Mining Quarterly Summer 2013

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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

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Eureka Moments in Nevada

201 3

In Memoriam

April 16, 1918 ~ Feb. 7, 2013

Mining has impacted Eureka from the 1800s to present day.

General Moly employees Pat Rogers, left, and Mike Iannacchione stand at the 8,000-foot level of Mt. Hope.

John Livermore discovered the Carlin “eureka� moment.

Ross Andreson/Mining Quarterly

— INSIDE — EUREKA MOMENTS Work continues at Mt. Hope — Page 12 John Livermore Memorial — Page 44

Industry weathers hills, valleys

HALLIBURTON Rossi Mine plans expansion — Page 30 NEWMONT Long Canyon planning continues —

Page 38

Twin Creeks water improvements — Page 104

BARRICK Paste backfill plant first in Nevada — Cortez improvements —

Page 54

Page 70

SAFE HAVEN Mines help rescue zoo — Page 60

BLASTS FROM THE PAST SERIES Pittsburgh of the West —

Employment

Page 92

Find the job you want — Page 129

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

ELKO — The mining industry showed backfill plant — the first of its kind in its up and down nature this last quarter. Nevada. Meanwhile, the Cortez and Mines in Nevada continue to grow, but Cortez Hills mines continue to grow.

Halliburton’s Rossi barite mine is also several companies have hit snags in the in the works for expansion. last three months.

While the industry continues its trek forThe main metal in Nevada — gold — ward, the Mining Quarterly caused a scare in April. After staff persevere to remember years of the yellow mineral those who worked the land in growing in price, the stock the past. price plunged more than Our “Blasts From The $200. It was above $1,600 at Past” series takes a look at the beginning of April, but Eureka, and is accompanied then dropped below $1,361 by two other stories centered on April 15. It marched back around the “Pittsburgh of above $1,400 on May 14. the West.”

While many investors saw Our look into the history the rapid drop as the end to of Nevada’s mining also gold’s bull market, people in examines the contributions the industry recognized it as of John Livermore. I did not just the cyclical nature of the have the opportunity to business. The price of gold meet Livermore, but his has always gone up and family graciously allowed down, and April’s fall me to attend his April doesn’t seem to be stopping ARIANNE memorial in Reno. the mines in Nevada.

Family, friends and colGold isn’t the only metal OBAK C OWN leagues shared stories about overcoming its share of hurthis man who seemed larger dles.

General Moly’s Mt. Hope Project than life but still remained humble about received its record of decision in 2012, but his accomplishments. He discovered the in March the company hit a financial snag Carlin Trend, which led to the biggest with a Chinese loan. Work continues on mining boom in American history, and he the project and General Moly executives was an environmental steward of the land. hope to find a new investor.

After writing about Livermore’s impact Throughout this issue of the Mining Quarterly, we have stories of obstacles the on the industry, it only seemed fitting to mines have overcome, but also new tech- reprint a 2003 article in which he talks nologies companies are using to make the about the early days of mining. Even process of separating metals from dirt though the article is 10 years old, it’s still relevant today. more efficient.

You can find the details on all these Newmont Mining Corp.’s Twin Creeks Mine has a new water process plant to stories and more in this edition of the better destroy cyanide and a new method Mining Quarterly.

——————— for collecting mercury. The company also Marianne Kobak McKown is editor of continues its plans for Long Canyon.

Barrick Gold Corp. has completed, or is the Mining Quarterly and mining editor in the process of, improvements at two of for the Elko Daily Free Press. She can be its sites. Goldstrike Mine has a new paste reached at mining@elkodaily.com.

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SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 1

Ross Andreson/Mining Quarterly file

Children explore mining equipment offered by Komatsu during the 2012 Mine Expo at the Elko Convention Center.

Thousands expected for Elko Mine Expo

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

ELKO — Elko will be bursting at the seems as thousands arrive for the annual Mining Expo.

The Elko Mine Expo is Thursday and Friday, but setup will start Monday. The Elko Convention and Visitors Authority has hosted the event for 28 years and expects

2 MINING QUARTERLY, Elko, Nevada SUMMER 2013

8,000 to 10,000 people will attend.

As of May 15, there were 469 booths and 442 were sold to 400 vendors, said Elko Convention and Visitors Authority events coordinator Jennifer Stotts.

“It’s been really busy this year,” Stotts said. “I’ve had a lot of phone calls of people saying that they had to get in.”

Last year the Expo had 417 exhibitors.

Available hotel rooms are still a problem for the Expo.

“The response I am getting of the exhibitors is they’re asking for more space, but we’re getting to the point that we can’t expand the show any more, because we don’t have the hotel space,” she said.

Some vendors had to cancel because they could not find hotel rooms. Just like last year, vendors are staying as far away as Winnemucca and West Wendover, Stotts said.

Drill operator Lee Shaw demonstrates the Geoprobe drill during the 2012 Mine Expo at the Elko Convention Center.

Ross Andreson Mining Quarterly file

Events during the Mine Expo will be similar to last year. Stotts said the golf tournament was sold out. However, the opening ceremonies will not be a sit-down banquet this year.

Stotts said in the past the ECVA staff noticed people were networking during the cocktail hour and then just sat for the banquet and didn’t intermingle. She said the informal reception should give people more time to talk with each other this year.

“We will still have food and cocktails though,” she said.

The reception is scheduled at 6 p.m. Wednesday at the Flying Fish. It was sold out by the beginning of April.

Stotts said there may be a few other new things at the expo, but they were not for publication yet.

While there will not be a keynote speaker this year, there will be speakers during the Expo’s Product Showcase both days of the event in the Elko Convention Center’s auditorium.

One of the highlighted speakers will be Fred Strum, who manages the Ivy Global Natural Resources Fund and is one of the country’s leading investors in natural resource companies.

Strum will be hosted by Kurt Neddenriep and Jose Negrete of the Neddenriep Negrete Group at Morgan Stanley. He will talk about potential investment opportunities in the raw materials and resources markets at 1:30 p.m. Thursday. The presentation is open to the public.

Despite school still being in session during the Expo, the schedule for Minor Miners will remain the same.

“We will see how it goes,” Stotts said.

Minor Miners is scheduled from 9 a.m. to 5 p.m. Thursday and 9 a.m. to 3 p.m.

Friday.

The Elko Mine Expo will be open to the public 9 a.m. to 5 p.m. Thursday and 9 a.m. to 3 p.m. Friday. Exhibit set-up will be June 3-5.

For information about the event contact Stotts at 1-800-248-3556 or 775-7384091 or email her at jennifer@elkocva.com.

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Nevada legislature, industry battle over mining taxes Senate Bill 400

“Some say we don’t pay our fair share of taxes — that’s absolutely true. We pay more than our fair share of taxes.”

— Tim Crowley Nevada Mining Association President

By JOHN RASCHE Mining Quarterly Staff Writer

ELKO — This spring, Nevada legislators and the mining industry battled over how to tax companies digging up metals.

Legislators, city councilmen and county commissioners from mining areas threw their support to the industry, but the decision of what will happen to mining taxes was still undecided by mid May. The Assembly’s Committee on Taxation discussed the mining tax bill, Senate Joint Resolution 15, May 2 with broadcasts to Elko and Las Vegas. SJR15 would repeal a provision in the state constitution that caps the mining industry’s net proceeds of minerals at 5 percent.

“It will create uncertainty for county revenues ... and uncertainty about taxes to the mining industry moving forward,” Nevada Mining Association President Tim Crowley said before the committee in Carson City. “... Some say we don’t pay our fair share of taxes — that’s absolutely true. We pay more than our fair share of taxes.”

Several community members met at Great Basin College to oppose the bill, but Elko City Councilman Rich Perry was the only one to speak before the committee via video conference because of time constraints.

Perry read highlights from a letter the city recently sent to the Assembly in opposition to SJR15 and Senate Bill 400.

“The notion that natural resource industries are protected from taxation by the State Constitution and are See MINE TAX, 5

AP Photo/Cathleen Allison

President of the Nevada Mining Association Tim Crowley testifies in a hearing May 2 at the Legislative Building in Carson City. Lawmakers are considering a proposal to remove the constitutional tax protections for the mining industry as part of the whole tax debate at the Legislature.

4 MINING QUARTERLY, Elko, Nevada SUMMER 2013

SJR15 opponents fear that if the bill is passed, mining industries could fall victim to other tax-related bills, including Senate Bill 400.

SB400, which was introduced in the Senate on March 18, revises provisions governing the taxation of mines and mining claims.

The bill would place a property tax on mines, thereby assessing the property for its worth in resources and minerals.

“We ...wonder how the mineral value becomes part of the taxable value within the current valuation scheme as the Assessor is required to value land at market value,” the Eureka County Board of Commissioners wrote in a letter to the Senate Committee on Revenue and Economic Development. “When we do sales analyses to determine land value, potential mineral content and even mineral interests are not considered.”

Opponents to SB400 also argue that the mining industry already pays its fair share in taxes.

According to the Nevada Mining Association, the mining industry paid over $147 million in state and local taxes in 2011.

“State revenues have fallen substantially, resulting in a significant shortfall in the 2009-2010 budget that was addressed through deep cuts and significant fee increases,” the NMA website argues. “The mining industry contributed to these solutions through increased filing claim fees of approximately $25 million, and by pre-paying approximately $123 million in anticipated taxes from the four largest mining companies in the state. Continued increases in the price of gold, which represents nearly 88 percent of Nevada’s gross proceeds from mines, also enabled the industry to make significant contributions to the state budget through the Net Proceeds Mines Tax.” More than 50 percent of the NPOM tax revenue goes to the Nevada General Fund and is distributed on a per capita basis throughout the state, according to the website.

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Elko City Councilman Rich Perry speaks before the Assembly Committee on Taxation via video conference. Two additional monitors broadcast the hearing from behind the audience.

Mine tax ...

Continued from page 4 therefore protected from additional taxation is not true,” Perry said. “In reality, the Nevada State Legislature could enact additional taxes on the industry with or without changes to the Constitution. “...While we believe that all Nevada industries should do their part, legislation that so drastically affects our State and local governments should be carefully reviewed and analyzed, so as to avoid negative and unintended consequences.”

Supporters of SJR15 argued that because of the state’s financial crises, the mining industry should be placed on the same level playing field as other industries in Nevada.

The provision in the state constitution was written over a hundred years ago, they noted, when Nevada’s mining industry was far different than what it is now.

“I know the mining companies think they pay plenty,” Las Vegas resident Marla Turner told the committee. “I’m sure every business in Nevada thinks the same thing, that they pay plenty. Yet, no one but mining tries to get out of their fair share by saying, ‘I haven’t had to in the past and I don’t want to now.’”

Michael Ginsburg, the Southern Nevada director for Progressive Leadership Alliance of Nevada, called SJR15 something that has been used for “scaring our rural neighbors, brothers and sisters into thinking that they will lose their funding.”

The bill, he said, is really “about giving the people of this state permission to take and undo something the mining industry put into our constitution that is limiting our Legislature (from making) a decision as to how the industry’s taxed and how much it is taxed.”

Supporters of SJR15 spoke before the committee in both Carson City and Las Vegas.

Assemblyman John Ellison and Elko County School Superintendent Jeff Zander were among the vocal opponents in Carson City against the bill. From Elko’s end, there was only further opposition to SJR15.

The Assembly committee concluded the debate between the bill’s supporters and critics after three-and-a-half hours. No action was taken.

The Nevada legislation session must end by midnight Monday.

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Surveys show that bad regulations, taxes repel mining investment But is Carson City Paying Attention?

By JOHN L. DOBRA, Ph.D.

Two recently released studies provide rankings of the investment climate for mining companies in various countries, states and provinces.

One ranking is by the consulting firm Behre Dolbear (BD) (available at http://www.dolbear.com/newsresources/documents) and it primarily focuses on “where not to invest” based on seven political factors related to stability, regulations and tax policy in 25 countries. BD has been publishing its study since 1999 and the rankings are based on an internal survey of BD’s consulting staff based in 12 countries across the world.

The second study, conducted by the Fraser Institute (FI), a non-profit Canadian think tank based in Vancouver, has been published since 1997 (full disclosure: the author is a Senior Fellow at FI but was not involved in the ranking study).

The FI ranking (available at http://www.fraserinstitute.org/ uploadedFiles/fraserca/Content/ researchnews/research/publications/mining-survey-2012-2013.pdf) looks at 17 factors in 93 jurisdictions across the world which includes individual states or provinces for Canada, the U.S., Australia, and Argentina.

The factors used in the FI rankings overlap those in the BD study but has more detail by including additional factors such as labor force conditions, security of land and mineral claims status, etc. An additional difference between the two rankings is that the survey used in the FI ranking was sent out to approximately 4,100 exploration, development and mining related companies around the

Behre Dolbear ranks the U.S. as the sixth best place to invest in mineral projects after Australia, Canada, Chile, Brazil, and Mexico.

More notably, the U.S. was just ahead of Columbia, Botswana, and Peru, which doesn’t sound like a very good neighborhood. world of which 18 percent responded.

The results of both studies are fairly consistent, as one would expect. BD ranks the U.S. as the sixth best place to invest in mineral projects after Australia, Canada, Chile, Brazil, and Mexico. More notably, the U.S. was just ahead of Columbia, Botswana, and Peru, which doesn’t sound like a very good neighborhood.

BD does note that Nevada, along with several other states, are exceptions in the U.S. when it comes to perSee DOBRA, 8

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Continued from page 6

The short-sighted view of mining is that orebodies are immovable objects that can be taxed with impunity. While it is true that mineral deposits are immobile, mining capital is highly mobile. And without that capital, the pile of rocks and dirt you want to call a mineral deposit is just a pile of rocks and dirt. rankings, taken together, are really all that good. I also suspect that timeliness and “efficiently administered� are much the same issue and the main problem.

To the extent that rankings like BD’s and FI’s matter is limited to their impact on decisions made on where to allocate mining capital — where to make investments.

Nevada’s economy has benefitted from tens of billions of dollars invested in mining exploration and development by, for the most part, foreign investors, most of whom are Canadian. The BD and FI rankings suggest that these investors have plenty of places to send their money and they are paying attention to what happens in obscure places like Burkina Faso, Botswana, and Carson City. The implication is that if Nevada acts like a banana republic with respect to its policies toward mining, it will be noticed around the world, and it will matter in terms of where mining investment occurs in the future.

The short-sighted view of mining is that orebodies are immovable objects that can be taxed with impunity.

Š Copyright 2013 Boart Longyear. All rights reserved.

mitting issues, but that is not much consolation when the focus of the ranking is on political stability, rule of law, security of property rights, etc. Note that the U.S. is grouped with third world countries, and the permitting process in Nevada to open a mine can take a decade.

The FI broadest ranking of “Policy Potential� is much more favorable for Nevada ranking it eighth out of 93 jurisdictions, behind New Brunswick, Finland, Alberta, Wyoming, Quebec, Saskatchewan, and Sweden, and just ahead of four Canadian provinces and territories and Ireland.

In contrast, Nevada’s neighbor to the west, California, ranks in the bottom half of jurisdictions which makes sense if you are at all familiar with recent attempts to mine in the “Golden State.� (Maybe California should change its nickname to the “Regulatory State.�)

On other more specific indices in the FI ranking Nevada does worse on some and slightly better on others.

On “uncertainty concerning the administration, interpretation, and enforcement of concerning existing regulations� Nevada ranks seventh best but other measures such as “legal processes that are fair, transparent, non-corrupt, timely, and efficiently administered�

Nevada ranks sixteenth. Both of these rankings are relatively good, but together they suggest consistent application of overbearing regulations. So I’m not sure the

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While it is true that mineral deposits are immobile, mining capital is highly mobile. And without that capital, the pile of rocks and dirt you want to call a mineral deposit is just a pile of rocks and dirt.

This is not to suggest that policies coming out of Carson City - most notably tax policies - are likely to be fatal for Nevadaâ&#x20AC;&#x2122;s mining industry. But, removing the protection of mining in the stateâ&#x20AC;&#x2122;s constitution will certainly be noticed in international circles. What has been portrayed as â&#x20AC;&#x153;special protectionâ&#x20AC;? of mining in the stateâ&#x20AC;&#x2122;s constitution is not really â&#x20AC;&#x153;specialâ&#x20AC;? at all; it is merely a guarantee of equal protection of mining property relative to other property. If the Nevada legislature will not respect the right of equal protection, it will surely be noticed in the rankings. â&#x20AC;&#x201D;â&#x20AC;&#x201D;â&#x20AC;&#x201D;â&#x20AC;&#x201D;â&#x20AC;&#x201D;â&#x20AC;&#x201D;â&#x20AC;&#x201D; John L. Dobra, Ph.D.is the director of the Natural Resource Industry Institute and Associate Professor of Economics University of Nevada Senior Fellow, Fraser Institute

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Got Moly?

General Moly Vice President and General Manager Mike Iannacchione, left, Zach Spencer and Vice Presiident of Permitting and Environmental Compliance Pat Rogers show off some of the rock that may soon be mined for molybdenum at the 8,000-foot level of Mt. Hope in Eureka County.

Ross Andreson/Mining Quarterly

Mt. Hope construction continues despite financial issues

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

EUREKA — Despite hitting financial snags, General Moly continues to push forward on its Mt. Hope Project.

Mt. Hope is a long-life molybdenum mine about 21 miles north of the town of Eureka.

General Moly was told in March that China Development Bank had provided instructions to its legal counsel to suspend work on the $665 million term loan.

12 MINING QUARTERLY, Elko, Nevada SUMMER 2013

However, General Moly is looking for another financial partner for Mt. Hope.

“The company made substantial progress with regards to our preliminary construction activities at Mt. Hope during the first quarter including early well field development, clearing and grubbing of terrain and cultural clearance,” said General Moly Chief Executive Officer Bruce Hansen.

Despite the money issue, work is still being completed at the site.

“Everything is based on financing,” said General Moly Vice President and General Manager of Mt. Hope Mike Iannacchione. “We hope in late July or August we could be starting on heavy construction.”

Finances aren’t the only issues for the project.

Water line construction is delayed because a sage grouse lek is within a two-mile radius of the site, said Pat Rogers, vice president of permitting and environmental compliance.

The area is commonly used by multiple birds. They

like to come back to the same area for mating rituals, Rogers said. Construction can’t continue on the water line while the birds are mating, so the site is shut down from March 1 until June 1.

“About half of the line was completed,” Iannacchione said. “It will take about six weeks to complete the line.”

Rogers said there are no leks on the mine site, but the delay in the water line is delaying the major construction on the site.

“The main water line is needed for heavy construction,” he said. “A little bit of site work is being done. We would like to start on the pad, but we missed our early start.”

The current offices can’t be demolished until new trailers are set up.

Once construction is completed, the mine will have a 36foot SAG mill and two ball mills, flotation tanks and a roaster.

“The mill will be where the current offices are and then some,” Iannacchione said. “We are hoping this summer to have the temporary offices up.”

The cultural clearance continues on site, Iannacchione said.

The top soil being removed during construction will be saved for later reclamation.

“We will continue working on the transition between early and heavy construction,” Rogers said.

General Moly contracts out with Humboldt General Hospital to have an ambulance and two medical personnel on site during construction.

After construction, mining will begin. The pit will have eight phases and the first three will cover the initial mining area.

See MOLY, 15

The sage grouse lek affecting Mt. Hope’s water line construction is called the UNR lek.

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Differences in processing molybdenum and gold Gold mining in Nevada has been around since the 1800s. Molybdenum has been mined in other states in the U.S., but has only been mined as a by-product or on a small scale in Nevada. Mt. Hope would be the first large scale one in the state.

Both metals are mined in open pits, but sometimes it is more efficient to mine for the yellow metal underground.

Gold comes in oxide and sulfide forms. The sulfide form must be put through more steps than the oxide to release the gold, but all mining companies need cyanide to release the precious metal from the dirt. Cyanide is not used when processing molybdenum.

All gold from a mine is sent through a furnace to be poured into a solid bar or button, but molybdenum can be sold in its powder or solid briquette form.

Moly ...

Continued from page 13 Making Moly Molybdenum is measured in terms of percentages instead of ounces. Each ton of material holds a couple pounds of molybdenum, Iannacchione said. Mt. Hope contains about 1.3 billion pounds of proven and probable reserves, according to the company website.

“Moly comes in a mineral called molybdenite,” Iannacchione said. “You grind it up and send it through flotation and try to get 50 percent molybdenite.”

Unlike gold, cyanide is not used to process molybdenum. After flotation, the material is sent through a roaster to make a powder. The powder can be sold or it can be made into a briquette, Iannacchione said.

The finished product is shipped in steel drums or Super Sacks, which are large, flexible containers.

“About 75 percent of moly is used in steel,” Rogers said. “Moly is put in steel to make it stronger and more resistant. ... The main purpose of moly is to make steel stronger and less corrosive.”

Construction steel makes up 36 percent of moly uses and stainless steel uses about 25 percent of the metal. Moly is also used in a variety of items including electronics, lubricants, petroleum processing, paints and smoke detectors.

Pat Rogers, left and Mike Iannacchione stand at the 8,000foot level of Mt. Hope and talk about where parts of General Moly’s molybdenum mine will be when heavy construction begins.

Ross Andreson Mining Quarterly

See MOLY, 17

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Ross Andreson/Mining Quarterly

Above: This panoramic view shows ground work that has been completed on the General Moly Mt. Hope mining project.

At left: This photo compares molybdenum in raw form then briquette as show at the General Moly office in Eureka. The quarter is there for size comparison.

Moly ...

Continued from page 15 General Moly Earnings General Moly reported a loss for its first quarter.

General Moly owns 80 percent of Mt. Hope.

POSCO, one of the worldâ&#x20AC;&#x2122;s largest steel producers based in South Korea, owns 20 percent.

Net loss for the quarter that ended March 31 was $3 million, compared with a loss of $3.2 million for the same period a year ago.

The suspension in the term loan relates to reports that Liu Han,chairman of Sichuan Hanlong Group, has been detained by Chinese authorities.

General Moly and Hanlong Mining mutually agreed May 14 to terminate a $125 million subordinated loan agreement intended to supplement a $665 million Chinese sourced term loan for the financing of the Mt. Hope Project.

The subordinated loan agreement, which would have become available upon receipt of the Chinese sourced term loan, was terminated to provide General Moly with greater flexibility in securing an additional Chinese strategic partner. The termination of the subordinated See MOLY, 18

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Moly ...

Continued from page 17 loan agreement also cancels the arrangement fee of $6.25 million payable upon closing of a Chinese sourced term loan. Further, the warrant with a 2.5 year maturity to purchase ten million shares of General Moly common stock at a strike price of $4.23 per share was terminated.

“Hanlong’s cooperation and assistance is appreciated as we move forward to secure another Chinese strategic partner capable of advancing the full financing of the Mt. Hope Project and reinvigorating advanced stage loan negotiations with China Development Bank,” said Hansen Excluding restricted cash, General Moly’s cash balance at March 31 was about $57 million compared to $68 million at December 31. During the first quarter, cash use of $16 million was the result of Mt. Hope Project development, engineering, and procurement costs as well as general and administrative expenses partially offset by the receipt of $5 million in contribution payments from POS-Minerals Corp.

In December, the company and POS-Minerals, as members of Eureka Moly LLC, agreed to hold $36 million of the approximately $100 million received from POS-Minerals’ December 2012 contributions in a reserve account to maintain additional liquidity until the company arranges full project financing.

This view from Mt. Hope shows roads and pads for various mine operations of General Moly’s Mt. Hope Molybdenum project. The area cleared of brush, in the foreground is where a portion of the pit will be located.

Ross Andreson Mining Quarterly

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This view from the 8,000-foot level of Mt. Hope shows the path of the pipeline to the leach pad of General Moly’s Mt. Hope Project.

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By ALLEN BIAGGI the protection of sagebrush communiHead of Environmental Affairs for Nevada ties. Last year, Governor Sandoval establishes the Sage Grouse Advisory Mining Association Committee to develop an action plan.

The result of an ESA listing in 2015 will Recently, there has been an increased frequency of sage grouse discussion and be stringent land use restrictions and there’s good reason since the bird, which delays of approvals for use permits on the public lands. This is present in 11 Western would clearly have devstates, could be listed astating impacts on under the Endangered Nevada’s economy. The Species Act as threatSagebrush Ecosystem ened or endangered by Council is doing the scithe U.S. Fish and entific and on-theWildlife Service in ground legwork necesSeptember 2015. Should sary to put the governor’s a listing occur, there are conservation plans into consequences that will effect. affect many individuals The council has instiand industries that tuted an interagency, muloperate on private and tidisciplinary approach federal lands throughout that has tapped the Nevada whether that be expertise of individuals for mining, recreation, from the Department of agriculture, energy Wildlife, Department of development and transAgriculture, Division of Forestry and mission or myriad other uses.

The September 2015 listing deadline is Division of State Lands.

The team’s tasks are formidable in set because scientific studies have suggested sage grouse numbers are declining light of the 2015 listing decision. They in the West, where 19 major threats have must define and map sage grouse been identified by the USFWS. On a local habitat, develop criteria for habitat disturbances, develop a mitigation credit level in Nevada, the primary threats to system to offset impacts and usher the sage grouse habitats are wildfire and Nevada alternative through the National invasive species, which combine to repEnvironmental Policy Act, which exists resent the major loss of sagebrush to identify the environmental consehabitat throughout the state. The sage grouse relies on sagebrush vegetation for quences of federal actions.

The future of Nevada’s mining breeding, nesting, feeding and wintering industry will be very much shaped by the throughout its complex life cycle.

According to the USFWS and others, a USFWS’ listing decision in 2015, and our major impediment to the recovery of the industry, in addition to all others that species is the lack of regulatory controls rely on the use of Nevada’s sagebrush and protections of sagebrush habitats by lands, must join together with Governor Sandoval and the Sagebrush Ecosystem federal land managers, especially the Council in a spirit of commitment and Bureau of Land Management and the cooperation to find meaningful and U.S. Forest Service. This has profound pragmatic management solutions. implications in Nevada given the extent ——————— of public lands used for various business Allen Biaggi is head of environmental and recreational activities. State offiaffairs for the Nevada Mining cials, under the direction of Governor Association and a commissioner on the Sandoval, are working with the federal land managers to put into place common Governor’s Sage Grouse Advisory Committee. sense regulatory controls and increase

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New data leads to re-emphasis on fatigue prevention in mining

By CALEY COOK Mining Quarterly Staff Writer

Based on information from Circadian Technologies

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ELKO — William Sirois remembers what it felt like to work back-to-back night shifts for days on end.

“You’re tired in a way that you can’t explain to others,” the former chemical engineer remembers. “It’s not just the schedule, either, because it affects the whole family and social structure around you. And it does it in ways that the family doesn’t fully comprehend when they’re experiencing it.”

Sirois, who is now an executive at a leading consulting firm specializing in shift work fatigue called Circadian Technologies, comes from a long line of shift workers. His grandparents came down from Canada to work in the textile factories in New England in the early 1900s.

He remembers how it affected his hardworking family, including his grandmother, who died on a factory floor when her appendix ruptured while she was at work and had no sick days.

“When mom and dad came home off a night shift we immediately went to play elsewhere,” Sirois said. “We knew there would be hell to pay if we woke them up.”

Sirois imagined that he’d be the family’s first professional, but after college he went to work on shifts as a chemical engineer in Ohio.

“Fatigue is a squishy fish and it can be hard to wrap your mind around it. There are different fatigue tolerances, approaches and effects, so it has historically been a challenge to make changes. The big barrier to fatigue management is that you just can’t quantify it and until you can it’s difficult to make progress on practices.”

— William Sirois Circadian Technologies His experience with shift work led him to Circadian, where he is now a senior vice president and chief operating officer who focuses on fatigue management in shift work industries.

“Fatigue is a squishy fish and it can be hard to wrap your mind around it,” Sirois said. “There are different fatigue tolerances, approaches and effects, so it has historically been a challenge to make changes. The big barrier to fatigue management is that you just can’t quantify it and until you can it’s difficult to make progress on practices.”

But researchers at Circadian — which works with Barrick Gold Corp., Newmont Mining Corp., Rio Tinto and other global mining corporations — and other agencies are beginning to find ways to quantify the financial, legal, social and medical losses associated with fatigue in shift workers.

Incident management systems, including Circadian’s Fatigue Accident Causation Testing System, allow mining companies to answer a dozen questions about an incident and quickly receive an William Sirois analysis of whether it was fatigue-related.

The result is a load of data. The data is allowing companies to calculate the losses associated with fatigue, and subsequently shifting focus to prevention techniques.

Their statistics show that nearly half of all incidents on mine sites are related to fatigue in some way.

Fatigue management is finding renewed focus in Nevada mining, with training and procedural changes at the largest mining companies to fight what is a seemingly major source of income loss in the industry.

So what’s the big deal?

Researchers say fatigue is extremely difficult to fight in shift workers because we’re biologically wired to shut down and sleep at night.

“It’s only been a little while since someone invented the light bulb and that changed out interactions with our environment,” Sirois said. “It allowed us to work at times we otherwise couldn’t.”

The advent of 24-7 industries made sleep for those workers less restorative and shorter during daylight hours.

A push at Newmont and Barrick to help employees manage their wellness has often involved fatigue management.

“We spend a lot of time talking about fatigue,” said Randy Squires, who is the senior manager for regional safety relations at Newmont. “We talk about eating right and getting plenty of sleep and watching our lifestyles to make sure rest is possible.”

Both Newmont and Barrick are working on fatigue management programs and training that are being rolled out from a corporate level.

“We are part of a round table consortium of major mining company safety and health people and we talk about various issues that affect our business,” said Director of Corporate Occupational Health Tom Chism at Barrick. “Fatigue was continually coming up as one of those issues. I think we all recognize that fatigue can be very serious.”

Barrick hired Circadian to pilot fatigue training and education materials for shift employees and supervisors at their Bald Mountain mine.

“It comes down to a healthy overall lifestyle,” Chism said. “How you eat, sleep, live See FATIGUE, 24

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 23

Fatigue ...

Continued from page 23 and all of that plays in. Families also have to have a hand in this because they have to understand how important it is to let dad sleep during the day if he’s on night shift.”

Circadian’s research says that on average, shift workers are only sleeping about four to six hours, when the recommended minimum is seven hours.

“It’s the eighth hour of sleep that sustains our performance levels, our learning ability and our creative problem solving abilities,” Sirois said. “We call it industrial jetlag when you run on less.”

More than that, shift workers who don’t sleep properly are much more likely to get sick.

Shift work is associated with a higher risk of sleep disorders, gastrointestinal disease, cardiovascular disease, metabolic syndrome (diabetes and obesity), depression, reproductive cycle impairment, immune system impairment, common virus infections and cancer.

Then if you start calculating the direct loss associated with fatigue-related incidents, it shows a grim human and financial picture for mining companies that don’t handle the issue.

Circadian’s numbers show that driving over the berm or edge resulted in 37 percent of all serious injuries and 85 percent of fatalities on mine sites in a sample year.

More than 90 percent of surface mine haulage truck accidents were due to human error in that period. If half of those are fatigue-related, there is a significant calcu-

“It comes down to a healthy overall lifestyle,” Chism said. “How you eat, sleep, live and all of that plays in. Families also have to have a hand in this because they have to understand how important it is to let dad sleep during the day if he’s on night shift.”

— Tom Chism Barrick Gold Corp.’s director of corporate occupational health lable loss.

The major focus for mining corporations in controlling fatigue is truck drivers and heavy equipment operators.

“You’ve got guys sitting in three-story trucks where they’re driving up and down and up and down and up and down the haul road for a 12-hour shift,” Sirois said.

“It’s a monotonous, boring, repetitive task and that in itself creates an unusual amount of fatigue compared to someone physically or mentally engaged in their jobs.”

Sirois points to the 2005 Texas City refinery explosion as a turning point for fatigue-related safety.

For five years, BP (which owned the plant) didn’t replace any employees who left the operation. And that was after two rounds of downsizing. The result was

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Fatigue Facts • On average, shift workers are only sleeping about four to six hours, when the recommended minimum is seven hours.

• Nearly half of all incidents on mine sites are related to fatigue in some way.

• Shift work is associated with a higher risk of sleep disorders, gastrointestinal disease, cardiovascular disease, metabolic syndrome (diabetes and obesity), depression, reproductive cycle impairment, immune system impairment, common virus infections and cancer. mass amounts of overtime that had workers running 80-hour weeks in some cases.

“It was like they were back to the 1890s and early 1900s in terms of the amount of time people were putting work in,” Sirois said. “They saved tens of millions of dollars in payroll costs, but now after the explosion it’s costing them tens of billions to fix the legal issues, repair See FATIGUE, 27

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Fatigue ...

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the facilities, and catch up on loss of “In July of last year our (incident) production.” frequency rates were about five Sirois uses what he calls the “Swiss cheese theory” to describe risk in incidents per hundred people and fatigue management, where each slice represents an element of the business last month it was .89. I attribute such as staffing, scheduling, training, that to training and education. We workplace environment and fatigue looked at accidents and studies monitoring. When all the slices are stacked carefully and managed, the holes of the cheese rarely line up. But if that show that 80 percent of accithey aren’t monitored and the slices are dents are caused by behaviors, not left to chance, the holes can line up and conditions. We’ve addressed behavallow a fatigue incident to happen.

Fatigue-related litigation is the iors and it has made a difference.” fastest growing segment of Circadian’s — Randy Squires business this year, Sirois said. They Newmont Mining Corp. senior manager for have 28 active cases and more in the regional safety relations pipeline.

Sirois remembers one Nevada mining company that shared information about a recent incident where a truck had rolled a berm when an employee was too tired. It wasn’t just replacing the $5 million truck, it was the $20 million production loss and associated costs that went with it that hit the company so hard.

Solutions for fatigue management While there’s been much ado about the technology developments in fatigue management — including eye analysis that judges how tired someone is at the wheel and alarm system buzzers that are timed to keep a driver awake — it is the behavioral changes that hold the most potential, Sirois said.

“People have to be able to ask for a break without someone saying, ‘what kind of miner are you? What kind of wuss needs to take a nappy nap?” he said.

Sirois cites a Circadian study that shows that a 10-minute nap can add a three- to four-hour boost for workers who are tired.

Squires says Newmont has added some of the new technology to their arsenal for fighting fatigue — including XM radios in the truck cabs and electronic devices that measure eye movement and head position through the day to determine if a driver is blinking or nodding off — but it’s the wellness training that seems to have the biggest impact.

“In July of last year our (incident) frequency rates were about five incidents per hundred people and last month it was .89,” Squires said. “I attribute that to training and education. We looked at accidents and studies that show that 80 percent of accidents are caused by behaviors, not conditions. We’ve addressed behaviors and it has made a difference.”

Aside from wellness programs that revolve around safety meetings and refresher trainings, both Barrick and Newmont use employee assistance programs to treat any disorders or illnesses that stem from fatigue.

“Our program offers short-term counseling so if you’re dealing with a relationship issue or stress or anxiety or alcohol or depression, you have the option to go through the EAP to get ... visits with a counselor,” said Cara Horton, who works with Barrick’s regional benefits group. “While we don’t keep exact statistics on which visits are sleep-related, an employee can see a counselor if the issue falls under that category.”

Northeastern Nevada Regional Hospital also provides a sleep medicine program for shift workers who suffer from sleep disorders related to fatigue.

Sirois says that compared to some paper and steel mills, the gold industry is doing a good job of managing staffing levels to keep employees from working too many night or overtime shifts, but there is always room for improvement.

“First we have to provide adequate rest opportunities, then employees need to do their part,” Sirois said. “That means that we need to understand how our biology works under the influence of 24-7 work. If we can keep educating people about this, we’ve really made some headway with this problem.”

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Coeur Rochester gives Nevada $24,000 birthday gift CARSON CITY (AP) — One of Nevada’s first birthday gifts of the year comes from the Coeur Rochester silver mine near Lovelock — and it’s a big, shiny silver bar.

Gov. Brian Sandoval accepted the $24,000 gift Wednesday to be used as part of the Silver State’s 150th birthday celebration, which begins later this year.

“To have this as one of the first major gifts that we can all see that has been put toward the sesquicentennial celebration is incredibly remarkable,” Sandoval said Wednesday.

The bar, weighing about 60 pounds, was given to the state by Coeur Rochester, and the state museum will use the block to mint silver medallions commemorating the state’s sesquicentennial.

“That is an extremely valuable and extremely generous gift,” Sandoval said. “I couldn’t think of a better way to kick things off, and for all of us to be able to see and share in this great moment.”

One thousand coins created from the 1,000-ounce bar should be available for purchase shortly after the yearlong celebration begins on Nevada Day this year.

Miners had to process between 4,000 and 5,000 tons of ore to get enough silver to make the bar, and then the metal was treated for about three months.

The gift was a symbol of “both the rich tradition of mining and the bright future that mining has in the state of Nevada,” said Luke Russell, vice president of environment and community at Coeur d’Alene Mines.

AP Photo/Las Vegas Review-Journal, Cathleen Allison “I think it’s extremely special we have Nevada miners mining Nevada Nevada Lt. Gov. Brian Krolicki, left, and Gov. Brian Sandoval flip over a silver bar during a news conference May 1 silver which will be available to Nevadans,” Sandoval said. at the state Capitol in Carson City. The bar, which was a gift from Nevada mining company Coeur Rochester, will Nevada’s statewide celebration has an official start date of Oct. 31, be minted into silver medallions for the upcoming Silver State’s 150th birthday celebration. Coin-maker Ken and Sandoval said he wants to see 150 events celebrating the occasion Hopple and Bob Nylan, with the Nevada State Museum, are at right. over the following year.

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Rossi mine plans for expansion

By JOHN RASCHE Mining Quarterly Staff Writer

John Rasche/Mining Quarterly

Halliburton Nevada Operations Mine Superintendent Tracy Gunn points across the landscape of the King Lode Pit at the Rossi Mine.

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DUNPHY — Mining barite is an easier task than the chemical processes used to extract gold. All you need is water and gravity.

The plant at Halliburton’s Rossi Mine uses a gravity-separation process to divide barite from the waste rock, known as chert.

Ore is collected and crushed into small pieces — about a quarter of an inch — and put through a plant, which runs the material through a channel of water.

The channel, known as a “jig,” pulsates the material until the barite falls to the bottom and the chert is removed. The barite is then sent down the road to Halliburton’s mill, where it is ground into a fine powder.

“That’s all it is — just water and gravity,” said Tracy Gunn, mine superintendent of Nevada Operations.

“All we have to do is crush it up, jig it and ship it.”

Barite is used in oil and gas drilling and can also serve as a nontoxic filler in certain plastics and foams, according to Miners News.

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Jig operator Robert Smith, left, and jig supervisor Tony Dolbear look at barite material collected in one of the Rossi Mine’s jigs. smoker vents, Gunn said. And although barite isn’t Nevada’s predominate mining resource, there are significant amounts of it scattered throughout the state, Gunn said.

“There are lots of barite deposits outcropping in Nevada, but what’s commercially viable is another question,” he said.

Halliburton is an international company that provides products and services to the energy industry.

The Rossi Mine, located in Dunphy along Interstate 80, is operated by about 80 employees and is composed of three main facilities: the Jig Plant, the Queen Lode Pit, and the King Lode Pit. The King Lode contains high-grade barite and the Queen produces low-grade.

Between the two, Rossi has a 23-year mine life at current production rates, Gunn said.

Halliburton contracts N A Degerstrom Inc. to conduct the mining and crushing at the Rossi site.

The Jig Plant can process up to 1,000 tons of material a day. About 60 percent of the ore is barite and the remaining 40 percent is chert. But for every ton of barite that is produced, about 12 tons of waste rock were hauled from the pit to the waste dump in order to access it, Gunn said.

High-grade sand is also a by-product of the extraction process.

Rossi mining operations occur only five days a week, because “that’s all we need to feed the Jig Plant and the mill,” Gunn said.

Currently, the plant has four jigs.

Eventually, Halliburton would like to expand Rossi’s Queen and King lodes, but “we have to put together a revised plan of operations, which is estimated to take three to four years to get that permitted,” Gunn said. “Currently, we mix somewhat lower grade ore from the Queen with the higher grade from the King to meet our quality requirements, while maximizing recovery and utilization of the ore bodies.”

All-in-all, the mining operation is fairly small, but that’s how Gunn prefers it.

“It’s a small organization,” he said. “It’s quiet, it’s laid back ... there’s not a lot of people here, so we all kind of do it all. From day to day, I never know what I’m going to work on. And that’s one of the reasons I like working here.”

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 31

Stay Out Stay Alive How BLM closes old mines

By JOHN RASCHE Mining Quarterly Staff Writer

ELKO — Remains of the old Ferber mining district lie in the southeastern corner of Elko County.

Glancing at the district from major roads, it doesn’t look like much.

Endless mounds of desert. Deep, blue skies.

Dried-up sagebrush and faded litter. Maybe the occasional scavenger bird pecking at roadkill.

But although the mining district may look like the “middle of nowhere” now, it was once a sought-out destination for miners looking to make a fortune.

Unfortunately, many prospects proved to be barren and the mine shafts were abandoned; then they become hazards.

“If the shafts are not fenced, you can’t tell John Rasche/Mining Quarterly BLM wildlife biologist Nycole Burton, from the Tuscarora Field Office, takes notes on an abandoned mine shaft that is surrounded by fencing. what they are until you’re right on top of it,”

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said Whitney Wirthlin, geologist for the Bureau of Land Management Wells Field Office. “Our biggest concern is for peoples’ safety.”

Whitney is just one facet of a BLM team that analyzes and closes old mine shafts throughout districts located primarily in Elko County.

“We know there’s a lot of recreation out here in Ferber, so that’s why we picked it,” Wirthlin said.

Due to the district’s remote location, many people enjoy off-road exploring on their all-terrain vehicles, she said.

Driving at high speeds near deep, unmarked mine shafts could result in serious injury or death. The same goes for curious individuals who choose to explore the unsafe holes in the ground.

The death of Wyoming man in 2011 is a recent reminder of the dangers.

The man fell down a 200-foot mine stope while exploring an area in Pershing County with two friends.

After repeated rescue attempts failed, the man died.

To prevent similar instances from occurring, BLM continues to promote abandoned mine land safety through the Mine Safety and Health Administration’s “Stay Out Stay Alive” awareness campaign, which began in 1999.

“Since we’ve put this initiative out there, there’s been a big decrease in incidents,” Wirthlin said. “We’d rather be cautious than not.”

Identifying dangers, impact Before a mine can be closed, a team of BLM members must first analyze each site.

John Rasche/Mining Quarterly “This is my favorite part of my job,” Wirthlin said, while Geologist Whitney Wirthlin carefully lowers a camera down a mine shaft as the rest of the team watches the live feed on a screen. The $3,000 underwater “SplashCam” is perfect for observing mines that are too deep to see from above. From left are See STAY OUT, 34 Wirthlin, wildlife biologist Alex Gardiner, archaeologist Julie Rodman and project lead Nycole Burton.

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Stay Out ...

Continued from page 33 driving down a dirt road. “It’s something where you feel you’re doing something on public land to help the public.”

Wirthlin was bringing up the tail-end of a BLM caravan headed for the Ferber mining district in April.

Wirthlin, two BLM wildlife biologists and an archaeologist were taking a “field trip” to look at over a dozen mine shafts and adits (horizontal entrances) in the district for the first time. The process is known as checking the “Hazard Inventory.” The team uses a satellite-mapping program to pinpoint the location of specific mines in rural areas, like a modern-day treasure hunt.

“We usually try to do one to two districts a year in each field office,” she said.

The team members look at three characteristics to determine whether a mine should be closed.

First, does the mine shaft pose a hazard to the public? If it’s relatively deep and contains eroded wood “cribbing,” or entry ways — then yes, the mine is hazardous. This decision rests with the BLM geologist; in this case, Wirthlin.

Next, does the mine have a biological impact? Could bats use the dark crevice for a habitat? Wildlife biologists make the call.

The BLM team identifies different aspects of an old mine shaft in the Ferber mining district. From left: archaeologist Julie Rodman, wildlife biologists Alex Gardiner and Nycole Burton, and geologist Whitney Wirthlin.

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This gate allows bats to fly freely in and out, while restricting public access. Bat gates can be customized to fit any opening. â&#x20AC;&#x153;A shaft that goes straight down and doesnâ&#x20AC;&#x2122;t go anywhere else ... would not be suitable (for bats),â&#x20AC;? said Nycole Burton, the teamâ&#x20AC;&#x2122;s project lead and wildlife biologist. â&#x20AC;&#x153;Complexity is the highest criteria for bat populations.â&#x20AC;?

Finally, an archaeologist must determine whether the site contains historic artifacts â&#x20AC;&#x201D;anything more than 50 years old. Sites containing several historic artifacts are typically referred to as old â&#x20AC;&#x153;can dumps.â&#x20AC;?

The teamâ&#x20AC;&#x2122;s archaeologist, Julie Rodman, identified the time eras of rusted cans and other items embedded in the dirt near the mine sites by just looking at them. â&#x20AC;&#x153;They give you a date and tell you about the people who were eating here,â&#x20AC;? Rodman said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s kind of funny how they really reveal peopleâ&#x20AC;&#x2122;s vices.â&#x20AC;?

Rodman often finds evidence of medicinal containers, alcohol bottles and tobacco packages.

Itâ&#x20AC;&#x2122;s important to leave the items where they are to preserve the whole story, she said.

In fact, removing any cultural resource without permission of the BLM is a federal offense.

Closing the gap Once a hazardous site has been analyzed, the BLM team has three options: bulldoze it shut, fill it up with foam, or install a bat gate.

Bulldozing the hole with adjoining waste rock is the cheapest method, Wirthlin said. But bulldozing is only an option when the hole does not contain historical cribSee STAY OUT, 36

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BLM archaeologist Julie Rodman identifies historic artifacts at a “can dump” near an abandoned mine shaft in the Ferber mining district.

Stay Out ...

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36 MINING QUARTERLY, Elko, Nevada SUMMER 2013

bing or potential for a bat habitat.

If historical cribbing does exist, but is not suitable for a bat population, the team may decide to fill it up with a foam. The polyurethane foam plugs the hole at a minimum of 15 feet and is then covered with six inches of dirt.

“You won’t be able to tell there was a hole here, but you’ll know something was (at some time),” Burton said. The foam helps preserve the mine’s cribbing while removing any potential hazards.

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This diagonal mine shaft has been filled with foam and covered with six inches of dirt to keep the public out. manent gates are custom-made to fit the mine’s entrance so that the public can’t enter, but bats can fly freely in and out.

“You can use a gate for any type of opening,” Burton said in regard to developing gates for non-traditional shafts and adits.

In most cases, barbed-wire fences and “Stay Out Stay Alive” signs are set up around the mines to caution the public.

After the mine sites had been checked, the team returned to the BLM office in Elko.

Once there, the updated information about the specific mines in the district will go into a master database.

It could take 10 months to one year to close all mines in an average-sized district, Wirthlin said.

As Wirthlin drove through the desert, back toward the main roads, she looked across the landscape.

“It’s kind of scary how vast it is,” she said. “You never know what you’re going to find.”

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Long Canyon works on environmental study

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ELKO — Newmont Mining Corp. continues to move forward with its Long Canyon Project in the Pequop Mountains of Elko County.

“We are in the middle of doing an (environmental impact statement), we being Newmont and the BLM,” said Dan Anderson, regional environmental affairs manager for Newmont.

In March 2012, Newmont submitted a plan of operations to the Bureau of Land Management. This was about a year after Newmont acquired the land from Fronteer Gold. The mine site is about four miles south of the Oasis exit on Interstate 80.

From the beginning, Newmont has handled Long Canyon differently from other proposed mines. The baseline studies were done up front, and Newmont engaged with the BLM and other state and local agencies.

“When the plan was submitted they basically took this plan of operations and they thumbed through it and said ‘this was everything we expected, this was everything we wanted; this is what we asked of you,’ so the review period on that ... it went very quickly.”

“It’s smoother and it’s more efficient. It’s more efficient for us and it’s more efficient for the BLM,” he said. “We’re not reviewing and re-reviewing comments and playing the regulatory pingpong match.”

Anderson said the BLM came up with the new approach to the permitting “This is an opportunity to do process and Newmont embraced the concept. things a little bit different.”

During the environmental study, the — Dan Anderson BLM hosted public scoping meetings in Newmont Mining Corp. regional environWells, West Wendover and Elko. During mental affairs manager those meetings, an alternate design of the mine was born, Anderson said.

West Wendover was concerned about the tailings storage facility being on the flat ground near the Big Springs Ranch, because it is the small city’s drinking water.

People from the city asked if the facility could be moved.

Even though the environmental controls are quite strict and wouldn’t allow contamination of the water, Newmont decided to take another look at the design.

“So we sent it off to our engineers in house and they came up with an alternate plan.” Anderson said. “ The whole thing moved north. Our tails facility was incorporated into our waste rock dump. This was a concept that hadn’t been done before either; it’s kind of cool because it minimizes the footprint.”

Moving the tailings also moves the mine operations farther from an inactive sage grouse lek. In the original plans the tailings were about a mile from the lek.

The design of the site also takes into account the natural topography of the land, Anderson said.

The plan of operations also calls for the waste rock facility to be constructed from the bottom up, so it has concurrent reclamation. It will be reclaimed as it goes up, Anderson said.

Since this is a greenfield project — no mining has been done in the area before — Newmont can build the site the way it wants without having to worry about previous structures.

“This is an opportunity to do things a little bit different,” he said.

Either design will work for Newmont, but ultimately, the BLM will decide which plan moves forward.

“We see the value in collaboration in designing what will work for all agencies,” said Matt Murray, senior external communications representative of Newmont.

The mine site plan also has a migration corridor because the Area 7 deer herd moves through the site. Murray said the herd moves through the area several times a year.

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Dan Anderson, regional environmental affairs manager for Newmont, refers to the plan of operations for the Long Canyon project.

“A lot of research went into that to figure out where exactly (the deer) travel,” he said.

Anderson said the mine will be “more of a slice out of the mountain” rather than a large pit. The proposed mining area also will be above the water table, so the site will not have to deal with dewatering.

Changes in state taxes and gold prices should not affect the status of the Long Canyon project, Anderson said.

“This is part of our business plan, so this is high priority for Newmont North America and with corporate,” he said. “So this is a very important project for our portfolio.”

See LONG CANYON, 40

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Long Canyon ...

Continued from page 39 Once construction is complete, Newmont expects about 400 employees.

Anderson said Wells and West Wendover are both embracing the project. Newmont also is performing social and economic impact assessments.

Anderson expects a draft EIS will be out by the end of the year and hopes a final EIS will be published sometime next year.

“We will start construction the day after the record of decision,” Anderson said.

Newmont’s schedule calls for construction in 2015 and initial production in 2016, with full scale production by 2017, he said.

“Newmont has had the project for two years now. ... I wouldn’t say it’s fast. I would say it’s on course,” Anderson said.

He said the project has progressed faster than other mines because of the joint effort between Newmont and the BLM. “We’re very appreciative of the work Ross Andreson/Mining Quarterly

Dan Anderson, regional environmental manager for Newmont, talks about the layout of the Long Canyon Mine project east of Wells.

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This map shows the design for Long Canyon after public comments. It shows the tailings storage facility designed inside the waste rock area. Dan Anderson points to where the Big Spring Ranch is located.

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SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 41

Long Canyon ...

Continued from page 40 the BLM is doing,” he said. “They’re really motivated, as we are. There’s a really good team at the BLM working on this right now. ... It truly is a team, joint effort between us and the BLM. You probably don’t hear that very often from a mining company, but they’re truly a partner in this.”

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Newmont Earnings Newmont Mining Corp. reported April 29 a 36 percent drop in its net income because of lower grade at some Nevada operations, and shipping delays.

Net income decreased to $315 million in the third quarter, compared with $490 million for the same quarter in 2011.

The attributable net income from continuing operations of $315 million, or $0.63 per basic share, was down 44 percent from $561 million, or $1.13 per basic share, in the first quarter of 2012.

Adjusted net income was $354 million, or 71 cents a share, compared with $578 million, or $1.17 a share, for the prior year quarter.

“Results from the first quarter of 2013 compared to the first quarter of 2012 were influenced by lower grade and recovery at Carlin and lower grade at Twin Creeks in Nevada, and shipping delays resulting in lower concentrate sales,” according to the Newmont news release.

Gold production was down 11 percent from the first quarter in 2012 at approximately 1.2 million ounces, but copper production increased approximately 9 percent at 38 million pounds. Attributable gold sales also decreased 11 percent at about 1.1 million ounces, but copper went up 16 percent at 31 million pounds.

“We made progress on our plans to build long-term shareholder value through disciplined capital allocation and cost and efficiency improvements,” said Gary Goldberg, Newmont president and CEO. “We cut planned 2013 capital expenditure guidance by $100 million and reduced our consolidated spending by $217 million compared to the first quarter of 2012. This drove our all-in sustaining cost per ounce to the lower end of guidance despite some production challenges. We continue to build on this and the $130 million savings we realized last year by streamlining operating and overhead costs and investing in more profitable production to improve shareholder returns.”

Nevada Operations Attributable gold production in Nevada was 381,000 ounces at costs applicable to sales of $774 per ounce during the first quarter. Gold production decreased 12 percent from the prior years quarter due to lower grade and recovery at the Twin Creeks autoclave, partially offset by new production at Emigrant and higher throughput at Phoenix.

Costs applicable to sale per ounce increased 25 percent due to lower ounces sold and lower capitalized mine development activities in 2013 compared to 2012.

Newmont continues to expect 2013 attributable gold production between 1.7 million and 1.8 million at CAS between $600 and $650 per ounce and is lowering its 2013 capital expenditure outlook range by $50 million to between $550 to $600 million, consolidated and attributable. Newmont’s board of directors also recently approved full funding of $398 million for the Turf/Leeville vent shaft scheduled for completion in 2015.

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Photos of John Livermore shown during his April memorial in Reno.

Family, friends gather for John Livermore’s memorial

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

RENO — John Sealy Livermore’s memorial was a history of the well-known prospector and a history of Nevada mining.

The story of Livermore was celebrated April 19 by his family and a couple hundred of his colleagues at the University of Nevada, Reno. He died Feb. 7 in Reno at age 94.

He discovered microscopic gold near Carlin in 1961. His discovery led to the Carlin Mine, a portion of the Carlin Trend that is five miles wide and 40 miles long.

John Livermore was born in 1918 in San Francisco. He graduated from Stanford University in 1940. He first came to Elko in 1949 and was prospecting on his own for barite and perlite. In 1952, he began his career with Newmont Mining Corp. His job took him all over the world — including Peru, Turkey, Iran, Chile, Morocco, Algeria, New Mexico, Arizona and Florida.

For many years, John Livermore theorized that microscopic gold existed in Nevada.

In 1960, this hunch and an article by U.S. Geological Survey field geologist Ralph Roberts describing how low-grade ore may be in Nevada, led to his eureka moment in Carlin.

The story of this discovery and his many other adventures were shared during his memorial.

One of Livermore’s nephews, Sam Livermore, thanked everyone for attending and thanked all those who sent good wishes.

“John would have loved being surrounded by his family and would have loved being among his many professional colleagues in the mining industry. He would have

Marianne Kobak McKown/Mining Quarterly

John Livermore’s work clothes and a plaque commemorating Newmont Mining Corp.’s 50 millionth ounce at the Carlin Mine, which he discovered. enjoyed seeing his friends ... He would have enjoyed the good company of all his friends,” Sam Livermore said. “However, John would not have liked being the center of attention.”

Sam Livermore said his uncle did not like to take credit for his accomplishments, but instead spread around the accolades.

“In fact, very few people ever had a complete picture of John,” Sam Livermore said.

Even John Livermore’s family didn’t always know what was going on in his life. To his nieces and nephews he was the mysterious uncle who showed up for Thanksgiving dinner after traveling in exotic locales.

Sam shared one of the more mysterious events of John Livermore’s life. A cable arrived one morning for John Livermore’s mother. It read “don’t worry your son is out of danger and is expected to live.”

Unbeknownst to the family, John Livermore had almost died from hepatitis and the doctor had written John Livermore’s mother to provide comfort and assurance.

“Although it had quite the opposite effect at the time,” Sam said.

Conversely, John Livermore’s mining colleagues did not know much about his personal life, Sam said.

Very few people ever visited John Livermore in his apartment in Reno. After his death, Sam and his wife and a family friend cleaned out the apartment.

They found out why so many of John Livermore’s friends worked at restaurants.

“John always ate out,” Sam said. “In fact, although he had lived in his apartment for over 30 years, as far as we could tell, his oven had never once been used.”

Although John Livermore never had children, he was a father figure to his nieces and nephews and they were all ready to learn more about his professional life, Sam said.

“We are hoping by coming together this evening all of us will learn about the whole John and his amazing life and accomplishments and leave with a bigger and better picture of what a wonderful, generous and still humble man that John was and maybe even bring home the bit of twinkle he always seemed to have in his eye.”

Colleagues of John Livermore had their own stories to tell.

Jonathan Price, consultant and Nevada State geologist emeritus, talked about Livermore’s obsession with microscopic gold.

His Carlin deposit discovery led to the “biggest and current gold mining boom in American history,” Price said.

Price talked about Livermore prospecting for invisible gold.

Price said in the 1960s, Livermore didn’t have any true competition, but people still had stories that he and his crew were prospecting at night to throw other people off track.

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Memorial ...

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Marianne Kobak McKown/Mining Quarterly

About 200 people attend the John Livermore memorial in Reno.

46 MINING QUARTERLY, Elko, Nevada SUMMER 2013

trend. Gold was discovered in the Bootstrap mine in 1946 and it produced 11,000 ounces, but was idle in 1961, Price said. The Blue Star mine produced turquoise in the 1920s and 800 ounces of gold from 1960 to 1961.

Livermore found low grades of ore, but was sent to Canada before the Carlin Mine was developed.

While in Toronto, he received a phone call verifying he had discovered an ore body.

Livermore said he “never dreamt the Carlin discovery could have led to so much wealth,” Price said.

Newmont’s mines on the Carlin Trend were the first in North America to produce 1 million ounces in a year. Carlin became the foundation of the company’s rise in the world gold market.

In 2002, the Carlin trend produced its 50 millionth troy ounce, Price said. By 2008, mines in the Carlin Trend had produced more than 70 million ounces of gold, and the ore body still yields about 4 mil-

lion ounces a year. By the end of 2011, the Carlin trend had produced a total of 78.3 million ounces of gold. If production levels hold, the trend will produce a cumulative amount of 100 million ounces by 2022, he said.

“John Livermore’s discovery of the Carlin deposit set in motion the biggest gold mining boom in Nevada’s or America’s history,” Price said.

“What a great geologist. Thank you, John.”

Alan Coyner, administrator for Nevada Division of Minerals, said the importance of John Livermore’s discovery is wrapped up with the history of Nevada.

“We are the capital of hardrock mining,” Coyner said. “Nevada is now No. 6 in the world for gold production. If you take Nevada out of the U.S. we would be fifth.”

Coyner said people always talk about the 1849 gold rush, but that only produced 29 million ounces of gold. The current mine boom, from 1981-2011, produced 239 million ounces — and 168 million of that has come from Carlin and other Nevada deposits.

“Despite John Livermore’s accomplishment, he always said he reached his goals by standing on the shoulders of giants,” Coyner said.

Susan Lynn, executive director of Public Resource Associates, talked about Livermore’s personality and his involvement in environmental issues.

She said he had broad shoulders and “on one side he carried mining and on the other he carried conservation.”

She had the opportunity to work with him on the conservation side.

She shared Public Resource Associates with Livermore for 25 years.

“John was an optimist. After all, isn’t every exploration geologist an optimist?” she said.

Livermore was fiscally thrifty but also generous. He supported education, scholarships, science and correcting injustices, Lynn said. John Livermore became a benefactor of Stanford and the University of See MEMORIAL, 48

Marianne Kobak McKown/Mining Quarterly

Mary Korpi of Newmont Mining Corp., left, Andy Wallace of Cordex Exploration and his wife, Jill Wallace pose during the reception after the John Livermore memorial in Reno.

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“He was a voracious reader, but didn’t own a television,” Lynn said. “He loved any new thought, however he never mastered the computer, by choice. He believed in face to face meetings, or at least phone calls. He thought so much was lost in translation if you couldn’t see or hear the person you were communicating with.”

Lynn said the quote that typifies John Livermore is: “Life’s journey is not to arrive at the finish safely, in a well preserved body, but rather to slide in sideways, totally worn out and shouting holy sugar what a ride.”

Andy Wallace, Livermore’s partner in Cordex Exploration, said he learned from his example. Livermore taught him to treat the company’s money like he would his own and had “impeccable business ethics.” Wallace said Livermore was always the first to arrive at work and the last to leave.

Wallace shared one of John Livermore’s quotes and said it was typical of the old prospector: “In any mining venture, it is very important to hire a highly qualified geologist. But it is even more important to hire a lucky geologist.”

Wallace said the quote was the sum total of John Livermore’s acceptance speech in 2000 when he was inducted into the National Mining Hall of Fame.

Finding one ore body may have been lucky, but John Livermore found several, Wallace said.

Livermore left Newmont in 1970 and formed Cordex Exploration. While there the ore bodies of the Pinson, Preble, Dee and Sterling mines were discovered. The work at Cordex also led to the development of the Getchell Trend, second only to the Carlin Trend in Nevada gold production, according to the hall of fame.

Wallace said in the 1980s, Livermore handed over control of Cordex to him, and he assumed John Livermore was retiring at the age of 64. This assumption went away after Wallace received a collect phone call from Livermore in Colombia. Apparently he had been robbed by three men with machetes while prospecting, and needed money.

“John was actively prospecting and going into the field until he was 92,” Wallace said. “John gained financial success from his hard work in exploration and he never changed in any way that I could see. ... John treated all people with respect and didn’t See MEMORIAL, 51

A GLIMPSE OF THE PAST In November 2003, then Mining Quarterly Editor Adella Harding covered a seminar where John Livermore was a speaker.

While the article is 10 years old, it still has relevance today.

Livermore recalls early days of mining

By ADELLA HARDING Published Nov. 16, 2003

ELKO — The world of mining has come a long way since John Livermore found the gold deposit that opened the door to millions of ounces of gold production on the Carlin Trend.

But the mining industry “needs to improve its message,” Livermore told an audience at Great Basin College Saturday morning. “We aren’t doing a good job of getting our message across.”

He also said that while the early miners and geologists didn’t think about the environment much, these days “there is a certain amount of overkill.”

Livermore provided recollections to set the stage for the seminar on sustainability, or what the Elko area can do to survive once mining stops, because the city is the center of the largest gold mining activity in Nevada.

“When I first came to Elko in 1949 — this was strictly cow country,” Livermore told the audience at the “Mining and the Community - A Partnership” seminar.

He was prospecting on his own in those days and “probably walked close to the Carlin orebody,” but barite and perlite were the minerals of choice then. Gold was only $35 an ounce and not as tempting as today.

After three years of prospecting, Livermore said he realized he couldn’t make a living Submitted/John Vinson

John Livermore prospecting in 2007 in the Delamar District, 30 miles west of Caliente.

See LIVERMORE, 50

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Livermore ...

Continued from page 49 that way “so I figured it would be better to go to work with a mining company.”

He went to work for Newmont Mining Corp. and the company sent him to Leadville, Colo., for several years, before he came back to Nevada to work on a drilling project near Eureka.

While in Eureka, he convinced Newmont to try looking for the deposits that can’t be seen with the naked eye - the kind of deposits that are producing so many millions of ounces of gold today in Nevada.

He had thought about those deposits after seeing enormous outcroppings at the Getchell Mine that miners couldn’t pan and disseminated gold at the Standard Mine where he worked before prospecting on his own.

Livermore said his interest was further sparked after reading what Ralph Roberts of the U.S. Geological Survey wrote about the Roberts Mountains Thrust and hearing Roberts talk in Ely. The late Alan Coope worked with Livermore, and they even had Roberts come out and verify that they were on the Roberts Mountains Thrust, Livermore said.

Rumors flew that they were working

secretly at night, and sneaking assay samples out to Crescent Valley “to throw people off the track,” and Livermore said the stories even appeared in National Geographic.

“The only assay office was in Crescent Valley, if you can believe it,” Livermore said.

And he said it would have been pretty hard to work at night.

They found low grades of ore, and Newmont executives weren’t very impressed, but they let them continue exploring.

Livermore said Newmont sent him to Canada before the Carlin Mine was developed, but he recalled getting a call confirming that there was an orebody.

“Of course, that made me feel pretty good,” Livermore said.

The Carlin Mine went into production in 1961.

“We thought if we were lucky, we would find an open pit deposit, and maybe two or three together. I never in the world thought we’d find 11 million tons and 0.3 ounces per ton,” Livermore said.

In the years after that, Newmont and Barrick Goldstrike Mines Inc. have found deposits that led to the Gold Quarry surface mine, the Betze-Post surface mine, and

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number of smaller open pits for Newmont and underground mines for both companies.

Dee Gold Mine also is on the Carlin Trend and produced gold for years before shutting down. And Barrick is exploring at Dee and the Rossi Project today.

Exploration wasn’t as simple in the early days, either.

“The best prospecting tool was the bulldozer,” Livermore said. “We dug tremendous trenches.”

The early drills weren’t much use,but the rotary drill’s introduction in the 1960s “really speeded up exploration tremendously,” he said.

Livermore recalled that crews didn’t fill the exploration holes in those days, but left them for someone else to use. They also left the cuttings from the drilling for someone else.

“Now, that’s all by the board,” he said.

Livermore said that when he was working with Andy Wallace, and they first started Cordex Exploration, they talked to Lew Eklund of Eklund Drilling in Elko about drilling angle holes.

Eklund, who also was at the seminar, got a manufacturer to come up with an angle drill. Next came drills on tracks so explorers

didn’t have to build roads, Livermore said.

Livermore said that while companies weren’t thinking about the environment in the way they do today, even then they decided against putting a mine on Winnemucca Mountain in plain view of the city and Interstate 80.

“Of course, as time went on we had to accept more and more permitting regulations,” he said.

And he said at the Pinson Mine, they started concurrent reclamation when the mine went into production in 1981 “long before state regulations went into play.

“We thought we were being responsible,” Livermore said.

He also said he often questions why “what man produces is ugly, but what nature produces is lovely,” referring to the colorful pit walls of a mine. “It’s all a matter of perception.”

The Pinson mill was built before the current National Environmental Policy Act was in place, so Pinson completed it before even filing a plan of operations with the U.S. Bureau of Land Management, Livermore said.

Cordex Exploration found the Pinson deposit, after deciding to “take a different

tack,” from looking for the Carlin model.“We were lucky enough to get onto the Pinson orebody,” Livermore said.

They found the ore at the 17th drill hole, but had to sit on it until the gold price was right. Then, the price went to $250 an ounce in late 1980, and while building the mill,the price shot up to $800 an ounce for a short time.

“We sold a lot of gold at $600,” Livermore said.“It was one of the better mines. We got our money back in the first 15 months or so.”

Pinson is now closed, and the reclaimed site is owned by Barrick Gold Corp., which acquired the property in the Homestake Mining merger.

Barrick also has explored there since closure.

Cordex Exploration later went under Rayrock Resources’ umbrella, but the company is back on its own, and Livermore is still involved in gold exploration.

He said during a break in the seminar that Cordex is doing work in Nevada for Metallic Ventures Gold Inc.

Memorial ...

Continued from page 48

Marianne Kobak McKown/Mining Quarterly

have an ounce of arrogance.... I could never repay John. It is difficult to repay someone who never wanted credit for who he is.”

The final speaker during the memorial was another of John Livermore’s nephews, Dave.

He said the paradox of Livermore’s life was that he found the gold his own grandfather walked over to get to California during the ’49ers gold rush.

Dave talked about the roots of the Livermore family and played 15 minutes from the documentary “Through the Eye of the Prospector.”

After the memorial, one of his nephews, Robert Livermore, said he wasn’t surprised by the different stories told about his uncle. Robert is the only other geologist in the family and he worked for Cordex when he was younger.

“I worked on the early prospecting of the Dee Mine,” Robert Livermore said. “John was sort of my mentor.”

Livermore is survived by his brother Putnam Livermore and numerous nieces and nephews and grand-nieces and grand-nephews.

“Despite his California roots, John was happiest roaming the high sagebrush deserts of Nevada, rock hammer in hand,” Dave Livermore said. “Dust covered his field vehicle, and ore samples and topographic maps littered the back seat. Generous and unassuming, his stride was as long and open as the vast Great Basin country he loved, and he always had time for a friend.”

John Livermore’s work clothes and photos of him shown during his April memorial in Reno.

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Has the gold rush come to an end?

NEW YORK (AP) — When the price of gold plunged $200 last month, many people thought they caught the sound of the gold bubble popping.

What Peter Schiff, the CEO of brokerage Euro Pacific Precious Metals believes he heard was a stampede of fairweather speculators fleeing the precious metal.

Schiff and other champions of gold weren’t shaken by the plunge. To them, it was just a short breather in preparation for another long climb.

All the reasons they give for buying gold haven’t changed: Gold remains a refuge from disaster, they say, arguing that a steep drop in the dollar and a spike in the price of consumer goods are a threat.

For speculators, buying gold was simply a way to profit from its popularity.

“That’s what happens in a bull market,” Schiff says. “The selloffs shake out the Johnny-come-latelies. It’s healthy.

Now we can have a real rally.”

Gold, often touted as the most trustworthy of investments, has looked wild over the past month. After starting April above $1,600 an ounce, it dropped below $1,361 on April 15 and has steadily recovered to settle at $1,436 on May 10.

Gold was supposed to be a haven from turmoil. When the housing market started cracking and the stock market sank in 2007, the price of gold began to surge. Over the next two years, it soared from around $600 an ounce to nearly $900 in the depths of the financial crisis in late 2008.

For those who were wary of financial institutions or thought the Federal Reserve’s rescue efforts would backfire, it became the favored investment. The television personality Glenn Beck advised his audience to stock up on gold bars in case the dollar became worthless. The tea party called for a return to linking the value of the dollar to the price of gold.

“People treated gold like the cure for everything,” said James Paulsen, chief investment strategist at Wells Capital Management in Minneapolis. “If you were worried about a depression, buy gold. If you were worried about inflation, buy gold.”

If fear of economic collapse started the gold rally, greed accelerated it. By 2009, speculators and others looked to ride gold’s popularity. Hedge funds and other big investors piled in.

Anxiety and gold prices kept climbing in tandem. Right after Standard & Poor’s stripped the U.S. of its top credit rating in August 2011, the price peaked above $1,900.

Instead of buying gold bricks and stashing them in their basement, many hedge funds and big investors turned to buying gold exchange-traded funds, which trade on markets like stocks. The most popular offering, the SPDR Gold Trust, attracted big investors like John Paulsen, who made billions betting on the mortgage meltdown, and George Soros.

As money poured in, the SPDR Gold Trust grew into the second-largest largest exchange-traded fund behind the SPDR S&P 500, which follows the stock market. And its supply of gold swelled from 780 metric tons at the start of

2009 to 1,353 metric tons in December.

But now it looks like the fast-money has soured on the yellow metal. George Soros slashed his stake in the SPDR Gold Trust fund by 55 percent at the end of last year, according to the most recent regulatory filing.

Judging by the numbers, it looks like others decided to jump out of the market at the same time. Hedge funds and big investors pulled $8.7 billion out of gold funds last month, according to EPFR Global, a firm that tracks where big investors put their money.

EPFR says it was the biggest monthly withdrawal out of gold funds since the firm started collecting data in 2000. The SPDR Gold Trust unloaded 12 percent of its gold in April, selling 146 metric tons.

There’s no single destination for all the money rushing out of gold, says Cameron Brandt, EPFR’s director of research.

The most popular places for investors now are real estate funds, junk bonds, emerging-market bonds and stocks in big companies that pay dividends. One clear trend that Brandt sees is investors pulling cash out of the safety of moneymarket funds in search of something better. Some of that money appears to be trickling back into the U.S. stock market.

So where’s gold headed next?

The answer depends partly on where you think inflation is headed.At one extreme,Schiff and others in his camp believe See GOLD RUSH, 59

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SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 53

Paste backfill plant first of its kind in Nevada

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

Senior Shortrange Planner Graham Chancellor, at Barrick’s Goldstrike mine, talks about the piping system for the paste backfill in the Rodeo Underground.

Ross Andreson Mining Quarterly

CARLIN — Barrick’s flagship Goldstrike Mine on the Carlin Trend has the first of its kind in Nevada: a paste backfill plant.

The plant, which services the Rodeo Underground, began running in March, said Graham Chancellor, senior short-range planner for Goldstrike.

The surface plant manufactures a paste from a mixture of Goldstrike tailings, fly ash and cement.

The tailings are piped from the roaster to the Paste Backfill Plant, where the fly ash and cement are added.

The paste plant is the first permitted in Nevada. The project began in June 2003 and it took about six years to reach the first stage of the permit, said Russ Evans, manager of underground engineering.

The primary driving force behind the project was worker safety, said Goldstrike General Manager Andy Cole.

“It’s more controllable,” he said. “Traditional backfill requires a lot of equipment. This allows us to remove equipment from the underground and improves the air quality. It also has a lower operating cost.”

Barrick invested about $50 million to construct the plant.

When an area needs to be filled underground, a steel frame is constructed around the opening. A fiber cloth is put in-between two layers of wire mesh and attached to the steel frame. The fiber is a strong type of nylon. The structure is then covered in shotcrete, Chancellor said. Plastic tabs, connected to the wire mesh, show the miners how much shotcrete to spray on the structure.

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Once the bulkhead is completed, paste is piped down into the open space behind the frame. Before the bulkhead is completed, the paste pipes are suspended from the ceiling.

“It’s somewhat smooth,” Chancellor said.

“It’s more uniform than the backfill we normally use. It’s more efficient. This is a finer product and we’re not running diesel trucks to move it, so the air has less particulates.”

Stopes in the mine also are filled with paste backfill. When a stope is filled, a steel frame or cement rockfill is put at the bottom of the hole or stope. Then the area is filled with paste.

A bulkhead’s position is chosen based on where mining will occur, but the paste backfill can only fill up to 100 feet of drift length, Chancellor said.

Beside the paste pipe are blast tubes, said Mark Blakeman, Goldstrike operations general supervisor.

“So if we want to get back in, we can fill the tubes and blast it open,” he said.

Before the paste plant, trucks would have brought in backfill and miners would have to pack the material into the drift, or tunnel, Blakeman said.

“The fill rate is probably more than twice as fast as conventional backfill,” he said.

The mine has three bore holes that can

Video

of paste plant at elkodaily.com

Mark Blakeman, Goldstrike operations general supervisor, talks about process done in the paste backfill plant.

Ross Andreson Mining Quarterly

See PASTE PLANT, 56

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Paste plant ...

Continued from page 55 bring paste from the surface to the underground. The pipes use either gravity or a pump to move the paste. Bore hole No. 1 is the one hooked up to the pipe system.

The pipe system also has safety measures. When the paste is running, the area with the pressure valve is roped off similar to when the mine does a blast, Chancellor said.

“No one works in the area while the paste is being pumped,” he said.

Once the area is filled, the paste pipes are flushed with water and then air, Chancellor said.

“We only fill one area at a time, then flush and change over, then fill the next area,” he said.

Barrick Earnings Barrick Gold Corp.’s earnings dropped a little more than 18 percent in its first quarter due to lower gold and copper prices.

Net earnings decreased to $847 million, or 85 cents per share, compared with net earnings of $1.04 billion for the same quarter the year prior. The com-

Paste Plant operator Will Grasmick at Barrick Goldstrike.

Ross Andreson Mining Quarterly

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Ross Andreson/Mining Quarterly

Blakeman describes equipment near bore hole one at the paste backfill plant. This pipe takes paste backfill to the underground. pany reported April 24, adjusted net earnings for the first quarter of 2013 decreased to $923 million compared with $1.10 billion in 2012’s first quarter.

Barrick reported gold and copper production of 1.79 million ounces and 127 million pounds respectively. The company reported all-in sustaining costs for gold were $919 per ounce and total cash costs of $561 per ounce for the first quarter.

“Our high quality portfolio of mines combined with our sharp focus on cost management has translated into strong quarterly financial and operating results,” said Barrick’s President and CEO Jamie Sokalsky. “It is very rewarding to see that our cost reduction efforts have begun to take effect and are reflected in low all-in sustaining costs of $919 per ounce and total cash costs of only $561 per ounce this quarter. We have also further reduced total capex, exploration and all-in sustaining cost guidance for the full year. At Pascua-Lama, we are working to address the environmental and other regulatory requirements on the Chilean side of the project.

“Concurrently, we are taking a hard look at evaluating all alternatives in light of the uncertainties associated with the suspension of construction in Chile. We are committed to a disciplined approach to capital allocation, based on the principle that returns will drive production, production will not drive returns. While we remain positive on the long-term fundamentals for gold and copper, we don’t rely on higher metal prices to be the only driver of shareholder returns.”

North America Regional Business Unit North America produced 870,000 ounces at all-in sustaining and total cash costs of $770 per ounce and $487 per ounce, respectively. Barrick’s 60 percent share of production from the new Pueblo Viejo mine was 96,000 ounces at total cash costs of $550 per ounce, after achieving commercial production in January. The mine remains on track to ramp up to full capacity in the second half of this year. Barrick’s share of average annual gold production in the first full five years of operation is anticipated to be 0.625-0.675 million ounces at all-in sustaining and total cash costs of $500-$600 per ounce and $300-$350 per ounce, respectively.

See PASTE PLANT, 58

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 57

Paste plant ...

Continued from page 57 The government of the Dominican Republic is asking Pueblo Viejo Dominicana Corporation (jointly owned 60 percent by Barrick and 40 percent by Goldcorp) to accelerate and significantly increase its share of the benefits from Pueblo Viejo. The company, while reserving its rights under the Special Lease Agreement, which cannot be unilaterally altered, continues to engage in dialogue with the government in an effort to achieve a mutually acceptable outcome.

The Cortez mine produced 340,000 ounces at total cash costs of $177 per ounce, largely reflecting better than anticipated grades. Goldstrike produced 230,000 ounces at total cash costs of $605 per ounce primarily as a result of higher than expected grades and recoveries.

Barrick expects full year 2013 production for North America to be 3.55-3.70 million ounces at all-in sustaining and total cash costs of $820-$870 per ounce and $495-$545 per ounce, respectively.

Paste crew members at Barrick Goldstrike.

Back row, from left are Lonnie Nutting, Mark Blakeman, Will Grasmick, Chuck Taylor, Graham Chancellor and Brett Campbell. Front row, from left are Justin Bundy, Megan Stumpp, Russ Evans and Steve Criner.

Ross Andreson Mining Quarterly

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Stolen $30k mineral returned to Nevada mine museum RENO (AP) — A valuable mineral specimen stolen from a mining museum at the University of Nevada has been returned anonymously.

Campus police Commander Todd Renwick said the mineral with crystals worth an estimated $30,000 was dropped off April 27 on the steps in front of the Keck Museum.

Renwick said it was placed inside a crate in a plastic bag and didn’t appear to be damaged. The mineral weighed 25 to 30 pounds. It disappeared from a museum display April 8. An investigation into the theft continues.

“We’re going to see if the plastic bag or the crate provides any information that we can use,” Renwick told the Reno Gazette-Journal on April 30. “That could be fingerprints or DNA. We’re also going to check different perimeter cameras around the building to see if we can identify the person who brought it.”

Renwick said the media attention surrounding the stolen stibnite and photographs of the missing specimen probably made it too difficult for the thief to sell.

“I’m sure that put some pressure on whoever took it,” he said.

The mineral is prized by collectors because of its long slender bladed crystals with a brilliant gray and

AP Photo/University of Nevada Reno, Ben Schumer

This undated photo shows stibnite from the White Caps Mine in Manhattan. black metallic luster. It’s not especially rare but the specimen was unusually large, said Daphne LaPointe, interim director of the museum.

“You usually don’t get massive amounts of it in one place,” she said. “It’s also a historical piece.”

Secret Witness is offering a $1,000 reward for information leading to the arrest and prosecution of the person or people who stole the mineral. Anyone with information is asked to call UNR Police Services 775784-4013 or Secret Witness at 775-322-4900.

Gold rush ...

Continued from page 52 the Fed will eventually let inflation loose and gold will hit $2,000.

“They’re going to print and print until money is worthless,or they run out of trees,” Schiff says.“I think people will look back at this time period and think,‘Wow, what a great opportunity.”’

Others see no reason for gold to resume its climb. They point to a recent academic study that said current consumer prices imply a gold price below $800 an ounce. Gold forecasts from Wall Street banks sit somewhere in the middle.

Samuel Lee,an ETF strategist at Morningstar in Chicago,has less than 5 percent of a portfolio he manages in gold, and plans to keep it that way.He considers gold a protection against inflation over the very long-term — from 50 to 100 years.

Lee says he isn’t sure where gold prices are going this year or the next, “but I’m convinced they won’t do as well as stocks.”

He adds, “I’m not really a big believer in gold. I’m fully aware that it can lose me a lot of money. I just care that it gives me some diversification.”

With banks looking stable and the economy slowly improving, there’s less of a need to hide in the gold market. Fear of another financial crisis has diminished.

Ralph Preston, a market analyst and broker at Heritage West Financial in San Diego, Calif., envisions a few scenarios in which gold could shoot higher this year. If the war in Syria spreads, or if North Korea launches an attack on other countries in Asia, it could head back above $1,900.

“Owning a little bit of gold is probably not a bad idea,” he says. “But I don’t think we’ll be using it to buy groceries someday.”

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Mines help rescue zoo

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

Ross Andreson/Mining Quarterly

Petey, a young bobcat bites a stick while in a pool at Safe Haven Rescue Zoo. Mandy plays in the water behind him.

IMLAY — The roar of a lion, the chuff of a tiger and the purr of a cougar can all be found at a small rescue zoo west of Winnemucca.

What does this facility, Safe Have Rescue Zoo, have to do with mining? Some of their volunteers and largest donors come from Nevada mines.

Safe Haven is a wildlife rescue and rehabilitation facility run by its founder and executive director, Lynda Sugasa. The zoo rehabilitates and releases wildlife, but also provides life-long care to animals that cannot be released. The facility also has programs to educate the public about the animals and why they should not be kept as pets.

Safe Haven was founded in 2000 in Illinois, but moved to Nevada in 2006 because the amount of land needed for the facility was affordable. The sanctuary is on 160 acres south of the Mill City exit on Interstate 80.

“My husband was familiar with the area because he grew up here,” Sugasa said.

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Lynda Sugasa Safe Haven deals mostly with predators, such as tigers, African lions, bobcats, lynx, mountain lions, African servals, coyotes and foxes.

The facility does not handle raptors, but on occasion can temporarily house birds of prey. In April, the staff was taking care of a baby great horned owl until he could be transferred to another facility.

“We have to send the prey animals and raptors to Carson City,” Sugasa said.

However, the zoo does have Iggy the iguana and Mojave Moe the desert tortoise. Both of these animals stay in the office. Iggy has his own enclosure, but is taken outside periodically by staff to soak up sunlight.

Ross Andreson/Mining Quarterly

See SAFE HAVEN, 62

Juno, a male fox, comes out from hiding at Safe Haven Rescue Zoo.

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Safe Haven intern Angie Krall stands in the doorway of the office as Mojave Moe, a desert tortoise and permanent resident of the sanctuary makes his way toward the camera.

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Ross Andreson Mining Quarterly

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Safe Haven ...

Continued from page 61

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Moe roams the office but also has his own heated box to get out of the cold and for when he is hibernating. A Newmont employee found Moe roaming northern Nevada and thought he may have been someone’s abandoned pet.

While staff has contact with Iggy and Moe, the sanctuary has a no-contact policy with the larger animals. The predators, especially the big cats, are fed in transport cages connected to their larger enclosures.

The animals know the only place they are fed is in the smaller cages. If staff needs to transport them for a veterinarian appointment or if they must be moved because of a wildland fire, it makes it easier to load them into the portable cages, Sugasa said.

Most of the animals are on a raw meat diet. Expired meat is donated by Wal-Mart. The meat can’t be sold to humans, but it is still safe for the animals to eat, Sugasa said.

The tigers are fed chicken and beef and sometimes turkey for variety, said Safe Haven intern Angie Krall as she fed the tigers using tongs to put the meat in the cages.

The animals have platforms in their enclosures, which are for climbing, but they also provide the animals shade.

“We have ramps (to the platforms) so when they get older they don’t have to jump on the hard surface,” Sugasa said.

Staff also gives the animals new items in their enclosures every day for cage enrichment.

“It prevents cage boredom,” she said.

Each cage has insulated and heated dens for the animals. All the dens are fireproof, however, the facility is on the BLM’s priority list for evacuations in case of a wildland fire.

See SAFE HAVEN, 64

62 MINING QUARTERLY, Elko, Nevada SUMMER 2013

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SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 63

Safe Haven ...

Continued from page 61 “Every den is facing east because that is the only direction we don’t get wind,” Sugasa said.

The enclosures and everything inside them are built by staff, however, just one enclosure costs $20,000 to $25,000 in materials. The enclosures are designed according to national standards, but the staff uses 6-gauge cattle panel fencing instead of the smaller 9-gauge to make the enclosures sturdier.

Facility Improvements Safe Haven will soon be connected to the grid.

The facility has run on solar power, but has maxed out on battery storage capabilities. The connection to the power grid will act as a backup, especially in the winter.

“It’s sufficient for where we are, but we have African species and heating the dens is a big draw on the power,” Sugasa said. “Being connected to the grid, this will enable us to sell power back to NV Energy.”

Newmont Mining Corp., Barrick Gold Corp., Coeur Rochester and NV Energy are all donating money to the project. GoldCorp will give an in-kind donation by using some of its heavy equipment to dig the 3,500-foot-long trench to bury the cable. The electrical upgrade will enable the facility to use grid power during the night and on cloudy days, to supplement the solar panels.

Mining companies have helped with several projects at the sanctuary.

Ross Andreson/Elko Daily Free Press

See SAFE HAVEN, 66 Cheyenne, a red fox, carries a paper tube with meat inside in her enclosure. The meat treat is part of cage enrichment.

64 MINING QUARTERLY, Elko, Nevada SUMMER 2013

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Safe Haven ...

Continued from page 64 Last year, Coeur Rochester provided two employees and heavy equipment to create a firebreak around the facility. Barrick’s Turquoise Ridge employees also volunteered their time last year to help improve the enclosures.

Allied Nevada Gold Corp., which owns the Hycroft Mine, also has donated funds.

Meet the Predators Safe Haven has 28 animals, and three of them are tigers.

Gage, 14, and Syber, 12, were placed at Safe Haven in May 2012. They were raised together in Ohio and were taken from a facility that was shut down. The third tiger, 16-year-old Choi Hu, was rescued from Washington state in 2009 when her divorcing owners could no longer care for her.

The rescue zoo has six bobcats. The two oldest, Bobzee and Phoenix, have their own enclosure. Phoenix is 18 and Bobzee is 11.

Phoenix was confiscated from an apartment. She was one of Safe Haven’s first permanent residents. When she arrived, she was emaciated from an inappropriate diet of broccoli and canned cat food. She also was declawed and used to humans, so she couldn’t be released into the wild.

A couple bought Bobzee as a kitten, but as she grew older, she kept escaping and became aggressive, so they brought her to Safe Haven. Sugasa said the couple became regular donors and still visit Bobzee.

The youngest of the bobcats are Petey, Mandy and Gidget, and they arrived in October. Sugasa still refers to them as babies because they are not quite a year old.

The three were orphaned in Arizona. Unfortunately their rescuer kept them too long, so they are no longer afraid of humans and can’t be released, Sugasa said.

“The biggest mistake people make with these animals is they hang on to them too long,” she said. “They also have nutrition problems because people feed them the Ross Andreson/Elko Daily Free Press wrong food and then cause bone damage. People have fed animals wrong and we had Bobzee the bobcat defends her territory from the camera. She is one of the permanent residents at to put the animals down because they were crippled.”

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Ross Andreson/Mining Quarterly

Above: Max the Cougar looks up after taking a drink.

Below: African lions, Kovu, left, and Ifaw are permanent residents of Safe Haven Rescue Zoo.

Above: Tigers, Gage and Syber, play in their enclosure. These two are Siberian tigers, but like most in America, they also are a mixture of Bengal tiger.

At left: Ifaw licks his enclosure buddy Kovu. They are maneless because they have been neutered.

Ross Andreson Mining Quarterly

The latest addition to Safe Haven is Steel, a 2-year-old bobcat. He was found in Las Vegas and was taken from his owner who had him illegally, Sugasa said. He was brought to Safe Haven in March.

The four bobcats are housed in a temporary enclosure until their 5,000-square-foot area can be built. The fence around the enclosure will be 10 feet high, but there will be a 14-foot-high climbing section. â&#x20AC;&#x153;We have to make it smaller because we have to put a top on it, because they can climb out,â&#x20AC;? Sugasa said.

The big cats at the facility are housed in 10,000square-foot enclosures.

The facility has three mountain lions.

Max is 13 or 14 years old. He was rescued after being kept in a 12-by-12-foot barn stall for 10 years in Texas.

During those 10 years, he was given dirty water, little food and was never allowed outside. He was one of 20 big cats rescued from his previous owner.

Cooper was orphaned in 2004 in Washington and raised at Safe Haven. Savannah was raised in a roadside zoo in New Hampshire until she and her brother were rescued. Her brother, Tahoe, died in 2010.

The two African lions, Kovu and Ifaw, came from two separate roadside zoos, Sugasa said. Kovu was fed an

improper diet as a juvenile and continues to have health problems. Ifaw was declawed and is missing part of his tail. Both of them are maneless because they are neutered.

Kovu is the largest animal at Safe Haven, weighing in at 600 pounds. The second biggest is Syber, who is close to 500 pounds.

Safe Haven also has six servals, which are native to Tanzania. The first serval the rescue zoo took in was Jasper. He was found cowering under a parked car in See SAFE HAVEN, 68

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 67

Safe Haven ...

Continued from page 64 Hollywood, Calif. Sugasa said he was most likely a victim of the illegal pet trade. The other five servals were pets of a woman in Colorado. She could no longer take care of Ricky, Tanzi, Myra, Roy and Simba and so they found a new home at Safe Haven.

Kiki the lynx was surrendered by her elderly owner in Iowa, who had declawed her and filed down her teeth.

Safe Haven has two red foxes. Cheyenne is 6 years old and Juno, who was bred for a white coat, is 8 or 9 years old. Cheyenne was rescued as a baby, and developed sarcoptic mange.

“In the wild they would die from mange,” Sugasa said.

While Cheyenne survived, she has lingering health issues.

The Department of Wildlife gave Safe Haven three coyotes. Isabelle, Annabelle and Marabelle were all orphaned as pups. Sugasa said, by law, they can’t release coyotes, so they will live out their lives at Safe Haven.

Fundraising Sugasa said Safe Haven hosts a fundraiser every year to help with costs. The latest was May 18 in Winnemucca.

“We would love for a celebrity to endorse us and

take us under their wing,” she said.

Safe Haven is attempting to find more donors outside of Nevada, so it can continue to house the animals it has now and continue to grow.

“Once they come here, they become regular supporters,” she said.

One of the facility’s donors is from New York.

“We’re one of 10 facilities that have been included on his list for TigersinAmerica.org,” she said.

Funds for operations are always needed because grants only pay for specific projects, Sugasa said. of event at “I have worked seven years for free,” she said. “I have one full-time elkodaily.com employee.”

She said it is more important to use the money to take care of the animals. The vet bills average about $12,000 a year, she said.

Sugasa also hopes to buy the adjoining 160 acres. Her goal is to move the big cats farther from the smaller predators, so they have less stress.

Tours of Safe Haven are available seven days a week, but they must be scheduled in advance. The sanctuary doesn’t charge, but does appreciate donations. To schedule a tour or donate, call 775538-7093. Information on Safe Haven also can be found at www.safehavenwildlife.com.

There’s much more to Newmont than producing the metals global consumers demand. Our business is about leadership in safety, environmental stewardship and social responsibility. Although much has changes at Newmont since Newmont was founded 90 years ago, our commitment to industry leading performance remains. www.newmont.com 68 MINING QUARTERLY, Elko, Nevada SUMMER 2013

Video

Safe Haven receives verified status from global organization IMLAY — The Global Federation of Animal Sanctuaries awarded Verified status to Safe Haven on April 15.

GFAS is the only globally recognized organization providing standards for identifying legitimate animal sanctuaries. Verification means that Safe Haven meets the criteria of a true sanctuary and is providing humane and responsible care of the animals.

“Safe Haven Rescue Zoo is an important sanctuary,” said GFAS Director Patty Finch. “There simply aren’t enough legitimate, safe and humane sanctuaries for the kinds of species housed there, including tigers and African lions. Safe Haven Rescue Zoo thankfully has put in place financial planning for the future, so that these animals have a permanent and, indeed, safe haven for the rest of their lives.”

Safe Haven Executive Director Lynda Sugasa said she and her staff were thrilled to achieve verification status from GFAS. “This status assures fellow sanctuaries that Safe Haven is a colleague of the highest caliber, funders can be confident that this is a premier organization, and that money and support given to Safe Haven will be well spent and our supporters can be proud to be a part of a recognized ‘true sanctuary.’ Please join us on Facebook and our website to support Safe Haven and be part of the celebration.”

Safe Haven Board Director Susan Gardner said she knew the facility has always been high quality.

“I am proud to have the long hours, hard work and dedication to our mission of our staff, volunteers and financial supporters recognized by GFAS,” she said.

Finch said she hopes the community continues to donate to the facility.

“We were so very thankful when Safe Haven Rescue Zoo was able to take two tigers from a facility that collapsed in Ohio last year,” Finch said. “I hope the public remembers that this sanctuary not only needs donations when a rescue happens, but for a decade-plus after the rescue, as they continue to provide medical care, feed and enrichment for these tigers who suffered so greatly before their arrival at a forever safe haven. Safe Haven also took in lions from a failed facility in Texas in 2011.”

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www.neffsdieselrepairandperformance.com SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 69

Golden improvements continue at Cortez

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

Ross Andreson/Mining Quarterly

Les McNutt, Cortez’s process project supervisor, talks about the pump of the Cell 4 tailings storage facility.

CRESCENT VALLEY — Barrick Gold Corp.’s Cortez Mine produced higher than expected grades of ore and hopes to extend the site’s life through improvements.

In the first quarter, Cortez produced 340,000 ounces at a total cash cost of $177 per ounce because of those higher grades, according to the company’s quarterly report.

Cortez’s tailings storage facility is at capacity and the mine hopes to have its new facility approved by the first week of June, said Les McNutt, Cortez’s process project supervisor.

The new tailings facility is called Cell 4 and will hold about 12 million tons. Phase 1 of the project should last about 2.4 years, McNutt said.

Cell 4 construction began in December 2011, said Casey Lee, project manager. The facility is nearly complete, and it needs final approval from the Nevada Department of Environmental Protection.

“We used 5 million cubic yards of dirt and gravel to build it and 7 million square feet of liner,” Lee said. “It’s just over a year we’ve been working on the project.

There are 43 miles worth of pipe in tailings (facility).”

The new facility should extend the

Ross Andreson/Mining Quarterly

Ross Andreson/Mining Quarterly

Barrick Gold Corp.’s Cortez Open Pit Manager Mark Rantapaa talks about the site’s new tailings storage facility.

Casey Lee, project manager for Barrick Gold Corp.’s Cortez Mine, stands near Cell 4’s 300-horsepower pump.

70 MINING QUARTERLY, Elko, Nevada SUMMER 2013

mine life to 2025, said Cortez Open Pit Manager Mark Rantapaa.

“We may have processing after that, but we also have a lot of exploration,” he said.

The next phase will begin in January 2014. The second phase will overlap, and the entire project will have five phases.

“It should support Cortez Valley 121⁄2 to 14 years,” Rantapaa said.

Cortez’s mill has a throughput of 13,500 tons per day.

Cell 4 was designed with a 300-horsepower pump on a ramp rather than a barge.

The facility will have to build up “quite a bit of water” before the pump has to be moved further up the ramp, McNutt said.

“Barges require at least 5 feet of water,” he said.

“Having the pump on a ramp makes it more efficient for maintenance and for maintaining the tailings in Cell 4. ... The pump moves the water from the tailings to the mill to be reused.”

Maintaining the Fleet Cortez uses some of the biggest haul trucks available and the site continues to grow its fleet of vehicles.

The site has a mixed fleet of trucks but keeps the 380-ton Caterpillars separate from the 400ton Liebherrs.

The Cats work in the Pipeline Pit and the Liebherrs are at Cortez Hills.

Ross Andreson/Mining Quarterly

See CORTEZ, 72

A P&H Shovel loads material into a haul truck in the Gap Pit in the Pipeline Complex at Barrick Gold Corp.’s Cortez Mine.

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 71

Cortez ...

Continued from page 71

Ross Andreson/Mining Quarterly

Three Caterpillar haul trucks dump their loads at the waste rock facility at Barrick’s Cortez Mine.

72 MINING QUARTERLY, Elko, Nevada SUMMER 2013

“In the beginning of 2013, we started back in Pipeline,” Rantapaa said. “We kept them separate because it’s more efficient, but eventually we will run them together.”

The site has 25 Liebherrs and 19 Caterpillars.

Rantapaa said 11 more Cat trucks are being built for a total of 55 haul trucks on site by the end of 2013.

“We’re receiving two trucks per month,” he said.

To maintain all the site’s equipment, the vehicles are brought to the shop on a regular schedule.

Cortez has numerous heavy equipment, but it also has 295 light vehicles on site.

“It’s like a Jiffy Lube, bring them in, fix and get them out,” said Henri Gonin, Cortez maintenance superintendent.

24 The shop is manned ⁄7, just like the rest of the mine, it never shuts down. The building has an eight-bay workshop, but only six are used, Gonin said.

In principle, maintaining a haul truck is not much more complicated than a pickup, except the parts are larger and there are more to fix and replace, Gonin said.

A 400-ton haul truck has 19 filters and four of those are air filters, which must be changed every 500 hours or about every 25 days. A pickup just has one air filter. A haul truck takes 120 gallons of oil versus the 3 quarts needed in a pickup.

Ross Andreson/Mining Quarterly

A P&H 4100 Electric Shovel prepares to load material into a Caterpillar haul truck at Barrick’s Cortez Mine as another drives away with a full load.

New tires on the front of a haul truck run for 1,700 hours before they are moved to the back of vehicle.

“We try to run them 5,800 to 5,900 hours on a tire,” Gonin said. “They don’t make it for a full year. The tires cost $53,000 apiece.”

Further Mining Cortez also has a new shovel to help with the workload. Earlier this year, the site commissioned a new P&H electric shovel with a 75-cubic-yard bucket.

“That shovel will load the 380s in three to four passes, depending on the material,” Rantapaa said.

The site has two types of shovels; the P&H 4100 is faster and bigger than the P&H 2800. The 4100 loads 120,000 tons per day and the 2800 loads 75,000 tons per day.

While the shovel is operated by one employee, it has a utility crew and someone on a rubber-tire dozer as support, Rantapaa said.

It had been about two years since mining was in the Pipeline Complex. About half the fleet is at Pipeline. Employees move about 430,000 tons of material per day and that is split about even between Pipeline and Cortez Hills Open Pit, Rantapaa said.

Cortez Hills Pit is beginning Phase 4 on Mt. Tenabo.

1 “Mining at Phase 4 should take us through 2017,” Rantapaa said. “It’ll take us 2 ⁄2 to 3 years to get to the high grade ore we’re chasing here. ... We’re proud of it and what we’ve carved out of (Mt. Tenabo).”

Call 800-321-0699 or email lynn.edwards@midwestind.com

See CORTEZ, 74

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 73

Your Safety Our Priority

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Every digging job requires a call – even small projects – so be sure to: t Call 811 two days before starting any digging project t Wait for the site to be marked t Respect the marks t Dig with care Not calling can be life-threatening and costly.

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Ross Andreson/Mining Quarterly

Cortez Project Site Manager, Mike Owsley touches the diamonds embedded in the buttons of the base of the drill that will cut the South Blind Bore to improve the ventilation in the underground.

Charlie Ernst, blind drill superintendent for Frontier-Kemper, and Jimmy Allred, blind bore construction supervisor for Cortez, foreground, watch.

Cortez ...

Continued from page 73 Cortez also continues work on the Area 34 leach facility.

“We have a permit to dry stack on it,” Rantapaa said. “We’re hoping to start leaching once we get the permit by the end of the month. I believe that will hold us through 2015 on Phase 2.”

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South Blind Bore Cortez’s underground also will be expanding with the sinking of another ventilation shaft.

See CORTEZ, 76

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Cortez ...

Continued from page 74 The South Blind Bore will be the second blind bore done at Cortez.

The North Blind Bore was the first one done in Nevada and drilled 1,473 feet from the surface down to the underground. The south ventilation shaft will reach 1,800 feet down from the surface, said Mike Owsley, Cortez project site manager.

The North Shaft was started in December 2011 and completed March 31 of this year.

In April, Barrick and Frontier-Kemper at Constructors Inc. crews were assembling elkodaily.com the drill rig. Frontier-Kemper is based in Evansville, Ind., and has done blind bores back East, but Nevadaâ&#x20AC;&#x2122;s soil conditions were a concern for how the process would work.

When doing a blind bore, the shaft is filled with water and reverse circulation brings the cuttings to the surface, Owsley said. The water, or drilling fluid, is used to apply pressure so the cuttings come to the surface, said Charlie Ernst, blind drill superintendent for Frontier-Kemper. â&#x20AC;&#x153;We will put the cuttings in the cuttings pond, and the water in other part and reuse the water,â&#x20AC;? said Jimmy Allred, blind bore construction supervisor for Cortez.

While the North Shaft was done without any conventional drilling, the South Shaft had some conventional drill work done, which began in November 2012, Owsley said. â&#x20AC;&#x153;The first 230 feet of the South Bore was different from the North Bore,â&#x20AC;? he said. â&#x20AC;&#x153;We had to conventionally sink because the material was so loose. We put steel liners in

Video

An aerial view of Barrick Gold Corp.â&#x20AC;&#x2122;s Cortez and Cortez Hills Mines Submitted

General Manager: Mark Levin Phone: 303-567-4174 Fax: 303-567-1006 info@minenv.com 3121 County Rd. 308 â&#x20AC;˘ P.O. Box156, Dumont, CO 80436-0156

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The bottom of the South Shaft looking up from 200 feet deep, shows the vent bag, steel impact plates and ring beams.

Submitted Barrick Gold Corp.

the first 230 feet to keep the shaft from caving in.”

Now that the conventional drilling is done, no workers will have to go in the shaft. It will be filled with water and drilled as a blind bore.

The drill rig was about 50 percent assembled in April and drilling was expected to begin in May, Owsley said.

Crews expect to finish the blind bore in late November.

The blind bore drill rig is different from conventional drills, Ernst said. The legs hold the main mast and drilling fluid

system. The cutting head can expand from 14 feet in diameter to 20 feet. The base of the head is 56,000 pounds and when it is all put together, it weighs 100,000 pounds, Ernst said.

“This is a live load so you have to have the necessary support to hold something while it is moving,” he said. “This whole thing is a team effort.”

The ridges on the drill are embedded with diamonds on the high-wear areas.

The pieces that cut through the ground are called buttons and are made of tungsten carbide.

Ross Andreson/Mining Quarterly

Various parts of the blind bore drill in the process of being assembled.

“This is the only drill I know of in Nevada that is segmented,” Ernst said.

“It costs about $15,000 for each cutter.”

The shaft will be 16 feet in diameter.

Once the drilling is done, a 14-foot metal liner will be lowered through the fluid and then the water will be pumped out of the shaft, and crews will grout the shaft

to the liner, Ernst said.

Allred said there were no injuries during the conventional drilling of the South shaft, so he expects the remainder of the drilling will also be done without incident.

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 77

NewFields Mining Design and Technical Services Materials Testing Manager Kevin Engelmeier, left, Priincipal Engineer Kevin Lutes and Principal Engineer Ferron Konakis stand in front of their temporary laboratory. In the background are the greenhouses at Kimberly Nurseries, which will soon be replaced d by a 4,000-square-foot laboratory.

NewFields offers civil, geotechnical engineering

By HEATHER KENNISON Mining Quarterly Staff Writer

Mining Quarterly/Heather Kennison

ELKO â&#x20AC;&#x201D; At NewFields Mining Design & Technical Services, civil and geotechnical engineering is their specialty.

The company opened in Elko in January, but also has offices in Sparks and Denver. While it contracts in Colorado, Arizona, Nevada and New Mexico, the Elko office intends to focus on Nevada. â&#x20AC;&#x153;We love Nevada, and weâ&#x20AC;&#x2122;ve got ties here,â&#x20AC;? said Principal Engineer Ferron Konakis.

Konakis was the City of Elko engineer for 17 years. He comes to the business with 30 years of progressive engineering experience in public works, water resources and wastewater treatment.

NewFields employees believe their local connection will be a benefit to the area.

Konakis manages the company alongside Principal Engineer Kevin Lutes. â&#x20AC;&#x153;We do full service engineer design and materials testing inspection services,â&#x20AC;? Lutes said.

Lutesâ&#x20AC;&#x2122; own experience has been primarily related to the mining industry. The company can provide both civil and geotechnical engineering for mines. This includes designs for process facilities and mining infrastructure, as well as roads and highways.

NewFields is also capable of performing special inspections. â&#x20AC;&#x153;For some structures you have to have special inspections,â&#x20AC;? Konakis said. â&#x20AC;&#x153;International building code kind of dictates that based on the

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importance of the building, the use of it and the complexity.”

The 11 local employees demonstrate a wide range of skill sets. The top four employees bring a combined 95-plus years of experience in engineering, construction, mining and materials testing.

“We’ll have the most skilled local talents in the area,” said Materials Testing Manager Kevin Engelmeier.

Engelmeier has experience as a quality assurance and quality control technician, as well as inspecting engineering design. In the past 12 years he has managed an accredited materials testing laboratory in Elko.

Field Services Manager Tony Sears brings more than 27 years of experience in construction and soil testing.

Although NewFields will focus much of its efforts on the mining industry, the company can also do residential projects. The employees said they care about their customers’ projects.

“We care as much about their job as they care about their job,” Engelmeier said.

NewFields currently has two locations in Elko. It also has a temporary technical laboratory behind the Kimberly Nurseries building the company purchased on Fifth Street.

The building will be renovating it into an “L” shape, which will include a new 4,000-square-foot laboratory. The materials lab will test soils, aggregates, asphalt and concrete.

As of late April, the lab was pending accreditation from the American Association of State and Highway Transportation Officials.

Renovations in the building are scheduled to be completed by October, after which NewFields intends to move both offices into the single building.

NewFields can be reached at 753-9998 for its office at 225 Silver St., Ste. 107. The office at 401 Railroad St., Ste. 206., can be reached via phone at 738-3399.

SAFETY FIRST MSHA training teaches lessons for work and home

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

ELKO — When attempting a task, is it better to complete it safely or quickly?

Many people say both, but sometimes both isn’t an option. All miners are taught — through Mine Safety and Health Administration training — that safety is the first priority on the job. When looking at the history of mining, safety on the job is a relatively new concept.

The history of mining goes hand-in-hand with civilization, and mining in the West has been around since the 1800s. Many mines were known for their unsafe conditions, but that began to change with the passage of the Mine Safety and Health Act of 1977, which allowed miners to exercise their rights to work in a safe environment.

Since then, safety cultures have grown throughout the industry and now every mine is inspected by MSHA to insure safe practices are used. These same regulations govern everyone who visits a mine site, and this led to me and two of my co-workers taking MSHA training.

Natalie Greenwell, senior talent acquisition representative for Newmont Mining Corp. and the new hire trainer for the company, had the task of training us.

“We’re required by MSHA to go through specific topics,” Greenwell said. “We combine Newmont policies with MSHA. MSHA is really the minimum requirements. Newmont policy See SAFETY FIRST, 80

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Safety First ...

Continued from page 79 exceeds MSHA standards.â&#x20AC;?

The class ranged from summer students to brand new miners to industry veterans.

As we went through three days of training, it became evident that the MSHA lessons were important for work at the mine site, but also for tasks at any business or at home. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re all safety leaders,â&#x20AC;? Greenwell said. â&#x20AC;&#x153;As employees we need to stop others from doing something stupid. There are people who, when you tell them, â&#x20AC;&#x2DC;itâ&#x20AC;&#x2122;s hot, donâ&#x20AC;&#x2122;t touch it,â&#x20AC;&#x2122; they will touch it.â&#x20AC;?

Testing Before we began learning MSHA safety guidelines, Greenwell had the students take a pre-knowledge evaluation to see the trainingâ&#x20AC;&#x2122;s effectiveness. The first day I guessed 28 out of 50 questions correctly, but on the last day I received a perfect score.

The questions on the test were much more complicated than I expected.

They ranged from questions on the law to definitions of terms.

Here is an example: Question: Pick the best answer below to define Duty of Care responsibilities of the employee?

A. To ensure that work area is clean and healthy B. To work in such a manner as not to endanger themselves, fellow workers or equipment

C. To report any unsafe work condition or at risk act to their supervisor D. To ensure all inspections are completed prior to the start of shift The answer is B. Safety Culture Some of the students who werenâ&#x20AC;&#x2122;t strangers to a mine site said they constantly hear from other employees, â&#x20AC;&#x153;this is the way weâ&#x20AC;&#x2122;ve always done itâ&#x20AC;? or â&#x20AC;&#x153;it wonâ&#x20AC;&#x2122;t happen to me.â&#x20AC;?

Greenwell said people still may have that same attitude, but if you want a safe work site you have to be willing to have â&#x20AC;&#x153;a courageous conversation with a personâ&#x20AC;? and tell the person when they are doing something unsafe.

Greenwell said Newmont is trying to build a safety culture. The safety journey has five steps: Awareness, consent, participation, ownership and integration.

The ownership stage is when employees look to the future and are not reactionary. The integration phase instills a chronic unease in employees so they are always looking for what could go wrong.

Greenwell said Newmont is still in the participation stage, which is when employees react after an accident happens.

For every fatality at a work site there are 10 major accidents, 30 property damage accidents and 600 near misses, Greenwell said. â&#x20AC;&#x153;Safety is a value, not a priority,â&#x20AC;? she said. â&#x20AC;&#x153;Priorities

can change. Values donâ&#x20AC;&#x2122;t or shouldnâ&#x20AC;&#x2122;t.â&#x20AC;?

The majority of accidents are caused by people. Two percent are acts of nature, 10 percent are unsafe conditions, and 88 percent are caused by unsafe behaviors, according to the training.

Part of the training dealt with handling chemicals and equipment properly.

According to the National Fire Protection Association, 32 million workers are potentially exposed to one or more chemical hazards from about 650,000 existing chemical products, and hundreds of new ones are being introduced annually.

We were taught how to read the NFPA warning labels on items. Blue represented any health risks, red was flammability, yellow was reactivity, and white gave any special handling instructions for emergency personnel.

However, on a mine site, containers are also marked with the Hazard Material Identification System labels.

The colors on these labels are the same as the NFPA except white tells the employee what safety equipment is needed when handling the contents.

This training reminded me of using chemicals at home or in the office and how many times I or someone else mishandled them. Things as simple as cleaning agents, such as ammonia and bleach, can be deadly if not used properly. Many household chemicals have labels to inform the user on their safe use.

When dealing with chemicals, miners also have to learn TRICL, which stands for Toxic, Reactive, Ignitable, Corrosive and Listed.

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80 MINING QUARTERLY, Elko, Nevada SUMMER 2013

Back to Basics Another safety rule is to remember what every mother tells every child — wash your hands, said Greenwell.

Half of all industrial injuries are caused by poor personal hygiene. The simple act of washing hands, can reduce the number of these accidents. Injuries from poor personal hygiene happen because of unintentional exposures, contaminated hands, contaminated personal protection equipment, not wearing proper PPE, and not properly cleaning clothing or PPE. It is not enough to wear PPE, it also must be worn properly.

Greenwell said all mines require hearing protection, but many people don’t know how to wear earplugs properly.

To insert an earplug, the person should squish or roll the end of the plug, insert it into the ear and then let it slowly expand.

If the earplug is just pushed into the ear canal, it may not expand properly and won’t give the necessary protection.

Hearing protection was another safety guideline that could be used at home as well as on the job. In the mine, any location that has 85 dBA or greater requires hearing protection. A busy street can produce 90 dBA and a motorcycle can produce 100. So, when someone used a

Ross Andreson/Mining Quarterly

Natalie Greenwell, senior talent acquisition representative for Newmont Mining Corp., talks about the importance of reading labels during Mine Safety and Health Administration training for a Newmont new hire class. lawnmower, weed whacker or any other piece of loud equipment, ear plugs may be a good idea to protect hearing.

Another basic safety tip that can be applied to home use is the proper handling of ladders.

Almost everyone in the class had either

used a ladder improperly or had seen someone do something unsafe with one.

According to national statistics, more than 700 workers die in falls each year and more than 100,000 others are hurt.

When using a ladder, it must project 3 feet above the level to be accessed and

should lean at a 4-to-1 angle. In other words, for every four feet of height, the bottom of the ladder should be one foot from the wall. The ladder also should be secured so it can’t be blown over or fall.

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SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 81

New Briggs Electric office focuses on mining

By HEATHER KENNISON Mining Quarterly Staff Writer

Submitted

The new Briggs Electric office in Battle Mountain is located at 105 Old Highway 8A.

ELKO — Briggs Electric aims to expand its services to mines with a new office in Battle Mountain.

The company, headquartered in Tustin, Calif., opened in 1946 but has only been doing mining services for about five years.

“We saw a market, and thought we would pursue it,” said Dave Legarza, industrial mining operations manager for Briggs Electric.

The Battle Mountain office is the third location the company has established, the second being in Carson City. Before opening the new office, Legarza said it was harder to serve the mines in the area.

“Logistically, it’s been kind of tough going from Carson City to Elko,” he said.

Legarza hopes the new office will be able to better serve Humboldt, Lander and Elko counties.

“The office is primarily focused on the mining industry,” Legarza said. “ ... Being able to support the local community as well as the mines is important to us.”

The new office has two administrators

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and about two dozen field electricians. With a focus above ground, the company does power generation and solar installation for its mining partners.

Earl Bradender, general foreman at Barrick Gold Corp.’s Cortez gold mine, said Briggs Electric has done solar skids on cameras, lights, and telecommunications systems on site.

“It’s kind of a necessity,” Bradender said. “There’s so many remote areas, there’s not power everywhere.”

Projects at the mines also include installing LED lights, solar generators and fuel systems.

“Because of the longevity of LED, the maintenance cost over life and overall cost is where you save your money,” Legarza said.

While the work is currently above ground, Legarza said it may expand underground in time.

“That’s an avenue we’re still in our infancy on,” Legarza said. “It’s not quantity, it’s quality with us.”

A recent project at Cortez was making a solar system to continuously send information from the meters on the water pump. This saved time that was previously used to monitor the meters on site.

“They’ve got to pump water all of the place out here, but they have to monitor where it goes,” Bradender said.

Briggs Electric also installed a vibration system on the 12-mile-long conveyer belt at Cortez.

“Because you’re moving so much earth out here, everything gets changed and moved, and it’s happening so fast,” Bradender said. “We make that happen for them.”

There are 12 Briggs Electric employees on site at Cortez right now. While Bradender moved to Battle Mountain to be close to work, others stay in hotels and return to Carson City on weekends, he said.

“Everybody’s got families,” Bradender said. “... I’m not a big city guy. I like being in the middle of nowhere, anyway.”

Bradender served as an electrician in the Navy for 20 years before attending union school for five years. Since Briggs Electric is a union shop, it can request more electricians when needed, Bradender said.

“The biggest advantage is, you can get 20 electricians from the hall that are all qualified,” he said.

The electricians on site must have Mine Safety and Health Administration training, as well as training at the mines.

“Once you get guys out here, you don’t want to lose them,” Bradender said. “It’s a whole different kind of work.”

Legarza said the new office makes the administration side easier for the mining clients.

Briggs Electric is located at 105 Old Highway 8A in Battle Mountain. The office can be reached toll-free at 855-387-9901.

Look for more

Mining News at elkodaily.com

ELKO DAILY FREE PRESS SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 83

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Hollow mine claim markers kill countless birds in Nevada

By SARA RESS WITTENBERG Mining Quarterly Correspondent

Christy Klinger, NDOW

Hollow plastic pipes have become a problem — a big problem — for the birds of the American West. The markers were the preferred method for people to “stake their claim” to a site that they felt held promise for the discovery of valuable minerals.

Provided they filed a location notice, submitted a map of the boundaries, and paid a service charge to the Bureau of Land Management, there was no limit to the number of claims and sites one could hold. This resulted in millions of white polyvinyl chloride pipes across the wide open expanses of many western states — a total of 3,447,175 at the end of 2011 to be exact — and they are causing more than a million bird deaths each year, according to Darin Schroeder of the American Bird Conservancy.

Small-bodied birds mistake the openings in the pipes as ideal roosting, nesting or resting sites,and happily enter,unknowingly causing their own demise. The smooth sides of the pipe coupled with the narrow diameter spell doom for them, as they are neither able to climb the walls nor extend their wings to fly out.

In Nevada alone, according to the BLM’s Public Land Statistics, there

White plastic hollow mine claim markers in the Monte Cristo Range extend far into the distance in this November 2011 photo. Volunteers this week resumed working to remove the deadly posts from public lands.

See MINE MARKERS, 86

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SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 85

Mine markers ...

Christy Klinger, NDOW

Bird carcasses collected from hollow posts near Searchlight in March 2012 are sorted by species.

Continued from page 85 existed 1,059,721 mine claim markers at the end of 2011 — more than in any other state.

Many of the carcasses removed from these claim markers are cavity-nesting

birds, and the openings of the markers resemble natural openings that are often hard to come by in the stark Nevada landscape. The mountain bluebird, Nevada’s state bird, is ironically one of the most fre-

SATISFY

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quently recovered victims. Others include western screech owls, cactus wrens, ladderbacked woodpeckers and western meadowlarks. In addition to birds, small mammals, insects and lizards have also been extracted from these pipes.

With many bird species declining across their range, they don’t need another obstacle to overcome. Furthermore, the intentional killing of these often vulnerable species is in violation of the Migratory Bird Treaty Act. Fortunately, steps are being taken to alleviate this problem. A large part of the threat comes from abandoned markers. Many organizations, including the Nevada Department of Wildlife, Great Basin Institute, various state Audubon societies, and the BLM have been working together to implement solutions.

It is easy to mandate that all new mine claim markers be solid in nature (the current specifications prohibit setting out perforated or uncapped pipes), but the mandates must be enforced, holding individuals who choose not to comply accountable under the MBTA. A 1991 BLM interim policy required claim holders to cap hollow posts, but unfortunately it was discovered that through time these caps

blow off or are removed.

Some individuals in Nevada have been instrumental in changing laws to alleviate this ecological problem.

NDOW biologist Pete Bradley spearheaded a project after becoming aware that mountain bluebirds were dying in hollow mine claim markers in the Great Basin. He began collecting data in 1986 to document the extent of bird mortality, and worked through 2009 helping to remove 11,000 abandoned posts.

As part of Bradley’s ongoing work, NDOW tried to work with the Nevada Mining Association and BLM, but they ran into barriers and little action was taken.

Eventually it was realized that the law had to be changed.

Ali Chaney learned of the problem from Bradley. Serving as conservation chair of the Lahontan Audubon Society, she drafted a letter to the NMA in the fall of 2007. Mark Amodei, then president of the NMA, became instrumental in moving things forward. He left his position, however, before the legislature met, and current NMA president Tim Crowley took over.

Chaney and the Audubon societies worked closely with Crowley to draft a bill, and once support was secured from both

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Barrick and Newmont, it was passed in July of 2009.

Chaney gives credit to the mining industry, stating, “We wouldn’t have been able to do it without their support.”

The new law not only prohibits the setting out of any hollow pipes — even if they are capped — but requires existing hollow pipes to be replaced by solid markers. The law provided claim holders two years to make the necessary replacements; after 2011,any remaining hollow pipes on the landscape were deemed invalid as claim markers. Another provision makes it legal for anyone who encounters one of these pipes to knock it over and lay it horizontally on the ground. By doing this, one removes that pipe’s threat to wildlife.

Christy Klinger of NDOW has been instrumental in orchestrating the removal of pipes and maintaining the database that reflects the impact these pipes are having on wildlife mortality. Since the legislation passed, Klinger has been on a mission to educate as many people as possible about the issue and what to do about it. She has organized internal post pulls, and encouraged other groups to do the same.

Specimens collected from the markers are sent to Klinger for identification and inventory.

Klinger maintains a database reflecting numbers of posts removed, mortalities, and areas of the state where posts are located in high densities.

The last post pulls were conducted in south-central Nevada in December of 2012. As of that time, a total of 22,718 posts had been knocked down, and 9,459 dead birds recorded.

This is a mortality rate of less than 1 bird per pipe; however, some habitats prove to be much deadlier than others.In the Mojave Desert the mortality rate is as high as three birds per pipe.

Forty-eight species have been positively identified mummified inside these mine claim markers, and one marker alone contained 42 dead birds.

In 2008, Klinger participated in a post pull near Lida. Of 982 posts removed, 217 dead Report hollow pipes birds were recorded and 1,137 reptiles. to Christy Klinger While it is encouraging that the problem has been identified and a solution put forth, it Nevada Department of Wildlife has been estimated that tens of thousands of christy@ndow.org hollow pipes from abandoned claims remain scattered across the Nevada desert, taking the lives of countless birds each year. Some believe that the efforts currently underway by volunteer groups are barely making a dent.

Others, however, are optimistic. Klinger said of the areas she knows containing dense concentrations of posts, approximately 25 percent have been addressed.

Chaney said it all comes down to funding. Volunteers are limited in the time and effort they can provide. Bristlecone Audubon Society is securing grants for a project, and Great Basin Institute hires the field crews to do the removal.Thus far,donations have been received from California Audubon ($22,000), Nevada Division of Minerals ($27,000), the NMA and NDOW ($47,000), Barrick ($15,000) and Newmont ($12,000), for a total of $123,000.

Various groups have been involved in the cleanup of these hollow pipes. Brandon Teppo, three-year Youth Conservation Corp crew leader at Ruby Lake National Wildlife Refuge, fulfilled volunteer hours for a Great Basin College internship course during summer of 2012 by removing swaths of PVC pipes located south of the refuge in White Pine County.

“The project was mostly treated as a scan,sweep and remove mission to get the most PVC posts as possible in the smallest amount of time,” he said.

In two days he removed 55 posts, and found roughly one mortality for every four pipes removed. Of the next 48 pipes removed, only one contained any mortalities.

The majority of the work has been contracted out through Great Basin Institute, which began another field season this week and will work for at least 18 weeks. Once the money runs out, securing additional funding will be critical to the continuation of the project.

“If requested in the future to support continued removal efforts we would evaluate the program and likely assist with the project,” said Mary Korpi, director of external relations for Newmont.She also said that whenever Newmont acquires new claims they replace all illegal claim markers with approved solid posts.

Louis Schack, communications director for Barrick, similarly said they are open to new requests for support.He also said that Barrick is interested in helping resolve the problem,as no one is happy about wildlife being killed over something as simple as hollow pipes.

Both Newmont and Barrick have worked in the past to remove some of these markers.

Everyone can be part of the solution.

“The bottom line — anyone who sees them, knock them down,” said Klinger. But, unless an individual is going to clean out the entire area of pipes, it is best to leave them all standing and contact her with the specific location.

Through the efforts of those who have already devoted so much to this project, combined with input from the general public,one day Nevada can be largely free of these hollow plastic death traps.

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Leo Damele, left, and his wife Mary recall the first time they met, while sitting at their dining room table.

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Family stakes claim to grow the land

By JOHN RASCHE Mining Quarterly Staff Writer

EUREKA — Leo Damele drives along a rural road past neighboring farms and stops, facing the Diamond Mountains as a cloud of dust settles behind us.

He rummages through his truck and finds a pair of binoculars before scanning the landscape.

“There it is,” he says, pointing to a lone charcoal kiln on the mountain range miles away from the road. He hands the binoculars to me and asks, “Do you see it? Right there in that bald spot?”

Honestly, I didn’t see the old mining equipment. But I knew it was there. Leo Damele has explored areas of the valley where most people wouldn’t spare a passing glance.

“It’s fun looking, that’s what we do here,” he tells me. “It’s what we do for entertainment. We don’t have a movie house, no bowling alley, no golf course, so that’s what we do. On the weekends, we’ll just take off for the hills and bring our binoculars.”

Leo Damele runs a farm in Diamond Valley with his wife, Mary and his son, Glynn.

The couple’s daughter, Natalie, works in Winnemucca.

Leo Damele grew up in the area, he tells me. His family owned the JD Tonkin ranches in Eureka County. But the story really begins back in 1895, when Leo Damele’s great-great grandfather — an Italian immigrant — bought his first ranch out west, the 3-bar Ranch.

“He sent for his family, they came here, and then after they were here, he started to branch out into agriculture,” he says, sitting at his dining room table.

When the family sold the JD Tonkin ranches in 1970, Leo Damele was already married and venturing into the mining industry as a contractor.

“We started a little construction business,” he said. His company, Eureka Custom Contractors, “made drill sites, roads, leach pads, and built sites over the years,” he says.

“Most of what we did was one-onone with geologists. We met a lot of neat people that way. We saw really nice places, some really nice ghost towns.”

Those experiences led to a new hobby, which combined his interest in exploration with his knowledge of the earth: gold prospecting.

“We’ve always prospected. My dad did it,” Damele says. “I didn’t know too much about it, but then I started hanging out around those geologists and learning things. I started to put things together and we found some nice little prospects.”

But Leo Damele didn’t want to just prospect anywhere, he wanted land he knew personally — his home.

“I staked claims where I was raised,” he says, holding his hand out John Rasche/Mining Quarterly

See PROSPECTS, 91

A passing tractor leaves a dust trail behind the wagon that Leo Damele’s father owned.

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 89

90 MINING QUARTERLY, Elko, Nevada SUMMER 2013

Prospects ...

Continued from page 89 as if lifting the ground itself. “We knew the country and I went out prospecting and picked up a rock —” “Eureka!” Mary Damele exclaims in a gentle, hushed voice.

“And I just knew the rock that was there. I rode over that rock on horseback in the country. I could tell it was mineralized.”

From mining to farming Then, in the 1990s, the gold bust came. And Leo Damele was through with the mining industry, ending his contracting company after 22 years of service.

“Mining went down in the ’90s, so we branched out and bought a farm ... then we sold it and bought a ranch,” he says.

Far from the bustling mining industry in 1991, the married couple enjoyed a quiet lifestyle on the Ferguson Ranch in the Simpson Park Range of Eureka County.

And then, in 1995, Mary Damele was diagnosed with multiple sclerosis.

“We didn’t live on the grid,” she says, sitting next to her husband at the table. “There was no generator, no solar panels, no landline telephone. We were kind of worried (about the isolation) with me getting worse.”

In 2002, the married couple moved to what is now their current home: an alfalfa farm in Diamond Valley.

I ask Leo Damele if he misses working as a contractor for the mining industry.

“I’m getting old, and it was hard work,” he says. “I don’t miss that part at all. ... I think it was being away from home that I don’t miss the most. The kids were growing up and I was camped out some place in the valley — we didn’t get to do a lot of things.”

Leo Damele also tells me that the mining industry has changed drastically since he was a contractor.

“It’s huge,” he says. “It’s completely changed. Junior companies and small miners and prospectors are out.

It’s the majors now and I can see good and I can see bad in the whole thing.”

The Damele family still owns a couple hundred claims between Diamond Valley and Carlin, but the desire to stake more has waned.

“I don’t do anything with them anymore,” Leo Damele says. “They (Rye Patch Gold Corp.) are holding onto them for us. They do all the paperwork.

“The paperwork got too bad. ... And now, you couldn’t find an open piece of land between here and Battle Mountain if you wanted to. ... But prospecting was always just a hobby. It still is. It was never about business and we would have starved to death had it been.”

Growing together Mary Damele followed her husband throughout his different careers: from ranching to contracting to, at last, farming.

“She’s never complained about being a rancher or a

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“I just followed him wherever he went,” Mary Damele adds. “When he was contracting, I helped him move equipment. When we were ranching, I would help him feed the animals in the winter and I would do the bookkeeping.

“I enjoy being with him, whatever he’s doing.

Whether it was fixing the fence or feeding the cows or being a pilot car — whatever made him happy, that was fine with me.”

Mary Damele half-jokingly calls herself a “city girl” from the small town of Caliente in southeastern Nevada.

She learned many things from her husband's diverse roles, she says.

“I had no knowledge of horses and cows, Caterpillars, and motor graders — these things I had to learn, too,” she tells me.

And although her MS has slowed her down a bit, Mary Damele continues to accompany her husband in any way she can.

“It has curtailed me quite a bit, but that’s OK, you know?” she says, smiling. “When I can go with him, I go with him. I enjoy doing things with him.”

Mary Damele looks adoringly over the kitchen table at her husband, who smiles back at her.

“I think that’s a part of married life: trying to stay as close and as interested in each other’s lives as you possibly can,” she says. “Like I said, I’ve followed him all my married life, so there’s no use stopping now.”

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Submitted/Northeastern Nevada Historical Society Quarterly

The Richmond Hill smelter in the 1800s was in Ruby Hill about 21â &#x201E;2 miles from Eureka. This photo was donated by Shawn Hall to the Northeastern Nevada Museum.

Pittsburgh of the West Eureka keeps in touch with mining roots

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

EUREKA â&#x20AC;&#x201D; It began as a mine camp, grew into a small industrial city and shrank to the small town size of today, but Eureka has never lost touch with its mining roots.

Eureka began in 1864 as the Eureka Mining District. Prospectors from Austin, about 70 miles to the west, were in search of rich mining claims, according to â&#x20AC;&#x153;Northeastern Nevada Historical Society Quarterly.â&#x20AC;?

These prospectors found what they were looking for, but it wasnâ&#x20AC;&#x2122;t gold in those early days. In the late 1800s and early 1900s, the mines around Eureka produced mostly lead. â&#x20AC;&#x153;Eureka was the second richest mineral producer in the state, second only to Virginia City,â&#x20AC;? stated the historical society Quarterly.

By 1878, there were more than 10,000 people living in Eureka and most were there because of the mines.

The remnants of those mines and their smelters can still be seen in town. One of the larger slag piles runs parallel to Highway 50 and covers about 2 acres, said Tony Rowley, longtime resident of Eureka.

From 1869 to 1879, Eureka was a major producer of pig lead, according to eurekacounty.com. However, Eurekaâ&#x20AC;&#x2122;s ore had something extra â&#x20AC;&#x201D; precious metals. â&#x20AC;&#x153;Eureka was called the Pittsburgh of the West because it was so full of smoke,â&#x20AC;?

Rowley said. â&#x20AC;&#x153;They were after lead and silver.â&#x20AC;?

Eurekaâ&#x20AC;&#x2122;s ore was transported to smelters in Salt Lake City until 1869. Major W.W. McCoy devised a furnace for recovering the metals in oxidized ores and built the townâ&#x20AC;&#x2122;s first smelter, according to the historical society.

The outcrop of rock containing the ore was found about 2 1/2 miles from Eureka on a spur of Prospect Mountain, and the Cornish miners named it Ruby Hill. Larger smelters were constructed at the southern and northern ends of town. These smelters

left behind large slag, or waste rock, piles.

“It’s like it came out of a volcano — a manmade volcano,” Rowley said of the slag rock.

One of the larger piles is about 15 to 30 feet deep, he said. While the slag is waste rock, there may be something valuable in the piles, Rowley said.

“It also has residual gold and silver,” he said.

When asked if it would be worth something to process, Rowley said “it probably would if it wasn’t sitting in the middle of town. I had a geologist tell me he figured there was a million dollar’s worth of values in there, 30 or so years ago.”

Despite being in the middle of town, someone had dug into the pile in the 1950s or ’60s.

“There’s a tunnel over there where they thought miners had dumped silver on purpose to hide it and then go back and get it later,” he said. “Most miners did swipe stuff (in the 1800s).”

He said Eureka was famous for a lot of “little guys,” or lease miners.

He said even during the Depression people could lease Ross Andreson/Mining Quarterly

See EUREKA, 94 Eureka resident Tony Rowley stands on an slag pile from the 1800s while holding a piece of it. Eureka is in the background.

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 93

Submitted/Northeastern Nevada Historical Society Quarterly

The Northeastern Nevada Museum says this charcoal kiln is similar to the ones used in Eureka in the 1800s.

Eureka ...

Continued from page 93 small mines to make money, but most didn’t become rich.

“But you know who got rich don’t ‘cha? The merchants,” he said.

By the mid-1860s there were 250 buildings in Eureka and many were brought intact from other mining camps, stated eurekacounty.com. The town grew from 700 people to nearly 9,000 in five years. It was the second largest urban center in Nevada at the time.

By the end of 1871, with the help of San Francisco financial backing, Eureka Consolidated, the Richmond Consolidated and other companies were producing silver.

The peak year for Eureka was 1878. The city boasted 16 furnaces and ore refineries.

Eureka Consolidated and the Richmond Consolidated were the two largest.

“The Pancake quarry outside Eureka supplied the sandstone necessary for furnace construction,” stated eurekacounty.com. “The same year the smelters consumed 1.2 million bushels of charcoal, or every tree within 35 miles of town. By the end, they consumed every tree within 50 miles.”

Pete Edera, born and raised in Eureka, said his father’s family came to Eureka

94 MINING QUARTERLY, Elko, Nevada SUMMER 2013

because of the carbonaris. Carbonaris made charcoal.

“In 1870, my family came here from Italy,” Edera said.“My grandmother said when the smelters were going, babies died because of the smelters.”

The Eureka Consolidated patented a lead smelting technique used by other refineries in the district and that “process was one of the key ingredients toward obtining a profitable ore,” stated eurekacounty.com.

However, the lead-based smoke from the smelters’ stacks could not escape the canyon’s natural enclosure, so the companies had to come up with a way to move the smoke out of town. The companies built their stacks along the ground to the tops of the hill so prevailing winds could carry the smoke away.

“By 1885, most of the then-accessible high-grade ore had been mined,” stated eurekacounty.com.

The smelters ceased operation by 1891. However, sporadic mining continued, including a brief resurgence before World War I, stated eurekacounty.com.

Tony Rowley, front, talks about life in Eureka while Pete Edera listens.

Ross Andreson Mining Quarterly

Cultural Heritage During its silver boom, Eureka had a variety of immigrants.

In 1880, almost 60 percent of the population was foreign-born. The miners were mainly Irish and Cornish, but there were also Germans, Italians, Chinese and Jewish settlers, stated eurekacounty.com.

“Eureka’s a little different than Virginia City but has just as beautiful of a history,” Rowley said.

The Italians were known as Carbonari or charcoal manufacturers and had “a lucrative business with the many See EUREKA, 96

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Continued from page 95 smelters,” stated eurekacounty.com. The town also had several social clubs and lodges with ethnic affiliations, including The Ancient Order of Hiberians (Irish), the Italian Benevolent Society and the Hebrew Congregation. Many of these organizations constructed buildings that still stand today but are hidden behind modern storefronts, stated eurekacounty.com.

Eureka also had a fairly sizeable Chinese population, “most of whom resided in the city block between the Sentinel Building and the Colonnade Hotel,” stated eurekacounty.com.

The Chinese tended to work in occupations other than mining, such as food service, laundry, medical practice and general labor.

The Chinese Cemetery is across the street from Eureka High School, but it only has one grave and no markers.

Eureka Fires Between 1876 and 1880, four major fires caused millions in damages in Eureka.

However, the town rebounded after each, building thick-walled brick structures with iron fire doors. The city also installed a hydrant system.

Ross Andreson/Mining Quarterly

See EUREKA, 99

Eureka resident Tony Rowley talks about this old smelter, which was used in the town in the 1800s.

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Continued from page 96 “Taking a lighthearted approach, many community members saw the fires as an opportunity to build bigger and fancier structures, including the Eureka County Courthouse, Sentinel Building and the Opera House,” stated eurekacounty.com.

The Sentinel Building was constructed in 1879 for $10,000. It was built from locally fired bricks and stone from Chandler’s quarry and housed the Eureka Sentinel newspaper until 1960. Even the fires in the 1800s couldn’t stop publication.

“They supposedly kept the paper going even when the town was burning down,” Rowley said. “They threw water over the guys on the press.”

The building was turned into a museum in June 1982 and includes the original press room.

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Eureka’s 19th Century Architecture The Sentinel building is just one of many historic buildings in town.

At 62 years old, Edera said he has “noticed a lot of change” but many of the old buildings are still standing in town — just not as many as he would like.

See EUREKA, 101

www.connorsdrilling.com SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 99

Ross Andreson/Mining Quarterly

Above: This underground mucker and ore cart are some of the artifacts seen in Eureka at the mine museum. The Eureka County Courthouse is in the background. The courthouse was completed in 1880.

At left: The courtroom of the Eureka County Courthouse shown in 360 degrees.

The Saint James Episcopal Church in Eureka was built in 1872 from stone quarried near town.

Ross Andreson/Mining Quarterly

100 MINING QUARTERLY, Elko, Nevada SUMMER 2013

This Eureka residence once belonged to Nevadaâ&#x20AC;&#x2122;s Governor Reinhold Sadler. The house was built in 18779 and Sadler was governor from 1896-1902.

Ross Andreson/Mining Quarterly

Eureka ...

Continued from page 99 Edera lived in Houston for about 32 years, but moved back to Eureka “because I wanted to live in some place good.”

“I came back of my free will,” he said.

“I wanted a good, stable, quiet place to live for the rest of my life. I wanted to retire and come back and live in a place in some solitude. ... Where else can you walk around at night with just starlight?”

Rowley was born in Ely, but his family moved to Eureka in 1967. His mother ran the general store — which still stands. His mother, Leona, owned the store for 40 years. It has been closed since she died about three years ago.

“It’s almost always been a general store,” he said. “It’s where us kids were raised, in back of the store. She had the best coffee in town. It’s pretty much as she left it, her desk is the same as the day she left, sure brings back memories.”

Edera and Rowley both said mining and agriculture still seem to be the culture in Eureka.

The town has lost a few of its old buildings, but the people remain the same, they said.

“Most of Eureka’s 1880s circa build-

Ross Andreson/Mining Quarterly

The General Store in Eureka was owned and operated by Tony Rowley’s mother, Leona. ings are still here,” Rowley said.

The Eureka Sentinel Museum is just one of 43 historic buildings on Eureka County’s walking tour map.

Some of the buildings Rowley high-

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lighted during a private walking tour, were the Colonnade Hotel, Sadler House, Eureka County Courthouse, Methodist Church, St. James Episcopal Church and of course the Opera House.

The Colonnade Hotel was built in 1880. It became a hotel in 1886 and later was the meeting place for the Italian Benevolent Society until 1890, stated eurekacounty.com. It was vacant until about 1940 and was operated as a hotel until 1999. Rowley said the building and Eureka were mentioned in Louis L’Amour Western novels.

“I found it pretty fascinating when I was reading one of his books and it mentioned the Colonnade Hotel in Eureka, Nevada,” he said.

The Sadler House, located near the Colonnade Hotel on Monroe Street, was built in 1879 by Reinhold Sadler. Rowley referred to it as the governor’s house.

Sadler was a businessman, rancher and Nevada’s governor from 1896 to 1902.

The courthouse is a two-story brick building finished in 1880. The structure has been well preserved through the years and still has many of its original features, including the original courtroom with wainscoting, pressed tin ceiling and chandeliers. The building, like many buildings in town, had iron shutters on the doors and windows to keep fire from the interior.

The courthouse also has many historic artifacts displayed inside from Eureka,

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Eureka Opera House continues to live on

By JOHN RASCHE Mining Quarterly Staff Writer

John Rasche/Mining Quarterly

The decorative curtain hung above the Eureka Opera House stage is an original from 1924.

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EUREKA — A painted image of Venice hangs above the Eureka Opera House stage, surrounded in advertisements from businesses that no longer exist.

The curtain, which was made by a company in Minneapolis, was placed in the opera house in 1924.

Venice was the opera house’s second curtain. The first curtain was destroyed in 1923 when a kerosene foot lamp was kicked over.

A large portion of the population of Eureka consisted of Italians and Europeans in the late 1800s and early 1900s, said Andrea Rossman, director of the Eureka Opera House and the Eureka County Economic Development Program.

“It (the curtain) reminded them of a little touch of home, a little touch of culture,” she said.

An art scene to the left of the curtain depicts the Pacific Ocean. The Atlantic Ocean is displayed on the right.

The historical opera house was built in 1881 atop the ashes of the Odd Fellows Hall, which was destroyed by Eureka’s great main street fire of 1879, according to the city’s self-guided tour materials.

“From the basement to dome the new theatre will be furnished as none of the class have ever been in Eureka,” stated a Eureka Daily Sentinel article on Nov. 11, 1880. “Its arrangement is pronounced to be

John Rasche/Elko Daily Free Press

Eureka Opera House Director Andrea Rossman points to a signature made by country star Dan Seals, who performed at the opera house in 2001. first-class,for ventilation,for heat,for means of egress in case of fire,and beneficial and permanent monument to the memory of those who have erected, and who will soon elegantly furnish the same for the edification of our people.”

The opera house was more than an edifice; it was a cultural life source.

“This opera house became a place where people gathered together as a community,” Rossman said. “It gave a little bit of culture to the community, but also served as a place where people could meet and throw parties.”

A New Year’s Eve Masquerade Ball in 1881 was the opera house’s first event. Other masquerade balls and traveling theater productions followed shortly thereafter.

Then film arrived to the rural mining town of Eureka. The painted curtain was rolled up and a projection screen was pulled down. The first silent movie was shown in 1915. By the 1920s, the “Eureka Opera House” had become the “Eureka Theatre.”

The theater’s old film projectors are now displayed on the ground floor of the opera house.

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The theater went through several owners before playing its last film in 1958.

Although the Eureka Opera House/Theater was listed on the National Register of Historic Places in 1973, the building remained in disrepair until the county acquired it in 1990.

“It was in pretty sad shape,” Rossman said.“If you can imagine what the opera house was like — it totally needed to be revamped.”

Eureka County spent $2.5 million to renovate the opera house over the course of three years.

“The county’s mindset was to make it a community center, a convention center, a place where the people of Eureka County and Nevada could enjoy this landmark,” Rossman said.

In 1994, Eureka County received the National Trust for Historic Preservation Honor Award for the opera house’s resurrection.

Wally Cuchine, the county’s first opera house director, maintained many aspects of the old opera house, Rossman said.

“He started a lot of the traditions that existed at the opera house — booking the musicians and developing rapport with the entertainment community that came through. It was really Wally that got that ball rolling.”

Signing the wall is a tradition that can be traced back to the opera house’s early days, beginning with a large etching from a San Francisco theater group in 1897.

“This is graffiti in its best light,” Rossman said,gesturing her hands along a wall full of signatures marked in pen. “Tradition is: if you perform on stage, you sign the wall. We’re running into a situation where we’re running out of space.”

There are only two other opera houses left in Nevada: Piper’s Opera House in Virginia City and Thompson’s Opera House in Pioche,Rossman said.Eureka and Piper’s,however,are the only two houses currently in operation.

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Ross Andreson/Mining Quarterly

Newmont Mining Corp.’s new mercury abatement system. The new stacks are on the left. Steam can be seen rising from an old stack on the right. The old stack will be replaced this summer.

Twin Creeks makes improvements

By MARIANNE KOBAK McKOWN Mining Quarterly Editor

GOLCONDA — Cleaner water is the goal at Newmont Mining Corp.’s Twin Creeks.

The mine, north of Golconda in Humboldt County, has always processed its water, but it is reaching to new heights to collect or remove mercury and cyanide.

“Federal and state laws are changing,” Newmont Project Manager for Nevada Operations Projects Steve Blaskovich said. “Newmont made the commitment to make a change.”

Twin Creeks processes 13,000 to 15,000 tons a day. The Sage Mill processes the refractory ore in its autoclave. An average of about 10,800 tons a day goes through the Sage Mill and of that about 2,000 tons comes from Turquoise Ridge. The Sage Mill also processes about 200 to 400 tons a day of concentrate from Newmont’s Carlin site. About 3,000 tons of material from the Twin Creeks Mine goes through the Juniper Mill, which handles the oxide ore.

Twin Creeks has several different ore grades.

The ore that goes through the autoclave is .25-.23 ounce per ton to .125 - .13 ounce per ton, Blaskovich said. The ore

104 MINING QUARTERLY, Elko, Nevada SUMMER 2013

through Juniper Mill is about .05 ounce of gold per ton and the heap leach processes the ore that has an average grade of .02 ounce of gold per ton of material.

The water used at Twin Creeks is found on the mine property and none of it leaves the site, Blaskovich said. All the water goes through the tailings. During the process of separating the gold from the rest of the material, the water will contain cyanide and mercury, which must be destroyed or collected before the water is reused.

Mercury Abatement Naturally occurring mercury is found in the ground at Twin Creeks. While the ore is processed, the site has to capture the mercury.

Twin Creeks autoclaves are in the process of being attached to a new system. Phase 1 of the project is completed and the second autoclave is set to be hooked up in July, Blaskovich said.

Newmont spent $48 million during the course of the three-year project.

An autoclave is like a giant pressure cooker that helps to Ross Andreson/Mining Quarterly process the gold away from the rest of the material. This Doug Barto, Twin Creeks senior environmental compliance process generates gases at higher temperatures. manager, talks about the facility.

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The new carbon beds at Newmont Mining Corp.’s Twin Creeks Mine help the facility collect more mercury while processing the gold.

The mercury abatement process will drop the steam down to 100 degrees F using quench vessels that lower the temperatures with water sprays. The gasses are then warmed up again and put in carbon beds. The mercury attaches to the carbon and then the gas or steam is sent out clean, Blaskovich said.

The changes in the process can be seen with the naked eye. The old stack continues to have steam released from it, but the new stack doesn’t show any visible steam.

“When we started, we set out for a reduction in mercury to 96 percent,” he said.

Phase 1 of the new mercury abatement system went on line March 16. It took Newmont about three years from planning to commission of the plant. The second autoclave is set to be hooked up in July, Blaskovich said.

“We’ve always had environmental controls in place,” said Matt Murray, senior external communications representative of Newmont. “This new technology just captures even more.”

The new process uses sulfinated carbon to collect the mercury. The system is the height of a six-story building and the carbon beds are 12 feet high and 10 feet across.

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SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 105

Twin Creeks ...

Continued from page 105 The primary carbon removes the bulk of the mercury.

“We’ll replace the carbon every couple of years,” Blaskovich said. “It depends on the amount of mercury content in the ore. The secondary beds may last the life of the mine.”

“It’s fairly new technology, this application for mercury,” said Doug Barto, Twin Creeks senior environmental compliance manager.

“It’s pretty recent for the industry.”

“We know we’re getting good performance,” he said. “The old system was not nearly as efficient. The new is much more efficient.”

The system is in its testing mode.

“We will run the official test probably in the summer,” Barto said.

The mercury abatement allows Twin Creeks to continue processing past 2013.

Cyanide Destruction Twin Creeks also built a new process water treatment facility to destroy cyanide in the water.

The water treatment facility was finished and commissioned near the end of 2012. When the water solution enters the facility it contains 5 to Ross Andreson/Mining Quarterly 7 parts per million of cyanide. The solution is Newmont Project Manager for Nevada Operations Projects Steve Blaskovich talks about Twin Creeks Mine’s new process water treatment used in the leach process. facility.

106 MINING QUARTERLY, Elko, Nevada SUMMER 2013

Ross Andreson/Mining Quarterly

The new mercury abatement stack at Twin Creeks Mine.

“This has been the big project for the capital improvement for the site,” Barto said.

High Mark Construction did the concrete for the building and Great Basin Industrial built the tanks for the water treatment. The compressors have noise suppression so they don’t make much noise.

The facility treats 8,500 gallons of water per minute. Ammonium bisulfite and air are used to oxidize the cyanide, Blaskovich said.

“The caro acid process — used at many other mines — wouldn’t break down the cyanide enough,” he said. “The problem was copper and nickel. We couldn’t break down the nickel so we had to do a new process to treat the water.”

“The caro acid would only break the cyanide down to 1.5 parts per million, but we needed it lower than 1 ppm.”

Copper sulfate starts the reaction and the ammonium bisulfite breaks it lower than 1ppm. It has been as low as .2ppm but it averages .5 ppm of cyanide, Blaskovich said.

The entire water treatment plant is run by one control panel.

“Someone comes down a couple times a shift to check that everything is working properly,” Blaskovich said. “They take a sample to make sure its reducing to less than 1 part per million.”

“We’re really happy about how things turned out,” Blaskovich said. “We’re excited about it.”

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SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 107

Eureka ...

Opera House ...

Continued from page 101

Continued from page 103

Ruby Hill and Williamsburg Mine. Albert Greenerâ&#x20AC;&#x2122;s coach gun hangs on the wall of the courtroom. The gun was used on the stagecoach between Ely and Hamilton.

The courtroom also has an 48-star American flag on display. The flag was donated by the Silver Party, which lasted from 1892-1902. The flag is made of silk, gold and silver fringe. It has a sterling silver eagle and gold for the stars.

The Methodist Church on North Spring Street was dedicated in 1881 and featured a library, vestibule and sleeping area for visiting clergy, according to eurekacounty.com. The building had seating for 250. In 1982, it was renovated and turned into a residence.

Rowley said one of his favorite buildings in town was the Saint James Episcopal Church. It was built in 1872 and was Eurekaâ&#x20AC;&#x2122;s first stone church. It is on South Spring Street.

The Eureka Opera House is used for performances, funerals, memorials, dances, and more. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a gamut for all types of things,â&#x20AC;? Rossman said.

The opera houseâ&#x20AC;&#x2122;s calendar of events can be found at www.co.eureka.nv.us/opera/opera 05.htm. â&#x20AC;&#x153;Most of our audience is from the surrounding area, from away and not necessarily that community,â&#x20AC;? Rossman said. â&#x20AC;&#x153;The community will come if it has something to do with the kids, because itâ&#x20AC;&#x2122;s a very family-oriented town.â&#x20AC;?

The Opera House will be celebrating 20 years since its re-birth during the first week of October, Rossman said.

Todayâ&#x20AC;&#x2122;s Eureka While the lead and silver boom was in the 1800s, gold has made an impact on Eureka. The modern Ruby Hill Mine, owned by Barrick Gold Corp., has produced 41,000 ounces of gold. It began in 1997 and its current life of mine lasts until 2014.

Mines that may begin to have a large impact on Eureka in the years to come are General Molyâ&#x20AC;&#x2122;s Mt. Hope molybdenum mine and American Vanadiumâ&#x20AC;&#x2122;s proposed vanadium mine.

Rowley hopes the town continues to save the historic buildings and keeps its roots. â&#x20AC;&#x153;(Eureka) is the best place on Earth. This is really a neat place to be,â&#x20AC;? said Rowley.

â&#x20AC;&#x153;Mormon Joeâ&#x20AC;?

The Eureka Opera House building also contained several businesses below the stage on the ground floor.

Joseph Barker, known in Eureka as â&#x20AC;&#x153;Mormon Joe,â&#x20AC;? was a tailor in the building and the only documented mortality in the opera house that the staff could find. â&#x20AC;&#x153;On October 31, 1896, it was reported in the Eureka Sentinel that the tailor ... had taken burning embers from a bonfire from in front of the Court House and took them to his shop for warmth,â&#x20AC;? Cuchine wrote in a 2010 article for the

â&#x20AC;&#x153;Nevada In The Westâ&#x20AC;? quarterly publication. â&#x20AC;&#x153;Mr. Barker fell asleep and the fire got away from him and he was suffocated by the smoke.

The opera house was badly damaged with the entire front of the building and the hall burnt and blackened by the fire.â&#x20AC;?

Staff members half-jokingly associate strange noises and eerie circumstances to Mormon Joeâ&#x20AC;&#x2122;s ghost. â&#x20AC;&#x153;I know for a fact that, since Iâ&#x20AC;&#x2122;ve been here, weâ&#x20AC;&#x2122;ve had at least one performer that said she thought something was up on a stage with her,â&#x20AC;?

Rossman said.â&#x20AC;&#x153;And Iâ&#x20AC;&#x2122;ve seen Mormon Joe down on the landing. I saw a man in a full-tailored outfit from the time period ... but Pattyâ&#x20AC;&#x2122;s been here 18 years and sheâ&#x20AC;&#x2122;s never seen anything.â&#x20AC;?

Patty Peek is the Assistant Director for the opera house. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t believe in ghosts ... but when I go up there (on the main floor) by myself, I hear â&#x20AC;&#x201D; it sounds like a door on stage â&#x20AC;&#x201D; BOOM! and it closes,â&#x20AC;? Peek said. â&#x20AC;&#x153; ...I always tell them (strange voices) to come out and tell me why theyâ&#x20AC;&#x2122;re here, but nothing ever has.â&#x20AC;? â&#x20AC;&#x153;But you have to figure that this is a pretty happy building,â&#x20AC;? Rossman commented.â&#x20AC;&#x153;A lot of people have had a good time here.â&#x20AC;?

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If your mine site hasn’t hurt someone in awhile, you may NOT be doing your job!

By THOMAS E. BOYCE, Ph.D President and Senior Consultant with the Center for Behavioral Safety, LLC.

Now that I have your attention, I want to remind you that the absence of injuries is not necessarily a sign that your mine site is safe. In fact, “zero” can be obtained when a mine site is lucky, as when employees fail to use the proper tool for a job and today did not get hurt. “Zero” can also be obtained when injuries are merely not reported by employees. This often happens when the penalties for doing so are too great. This can happen with safety incentives that are awarded for the absence of injuries. The problem is made worse when an individual’s injury can cause that incentive to be lost by others who were not involved in the incident. So, if you’re surprised by a safety cycle of good performance followed by bad, please take note.

Let’s consider an example that will cut across all of those reading this column. Statistics show that a person who gets a driving citation violates driving laws, on average, hundreds of times before they get caught. And, while a citation may be a warning to a driver to change behavior, its effect is often short-lived because the factors that led them to violate in the first place often still remain

(they may speed because they are late to work and fear the penalty of being tardy or have a long-distance to drive and want to save time; they may text or talk on their cell to maximize use of the time during their commute; they may fail to come to a complete stop at an intersection because more often than not the stop is not needed because no one else is present and it’s more convenient not to stop). Then, one day, behavior that has failed to occur safely (because it has historically brought a benefit without an associated cost) does not occur in a situation where it was needed (the road is slick and our vehicle speed causes us overdrive conditions running us off the road, we approach a slow moving semi-truck when texting and fail to adjust our speed or change lanes in time and rear-end the truck, there is a pedestrian crossing the street at the intersection that we typically roll through and we do not notice her as

we collide). You see, experience has taught us the wrong thing. Today, we needed the less often noticed benefits of the behaviors that we have in the past failed to use.

In mining, we sometimes hear of fatalities occurring to miners with many years of experience. It is often those people (and we all know them) who have told us that there is no need for them to change what they’re doing because “I’ve been doing it this way for over 20 years and I’ve never been hurt.” And, this may be true. What is also true is that they (like others who have convinced themselves that the absence of injuries means that they were safe rather than lucky) have likely put themselves and others at greater risk for an injury as a result, often for the sake of time-savings, comfort and convenience. Indeed, these are major commodities in a production-oriented industry, especially when a workforce is aging and/or filled with new miners trying to make a name for themselves.

When someone is hurt or killed by behavior that has worked for them for an entire career, it may be hard to admit that until the time of the incident that they were “just lucky.” Perhaps it would benefit us if we did admit this. In fact, I would suggest you ask that question every single day your mine site goes injury free. Imagine the See BOYCE, 110

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 109

Boyce ...

Continued from page 109 internal conversations that would occur at your line-out meeting if you said: “Yesterday, no one got hurt” and then asked: “Did we take all the appropriate safety precautions, or did some of us just get lucky?” What would you hear in response to these questions?

Please, don’t let luck be too big a part of your injury prevention program. Without other evidence to confirm the validity of zero injuries, your luck may be about to run out.

So, how do you know if luck plays too much of a role in your safety success? You observe what people are doing. Better yet, you create a process for your workers to observe what each other are doing. And, you provide those employees with training in how to talk with one another about safety behaviors and conditions. Finally, you give them the time to do so as a regular part of their work day. Many of you will recognize this observation and feedback as the foundation of Behavior-Based Safety. The benefit of a formal process is that you can obtain another measure of safety success — how often safe versus at-risk behavior is occurring at your mine site and identification of systemic issues that may account for at-risk behavior that has gone unnoticed because to this point it has not resulted in property damage, an injury or fatality. In other words, you’ve been lucky. When behaviors are observed to be at the appropriate level AND you have an absence of injuries you can be more certain that luck is less of a factor in your injury rate.

One of my missions as a guest writer for Mining Quarterly is to remind you that the absence of injuries or fatalities at your facility is not necessarily an indicator that your mine site is safe. More importantly, my personal lifetime mission is to bring employees home to their families — their children, their spouses, their mothers, and their fathers every day, so they can enjoy life outside of work — the true benefit of meaningful safe employment. Understanding human behavior (your own and others’) will make this more likely. So, don’t wait for a citation from MSHA or a warning from your supervisor to recognize the need to change. And, don’t rely on “zero” alone to tell you that everything is OK — your mine site deserves better than that! Please, learn immediately how to harness your behavior and that of others to ensure you go home uninjured every day.

To conclude, let me stress, that while zero can be a great vision and an attainable reality, zero is, in fact, the sum of what we do every day to prevent injuries, not something that occurs by chance. When we understand this, the number becomes less important and the process we use to get it becomes a way of life. So, remember, if your mine site hasn’t hurt someone in a while, you just may not be doing your job.

——————— Dr. Thomas E. (Ted) Boyce is a behavioral strategist and President and Senior Consultant with the Center for Behavioral Safety, LLC. Learn more at www.cbsafety.com or contact Dr. Boyce directly at ted.boyce@cbsafety.com. Dr. Boyce would like to thank his assistant, Adria, for her contributions to this article.

Tiny pieces of Gold Rush history fetch big bucks RENO (AP) — Tiny pieces of California Gold Rush history fetched big bucks at a Reno auction of Western Americana.

The Jack Totheroh Collection of some 200 gold coins privately made in San Francisco in the 1850s sold for $865,000, while the Bergen-Istvan Collection of about 50 similar gold coins went for $252,000, reported Holabird-Kagin Americana, which staged the auction.

According to historians, the rare coins in 25 cent, 50 cent and dollar denominations were struck by jewelers from 1852 to 1857 when there was a shortage of small change in California. Historians say while banks apparently didn’t accept them, they were used at some San Francisco businesses. They also became popular as souvenirs as early as 1853.

“Not until the federal mint was built in San Francisco in 1854 did federal gold coins come in circulation in California,” Fred Holabird said. “There was no paper money at that time in California because people didn’t trust it. The entire trade was based on gold dust and gold coin.”

Both modern collections of what’s known as “California fractional gold” were split up and sold to dozens of different buyers at prices well above estimates, he said.

“Not a lot of it survives to this day.We had exceptionally heavy action from all over the world for it,” said Holabird, whose Reno-based company bills itself as the largest seller of Western Americana in the United States.

The auction, which drew over 400 bidders, resulted in $2.4 million in sales.

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Utah mine landslide dumps 165 tons of rock

By BRADY McCOMBS Associated Press

SALT LAKE CITY — More than 165 million tons of rock and dirt came crashing into one of the world’s largest open pits in April’s massive landslide that halted operations at a Utah copper mine.

Kennecott Utah Copper officials released the estimate April 16. They also said that they expect copper production at the Bingham Canyon Mine southwest of Salt Lake City will only be half of what was expected this year due to the April 10 landslide, the largest in the history of the mine.

“It was a significant slide,” Bennett said.

Two-thirds of the floor of the mile-deep pit was covered by the dirt and rocks, burying some of the company’s dump trucks. Officials anticipated the slide and pulled the 37 workers from the area. No one was injured.

There’s no estimate of how much the landslide will cost the mine, said company spokesman Kyle Bennett. But they do know that three of the company’s 13 shovels and 14 of its 100 trucks were damaged. Some bulldozers and graders were also damAP Photo/The Deseret News, Ravell Call aged, Bennett said. How much of the equipment is This photo shows the Kennecott Utah Copper Bingham Canyon Mine April 11 after a landslide in Bingham Canyon, Utah. Kennecott salvageable is unknown.

“We’re optimistic that some of them will only Utah Copper has suspended mining inside one of the world's deepest open pits as geologists assess the landslide the company says require minor repair,” Bennett said. it anticipated for months.

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The company doesn’t know when the mine will reopen.

Work resumed April 14 in an area not affected by April 10 slide, but there’s still a lot of work to be done before operations can resume elsewhere, Bennett said.

First, company officials need to assess damage to buildings and equipment. Then, they need to move the rocks and dirt and recreate roads.

Hundreds of mine workers at Kennecott Utah Copper are being asked to take voluntary vacation or unpaid leave. Workers who don’t want to take time off will be assigned to jobs outside their usual roles at the Bingham Canyon Mine, Bennett said.

Dell Garnder, a heavy haul truck driver at the mine, told KSL-TV that it may take as long as two years to dig out all the material. But Bennett said he believes the mine will recover.

“We are doing everything we can to get production back up and going,” Bennett said. “We’re less than a week removed from this major slide. We need to continue to make logical and methodical decisions about the operation.”

The estimated number of tons that slid down is based on laser scanners in the mine and visual observations, Bennett said. Federal regulators have not allowed the company’s geotechnical experts to go into the pit to closely assess damage.

About 800 people work at the mine, and there are a total of 2,500 employees within the entire operation, Bennett said. The mine is one of the biggest producers of copper in the country.

For more than a century, miners have wilted down a mountaintop about 20 miles southwest of Salt Lake City to a deep hole nearly a mile deep. Miners have dug into a tooth-shaped volcanic core that has yielded millions of tons of copper and small amounts of gold and silver. Kennecott is the latest in a succession of owners.

Normally, Kennecott operates the mine all day, every day, with electric-powered shovels capable of scooping up 98 tons of crushed rock at a bite. The company continues to operate a copper concentrator, refinery and smelter.

The landslide tore loose not far from a visitor center on the rim of the pit that was closed earlier this month as a precaution.

AP Photo/The Deseret News, Ravell Call, File

Debris-covered vehicles at the Kennecott Utah Copper Bingham Canyon Mine are seen April 11 after a landslide, in Bingham Canyon, Utah, near Salt Lake City. The April 10 landslide is likely to cut production by half this year, officials at Kennecott Utah Copper said April 24. The company has asked 1,200 employees to take vacation or unpaid leave, although few are doing so, Kennecott spokesman Kyle Bennett said.

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 113

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Nevada Supreme Court hears Coeur Rochester, Rye Patch dispute

By DEE HOLZEL Mining Quarterly Correspondent

CARSON CITY — The Nevada Supreme Court heard arguments May 13 regarding the appointment of a special court master in the ongoing dispute between Coeur Rochester Inc. and Rye Patch Gold over mineral rights in Pershing County.

From the beginning, RPG has protested the appointment by 6th Judicial District Judge Michael Montero, who sought assistance in the case due to the complexity of the issues. Retired judge David Hagen was appointed to hear pretrial matters and make recommendations to Montero, who then issued orders based on the recommendations. Both parties were free to appeal those decisions.

The dispute between the two mining companies resulted from the failure of CRI to pay federal maintenance fees on mineral claims at its mine site in Pershing County, which then became void and available for any U.S. citizen to claim — an opportunity Rye Patch Gold seized.

A jury trial was scheduled for September 2013 that will ultimately determine who ends up with the rights to the mining claims.

RPG was represented at the Supreme Court by attorney Frank Thompson, who explained the company sought to reverse the judge’s order appointing a special master due primarily because of the enormous expense in what was already expensive litigation. He also argued Montero’s order was insufficient to meet the standard required of such an appointment.

In terms of the expense, each side is splitting the $500/hour cost of the special court master in addition to paying administrative costs.

On the question from the court about whether Nevada Supreme Court intervention was even necessary, Thompson replied in the affirmative and commented, “There’s a dramatic disparity of economic ability to (pay) between Coeur Rochester, an operating mining company, and RPG, a junior resource company. That’s one of the big problems here.”

Justice James Hardesty appeared to agree, later commenting, “I am concerned about any policy that requires any litigant in any complex case to be subjected to that cost.”

He continued, “We have complicated cases in the rural districts of this state every day of the week. If the rural judges simply deflect not only discovery disputes but pretrial dispositional motions to the special court master, I worry about the affect of the cost and access to justice that would be afforded to litigants who can’t afford to participate in that process any longer.”

CRI made no comment on the expense.

The other issue in the matter was whether Montero’s order was sufficiently composed. The Civil Rules of Procedure 53b allows for the appointment of a special court master with a showing or finding of extraordinary circumstances, which Montero did not do in his order. Instead, he merely stated the case was complex.

When asked if the judge elaborated, Thompson replied in the negative and said, “He did not elaborate on it at all. He didn’t say which issues were complicated, whether they were factual or legal, and he didn’t cite any evidence in support of that finding.

So, we are really left to guess at what the trial court thought might be complicated because the order doesn’t tell us.”

Thompson went on to say there were no reported cases from the Nevada Supreme Court in the last 140 years where a trial court appointed a special court master in a See DISPUTE, 118

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Llee Chapman becomes president of Veris Gold

By HEATHER KENNISON Mining Quarterly Staff Writer

ELKO â&#x20AC;&#x201D; Veris Gold President Llee Chapman has big plans for Jerritt Canyon, but his ultimate goal is to make it the employer of choice in the region.

Chapman took the position in April. One of the first things the Elko resident did was to meet his employees, making the rounds during both shifts at Jerritt Canyon. â&#x20AC;&#x153;We (Veris Gold) needed to have people here, some decision-makers in town, who could support our employees,â&#x20AC;? Chapman said in an interview with the Elko Daily Free Press.

The company is based out of Vancouver, British Columbia. Its primary assets are the Jerritt Canyon mill and gold mines located 50 miles north of Elko near the Wildhorse Reservoir.

Employees showed their support of the new president.

Around 250 shook hands with him during his visits the first week on the job. â&#x20AC;&#x153;The way he did it was so inspiring,â&#x20AC;? said Veris Gold board member Barry Goodfield. â&#x20AC;&#x153;... This is a homegrown situation, and weâ&#x20AC;&#x2122;re tied to the community.â&#x20AC;?

Jerritt Canyon has about 425 employees at the 120square-mile site. Additionally, it hires more than 100 contractors with Small Mine Development.

The new presidential position was created to support the executive chairman, Francois Marland, and the board of directors.

docum ent

â&#x20AC;&#x153;Part of my decision to join the team was the quality of the team,â&#x20AC;? said Chapman, who has assisted Veris Gold in corporate development activities over the past two years. â&#x20AC;&#x153;With a little bit of leadership, we can go a long ways.â&#x20AC;?

Chapman has 32 years of mining experience, and has been in Elko for 25 years. In the past three years, he has run his own consulting business, R.L. Chapman Mine Consulting. Before that, he was the regional vice president for Newmont Llee Chapman Mining Corp.

between 175-180,000 ounces of gold per year. â&#x20AC;&#x153;Right now, weâ&#x20AC;&#x2122;re slightly behind, but we still intend to make it,â&#x20AC;? Chapman said.

The plant produced its 8 millionth ounce of gold April 21. Further production will come from the underground mines and third-party ores.

Veris Gold will look into other exploration programs and mine expansions for Jerritt Canyon in the year to come, Chapman said.

The Jerritt Canyon project first started in 1981 as an open pit gold mine owned by Freeport-McMoRan and FMC Corp. The three mines, SSX-Steer, Smith and Starvation Canyon, are primarily underground. The site still has potential as an open pit mine, Chapman said.

Veris Gold has already spent close to $200 million on fixing equipment at Jerritt Canyon. This included environmental projects, mill improvements and opening the mines. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a continuous improvement project at Jerritt Canyon,â&#x20AC;? Chapman said.

Moving forward Community success Chapman said he sees expansion of the mill proThe Veris Gold president hopes to help make both Elko cessing to include several more toll milling contracts before the end of the year. The mill currently processes a and its employees successful. â&#x20AC;&#x153;I am sure (he) will be changing the philosophy and goal of 3,000 tons of ore a day, but has the potential for direction of the company to make it more profitable, twice that, he said.

Two toll milling agreements were already made earlier both professionally and personally,â&#x20AC;? Goodfield said. this year with Atna Resources and Klondex Mines.

Jerritt Canyon has a production goal of processing See VERIS GOLD, 118

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Veris Gold ...

Continued from page 117 Chapman served as an Elko County Commissioner for six years between 19921998.

“I believe strongly that we mine if society allows us to mine,” Chapman said.

Because of this, he emphasizes community support and safety.

“It’s my job to make sure we have the right people, the right equipment and the right support to get things done,” Chapman said.

His goal of making the company a desirable employer has already sown a few seeds.

“I heard some former employees are planning to ‘return to the family,’ — those exact words,” Goodfield said. “That, to me, tells me people can relate to the energy this man has.”

In early April, Chapman was named a Horizon Hospice Person of the Year. He has also been a major contributor to the new Boys & Girls Club.

“This is the man we have in our community, and he’s the president of our company,” Goodfield said.

Veris Gold also recently named Joanne C. Jobin as vice president of investor relations. Jobin has more than 25 years of investor relations experience. She will assist in identifying future business opportunities deemed beneficial to Veris Gold, determining the company’s rebranding and marketing strategies, and identifying key target audiences.

“We believe Ms. Jobin will be a valuable addition to the Veris Gold team and look forward to her contributions in the near future,” said Shaun Heinrichs, Co-CEO and CFO, in an April 23 press release.

Dispute ...

Continued from page 115 quiet title case involving unpatented mining claims.

CRI was represented in court by attorney Rew Goodenow, who said in a previous case the high court found that in the absence of expressed findings the court would imply findings where the evidence showed there were complicated factors.

Justice Hardesty said, “The threshold question in this writ proceeding is whether the order was deficient in that it failed to meet fundamental requirements specified in Rule 53b. The order, as far as I can tell, is silent on that question. I don’t see anything in the record that shows the judge’s articulation of why, in this case, a special master is necessary for dispositive or pretrial matters.”

Hardesty went on to say, “The case has some level of importance for other district court judges in the state who might be inclined to appoint a special court master for any case that comes along.”

Although the justices appeared to side with RPG throughout the hearing, going as far as expressing their concerns with some of the actions taken and the precedence of any potential decision by them, Thompson was also asked what RPG had to gain if the high court ordered Montero’s order corrected.

Thompson replied they didn’t want the order corrected; they wanted it reversed so they could be relieved of paying for the court master.

As was noted several times, Montero would have to face the issues of the case at trial, so there was no point in putting it off. RPG further argued they had a right under the Nevada Constitution to have all aspects of the case heard and decided by the district court judge. Further, they argued that by appointing the special court master to hear pretrial matters, the role of the court was reduced to that of a reviewing court.

The Nevada Supreme Court will issue its decision at a later date.

When asked to comment after the hearing, RPG President and CEO Bill Howald said the court appeared to understand their issues with the appointment.

He also went on to dispute the argument by the other side, saying, “It’s not a complicated case. You have to pay your maintenance fees.”

118 MINING QUARTERLY, Elko, Nevada SUMMER 2013

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 119

Compressor-Pump technicians maintain mining equipment

By DYLAN WOOLF HARRIS Mining Quarterly Staff Writer

Submitted

Compressor-Pump & Service Inc. technician Anthony “AJ” Scott repairs a small commercial compressor in Elko.

ELKO — Though it’s the glittery gold mines that draws eyes — and hopeful employees — to the northern Nevada landscape, operations wouldn’t be possible if not for many support companies.

One such company is Salt Lake City-based CompressorPump & Service Inc., which has a local presence.

“We’re a fairly big company,” said Elko area account manager Gil Sargent. “But locally, there are three of us.”

The company services and sells air compressors, blowers and pumps in the region.

“We’ve got a very small group but what we consider a very critical part of their processes. Every plant around here uses compressed air. Roasters and autoclaves use blowers for processed air. If those aren’t running, nothing’s running.

“It’s kind of an unknown part of the process. Our job is to keep the processes going that maybe some people haven’t heard about,” Sargent said.

The strength of the company’s Elko operations, he said, rests in his two technicians: Anthony “AJ” Scott and Robert “BJ” Crookston.

“They are just sharp, sharp technicians,” Sargent said.

“Really just top flight hands.”

The team doesn’t have a local office, but instead drives to mine sites, which cuts down on overhead for the company. As accounts manager, Sargent helps with troubleshooting.

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Robert “BJ” Crookston, Compressor-Pump & Service Inc. technician, inspects a large industrial mine compressor.

“I’ve got to troubleshoot any issues, but they’re so good they make my job easy.

When (the technicians) fix things, they stay fixed and they don’t have any trouble troubleshooting. We don’t have to call someone else to figure stuff out,” he said.

The company focuses on “proactive maintenance,” keeping a close eye on equipment that is running well, instead of reactively working on equipment that has fallen into disrepair.

“Reactive maintenance is ‘run it till it breaks,’ or maybe don’t pay enough attention to it.

“It’d be like letting your car go without an oil change for 40,000 miles and then expecting it to run forever,” he said.

His company, he said, commits to keeping on top of the equipment to prevent large breakdowns.

“We inspect their machines, let them know what’s going on. If we see anything coming up or anything different, we let them know of any repairs that are needed or any adjustments,” Sargent said.

Compressor-Pump & Services was founded in 1984. Since its beginning in Salt Lake City, it has expanded to Boise, Idaho Falls, Elko and Reno.

“CPS has established itself as a leader in sales and service of compressors, blowers, pumps, vacuum pumps, and related equipment,” its website states.

A compressor takes atmosphere and compresses it into a volume measured at pounds per square inch.

“In mining, compressed air is used not only to inflate tires but also in processing areas to cycle air valves that control process slurries, to cycle diverter gates that control ore feeds and to operate air tools that are used to operate and maintain equipment,” Sargent said. “Compressors are typically rated in horsepower and range from 3hp to 500 hp and range from 100 to 175 psi standard and up to 1,000 psi for special processing applications.”

Companies can leach oxide ore — the ore closest to the ground’s surface — which the sun and the elements have had the most amount of time to oxidize. In the leaching process, mines can extract the gold.

In sulfide ore or carbonaceous ore the gold is embedded in either carbon or sulfur, which has to be burned off for extraction. A roaster heats the ore, and the way it’s heated is with the use of blowers.

“They fluff it to keep it all mixed in the air,” Sargent said. “So it’s not just a solid pile of dirt.”

The use of compressed air also revolutionized productivity in underground mining, Sargent said, through the use of air-operated jackleg drills.

“We’re the only compressor company that has local compressor technicians out here. We’ve had them out here for about five years now. They’re local and we try to react to whatever’s going on in the processing plants,” he added.

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SMD contracts underground mine services

By JOHN RASCHE Mining Quarterly Staff Writer

Ross Andreson/Mining Quarterly

Craig Kerby, left, Chukar Underground Mine Superintendent for SMD, checks the safety card of Mike Cate, SMD’s Crew Supervisor at Newmont’s Chukar Underground Mine

122 MINING QUARTERLY, Elko, Nevada SUMMER 2013

DUNPHY — Since 1982, Small Mine Development has helped companies with their underground mining operations.

“Our specialty is underground,” General Manager Keith Jones said. “We’re contract mining, and that can take multiple forms.”

SMD’s services consist of mine development, including mine design, portals, ramps, underground infrastructure, and definition drilling.

SMD also aids with production mining, such as longhole and drifting methods, as well as technical services.

As of April 2013, SMD was involved with eight mines, including Veris Gold Corp.’s Jerritt Canyon Mine, with a total of about 520 employees.

“Primarily, we’ve been in the Western United States,” Jones said. “The U.S. is definitely our focus at this point.”

From November 2011 to October 2012, SMD produced an average of about 85,404 feet in footage, or approxi-

Ross Andreson/Mining Quarterly

Craig Kerby, right, Chukar Underground Mine Superintendent for SMD stands next to a bolter at Newmontt’s Chukar Underground Mine. mately 234 feet a day. SMD also saw an average of 1.64 million tons of total drifting, 274,487 tons in open stope, and 1.07 million tons in backfill.

“We’re quite proud of the numbers we move as a company,” Jones said. “We think what sets us apart is we try to be user-friendly with a contract structure and fixed-dollar bids.”

“We like to do hard dollar bids by the foot of drift and ton of ore mined so you can determine your true costs and avoid project cost overruns due to time and material charges or other adders,” the SMD website, www.undergroundmining.com, states.

“Our hard dollar unit rates will typically represent 95 to 100 percent of what we invoice. You will know where you stand before we ever mobilize.”

SMD predominantly mines gold, Jones said, but can also retrieve other resources like copper, uranium and silver.

Ross Andreson/Mining Quarterly Ross Andreson/Mining Quarterly

See SMD, 124

Underground miner for SMD, Brett McCarty, talks about his job.

Mucker operator for SMD Tommy Curry talks about his job in Newmont Mining Corp.’s Chukar Underground Mine.

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 123

SMD ...

Continued from page 123 Projects can last a few months to several years, he said.

Ross Andreson/Mining Quarterly

Yancy Shupe, SMD’s Assistant Superintendent, talks about mine operations at Newmont’s Chukar Underground Mine.

124 MINING QUARTERLY, Elko, Nevada SUMMER 2013

Chukar The Chukar underground mine, located at Newmont Gold Corp.’s Gold Quarry near Carlin, is one of SMD’s largest projects, Project Manager Paul Price said.

“I think part of what sets Chukar apart is its mining method,” he said. “It is primarily open stope with cemented rock-fill going back into the primary stopes and then the waste rock is going back into the secondary stopes. There’s not a lot of cut-and-fill, so to speak, in this particular mine, whereas some of the others are just the opposite — more cut-and-fill of the geometry because of the geometry of the deposit.”

SMD’s first stay at the Chukar mine, from 2002 to 2009, remains the company’s longest-lived project.

SMD mined 52,000 feet of drift, moved 2.6 million tons of rock, and replaced 1.25 million tons of backfill during those seven years, according to Price.

SMD ceased production at Chukar when Newmont’s Deep Post underground mine closed in 2009.

“When Newmont’s Deep Post project shut down, we were displaced from Chukar,” Price said.

“Newmont came in and did the work at Chukar until they moved their personnel and equipment to Exodus in early 2011.”

SMD began its second stay of operations in 2011.

Chukar is about 2 miles long and more than 1,000 feet deep, with a mine life to 2015, Price said. There are about 80 employees operating the site.

Since SMD’s return to Chukar, 10,000 feet of drift had been mined and 2.6 million tons of rock had been moved.

As of March 13, 2013, about 200,000 man hours had been put into Chukar with no lost-time accidents, Price said.

“One of the things that has set us apart as a contractor (is) when the first Safety Summit came out, we participated in it with Newmont and we actually put all of our employees through something similar using these guys’ materials,” Assistant Superintendent Yancy Shupe said.

Newmont’s Safety Summits are workshops that emphasize safety and encourage communication.

“All the guys on Newmont property went with Newmont,” Shupe continued. “but the guys that weren’t on Newmont property went through it, too.

And all the guys that were on Newmont property went through it again. It was a little different. We put an SMD spin to it.

“I think our guys are more tight, more family-oriented. I think there’s a lot of trust, because everything down there is either rock or metal.”

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Variable speed drives reduce Rochester’s pumping costs

Submitted

Coeur Rochester Mine’s Process General Foreman Wayne Maita, left, and Chief Electrical Foreman Rob Whisenand stand behind the mine’s new 250 horsepower deaerator pump, installed as part of NV Energy’s Sure Bet program.

LOVELOCK — A new program through NV Energy has saved Coeur d’Alene Mines Corp. thousands of dollars in power costs.

Coeur installed a new variable speed drive and retrofitted another last year at its Rochester Mine near Lovelock. The changes saved them nearly $100,000 annually in electricity costs and netted them a $200,000 incentive from NV Energy’s Sure Bet program, said Faye Andersen, Northern Communications Manager for NV Energy.

The silver mine recently completed a retrofit of two more pumps with variable speed drives and they will be saving 12.45 kilowatts of energy, or $105,000 in annual energy costs, Andersen said. Plus, the mine received another $58,000 incentive from the Sure Bet program.

When Coeur Rochester was considering ways to save money and energy, because variable speed drives can be quite costly at a mining site, NV Energy’s Sure Bet program was ready to assist them with advice and incentives for upgrading and building to higher standards.

“We’ve had a lot more participation from the mining community in this Sure Bet program in recent years. Many of the mines are beginning to see and understand the benefits from such programs,” said Doug Johnston, major account executive for NV Energy.

The Sure Bet program offers cash incentives and technical assistance to NV Energy’s commercial electric and natural gas customers to help improve energy efficiency, cut operating costs and save money on utility bills.

Prior to installing the variable speed drives, the mine used a throttling system to vary the flow rate of liquids through its filtration presses, a part of the silver extraction process. Due to the mechanical properties of the pump, expressed in affinity laws, when the speed of a pump or fan slows down, the horsepower savings, and therefore the energy savings associated with the reduction in speed, are cubed. A small decrease in speed can result in huge savings, especially with a large horsepower motor.

For information about the Sure Bet program, visit the commercial incentive program at www.nvenergy.com/brochures_arch/npc_surebet.pdf, contact Johnston at DJohnston@nvenergy.com, 775-834-5248; or contact Karen McGinley, contractor with KEMA, Karen.McGinley@dnvkema.com 775-834-5453.

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BLM plan to raze historic mine site criticized RENO (AP) — Nevada’s state historian is criticizing the federal government’s plans to demolish the last of what remains of a historic mining mill built near Virginia City nearly a century ago.

The Bureau of Land Management has decided to move forward with demolition of the United Comstock Merger Mill at American Flat. The agency says the crumbling ruins of the mill built in Storey County in 1922 are unsafe.

Acting historic preservation officer Rebecca Palmer says it’s a significant structure that should be preserved.

She told the Reno Gazette-Journal it should have been included within the National Historic Landmark encompassing most of Virginia City, but the National Park Service left it out by mistake. She said it probably would take a new act of Congress to protect it but acknowledges that’s unlikely.

BLM field manager Leon Thomas wrote in the formal decision April 3 the remaining eight structures at the complex must be razed to address “a risk to human health and safety.”

A 2008 audit of the site by the Department of Interior’s Office of Inspector General concluded it posed a “high-risk liability” to the government.

“It is a safety hazard. It’s very dangerous,” BLM spokeswoman Lisa Ross said. “The building is collapsing in areas.

There have been injuries at the site. There was a fatality at the site.”

Built in 1922, the United Comstock Merger Mill was used to process locally mined gold and silver. At the time, it was the largest, most modern and sophisticated operation of its

AP Photo/The Reno Gazette-Journal, Marilyn Newton

An exterior view of one of the crushing plants Dec. 10, 2010, at American Flat. type in the country. By the time the mill shut down in 1926, some $7.5 million worth of gold and silver had been processed there, according to a BLM report.

After closure, the mill was gutted of all equipment, metal and wood, with salvage operations resulting in significant damage to the remaining concrete structures. The structures deteriorated further over the years but became an irresistible destination for midnight keg parties and paint ball

warriors. Crumbling walls became a canvas for graffiti artists.

At least three serious injuries occurred there over the years, and a 44-year-old man driving an all-terrain vehicle on concrete steps inside one building was killed in May 1996 when the vehicle rolled over on top of him.

The fatality prompted the BLM to close the mill to the public in 1997 but fencing erected around it was repeatedly torn down as people continued clandestine visits to the site.

The BLM originally decided to tear the mill down in 2010 but withdrew its decision amid concern it had failed to follow proper historic preservation procedures.

An environmental assessment released last December resolves those concerns, the BLM contends.

Funding to cover the roughly $4 million demolition has yet to be secured and completion of the project will likely take two to three years, Thomas wrote in his decision.

A proposal submitted to the BLM by the State Historic Preservation Office would have preserved the mill “as a valuable and appreciated resource” while also addressing safety issues at an estimated cost of $2 million.

“While we recognize there are hazards,they could be mitigated,” Palmer said.

Neal Dach, a Carson City man who submitted his own proposal to convert the mill into a mining museum, lamented the BLM’s decision to tear it down.

“It’s a disappointing day.The BLM made no effort to seriously consider the proposal that I offered,” Dach said. “It’s making a statement to people that history is not worth preserving.”

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172 173 174 175 176 177 178 179 180 181 182 183 184 185 200 201 204-206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224-225 226 227 228 229 230 231 232-234 235-237 238 239 240 241 242 243 243 244 245 246-248 249 250 251 252 254 255 256 257 258-259 260 261-262

132 MINING QUARTERLY, Elko, Nevada SUMMER 2013

Hose Solutions - Boreline SRK Consulting Ad Wear, Incorporated Southwest Energy LLC Ashland Water Technologies Layne Christensen Company Rocky Mountain Machine Shop Comanco Environmental Corp Connors Drilling LLC DSI Ground Support Univar USA Inc. Schaeffer Oil Company Elko Tool & Fastener Inc Belt Conveyor Guarding Richwood Sunset Manufacturing BC Sales Company Inc. Miller Technology Wear Concepts CAB Products Philadelphia Gear, A Timken Brand Robinson NV Mining Co Bore Repair ACP Equipment Monsen Engineering Supply ACF West Motion Metrics International Corp Spraying Systems Co D-A Lubricants Structural Steel & Plate Fabrication S & G Electric Motor Repair Hobbs Tank & Equipment AESSEAL, Inc Marigold Mining Silver State Wire Rope & Rigging Drillco Tools Inc Phliadelphia Mixing Solutions A1 Radiator Repair Brunner & Lay Inc Davey Bickford U.S. Cad Fairmont Supply Company Interwest Supply Company Fastenal Network Technologies/Simplex Grinnell Bowers Power Applied Industrial Technologies O'Reilly Auto Parts Klondex Mines Grove Madsen Industries Nuclear Care Partners, LLC Andritz, Inc Open Loop Energy Statefire DC Specialties Grainger Industrial Supply MineIndustryJobs.com Dykman Electric PDM Steel Service Centers BMT Acquisition LLC (Brown Minneapolis Tank) Prime Machine Inc Rocky Mountain Fabrication Reno Forklift, Storage Systems & Reno Scales Torc Up Inc. Granite Construction

263 264 265 266 267 268 269 270 271 272 273 274-275 276 277 278 279 280-281 282 283 284 285 286 287-288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308-309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 400 401 403 404 405 407

Platt Electric AME International Environmental Products and Applications Inc Brahma Group, Inc Scorpion Oil Tools M Space Maxx Relief LLC Elko Windustrial Kleer Vu Pewag Inc. Durco Filters by Ascension Industries Riter Engineering/ Becker Wholesale Mine Supply Hella Mining - Milex Technologies Laron Incorporated Intermountain Electronics Great Basin Industrial Inc. Priest Electric Alpha Analytical, Inc ClearSpan Fabric Structures Motion Industries FKC Lake Shore Gem State Paper & Supply Tunnel Radio of America West-Core Drilling Eldorado Donaldson Company Inc Presto Geosystems Magorian Mine Services Cummins Filtration Skyline Assayers & Laboratories Lock N' Stitch Independent Drug Testing Supply Power Deck Co Mine Source Auctions Intermountain Electric Utah Shrink Wrap LiquiTube Marketing International Integrated Power Services The Euclid Chemical Company Enviro Care Bad Dog Tools Pentair EVCO House of Hose Ore Max Wonderware PacWest The Quikrete Companies Geoprobe Systems United Central Industrial Supply Schurco Slurry Pumps Mill Man Steel Miller Sales & Engineering, Inc Runge Pincock Minarco Willow Stick Technologies Aardvark Packers Co LASCO Fittings, Inc Air Flow Catalyst EVCO Geological Supply Albarrie Environmental Services Ahern Rentals Rockland Leach Drilling Inc Elko Wire Rope Greg Pervis Schneider Electric

2013 Elko Mining Expo Vendors 408,412 409 410; 414 413 416 417 420 422 423-424 425-426 427 431-435 436 454-456 457 458 462 464-465 466 467 468 469 470 471 472 473 501 502-503 504 505 506 507 508 509-514 515 516 517 518-519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540-542 543 545-546 547 548 549

Mountain Crane Sevice 3D Concrete Manitou Group Luxe Transportation Services Normet Americas Inc Praxair Surface to Surface Black Rhino Tools Maintainer Corp of Iowa, Inv Sunbelt Rentals White Cloud Pac-Van Hydro Engineerig Hytorc West MSC Industrial Supply Hilti Schramm Inc Steam Store of Elko Dyno Nobel Weidner & Associates IndustraLight LLC Alternative Maintenance Solutions Shotcrete Technologies SEW Eurodrive Jorgenson Machine Tools Rytec Corp Contech Construction Products Fordia Ford Steel California Industrial Rubber Co Liebherr Mining Equipment Co BASF Admixtures Inc Ross Equipment Industrial Products Mfg. KTSDI ITW Polymers Adhesives North America Tow Haul Strata Worldwide 4 Olio Crane Group (4 OCG) Giant Rubber Water Tanks METSO BTE West Challenger Pipe & Steel Savage Services Superior Industries APS Lighting & Safety Products Intermountain Drilling Supply General Moly Ocens FMC Technologies Imagine Technology Services Atlantis Casino Resort Spa Schroder Chemtreat Inc Mechanical & Ceramic Solutions Inc. Absolute Promotions General Tool National Weather Service Emerson Yanke Machine Shop Western Nevada Supply Whayne Sandvik Mining & Construction RDH Mining

550-552 553-554 555 556 557 558 559 561 562 563 564-565 566 567 568 569-570 571-572 573 574 575 576-579 580 581 582 583 584 600 601 602 603 604-605 606 607 608 609 610 611 612 613-614 615 616 617-618 619 620 622-625 626-627 628 629 630 631 632 633 634-635 637-639 640-642 643 644-645 646 647 648 649 650-651 700 701 702

Sandvik Mining & Construction Northern Nevada Equipment Ames Construction Martin Engineering Rema Tip Top Certex Cast Nevada Resource Inc Airgas Hardrok Equipment Inc F& H Mine Supply Inc Elko Wire Rope AAMCOR LLC Resource West Statefire DC Specialties Atlas Copco Boart Longyear-Products Red Lion Inn & Casino Bradken Stertil-Koni Norco (Need contract) SSAB Americas Arnold Machinery Phillips 66 Xylem BC Wire Rope Komatsu Equipment Co Mac's Mountain States, Inc Pactsol Resource Network Process Engineered Products Linkan Engineering Ship's Cycle Custom Linings Inc SMI Evaporative Solutions Fibergrate Composite Structures CH Spencer Tony's Tacos Kaman Industrial Titan Wheel Corporation Mining Equipment LTD Howe Systems Inc Cummins Rocky Mountain LLC Inland Supply Company Pac Van, Inc Smith Power Products Coach America/KT Services Global Mining Products Redi Services Measurement Devices Limited US LLC Tech-Flow, Inc Legacy Equipment Co. Thiessen Team USA Come and Get it Kettle Corn Cashman Equipment Cashman Equipment Blaine Equipment Company Inc 5th Gear Power Sports Wesco National EWP Inc Ram Enterprise, Inc Worthen Equipment Aggreko Schnitzer Steel Industries Safety First Cascade Drilling

703 WEG Electric Corp 704 Airways Freight Corporation 705 Enviroscientists, Inc. 706 ModSpace 707 IDC Industries 708 Hole Products 709 Parker Hannifin Filtration Group, Velcon Filtration Devices 710 Blome Intl.

711 New Pig 712 Polar Mobility Research LTD/ Uintah Machine Co 713 Micromine USA Inc 714 Integrated Turbo Machinery 715 TY Cushion 716 David Brown Gear Systems USA 717 STC Footwear 718 Alloy Technology 720 Sulzer Pumps 719 Red Wing Brands of America Inc 721 Howden North America 722 Logo Concepts 723 CQMS Razer 724 SPX Hydraulic Technologies 725 Big D Construction 726 Ritmo America 727 Direct View of Elko 728 American Med Flight 729 Metal Mining Consultants 730 Emedco 731 TMEIC 732 Rust Automation & Controls 733 Optech 734 Cap Logistics 735 Brock Easley/VRC Protx 736 Industrial Supply 737 GSD Trading USA, Inc 738 Smith Works Fabrication, LLC 739 L & H Industrial 740 Consoledated Electrical Distributors 741 JKD Products 742 Drillers Dashboard 743 Boot Barn 744 Auto and Truck Electric Inc. 746 Dialight 749 Luxe Transportation Services 750 Broadbent & Associates 752 Bailac 757 Aero-Metric Inc 758 NewFields Mining Design & Technical Services 760 Mine Site Technologies 761 Matrix Services 762 Blu-goo 763 Hanlon Engineering (Need contract) 764 Sell Lumber 766 JADCO Manufacturing 768 Wells Fargo Insurance 770 MRC 774 TSI Incorporated 775 CarbonWrap Solutions 776-777 Western States Industrial Technologies 778 Oceanscience 779-780 Nevada-Yamas Controls Food Vendors: He-bahs, Sage Lounge, Hilton Garden Inn, Fresh Squeezed

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 133

134 MINING QUARTERLY, Elko, Nevada SUMMER 2013

SUMMER 2013 ELKO DAILY FREE PRESS, Elko, Nevada 135

WHERE DO YOU NEED LIGHT? WE’RE THERE TOO. Lighting on the mine site is vital to safety and productivity. That’s why Cashman Equipment and Allmand teamed up to bring you the Mine Spec series of light towers. Designed to meet the stringent MSHA safety standards, the Allmand Maxi-Lite Mine Spec models from Cashman will bring you 6,000W of light powered by a 2.2 Cat Diesel Engine and a 20kW 60Hz Generator, complete with MSHA-recommended wheel chocks, fire extinguisher, and reflective signage.

800.937.2326

WWW.CASHMANEQUIPMENT.COM 136 MINING QUARTERLY, Elko, Nevada SUMMER 2013

r u O ff a t S

Travis Quast Publisher tquast@elkodaily.com

Amber Eliades 775-748-2744 aeliades@elkodaily.com

Marianne Kobak McKown Editor/Mining Quarterly mining@elkodaily.com

Terra Josephson 775-748-2743 tjosephson@elkodaily.com

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