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
Sp rin g2 014
Ready... The Mining Quarterly staff shadowed Barrickâ€™s Cortez Hills surface blast crew for a day. This combination photo is of blast technicians Bruce Krajewski, left, and Malea Filippini and a trim shot.
Photos - Ross Andreson/Elko Daily Free Press Cover Design - Ken Green/Elko Daily Free Press
— CONTENTS — COVER: 3, 2, 1 MINE Mining Quarterly staff shadowed the Cortez Hills blast crew for a day
A challenging edition
MIDWAY Birth of a mine: Company breaks ground for new Pan Mine — Page 4
NEVADA COPPER Pumpkin Hollow: Project full of promise, if the stars align —
FLORIDA CANYON Manager predicts busy year: Company continues to experiment with green energy —
ELKO — The spring edition of the Mining 2011, it has worked on a project to turn waste Quarterly seems to be a little more chal- material into copper. The leach pad was lenging than the others throughout the year. built in 2011 and construction on the facility I think it is partly due to began in 2012. At the end of trying to schedule mine tours in October the solvent extraction December. No one is available and electrowinning or SX-E during the two weeks before facility began producing and after Christmas and then copper plates. the companies are preparing The Mining Quarterly has their year-end reports. followed this story from the This also is the edition beginning, so it was satisfying that the quarterly reports to see the end product. come in at the last minute — Another beginning we covif they arrive before deadline ered this time around was the at all. Only Barrick’s fourthstart of a new mine. Midway quarter made it this time and Gold broke ground in January it was released the day I finand hopes to have a gold pour ished putting the magazine by the end of this year. The together. staff of the Mining Quarterly As a journalist I love a chalwill keep our readers informed lenge, but sometimes I wish on how this latest addition to they wouldn’t arrive on a regNevada’s mining industry ARIANNE ular basis. fairs. While I faced challenges I was also fortunate to OBAK C OWN shadow a blast crew for a day. with writing deadlines, the mining industry is facing its The Cortez Hills crew allowed own challenges. me and staff photographer Ross Andreson The gold price hovered in the $1,200 to follow them during their daily duties. range through most of December and I always thought it would be fun to blow January and just made a slight jump above stuff up for a living and this group of folks $1,300 Feb. 13. I won’t guess where it will go didn’t change my opinion. While they from here, but the mining companies who worked hard and kept things safe, they are planning around an $1,100 price seem to also showed a camaraderie between each be heading in the right direction. other that seemed more like family. While the gold price may make the future The Mining Quarterly wants to highseem gloomy, many of the mines in Nevada light more miners, whether to examine are doing well and finding new ways to be what their jobs entail or showcase their more efficient and cost effective. hobbies — such as one miner’s passion for While gold receives most of the glory in cowboy poetry. our state,this time around Mining Quarterly We also have continued our “Blasts staff visited three mines producing copper. I From The Past” series. Mining Quarterly almost called this issue our copper and gold correspondent Dee Holzel wrote about the edition. KGHM’s Robinson Mine in Ely reported town of Jungo and its nearby mine, Jumbo. You can find the details on all these storecord production and recovery in 2013. Nevada Copper’s Pumpkin Hollow hopes ries and more in this edition of the Mining to move from exploration to full production Quarterly. ——————— by 2015. If it does, the copper mine estiMarianne Kobak McKown is editor of the mates it will create more than 1,000 jobs. Newmont Mining Corp.’s Phoenix Mine Mining Quarterly and mining editor for the still produces gold, but I have almost started Elko Daily Free Press. She can be reached at to think of it as a copper mine as well. Since email@example.com.
NEWMONT Mine to manufacturer: Phoenix begins copper plate production —
Twin Creeks: Work on a new layback begins, site has new process, pilot programs —
BARRICK Turquoise Ridge: Mine will soon have a new underground backfill plant —
KGHM Robinson: Mine sets several records —
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 1
— CONTENTS —
New Agriculture dean at UNR . . . . . . . . . . . . . . . . . . . . . . .37 Northwest Mining Association talks sage grouse . . . . . . .44 Cortez Hills manager sees challenges at site . . . . . . . . . .65
RAM Enterprise opens facility . . . . . . . . . . . . . . . . . . . . . . .80
Pole Line in business of electricity . . . . . . . . . . . . . . . . . . . .88
Lt. Gov. candidates talk mining . . . . . . . . . . . . . . . . . . . . .98
Miners on medallions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
years as a
Cashman Caterpillars built to be rebuilt . . . . . . . . . . . . .112
Meet the blast crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64
Cooperative Extension to test biochar . . . . . . . . . . . . . .115
ALS Minerals in science of soil . . . . . . . . . . . . . . . . . . . . . .116 Road to Long Canyon closed from public access . . . .119 Barrick reports $2.83 billion loss . . . . . . . . . . . . . . . . . . . . .120 MSHA issues 61 violations to Jerritt Canyon . . . . . . . . . . .129
Ross Andreson/Mining Quarterly
Marigold Mine for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . .130 Klondex buys Midas Mine . . . . . . . . . . . . . . . . . . . . . . . . .131 Geologist find natural asbestos fibers in Nevada . . . . . .132
BLASTS FROM THE PAST SERIES Jumbo, Jungo: A tale of a town & a mine . . . . . . . . . . . .69
Crowley says minerals essential part of life . . . . . . . . . . . .23
MCCOY AND THE REBELLIOUS ORES
Boyce tells how tradition and safety fit . . . . . . . . . . . . . . .36
Columnist Richard Baker examines the impact
Dobra says frack it . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
one man had on Eureka —
MAP & INDEX Mine Map of Nevada . . . . . . . . . . . . . . . . . . . . . . . . . . . .133 Advertisers Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134-135 2 MINING QUARTERLY, Elko, Nevada SPRING 2014
MINING QUARTERLY Travis Quast . . . . . . . . . . . . . . . . . . . . . . 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
RESPONSIBLE MINING. REMARKABLE PEOPLE. Responsible mining isn’t just about getting ore out of the ground. It’s about supporting the communities where we do business and the dedicated professionals who are the backbone of our success. We’re proud of our commitment to providing opportunity, recognizing individual achievements and fostering a team environment. Add your talent and energy to ours and enjoy the rewards of working with some of the most remarkable people in mining.
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 3
Birth of a Mine Midway Gold breaks ground for Pan project By MARIANNE KOBAK McKOWN Mining QuarterlyEditor
ELKO — Midway Gold broke ground in January for its new mine, and the company is hoping to have a gold pour by the end of the year. “Today we are celebrating a team effort,” Midway Gold President and CEO Ken Brunk said during the ground breaking ceremony Jan. 14. Pan is Midway’s first Nevada mine. “Midway did not make these permits happen - you did,” Brunk told the crowd of company employees, community Marianne Kobak McKown/Mining Quarterly leaders, and state and federal agencies’ staff who gathered Former Midway Gold CEO Alan Branham, left, and Midway Gold President and CEO Ken Brunk help each other with the compa- for the ceremony. Midway Gold is based in Denver, Colo., and the Pan ny’s ground breaking of its Pan Mine.
4 MINING QUARTERLY, Elko, Nevada SPRING 2014
WE KNOW YOUâ€™RE REALLY MINING FOR INCREASED PRODUCTIVITY. Thatâ€™s why your local Bridgestone Mining Store is here. :LWKHYHU\WKLQJIURPDSSOLFDWLRQVSHFLĆ‚FWLUHVDQGUHWUHDGV to smart services and real-time, on-site problem solving, we become part of your operation. Talk to us today and see why Bridgestone is your most trusted advisor in mining.
Bridgestone Mining Store 8QLRQ3DFLĆ‚F:D\(ONR19 BridgestoneMiningSolutions.com ÂŠ2013 Bridgestone Americas Tire Operations, LLC. All Rights Reserved.
Marianne Kobak McKown/Mining Quarterly
This ceremonial gold shovel was made to commemorate the Jan. 14 groundbreaking. Mine is in White Pine County, about 50 miles west of Ely and 22 miles southeast of Eureka. The mine received its record of decision from the Bureau of Land Management Dec. 20. The mine will consist of two primary open pits, three satellite pits, one heap leach pad, three rock disposal areas and a transmission line. The total surface disturbance will be about 3,301 acres, according to the BLM. Brunk said the Pan Mine is a low-cost, oxidized, Carlin-style gold deposit. The deposit is more than 1 million ounces in size. Brunk said there are three groups of people who make a mine possible - the visionaries, true believers and the doers. The visionaries are the geologists. â€œThese are the folks who recognize what can be here,â€? he said. â€œThese are the folks who know enough to poke holes in the right places in the ground.â€? The true believers are the board of directors, and the doers consist of the permitting team. Those who work on the permits range from the companyâ€™s employees to the state and federal staff who help finalize the documents. Brunk said the team that worked on the permits set â€œa new benchmark.â€? See PAN, 6
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 5
Pan Mine Quick Facts Parameters 130-150 jobs for operation 160 jobs for construction 9 years of mine life 81,000 ounces average annual production
Dollars $1.2 million in property tax estimated per year $12.1 million in payroll estimated per year $18.1 million in net proceeds tax at $1,200 per ounce of gold $70 million total construction cost estimate $585 per ounce in cash cost (this includes royalties, state tax and 5 percent contingency) $824 per ounce in fully loaded cost (this includes cash cost, initial capital and sustaining capital)
Pan ... Continued from page 5
Marianne Kobak McKown/Mining Quarterly
Jill Moore, EGAN field manager for the U.S. Bureau of Land Management speaks about the project.
Jill Moore, EGAN field manager for the U.S. Bureau of Land Management said she began working on the project about a year ago, when the draft environmental impact study was being prepared. She said the final EIS was published Nov. 20, and a month
later, the record of decision was signed. “From the notice of intent to that point in time was less than two years. That’s a very significant accomplishment,” she said. See PAN, 9
www.carmacseats.com Improving Occupational Health & Safety through Innovation Our industry-leading ergonomic seating systems, along with vision and monitoring equipment, keep operators healthy, safe and alert. Advanced monitoring devices supply ongoing proof that our products are unparalleled in the industry at maintaining a productive work environment. We also offer a local maintenance service to keep your trucks and heavy equipment working without delay.
firstname.lastname@example.org 6 MINING QUARTERLY, Elko, Nevada SPRING 2014
Home Ownership It just makes sense...
Find me at the corner of 7th & Idaho... Carol L. Buckner, GRI Broker/Salesperson email@example.com www.carolbuckner.com 775-777-4235 (cell)
© 2014 Bel-Ray Company, Inc
WE ARE SO CONFIDENT YOU WILL LOVE SF-100 YOUR FIRST FILL IS ON US! *
When the pressure to perform is on, more mining operations trust Bel-Ray lubricants. Bel-Ray creates lubricants to meet user-specific needs—lubricants that reduce wear, extend component life and withstand the extreme demands of mining. Plus, Bel-Ray oils and greases are packaged in globally compliant, multi-lingual labeling—an industry first from the leader in specialty lubricants. If you’re thirsty for maximum performance and efficiency, Bel-Ray is your thirst quencher.
SEE THE ENTIRE LINE OF BEL-RAY PRODUCTS AT BELRAY.COM. *Qualifying customers who fully covert to Molylube® SF-100 Open Gear Lubricant may be entitled to four free 208 L drums of Molylube® SF-100 Open Gear Lubricant.
FLEX YOUR OPERATION C O N TA C T C U S T O M E R S E R V I C E @ B E L R AY. C O M
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 7
8 MINING QUARTERLY, Elko, Nevada SPRING 2014
AMERICA’S LARGEST WESTERN AND WORK RETAILER
We’ve got exactly what you need, including high visibility apparel and waterproof, insulated metatarsal guard work boots, at the lowest prices guaranteed!
a division of Boot Barn
Marianne Kobak McKown/Mining Quarterly
Above: Tom Williams, vice president of environmental affairs for Midway, speaks about the Pan Mine project. Opposite page top: A map showing the Pan Mine location. Opposite page bottom: A group photo of those in attendance during the groundbreaking.
Pan ... Continued from page 6 “… That particular accomplishment speaks to the benefits and the importance of open and honest communications, and a true desire to collaborate together toward a goal. I am, speaking for the Bureau of Land Management, I am proud to have been working with this team. ... I just wanted to just take a few minutes to say job well done.” Tom Williams, vice president of environmental affairs for Midway, said the team did a good job. He also said the project would not have been possible without the surrounding communities. “We’ve had a great community support team,” he said. Brunk said the support from the community has been outstanding, but mining companies also have a responsibility to the surrounding area. “When we came here, one of the philosophies … you come in as a guest and you have to earn your way as a resident,” Brunk said. “And we did that not just with contributions as well as not just dollars, but man hours from people who care about the communities they live in.” Brunk said Midway and its employees have taken an active role to be “good neighbors.” “I think it is something mining companies have to do,” he said. “I think every company has to do it, and I really mean that. It’s from the heart. … It’s not just hype, and
VISIT US AT THE FOLLOWING LOCATIONS: IN ELKO 1920 E. Idaho St. 775-738-6865
IN WINNEMUCCA 1460 W. Winnemucca Blvd. 775-625-2622
For commercial accounts and bulk purchases, please contact Frank Rowan at 505-503-5976.
See PAN, 10
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 9
Pan ... Continued from page 9 I’ve done it all my career, all over the world. This is no different.”
Marianne Kobak McKown/Mining Quarterly
Midway CEO Ken Brunk, far left, presents a map showing the fault on the Pan Mine property is named after the company’s former CEO Alan Branham, who holds the other side of the map. Midway board director Roger Newell is holding the corner of the map.
Highlights of the Pan Project Brunk joined Midway in 2010 when Midway went from an exploration company to production. He became the CEO in 2012. During the ground breaking ceremony, Brunk acknowledged one of his predecessors at Midway. The Pan deposit was discovered in 1978, and in 2007, Alan Branham, Midway’s former CEO, recognized its potential and brought it to the company, Brunk said. In appreciation of Branham’s involvement in the project, Midway decided to name a fault at the site after the former CEO, Brunk said. “We named the fault running through the heart of Pan after Alan, because he gave the company its heart,” Brunk said. When he was CEO, Branham oversaw the growth of the company. He began planning for the Pan Mine and later led the way to five projects total. The Gold Rock Project is also in White Pine County and is scheduled to begin production in 2016. The Spring Valley Project is in Pershing County and a joint venture with Barrick Gold Corp. The Tonopah and Golden Eagle projects are still in exploration phases. Golden Eagle is in Washington state. Branham said the Pan deposit was found in the
MODERN TECHNOLOGY / OLD-FASHION VALUES
WALLACE MORRIS SURVEYING, INC.
LAND SURVEY CONSULTING ➢ ➢ ➢
ELKO 1096 Lamoille Highway (775) 753-3610
Topographic Survey/As-built Mine Construction Layout Control Network Design Area/Grade/Volume Computation and Layout Property Description Writing and Encumbrance Exhibits
5740 Arville Street (702) 212-3967
For over 50 years Newmont Mining Corporation has supported the local communities of Northern Nevada, employing more than 3,500 professionals. Our dedication to safety, stewardship of the environment and support of our local communities is helping Newmont become the most valued and respected mining company through industry leading performance. www.Newmont.com
10 MINING QUARTERLY, Elko, Nevada SPRING 2014
ECC PO BOX 1591 West Jordan, UT 84084
➢ ➢ ➢ ➢
Quality Control and Verification Survey Record of Survey Expert Witness Aerial Mapping Control High Definition 3-D Scanning
EQUIVALENT CONTROLS CORPORATION Josh Nigh T (801) 260-1920 M (208) 844-0704 F (801) 260-1921 Josh@Equivco.com
1970s, but he began working on the project in 2007. â€œWe began drilling and we discovered three new ore bodies,â€? he said. â€œThen went into permitting and weâ€™re here now ready to begin breaking ground.â€? Branham said the rapid pace of the permitting was due to an experienced team and the â€œecofriendlyâ€? nature of the land. The Pan Mine will have minimal impacts to the environment, Brunk said. The property does not have any surface water and there is a minimum of 300 feet between the bottom of the lowest planned pit and the areaâ€™s groundwater. The project also wonâ€™t impact any threatened or endangered
Marianne Kobak McKown/Mining Quarterly
See PAN, 13
Midway Board director Roger Newell, far left, former CEO Alan Branham and mining engineer David Mosch, break the ground where the Pan Mine offices will be constructed. At top left: The blueprints of where the office structures will be located on the property.
(DVW,GDKR6WUHHW (ONR19 Tel: + 1 77 Fax: + 1 7 www.liebherr.com
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 11
Marianne Kobak McKown/Mining Quarterly
Above: CEO Ken Brunk speaks during the groundbreaking ceremony. At left: Laura Baldwin, a geologist at Midway, explains some of the things seen on the geological map of the Pan Mine property.
#$#%&$'%(&#' 12 MINING QUARTERLY, Elko, Nevada SPRING 2014
Marianne Kobak McKown/Mining Quarterly
Midway investor relations representative Jaime Wells, far left, Midway Senior Vice President of Operations Rick Moritz, David Mosch and Roger Newell stand with the ceremonial shovel during the Pan Mine ground breaking.
Pan ... Continued from page 11 species, Brunk said. Construction of Pan Construction at the Pan Project was already underway in January. The access road was built and the next steps would be building the mine’s facilities, said Mike Protani, vice president and general manager of Nevada operations. The office buildings would be constructed during the winter and the mine’s other facilities would be built during the summer. The company hopes to start the leach pad by late spring or early summer, Protani said. Ore should be on the pad by June or July. Marianne Kobak McKown/Mining Quarterly “The ore is basically right on the surMike Protani, vice president and general manface,” he said. “It’s low grade by Nevada ager of Nevada operations for Midway listens standards. It’s .016 ounce per ton. … We during the groundbreaking ceremony. should produce gold most likely fourth quarter of this year.” Protani said the site should have about 50 Midway employees and 80 contractors at the beginning of production. The company expects the employees to come from Eureka and Ely. The South Pan Pit will be mined first. “Our average production will be around 80,000 ounces a year, and of course year one it won’t be that high,” Protani said. “We have about nine years of mine life. We’re currently permitted for 13 years. … Brunk said he expects the mine to last longer than the 13 years. “I look to be a long-term employer for a few decades,” he said. “I think that’s good.” Protani also thought the mine would last longer than the current plan. “We’re excited to get underway and bring in some jobs to central Nevada that needs them and start Nevada’s newest operation,” he said.
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 13
Dee Holzel/Mining Quarterly Correspondent
Above: This is the future location for Nevada Copper’s north/south surface pit at Pumpkin Hollow. The company estimates 70,000 tons will be mined per day. Below: A core sample from Pumpkin Hollow.
Nevada Copper’s Pumpkin Hollow project full of promise By DEE HOLZEL Mining Quarterly Correspondent
YERINGTON — While those in northern Nevada watch the gold market with some trepidation, as one mine closing follows another, in the little town of Yerington, in Lyon County, economic prosperity is knocking at the door. Just southeast of Yerington, perhaps a 15 minute drive, is Nevada Copper’s Pumpkin Hollow project. Currently in the advanced exploration stage, the company intends to begin mining in 2015 to recover an estimated mineral inventory of 5.22 billion pounds of copper. Timothy Dyhr, of environment and external relations, said it’s the right time and the right place to fully develop the mineral potential of the property. Copper is particularly profitable right now due
14 MINING QUARTERLY, Elko, Nevada SPRING 2014
to the growth in China, which is the primary purchaser of the world’s copper. China requires copper to keep up with demand from industry – in particular the electronic industry. Copper is used in cars, refrigerators, cell phones, and water pipes. What’s good for China may ultimately be good for Lyon County, too, and particularly Yerington. Nevada Copper estimates 1,000 – 1,100 jobs will be created through the development of the mine. Including the primary jobs at Pumpkin Hollow and the secondary jobs created when people have employment and money to spend – the total jobs created was estimated at 2,500. There will be additional jobs through the construction phase. Dyhr pointed out the property itself is ideal for development. Unlike some mines, where the employees have a long distance to travel between home and work,
Whether you’re a Southwest Gas nt customer or not, it’s important to know how to recognize and nd respond to a natural gas leak. ak. A leak may be present if you:
SMELL: An odor similar to rotten eggs, even if it’s faint or momentary.
HEAR: A hissing or roaring sound coming from the ground or aboveground pipeline.
SEE: Dirt or water blowing into the air, discolored vegetation surrounding a pipeline, or standing water continuously bubbling. Dee Holzel/Mining Quarterly Correspondent
Material streams out of the headframe at Nevada Copper.
nearby Yerington is close enough to house a labor force without being so close problems might arise between neighbors. Of course, the most serious issue facing the county right now is not the proximity of jobs but the lack of them. Unemployment in Lyon County has hovered at 11 percent during the last year. Another factor that makes the location attractive for development is the fact the infrastructure is in place to include paved roads and a railroad. There is an airport nearby and the Reno/Tahoe Airport is a 90 minute drive. In some cases, mines have to construct the infrastructure themselves, hiking up the cost of the project. Additionally, there are no sensitive environmental factors that could derail the project, such as sage grouse, and there’s no running water nearby; in fact, the surrounding area has little in the way of plant life. Nevada Copper was formed and acquired the property in 2006 from US Steel, who had drilled 180,000 meters. Since acquiring the property, Nevada Copper has completed more than 154,000
lf you suspect a leak:
Leave the area immediately. F rom a safe place, call 911 and Southwest Gas at 1-877-860-6020, day or night, whether you’re a customer or not. A Southwest Gas representative will be there as soon as possible.
Don’t smoke or use matches or lighters. D on’t turn on or off any electric switches, thermostats, or appliance controls; or use automated doors.
Don’t start or stop an engine. For more information about natural gas pipeline safety, visit swgas.com/safety or call 1-877-860-6020.
See COPPER, 16
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 15
Copper ... Continued from page 15 meters of drilling. Following exploration, Nevada Copper will refine the plans for the underground facilities. • Located on the property, a short drive from the main office, is the headframe. From the ground to the top of the steel is 150 feet; to the top of the lightning rods is 154 feet. Four-hundred tons of steel were needed to build the headframe, which is used with the hoist to move materials and people in and out of the shaft. • The hoist house is located nearby. Inside are two hoist drums with enough cable to reach the bottom of the shaft, can move at 2,140 feet/minute, and weigh 77,000 pounds each. • The shaft is 24 feet in diameter and will be 2,200 feet deep. When it is time to mine the deposit, the shaft will be capable of hoisting 7,500 tons of ore per day. That’s enough ore to cover a basketball court with ore 16 feet deep. • The property has about seven core shed storage facilities, of which Nevada Copper built two modern facilities, which house over a million feet of drill core. Less than half of which was drilled by previous companies. Although everything appears rosey, Lyon County – like many in northern Nevada – has been Photo courtesy of Nevada Copper
See COPPER, 19
An excavator moves material in Nevada Copper.
Your Hometown Grocer
WE SUPPORT THE MINING COMMUNITY
Spokane, WA 888.730.5273 • 509.315.4117 16 MINING QUARTERLY, Elko, Nevada SPRING 2014
D OO F EAT R G ES C I R DP O GO IN TH
RELIABLE TO THE CORE
When you choose a partner in business, you want one that’s unfailingly reliable. One that understands that you need service, parts, and support now – right now. At Cashman Equipment, we are committed to providing you with unmatched service and support.
– 5 parts warehouses in Nevada – Over 1 million parts in stock
– 24/7, 365-day service and support with statewide coverage
– Condition Monitoring optimizes machine health
– 6 locations covering and servicing all of Nevada
– 98% availability within 24 hours
– 275 qualiﬁed and trained service technicians to get you up and running
– MineStar fully integrated mine management
– Application and productivity specialists on staff
– 150 service trucks available wherever and whenever you need them
– SOS ﬂuids analysis and sampling (ISO 17025 Accredited, Cat Certiﬁed)
– Cat Certiﬁed Operator Trainers on staff
WWW.CASHMANEQUIPMENT.COM CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. © 2012 Caterpillar. All Rights Reserved.
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 17
18 MINING QUARTERLY, Elko, Nevada SPRING 2014
Copper ... Continued from page 16 waiting for Congress to pass a land’s bill, known as the Lyon County Economic Development and Conservation Act, which was wrapped up in six other land-use bills. The bill would sell 19 square miles of federal lands at fair market value to Yerington for development of the copper mine. In order to get the bill through committee, the Nevada delegation agreed to a trade: they would sell the property needed for development of the copper mine and other economic development opportunities and in exchange new wilderness area would be created. But the largely conservative House Natural Resource Committee has no love for creating wilderness areas, which are considered the most restrictive of the land-use designations. So the committee tweaked the language in the bill just a bit. Among the changes was language that would prohibit the option of selling privately-held land within the wilderness (known as inholding) to further the cause of conservation. In essence, private property owners could only exchange or donate the property. So? Well, at issue is the possibility the language could Photo courtesy of Nevada Copper
See COPPER, 20
Korin Barnes, project geologist for Nevada Copper, examines samples.
SERVING THE MINING INDUSTRY THROUGHOUT THE WEST “Top to Bottom Drilling Tools & Accessories”
Now offering a full line of Coring Tools: Casing • Rods • Core Barrels Overshot Assemblies Diamond Core Drilling Bits • DTH Hammers & Bits
• Bit & Pipe Handling Tools
• Drill Steel & Subs
• Casing-PVC/Steel Threaded & Slotted
• Drilling Fluids & Thread Compounds
• Reverse Circulation Hammers & Pipe • New & Rerun Rotary Bits www.jentechdrillingsupply.com 195 Ingenuity Drive, Sparks, Nevada 89441 • Phone 775.424.3045 / 551 West Main Street, Elko, Nevada 89801 • Fax 775.424.3046 SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 19
Copper ... Continued from page 19 derail the Southern Nevada Public Land Management Act, legislation that puts federal property into private hands with the proceeds going for conservation projects on protected land. The act was negotiated by Senator Harry Reid and political wisdom does not believe he will vote for a bill that would undermine the SNPLMA. Technically the lands-bill passed through the House of Representatives, but whether or not it will make it to the presidentâ€™s desk seems unlikely. The groan from Yerington was almost audible. Should the bill fail to make it into law, the result would be Nevada Copper would be permitting the open pits on federal lands, which means a Photo courtesy of Nevada Copper
A ride to the top at Nevada Copperâ€™s Pumpkin Hollow.
20 MINING QUARTERLY, Elko, Nevada SPRING 2014
See COPPER, 22
Photo courtesy of Nevada Copper
Unloading the muck bucket at Nevada Copperโs Pumpkin Hollow.
Photo courtesy of Nevada Copper
A miner works in the Hank shaft at Nevada Copperโs Pumpkin Hollow.
THE LEDCOR GROUP OF COMPANIES 'SPNJDPOJDCVJMEJOHTUPBDDFTTSPBET8FIBWFCVJMUJUลBOEFWFSZUIJOHJOCFUXFFO 4JODFXFIBWFCFFOEPJOHJUSJHIU"MXBZT8FCFMJFWFFWFSZQSPKFDUลZPVS QSPKFDUลJTBCPVUNPSFUIBODPODSFUFBOETUFFM*UลTBCPVUQFPQMFBOEUIFQPXFSPG QBSUOFSTIJQT
MINE CONSTRUCTION SERVICES
ลข1SF$POTUSVDUJPO4FSWJDFT ลข.JOF%FWFMPQNFOU ลข-FBDI1BE$POTUSVDUJPO ลข4JUF3FDMBNBUJPO ลข5BJMJOHT%BN$POTUSVDUJPO
LEDCOR CMI 3FOP /FWBEBลข ลข,JFU[LF-BOF 4VJUF &MLP /FWBEBลข ลข-BNPJMMF)JHIXBZ 6OJU
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 21
Copper ... Continued from page 20 longer permitting process – perhaps up to two years longer. For Yerington, without the land transfer, the city wouldn’t be able to receive any tax dollars from the project. The little town would have to take the load of new employees on their infrastructure without receiving the tax dollars necessary for the city’s upkeep. Most serious, any delay in the project would mean a delay in jobs. The next stop for the bill is for the Senate and House to line up their individual versions. Meanwhile, Nevada Copper has continued seeking financing for development of the project. According to a statement released by the company, the pace for development of the project will be determined by available funding.
Photo courtesy of Nevada Copper
A miner examines the wall of a shaft in Pumpkin Hollow.
22 MINING QUARTERLY, Elko, Nevada SPRING 2014
From Nevada’s ground to your home, our minerals are an essential part of modern life By TIM CROWLEY Nevada Mining Association President
I always enjoy reading the Mining Quarterly for detailed updates on various mine projects throughout the state. Each issue consistently has dozens upon dozens of pages filled with valuable information about mining-related economic development. Upon gathering all this data, you might say those stories combine into meaningful points of pride for all miners. For instance, our industry generates roughly 6 percent of all economic activity in Nevada, contributes more than 8 percent of all general fund revenues, and employs nearly more than 12,000 Nevadans with salaries that are double the state average. Nevada mining does this because we are world leaders in providing many of the minerals on which our society depends. Whether it’s gold and silver for
technology, copper for electrical conductivity and plumbing, or clays for paints and other commercial uses, the minerals mined in Nevada are used in people’s lives every day. I find it hard to imagine life without smart phones and computers or pavement for our highways and streets, and none of these demands could be met without mined materials, many of which come from Nevada. Here’s a quick rundown of our state’s accomplishments providing essential minerals: • Nevada is a leading producer of gold, generating 70 percent of all U.S. gold and 8.5 percent of world gold production. From this production, our daily lives are
Potable Water For Nevada’s Mines 7861 E. Idaho St. Elko, NV 775-738-2677 www.bosstanks.com
enhanced through gold’s integration in technology – such as satellites, personal computers, and high-definition televisions – medical equipment, automobiles and, of course, jewelry. • Nevada is the 15th leading global producer of copper, providing a resource needed for most of our electric cables, wires and switches. In addition, copper is commonly used in alloys for plumbing fixtures and piping. Our homes are filled with copper and the list of essential products dependent upon this metal is long. • Nevada produces 8 percent of the world’s barite, making our state the fourth leading global producer. Mostly known for its application with drilling fluids, barite is also used in many paints, enamels and plastics. • Nevada is one of the world’s top 25 producers of gypsum, used for wallboard and plaster products, and much of that production comes from Clark County.
Every modern home in North America and many commercial buildings use wall board for interior construction. • Nevada produces more than 20 percent of the world’s diatomaceous earth supply. This porous material is used extensively in filtration systems to eliminate impurities in everything from foods and beverages to swimming pools to oils and greases. The list of Nevada minerals is long and includes silver, limestone, lithium, molybdenum, iron ore, geothermal heat, specialty clays and more. The list is varied and showcases the dynamic opportunities and talents on display in our industry. The list is filled with the companies and dedicated individuals featured in these pages, who should all be proud that their work helps fill our societal demands each and every day through the products they mine.
Stop by Enviroscientists’ ELKO Office at 835 Railroad Street
Please check out our expanded Compliance Services Call (775) 753-9496
ÉPlans of Operations ÉReclamation Permits ÉReclamation Cost Estimates ÉArchaeological Services ÉBiological Services ÉWater Monitoring Services ÉEnvironmental Audits & Due Diligence
ÉAir Quality Assessments ÉAir Modeling ÉAir Quality Emissions Inventories ÉEnvironmental Assessments ÉToxics Release Inventories É Environmental Impact Statements
Enviroscientists, Inc. Reno, Nevada
775.826,8822 775.753.9496 www.enviroincus.com SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 23
Mine to manufacturer
Ross Andreson/Mining Quarterly
One of the pits at Newmont’s Phoenix Mine.
Phoenix produces copper plates By MARIANNE KOBAK McKOWN Mining Quarterly Editor
Ross Andreson/Mining Quarterly
BATTLE MOUNTAIN — Phoenix Mine is living up to its name, since it is turning waste material into something useful. At the end of October, Phoenix, owned by Newmont Mining Corp., began producing copper plates out of its SX-E facility. The plates are shipped directly to manufacturers. The material processed into copper was considered waste a couple of years ago. In 2011, Phoenix built a leach pad and then in 2012 began construction on its SX-E plant or solvent, extraction and electrowinning facility. The plant is expected to produce 20 million to 25 million pounds of copper a year. It may produce about 200 million to 300 million pounds over the life of the mine.
Process Operations Superintendent Bob Tucker talks about the shipping of copper plates at Newmont’s Phoenix Mine.
See PHOENIX, 26
24 MINING QUARTERLY, Elko, Nevada SPRING 2014
MINING IS A HARD BUSINESS. SO PARTNER WITH
A COMPANY THAT MAKES IT EASIER. CarWil is recognized as the premiere manufacturer and repair service provider of durable materials handling systems that expertly meet the rigorous demands of the mining industry. An industry leader with an unwavering dedication to exceptional customer service and engineering excellence, CarWil has hammered out a solid steel reputation.
CUSTOM STEEL FABRICATION
24-HOUR FIELD SERVICES
RUGGED MINING PRODUCTS
5500 Westmoreland Rd.
5323 West Wells Park Rd.
2580 Alta Vista Dr.
5247 E. Idaho St.
Winnemucca, NV 89445
West Jordan, UT 84088
Elko Nevada 89801
Elko, NV 89801
775-625-1545 | www.carwil.com SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 25
Phoenix ... Continued from page 24
Ross Andreson/Mining Quarterly
The solution containing copper flows from the leach pad to the pregnant leach solution pond.
JBR Environmental Consultants, Inc.
Serving Mining Clients at Over 100 Mine Sites Since 1985 Fully Staffed & Local to Provide the Services You Need
Full Range of NEPA Services Provided Locally
Permitting Support on Public & Private Land
Baseline (wildlife, vegetation, etc.) Studies
Air Quality Permitting, Modeling & Stack Testing
Waters of the U.S. & Wetland Delineations
Surface Water & Groundwater Investigations & Modeling
Wasterock Characterization & Soils Investigations
Enterprise GIS Services & Web Maps
Mine Planning & Reclamation Bond Estimates
SPCC & SWPPP Plans
Environmental Due Diligence
Toxic Release Inventory (TRI) Reporting
NI43-101 Technical Studies
Why JBR? Local Experience. Client Focus. Quality.
Call us today in Reno (775.747.5777), or Elko (775.738.8766), or visit www.jbrenv.com 26 MINING QUARTERLY, Elko, Nevada SPRING 2014
After material is mined, it is sent to the copper leach pad and a sulfuric acid solution attaches to the copper. The leach pad had two lifts of material on it in January, said Bob Tucker, Phoenix process operations superintendent. “We have 1.2 million square feet of material under leach,” Tucker said. Each cell on the leach pad is 400,000 square feet and 20 feet high. The leach pad is 8 million square feet and contains six cells. Tucker said the leach pad will continue to grow higher as more ore is mined. After solution is put on the pad, it moves through the pad and into the PLS, or pregnant leach solution, ponds. The solution in the ponds looks very green since it contains a high concentration of copper. The solution or raffinate contains 8 to 9 grams of copper per liter. The color of the solution will lighten as the concentration comes down, Tucker said. It will look more yellow eventually. The darker color is because the early leach was started in July 2013. “We started early leach on purpose so we would get a good amount of copper,”
said Phoenix Process Manager Lauren Hafla. The pregnant leach is then pumped to the solvent extraction building. When the solution enters the extraction building, an organic is added. The organic attaches to the copper. “This is where we start to extract the copper out,” Tucker said. “You will see a change in color in the first extractor.” The solution is in a large building so it is kept clean. The liquid is in layers in the solvent extraction building. The organic is on top, then the gunk and below that is the aqueous, which will continue in the cycle with the raffinate, Tucker said. The raffinate travels in pipes back to the leach pad. As the facility processes more solution, islands of gunk will build up on top of the liquid, Tucker said. “Employees will harvest the gunk islands,” he said. This process is similar to gold leaching, Tucker said. The solvent extraction step could be compared to the carbon in leach columns in the gold leaching process, he said. In the SX building, the organic and aqueous break apart and the organic enters into the next building. Concentrations of sulfuric acid is used to strip the copper from the organic, Tucker said. The color of the solution changes again as it becomes a rich electrolyte solution. The PLS is 8 grams per liter of copper, but the rich electrolyte is 50 to 55 grams per liter. Tucker said the dry air in Nevada is a disadvanRoss Andreson/Mining Quarterly
See PHOENIX, 28
Bob Tucker talks about copper leach processing in the solvent extraction facility at Newmont’s Phoenix Mine.
From crushing, tailing impoundment, leach pads, roads, airfields, and site work, to foundations, buildings, reclamation, water management and power services— Granite builds it all. Add our award-winning safety program, national reputation for ethical business practices, and a commitment to leveraging our local workforces and equipment, and you’ll see that we do more than just simply build your project— we build communities too.
SPRING 2014 ELKO DAILY FREE PRESS, Elko, Nevada 27
TRUCK & GIANT TIRES -1
Ê- ,6 ÊUÊ " 6 /Ê , / 7,, / -Ê Ê7,/
ELKO LES SCHWAB TIRE CENTER ÈxäÊ7iÃÌÊ-ÛiÀÊ-ÌÀiiÌÊUÊÇÇx°ÇÇÇ°ÎäÎ
Ross Andreson/Mining Quarterly
Bob Tucker holds a dipper of rich electrolyte copper solution in the solvent extraction facility at Newmont’s Phoenix Mine.
Building Mines, Building Careers!
tage to this process of extracting copper. As soon as air bubbles in the solution pop, it forms copper sulfate, which builds up and is a waste material. “Eventually we will get it to a rate where you don’t see the buildup,” Tucker said. From the SX buildings the solution moves into the electrowinning plant. This is where the liquid copper is turned back into a solid. The solution is pumped into one of 30 cells in the building. Each cell holds 2,000 gallons of solution. The cells also con-
Continued from page 27
See PHOENIX, 31
28 MINING QUARTERLY, Elko, Nevada SPRING 2014
3PECIALIZING IN 5.$%2'2/5.$ 0%23/..%, 42!.30/24!4)/. AND #534/- "5),4 -).).'