $2.7 to $3 billion. Nevada Operations Attributable gold production in Nevada was 457,000 ounces at costs applicable to sale of $661 per ounce during the third quarter. Gold production increased 7 percent from the prior year quarter due to higher mill grade at the Carlin Roaster, higher recovery at Mill 5 and higher leach placement as Emigrant commenced production, partially offset by lower grade at Phoenix. CAS per ounce increased 3 percent due to higher fuel prices, higher underground mining costs and lower capitalization of development costs, partially offset by higher by-product credits. The company is narrowing its outlook for 2012 attributable gold production of between 1.76 million and 1.78 million ounces at CAS of between $615 and $645 per ounce.

Ross Andreson/Mining Quarterly

Perrin Slepsky, short-term planning engineer for North Area at Newmont’s Genesis Mine, talks about drill patterns on Pay Raise.

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Railroad Mining District projects gets EA By JOHN RASCHE Free Press Staff Writer ELKO — The Bureau of Land Management has released an Environment Assessment for a gold exploration project south of Carlin. Gold Standard Ventures Corp.’s Railroad Exploration project is 25 miles south of Carlin on public and private lands. The Railroad District is an old mining district dating back to the 1800s, BLM Project lead Allen Mariluch said. Over the last 40 or 50 years, different companies have done exploration in the area. GSVC’s proposed exploration operation would include constructing access roads and drilling sites as well as drilling holes with a truck-mounted drill rig. After the project has been completed, the company will plug the holes and reclaim the drill pads. The Railroad Exploration project began in 2010, Mariluch said. “We’ve been working on this project for quite some time now,” he said. “The company is trying to find if there’s anything (out) there, anything economical.”

Five acres of the GSVC property in the Railroad Mining District has already been disturbed, but the company can now progress onto exploring 200 acres, he said. “They’ll either find something by then or they won’t,” Mariluch said. The Environment Assessment is available on the Elko District website at www.blm.gov/rv5c. GSVC expects that the exploration project would support current employment for the company’s employees as well as additional contractors used for the operations. The project would also help determine if more exploration or mining could occur on the property, which would provide more jobs in the future. GSVC have other prospective gold and silver projects within Nevada, including the nearby Crescent Valley North epithermal vein targets, the Safford Claims, the Camp Douglas Project on Walker Lane Trend and the RC and IC claims directly south of Railroad, according to www.goldstandardv.com. For more information about the proposed project, contact Allen Mariluch at 753-0200 or by email at amariluch@blm.gov.

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BLM map


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NEWMONT WINS NATIONAL AWARD The Department of the Interior and U.S. Bureau of Land Management presented Newmont Mining Corp. with the Hardrock Mineral Community Outreach and Economic Security Award at the MINExpo International. From left are Newmont’s Leeville Mine Manager Jack Henris, Senior External Relations Representative Nancy Ostler, Vice President of Environmental and Social Responsibility John Mudge, Director of External Relations Mary Korpi and Senior VP of North American Operations Tom Kerr. See story on page 41. Marianne Kobak McKown/Mining Quarterly

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A new mine in Elko County Newmont leads visitors on tour of Emigrant Mine By JOHN RASCHE Free Press Staff Writer ELKO — The bus of city officials and local prominent figures traveled down Interstate 80 before turning onto a dirt road just south of Carlin. The 15-mile road snaked up the hills of the Bullion Mining District, about 14 miles southwest of the South Fork Reservoir, and continued past the former Rain Mine (from the 1980s and early 1990s), before easing out in front of Newmont Mining Corp.’s Emigrant Mine. The day was Oct. 18 and Newmont was hosting its official open house tour for the newly developed mine. “This is a special day,” said Wade Bristol, general manager of Newmont Carlin operations. “We’re pretty excited about having our second active mine in Elko County, since it’s a lot closer to where we live.” An official grand opening for a mine is not very common for the mining company, Bristol announced

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to the crowd of visitors during the catered lunch. “We’re pretty weak at celebrating success,” he said. “We usually just move on to the next project.” And although Emigrant Mine has been operational for less than a year, Newmont considers the location a promising, successful site. Mining rates for Emigrant’s surface operations are approximately 51,000 tons per day, according to a report released in October. With 1.25 million ounces in total reserves, the company expects a current mine life through 2012 and a heap leach life through 2025. “We’ve had (mine) expansions in the recent past, but Emigrant is a brand new operation,” said Mary Korpi, director of external relations for Newmont. “We like to show it off.” Visitors were led across the 1,600-acre facility, overseeing the three open pits (Phase 1, 2 and 3) that are currently being mined, as well as the heap leach facility and the carbon-in-leach tanks, where a solution containing carbon and minute amounts of

cyanide percolates through tanks of ore to garner the gold. Once the spectators reached the top of the stairs at the CIL tanks facility, they could watch the solution flow beneath their feet through the metal grated platform. “To be able to see the extraction process without any inhibitions was nice,” visitor Susan Wines said. Wines is one of the owners of the private land that Emigrant utilizes for its operations. The mine’s leach pad and collection site are located on her family’s property, Wines said. When Newmont invited the Wines’ family members to the open house tour, they quickly accepted. “We really enjoyed the opportunity Newmont gave us to learn this stuff,” Wines said. “It was really nice to see how the gold was extracted.” Other visitors on the tour commended Newmont for its continuing contributions toward the mine’s See EMIGRANT, 116


John Rasche/Elko Daily Free Press

Emigrant employees discuss the different aspects of the mine’s development with visitors.

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John Rasche/Elko Daily Free Press

In the distance, a mining truck makes its way toward one of Emigrant Mine’s three phases.

Emigrant ... Continued from page 115

neighboring communities. “(Emigrant) is another mine that can help with the Elko economy,” said County Commissioner Jeff Williams, one of the invited guests. “We love having something in the county that insulates our economy from the rest of the state. “Some people don’t realize that the mining industry is a very sound partner with the county as well as the hunters, fishers and environmentalists. This mine is a plus for everyone ... It’d be a lie for anyone to say these mines don’t help the community, because they do. The mines always step up to the plate when members of the community approach them with their needs.” Wines agreed.

“The mine originally affected our operations (at Julian Tomera Ranches — Stonehouse Division),” she said. “We used to run our steers through the land that is now used by the mines, but Newmont helped us create different roads. They’ve been very good about working with us and working well with the ranching communities. We’re very happy with Newmont.” Currently, the Emigrant mine consists of 144 employees. As the tour concluded and the bus began its trip back to Elko, Korpi looked out of her side window of the bus and observed how the dirt road gradually sloped back down toward the interstate. “At night, this drive is so pretty,” she said. “You can see the lights of Carlin just ahead of you.”

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Submitted

Joe Stephenson and James Schaeffer work on solar panels.

Mines could begin using solar power By HEATHER KENNISON Mining Quarterly ELKO — With rising energy costs, mines may be finally able to see the light in investing in solar energy. Hamilton Solar LLC is reaching out to the mining industry to use renewable energy. The Reno-based company has already installed solar panels at schools across the state. It has also assisted in several public works projects at state facilities. “We’ve done work with the majority of school 118 MINING QUARTERLY, Elko, Nevada WINTER 2012

districts in the state,” said partner Steve Hamilton. “... We have not done anything with the mines (yet). It’s not an easy industry to break into.” Hamilton Solar was founded in 2008 on the principal of making solar energy affordable for all customers to create a more sustainable world. The company serves clients all over the state and has an office in Fresno, Calif. It has an unlimited solar license for panel installation, Hamilton said. “The mines now are a lot more cognizant of renewable energy than in the past,” Hamilton said. Solar energy is not typically used as a replacement

source of energy, since a lot of it is dependent on weather conditions and location, said Project Superintendent Bob Stephens. Instead, it is a supplemental source. “You’ll never have a system that’s fully solar powered,” Stephens said. However, Hamilton Solar partner Chad Dickason said the company frequently designs for 85 percent of consumption. “Our goal is always to save 5 to 15 percent or more See SOLAR, 120


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Solar ... Continued from page 118

Submitted

Solar panels cover several acres at Carson High School.

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on the electrical bill through financing,” Dickason said. The company started a discussion with Nevada mines 18 months ago, Dickason said. “Generally, they’re very supportive of renewable energy,” he said. “It’s a long-term discussion.” The panels have a design life of 30 to 40 years, Dickason said. “Solar energy would be great for mines because the mines use a tremendous amount of energy,” Hamilton said. At Carson City High School, Hamilton Solar installed 5,000 solar panels in an area of five acres. That amount of panels could generate one megawatt of power, Hamilton said. Solar panels can be mounted on the ground or the roof, Stephens said. Some of the schools that chose the ground mounts have found they double as another resource: Shaded parking. The panels are a 600 kilowatt AC system, Stephens said. They are connected in a 12-panel string that runs to


combiner boxes and then an inverter. The inverter converts sunlight, which is direct current, to alternating current so it can be used as electricity. “That power goes right into the power lines,” Hamilton said. The panels have a 25-year warranty and require relatively low maintenance. This mostly includes cleaning the panels two to three times a year and doing routine inspections, which companies can do themselves if they choose. While the cost of energy has remained steady over the past 18 months, the price of solar panels has decreased. Energy costs are predicted to rise once more with the global economy, Hamilton said. “The beauty of solar is once you install it, that’s basically all you have to do,” Hamilton said. Because of variations in location and individual commercial needs, it is impossible to determine exactly how much savings will be generated with the solar panels, he said. However, the company can tell customers how much average annual sunlight specific areas receive. While this does not calculate costs, it will help determine the amount of energy generated by the panels. Already, Hamilton Solar has some preliminary agreements with undisclosed mines in Nevada. It expects to begin working with them next year, Dickason said.

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This row of ground-mounted solar panels was installed by Hamilton Solar at a project in Reno.

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MINEXPO INTERNATIONAL 2012

Mining for jobs, sustainable economies By MARIANNE KOBAK McKOWN Mining Quarterly Editor LAS VEGAS — Mining companies are facing challenges, but the industry as a whole can help sustain and grow economies throughout the globe. This was the message of the four speakers during the opening session at the MINExpo International 2012 in Las Vegas. Newmont Mining Corp. Chief Executive Officer Richard O’Brien led off the discussion asking if gold was a commodity or a currency. If it is a commodity its market would rely on supply and demand, but currencies are more affected by fear, O’Brien said. In today’s market the rare metal acts as a currency, he said. “Gold is in an 11-year bull market,” he said. “I think we are in the middle of that bull market.” O’Brien said more banks are purchasing gold. Historically, about 60 percent of gold

has gone into the jewelry market and 27 percent has gone into investment. In 2011, jewelry accounted for less than 50 percent and investment had increased to 40 percent. The balance was in industry commodities, he said. “I think gold is a great place to be,” O’Brien said. The main challenges gold mining companies face are political influences worldwide and increased costs. “It is more and more difficult to produce gold and to find it,” he said. During the panel portion of the session, O’Brien said gold mining costs have increased 15 percent. Coal Peabody Energy Chairman and CEO Gregory Boyce told the audience that coal is the only fuel that can efficiently sustain and grow the globe’s energy needs. He said more than half the world’s population lacks

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Marianne Kobak McKown/Mining Quarterly

Richard T. O’Brien, chief executive officer of Newmont Mining Corp., speaks about gold mining at the opening session at the MINExpo International 2012 in Las Vegas.


energy access and 3.6 billion people have no or only partial access to electricity. Copper Freeport-McMoRan Americas President Red Conger said it is a challenge to make the supply of copper keep pace with the growth of the projects throughout the world. His company has projects in Arizona, Peru, Democratic Republic of the Congo, Chile and Indonesia. Mining Supplies Joy Global Inc. President, CEO and Director Michael Sutherlin said his company operates in all mining regions around the world. “The mining industry has grown at double-digit rates,” he said. Mining has to do more than keep up with demand. We have to support rather than undermine economic growth.” Sutherlin said the industry must overreact to safety to combat the negative impact of its perception and it is doing many things to lower its enviSee MINEXPO, 124

Marianne Kobak McKown/Mining Quarterly

The opening session at MINExpo International focused on sustaining mining and economies on a global scale. From left: Newmont Mining Corp. Chief Executive Officer Richard T. O’Brien, Peabody Energy Chairman and CEO Gregory H. Boyce, Freeport-McMoRan Americas President Red Conger and Joy Global Inc. President, CEO and Director Michael W. Sutherlin.

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Marianne Kobak McKown/Mining Quarterly

Massive mining equipment and other displays filled the Las Vegas Convention Center in September for MINExpo International.

MINExpo ... ronmental impact. “The industry is stepping up and making investments in technology,” he said. “We have equipment with new solutions to old problems.”

“A mining degree is worth its weight in gold,” O’Brien said. He said a magazine compared the salaries of people with degrees from Harvard to those with degrees from the South Dakota School of Mines. “Guess who won,” he said. “South Dakota.”

More personnel needed All of the speakers said it is difficult to find the necessary personnel. Boyce said companies must attract new people to mining. O’Brien said there are 500 mining engineers who are at retirement age, and if the company hired every person who recently graduated with a mining degree it couldn’t replace them.

Look to the future Session moderator Dr. Jeffrey Garten, professor of international trade, finance and business at the Yale University School of Management, asked each speaker what they want to see happen once the presidential election is over — no matter who wins. Boyce said he wants the U.S. to develop an energy

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plan. He said the country needs a plan “to supply long term, low cost and competitive energy that doesn’t have unrealistic expectations on exotic energy sources.” Sutherlin said the government needs to move away from regulations that are disruptive policies for economic growth. Conger said the U.S. needs to look for growth all over the globe. Collaboration is O’Brien’s main hope. “We’ve devolved to regulation instead of legislation,” he said.” We’ve devolved to court cases.” He said the industry needs “speedier” regulations. “Why?” he said. “So we can put people to work.”


Photos by Marianne Kobak McKown/Mining Quarterly

Many attendees had their photo taken while holding fake rocks at the Komatsu display.

Joe Quintana of Newmont Mining Corp. explains the story of Newmont’s motorcycle. Quintana said there were people looking at the bike non-stop throughout the three days of MINExpo 2012.

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MINEXPO INTERNATIONAL LEFT: The Jenmar display featured some of the company’s equipment for stabilizing roofs in mines.

RIGHT: Attendees throughout the show stood in or near the large equipment for photos including these women in a P&H L-2350 wheel loader. From left: Jane Somers and Deborah Kosmack.

Photos by Marianne Kobak McKown/Mining Quarterly

MINExpo International 2012 exhibitors included the Bureau of Land Management booth in foreground.

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Nevada Mining Association tackles growth, education at annual convention By MARIANNE KOBAK McKOWN Mining Quarterly Editor LAKE TAHOE — Growth and education seemed to be the theme of the Nevada Mining Association’s 2012 convention. The association celebrated its 100th anniversary in September with a record attendance of 575 people from mining companies, vendors and government offices at Lake Tahoe. Gary Halverson, regional president of Barrick Gold of North America was elected the new chairman of the NVMA board. “I think this is going to be an important year for the mining industry,” he said. He said the association is benefiting from an “active and robust” mining business, but that it is “critical” all the companies work together as a unified industry. He said the association has grown 27 percent in the last year. “Today we are contributing to the state coffers more than ever,” Halverson told the attendees. “We have grown from $170 million (net proceeds tax) to $250 million over the last year. The challenge is helping Nevadans throughout the state to understand our industry.” During an interview with the Free Press, Halverson said during the coming year, the association will continue to grow its membership and to educate others on the importance of the industry. “We will continue our campaign of education,” he said. “We are one of the shining stars in Nevada. ... We only represent 1 percent of employment in the state, but we contribute 5 percent of the GDP. Anything growing in the state is a good thing.” Halverson said there are several new mines in the state and there are more expanding and others waiting for final permitting to go through before they can begin mining.

“We are one of the shining stars in Nevada. ... We only represent 1 percent of employment in the state, but we contribute 5 percent of the GDP. “ — Gary Halverson, Barrick Gold of North America

Lou Schack, director of communications and community affairs for Barrick, said there are more mines in more areas of the state, such as Virginia City and Yerington. “We’re not just a bunch of folks from Elko any more,” he said. During the convention there were also guest speakers on issues of permits, sage grouse and economic development. Permitting Process Amy Lueders, state director for the U.S. Bureau of Land Management, spoke about the permitting process. She said for years, the companies in the industry were frustrated by the permitting process because there were “major variations between the BLM districts.” She said BLM officials did not interpret the requirements consistently. “What we were doing really wasn’t working for anyone,” Lueders said. She compared the permitting process to “a roller coaster you couldn’t get off of.” However, the BLM has made changes to the process and it has become more efficient, she said. Several projects have received their permits in two years rather than seven. “But we still have issues with consistency and application of the new policy. So a mine permitting team was

Marianne Kobak McKown/Elko Daily Free Press

Gary Halverson, regional president of Barrick Gold of North America, speaks at the 2012 Nevada Mining Association Convention at Lake Tahoe in September. Halverson was elected chairman of the association’s board of directors.

established,” Lueders said. This team will travel to each BLM district office and clarify the new policies and how they are implemented. Sage Grouse Bob Budd, executive director of the Wyoming Wildlife and Natural Resource Trust warned the attendees the industry and the state needs to stay the course when combating the possible

listing of the sage grouse. “If you get a listing, you now protect individual birds, not populations,” he said. “Every bird is protected. ... So, every bit of suitable habitat is critical habitat. It means the stipulations will be more restrictive.” Budd said fire is the greatest threat to sage grouse habitat in Nevada, and the See ASSOCIATION, 128

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Association ... Continued from page 127

second-greatest threat is the expansion of pinyon and juniper trees into sage brush habitat. He said the state is doing the right thing by coming up with a plan to deal with the birds. An attendee told Budd he sees more wildlife on mine sites than he does when he goes into state parks. He asked if that would help the mining industry in dealing with the sage grouse issue. “Absolutely,” Budd responded. “But remember we are dealing with Congress. If you ask ‘have you been to a mine?’ They say, ‘oh yeah, I’ve been to West Virginia.’” Budd said the mining industry in Nevada is a major player, so it has to act like one. The mining association has the expertise of what happens at mines, so it needs to share that knowledge with the public, other industries and government agencies, Budd said. “Stay the course and keep your foot on the gas,” he said. “Keep up with the (state’s) plan.” Economic Development The association needs to invest in economic development in the state by building its entrepreneurial capacity and education, said Ted McAleer, the executive director for Utah Science Technology and Research Initiative. McAleer said the association needs to think of ways to get ahead of the state legislature. “Tell the legislature, ‘I think we can help the economy more this way than

by paying more taxes,’” he said. One of the ways the industry can improve the state’s economy is by engaging with higher education. “Be the best in the world at your niche area,” he said. He said the people on the ground come up with the best innovations. The association also hosted an economic development panel consisting of Steve Hill, the director of the Governor’s Office of Economic Development; state Assemblyman William Horne, D-Las Vegas, and state Senator Joseph Hardy, R-Las Vegas. Hill said economic development in the state used to be focused on moving away from gaming and mining. “That has gone away,” he said. “I think we can diversify the economy by working with gaming and mining.” Hardy said everyone on the panel has the same priorities, “to generate jobs.” “It’s heartening to hear how well the mining industry is doing,” he said. Horne said the state is “overdue” in investing in new businesses. He said the state needs to ask why other businesses choose not to come to Nevada to see if “we can fix it.” However, he said when the economy is bad, the state can’t focus on taking more money from the industries that are doing well. “I don’t believe any industry should be singled out in times like this,” Horne said. “We need to look at other industries to see who we can bring in to make Nevada stronger.”

Hecla Mining agrees to $2.5M deal COEUR D’ALENE, Idaho (AP) — Officials with Hecla Mining Company say the business is acquiring about 14 million shares of a Canada-based resource exploration company for about $2.5 million. The Coeur d’Alene Press reported the acquisition means Hecla will control about 15 percent of the outstanding common shares of Canamex Resources Corp. Canamex is focused on the exploration of two gold properties: The Bruner gold project in Nye County, Nevada, and the Aranka North gold

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project in Guyana. Hecla officials say they don’t currently have any intention to acquire ownership or control over additional securities of Canamex.


Barrick turns pink for breast cancer awareness

Submitted

Barrick Gold Corp.’s new pink underground equipment arrived at Cortez Hills Mine in October.

ELKO — Barrick Gold Corp. mines showed their pink side in October, in honor of Breast Cancer Awareness month. Throughout the month, each of Barrick's mine sites in the North America region designated “wear pink days” as a way to increase awareness of the disease. On these days sites made a $5 donation to breast cancer research for each employee they counted wearing pink. At the Cortez Hills Underground, employees came up with another way to honor those who have been diagnosed and to raise awareness. The site had a loader and haul truck painted bright pink and tagged with the motto “Barrick CHUG (Cortez Hills Underground) committed to the cure.” “Barrick's goal in participating in Breast Cancer Awareness month is to show support for those who have been diagnosed and to raise awareness around prevention of the disease,” said Leslie Maple, Barrick communications specialist. “We want to encourage our employees to be proactive about their health and the health of their loved ones by understanding the risk factors associated with breast cancer and by giving them information that will help them take steps to reduce those risks.”

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ADVERTISERS INDEX Alphabetical 3D CONCRETE, INC ...................................................................................................................................................................................... 21 5TH GEAR POWERSPORTS .......................................................................................................................................................................125 ALBARRIE ENVIRONMENTAL SERVICES ............................................................................................................................................122 ALLIANCE DOCUMENT TECHNOLOGIES ..........................................................................................................................................123 ALTERNATIVE MAINTENANCE SOLUTIONS, LLC ...........................................................................................................................121 AMEC ENVIRONMENT & INFRASTRUCTURE, INC..........................................................................................................................122 AMERCABLE .................................................................................................................................................................................................120 AMERICAN STAFFING, INC......................................................................................................................................................................106 AMERICHEM ................................................................................................................................................................................................118 AMES CONSTRUCTION ............................................................................................................................................................................115 APPLIED GEOMECHANICS ......................................................................................................................................................................110 ARNOLD MACHINERY .................................................................................................................................................................................. 8 ASGCO MANUFACTURING INC .............................................................................................................................................................116 ATLAS CONTRACTION .............................................................................................................................................................................129 ATLAS COPCO ..............................................................................................................................................................................................111 AZTEC CONTAINERS ................................................................................................................................................................................... 19 B X DRILLING SUPPLY ................................................................................................................................................................................... 5 BARRICK GOLD OF NORTH AMERICA .................................................................................................................................................... 6 BEL-RAY ............................................................................................................................................................................................................. 7 BELT CONVEYOR GUARDING ................................................................................................................................................................112 BLACK ROCK DRILLING ...........................................................................................................................................................................110 BOART LONGYEAR CO .............................................................................................................................................................................109 BOART LONGYEAR ................................................................................................................................................................ Center Spread BOART LONGYEAR CO ............................................................................................................................................................... Back Cover BOOT BARN, INC........................................................................................................................................................................................... 17 BOSS TANKS ..................................................................................................................................................................................................109 BRINKS, INC ..................................................................................................................................................................................................108 BROADBENT& ASSOCIATES, INC. ..........................................................................................................................................................106 BRUNNER & LAY .........................................................................................................................................................................................114 CARIBOU INC...............................................................................................................................................................................................117 CARLIN TREND ...........................................................................................................................................................................................106 CASHMAN EQUIPMENT ............................................................................................................................................................................. 11 CASHMAN EQUIPMENT ...........................................................................................................................................................................113 CASHMAN EQUIPMENT ................................................................................................................................................. Inside Back Cover CATE NEVADA ............................................................................................................................................................................................... 20 CATE NEVADA .............................................................................................................................................................................................107 CEMENTATION USA INC. .........................................................................................................................................................................103 CHAMBERS GROUP ...................................................................................................................................................................................... 94 CHEMTREAT.................................................................................................................................................................................................105 CLEAN HARBORS ENVIRONMENTAL SERVICES ..............................................................................................................................103 COACH USA / ELKO, INC............................................................................................................................................................................... 3 COMPRESSOR PUMP & SERVICE, INC ..................................................................................................................................................102 CONNORS DRILLING ................................................................................................................................................................................... 96 CRITICAL NURSE STAFFING ...................................................................................................................................................................101 DMC MINING ...............................................................................................................................................................................................100 ELKO CONVENTION AND VISITORS AUTHORITY ............................................................................................................................ 22 ELKO TOOL AND FASTENER ..................................................................................................................................................................... 98 ELKO WIRE ROPE & MINING SUPPLY .................................................................................................................................................... 99 ELKO WOMENS HEALTH CENTER .......................................................................................................................................................... 96 ENCORE AUDIO VISUAL DESIGN ............................................................................................................................................................ 18 ENVIROSCIENTISTS, INC............................................................................................................................................................................ 94 ESCO SUPPLY .................................................................................................................................................................................................. 97 FAIRMONT SUPPLY COMPANY ................................................................................................................................................................ 95 FAST TRACK TRANSPORT LLC ................................................................................................................................................................. 94 FERGUSON ENTERPRISES .......................................................................................................................................................................... 92 WINTER 2012 ELKO DAILY FREE PRESS, Elko, Nevada 133


ADVERTISERS INDEX Alphabetical FLATWATER FLEET INC. ............................................................................................................................................................................. 92 FLOWROX INC ............................................................................................................................................................................................... 91 FORD STEEL .................................................................................................................................................................................................... 90 FORDIA USA ................................................................................................................................................................................................... 90 GCR TIRE CENTER ........................................................................................................................................................................................ 89 GENERAL MOLY, INC. .................................................................................................................................................................................. 89 GENERAL TOOL INC .................................................................................................................................................................................... 88 GHX INDUSTRIAL ......................................................................................................................................................................................... 86 GOLD CANYON MINING AND CONSTRUCTION ............................................................................................................................... 87 GOLD DUST WEST - ELKO .......................................................................................................................................................................... 22 GOLDCORP-MARIGOLD MINING CO. ................................................................................................................................................... 85 GRAYMONT Western US Inc ........................................................................................................................................................................ 83 GREAT BASIN INDUSTRIAL ....................................................................................................................................................................... 83 HALLIBURTON BAROID IDP ..................................................................................................................................................................... 82 HAMILTON SOLAR ....................................................................................................................................................................................... 82 HANLON ENGINEERING ....................................................................................................................................................... Center Spread HARRIS EXPLORATION ............................................................................................................................................................................... 80 HAYLEY’S FINE GIFTS .................................................................................................................................................................................. 14 HIGH MARK CONSTRUCTION ................................................................................................................................................................. 81 INTEGRATED POWER SERVICES, LLC .................................................................................................................................................... 78 J.S. REDPATH CORPORATION ................................................................................................................................................................... 79 JBR ENVIRONMENTAL CONSULTANTS,................................................................................................................................................ 76 JENNMAR CORP............................................................................................................................................................................................. 77 JOY GLOBAL............................................................................................................................................................................... Center Spread KEJR, INC. GEOPROBE SYSTEMS............................................................................................................................................................... 75 KENNAMETAL TRICON METALS AND SERVICES, INC. ....................................................................................... Inside Front Cover KENWORTH SALES ....................................................................................................................................................................................... 74 KNIGHT PIESOLD AND CO. ....................................................................................................................................................................... 74 KOMATSU EQUIPMENT COMPANY ....................................................................................................................................................... 45 LA PERKS PLUMBING & HEATING .......................................................................................................................................................... 73 LEDCOR ........................................................................................................................................................................................................... 72 LEGARZA EXPLORATION........................................................................................................................................................................... 71 LES SCHWAB/ELKO....................................................................................................................................................................................... 66 LIEBHERR MINING EQUIPMENT............................................................................................................................................................. 57 MAP SCIENCE CORP .................................................................................................................................................................................... 66 SOUTHWEST GAS ......................................................................................................................................................................................... 51 MEC .................................................................................................................................................................................................................. 42 MIDWEST INDUSTRIAL SUPPLY .............................................................................................................................................................. 70 MINING QUARTERLY................................................................................................................................................................................... 63 MOUNTAIN STATES CONTRACTING ..................................................................................................................................................... 61 MYRNA HOT SHOT ...................................................................................................................................................................................... 44 MYRNA HOT SHOT ...................................................................................................................................................................................... 10 NATIONAL EWP........................................................................................................................................................................ Center Spread NA DEGERSTROM ......................................................................................................................................................................................... 56 NEFF’S DIESEL ................................................................................................................................................................................................ 68 NEVADA MINING ASSOCIATION............................................................................................................................................................... 9 NEVADA WATER RESOURCES ................................................................................................................................................................... 61 NEW FRONTIER DRILLING ........................................................................................................................................................................ 65 NORMET AMERICAS, INC........................................................................................................................................................................... 58 NORTHERN NEVADA EQUIPMENT ......................................................................................................................................................136 NORTHERN NEVADA EQUIPMENT ........................................................................................................................................................ 93 NUCLEAR CARE PARTNERS LLC .............................................................................................................................................................. 59 OAK TREE INN ............................................................................................................................................................................................... 57 ORMAZA CONSTRUCTION ....................................................................................................................................................................... 62 PAC-VAN .......................................................................................................................................................................................................... 21 134 MINING QUARTERLY, Elko, Nevada WINTER 2012


ADVERTISERS INDEX Alphabetical PACWEST DRILLING SUPPLY INC............................................................................................................................................................ 62 PLUMB LINE MECHANICAL ....................................................................................................................................................................116 PLUMB LINE MECHANICAL ...................................................................................................................................................................... 55 POLELINE CONTRACTORS ........................................................................................................................................................................ 55 PRECISION AIR CARGO INC ...................................................................................................................................................................... 54 Q&D CONSTRUCTION ................................................................................................................................................................................ 28 QUICK SPACE ................................................................................................................................................................................................. 54 RAM ENTERPRISE INC ................................................................................................................................................................................ 53 RAPID TRANSPORT, LLC ............................................................................................................................................................................. 46 REDI SERVICES LLC ...................................................................................................................................................................................... 52 RENO FORKLIFT ............................................................................................................................................................................................ 52 ROCKMORE INTERNATIONAL ................................................................................................................................................................. 50 ROSS EQUIPMENT ........................................................................................................................................................................................ 50 ROUND MOUNTAIN GOLD CORP............................................................................................................................................................ 49 ROYAL GOLD .................................................................................................................................................................................................. 47 RUBY VISTA LODGING ASSOCIATION ................................................................................................................................................... 48 RUD-CHAIN, INC./ ERLAU.......................................................................................................................................................................... 47 S&G ELECTRIC MOTOR REPAIR ............................................................................................................................................................... 46 SACRISON ENGINEERING.......................................................................................................................................................................... 46 SAN JUAN DRILLING.................................................................................................................................................................................... 42 SAS GLOBAL MINING CORP ...................................................................................................................................................................... 43 SCOTTS MARKET LLC ................................................................................................................................................................................. 44 SGS MINERALS ............................................................................................................................................................................................... 41 SIERRA FREIGHTLINER............................................................................................................................................................................... 40 SILVER STATE FIRE ....................................................................................................................................................................................... 40 SLEEP SOURCE ............................................................................................................................................................................................... 13 SMALL MINE DEVELOPMENT LLC ......................................................................................................................................................... 12 SNYDER MECHANICAL............................................................................................................................................................................... 38 SPRUNG INSTANT STRUCTURES, INC.................................................................................................................................................... 39 SRK CONSULTING......................................................................................................................................................................................... 38 STEMLOCK, INC............................................................................................................................................................................................. 37 STOCKMEN’S HOTEL & CASINO .............................................................................................................................................................. 37 SWANSON ADV. LLC FOR AGRU AMER .................................................................................................................................................. 15 SWICK MINING SERVICES (CANADA) ................................................................................................................................................... 36 TAHOE RESOURCES INC............................................................................................................................................................................. 35 TAIGA VENTURES......................................................................................................................................................................................... 66 TAYLOR MADE IRON SERVICES ............................................................................................................................................................... 34 TECH-FLOW ................................................................................................................................................................................................... 33 TELESTO NEVADA INC................................................................................................................................................................................ 32 TETRA TECH INC. ......................................................................................................................................................................................... 32 TMEIC ............................................................................................................................................................................................................... 31 TONATEC EXPLORATION, LLC ................................................................................................................................................................. 30 TRAYLOR BROS., INC.................................................................................................................................................................................... 29 TREAD CORPORATION............................................................................................................................................................................... 29 TUNNEL RADIO OF AMERICA, INC. ....................................................................................................................................................... 27 VALLEY RUBBER & GASKET ...................................................................................................................................................................... 26 VH GEO MEMBRANE INSPECTIONS ...................................................................................................................................................... 26 VICTAULIC ...................................................................................................................................................................................................... 25 WARNER CONSTRUCTION INC................................................................................................................................................................ 10 WESTERN TIRE RECYCLERS ...................................................................................................................................................................... 24 WORLDWIDE RENTAL SERVICES ............................................................................................................................................................ 16 WYOMING, INC ............................................................................................................................................................................................. 23 YANKE MACHINE SHOP ............................................................................................................................................................................. 14

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Mining Quarterly Winter 2012  

The winter 2012 edition of the Elko Daily Free Press' Mining Quarterly.

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