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Newmont's Reserve History On The Carlin Trend 1965-2001
Newmont's Reserve History On The Carlin Trend 1965-2001
ABSTRACT
Northeastern Nevadas Carlin trend contains one of the richest gold endowments in North America. Newmont Mining Corporation has explored and produced gold from this region since discovering the Carlin Mine in 1961. Newmonts Carlin trend gold reserves have grown from an initial 3.5-millionounce (110-t [metric ton]) reserve in 1965 to nearly 12 million ounces (373 t) in 1998. Over the same period, Newmont produced 27.3 million ounces (849 t) of gold. Reserve additions have come from systematic surface and underground exploration and expansion of more than 30 deposits, through new metallurgical processes and changing mining methods.
INTRODUCTION
The central part of the Carlin trend is a 38-mile (60-km) long alignment of gold deposits in Eureka and Elko Counties, Nevada, extending from the Rain Mine on the south to the Dee Mine on the north (fig. C-1). Newmont and other companies have discovered over 40 gold deposits along this trend. The Carlin trend is one of the largest concentrations of gold deposits in North America, estimated to contain over 100 million ounces (3,110 t) of gold including past production, reserves, and resources (Teal and Jackson, 1997b). This paper provides a summary of exploration, metallurgical developments, changing mining methods, and their relation to Newmonts reserve history on the Carlin trend. The reserve history is broken down into three periods starting with the Early Years from 1965 to 1981 centered on mining of the Carlin deposit and the early expansion to other deposits. The Growth Years chronicle the meteoric growth of Newmonts reserves in the 1980s and the Going Deeper Years focus on the development of deeper, higher-grade deposits that have been developed by or led to the onset of underground mining.
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Dee
WASHOE
HUMBOLDT
Winnemucca
ELKO
Capstone Bootstrap Tara Meikle Rodeo (Goldbug) Betze-Post Deep Star North Star Bobcat Blue Star Beast Lantern Universal Gas Pit Carlin Pete West Leeville Genesis Turf
Elko
80
80
80
PERS HING
Carlin
80
Reno
EUREKA
LANDER
Lovelock
CHURCHILL LYO N
WHITE PINE
Ely
Four Corners
MINERAL
NYE
ESMERALDA LINCOLN
Eureka County
Elko County
Gold Quarry
Carlin
80
Emigrant
0 0 2
2 4
4 6 8
6 miles 10 kilometers
Rain
Figure C-1. Map of the Carlin trend showing the major gold deposits and Newmonts major operation areas.
36
Reserve History
Popovich Hill
Mill 1
Tailings Facility
Figure C-2. A 1966 view of the Carlin Mine and Mill complex, looking east. Photo courtesy of Newmont Mining Corporation.
$500
U.S. dollars
$400
387
$300
317 273
$200
159
$100 35 $0
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
Year
Figure C-3. London yearly average gold price from 1965 to 2001. Source: www.kitco.com.
37
2000
HUMBOLDT
ELKO
WASHOE
Winnemucca Elko
80
Bootstrap
80
80
PERS HING
Carlin
80
Reno
EUREKA
LANDER
Lovelock
CHURCHILL LYO N
WHITE PINE
Ely
ESMERALDA LINCOLN
Carlin
CLARK Las Vegas
Eureka County
Elko County
Maggie Creek
Carlin
80
Emigrant Pass
0 0 2
2 4
4 6 8
6 miles 10 kilometers
Figure C-4. Location of deposits added to gold reserves during the Early Years (19651981).
38
Reserve History
30 Early Years 25
20,684,000
Growth Years
23,335,000 15,963,000
20
15
10
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
1966
Year-end
Figure C-5. Total Newmont reserve ounces of gold on the Carlin trend from 1965 to 2001. Source: Newmont Mining Corporation and Newmont Gold Company Annual Reports.
0.35
0.320
0.30
Troy ounces of gold per short ton
0.25
0.15
0.100
0.10
0.051
0.05
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
Year-end
Figure C-6. Average grade (opt) of Newmont gold reserves on the Carlin trend from 1965 to 2001. Source: Newmont Mining Corporation and Newmont Gold Company Annual Reports.
39
2000
0.165
0.20
2000
765,600
1,153,020
3,520,000
9,839,809
11,841,000
Thickener Tanks
Mill Building
Figure C-7. A view of Mill #1 from Popovich Hill in 1968, looking west. Outcrops in the foreground are Popovich jasperoids. Photo courtesy of Newmont Mining Corporation.
2,000 1,800
128,500
200 0
1966
1968
1970
1972
1974
1976
1978
1980
110,000
400
337,000
1982
1984
1986
1988
1,467,800
1990
1992
1994
1996
1998
Year
Figure C-8. Newmonts total annual gold production (ounces) from the Carlin trend from 1965 to 2001. Source: Newmont Mining Corporation and Newmont Gold Company Annual Reports.
40
2000
1,866,000
2,200
Reserve History
27,321,767 1966 1968 1970 1972 1974 1976 1978 1980 3,291,700 1982 1984 1986 1988 7,401,220 1990 1992 1994 1996 1998
Year
30
25
20
15
10
Figure C-9. Newmonts cumulative gold production (ounces) from the Carlin trend from 1965 to 2001. Source: Newmont Mining Corporation and Newmont Gold Company Annual Reports.
provided Newmont with a substantial private land holding on the Carlin trend and allowed geologists to explore in areas previously unavailable. Reserves increased dramatically during the Growth Years from 1.15 million ounces (36 t) in 1981 to over 20.68 million ounces (643 t) in 1989 with additions coming from new discoveries and expansion of existing deposits (fig. C-5). Gold prices ranging from a high of $460 per ounce in 1982 to a low of $317 per ounce in 1985 (fig. C-3) meant that lower grade ore could be included in the reserves. Consequently, the average grade of 0.051 opt (1.7 g/t) gold in 1982 was a third of the 1981 grade of 0.165 opt (5.7 g/t) gold (fig. C-6). Gold reserves added throughout the Growth Years averaged approximately 0.050 opt (1.7 g/t) (fig. C-6). During the 1980s, new mines were developed over nearly the entire length of the trend. These new mines, combined with increased production from existing operations, required new process facilities to be located closer to the operation areas than during the Early Years when all of the mill-grade ore was shipped to Mill #1. To meet these needs, Newmont commissioned its second oxide mill (Mill #2) at Gold Quarry in 1985 followed by Mill #3 at Rain and Mill #5 at Gold Quarry in 1988, and Mill #4 in the North Area in 1989 (fig. C-1). New oxide leach pads were constructed at Rain, Gold Quarry, and the North Area to treat the increased amount of low-grade ore developed during this time.
41
2000
HUMBOLDT
ELKO
WASHOE
Capstone
Winnemucca Elko
80
80
80
Carlin
80
Reno
CHURCHILL LYO N
WHITE PINE
Ely
MINERAL
NYE
ESMERALDA
Lantern Pete
LINCOLN
Eureka County
Elko County
Carlin
80
Emigrant Pass
Emigrant
Rain
0 0 2 2 4 4 6 8 6 miles 10 kilometers
SMZ
Figure C-10. Location of deposits added to reserves during the Growth Years (19821989).
42
Reserve History
Figure C-11. Aerial view (looking east) of the Maggie Creek Mine and exploration for the Gold Quarry deposit, 1982. Photo by Galen Knutsen.
Production rose dramatically from 136,600 ounces (4.25 t) in 1981 to 1,467,800 ounces (45.5 t) in 1989 (fig. C-8). In 1988, Newmont became the largest gold producer in North America (Newmont Gold Company, 1988). Between 1965 and 1989, Newmont produced 7,407,220 ounces (230.4 t) from the Carlin trend (fig. C-9).
1992 pre-mine reserve of 789,000 ounces (25 t) grading 0.929 opt (31.9 g/t) gold. Early feasibility studies indicated that twin shafts were the best option for accessing the deposit but startup was delayed in 1993. Underground mining engineers then began to evaluate other projects at the Carlin and Rain Mines. Newmonts first foray into underground mining had been at Carlin in 1974 and 1975 when a 2,500-foot (750-m) adit was driven as a drill platform into the north wall of the pit to test the down-dip potential of the Main and East orebodies (Kuehn, 1989). Forty-three holes were drilled, and the results justified an additional layback to the open pit. Underground mining at Rain was first proposed by Thoreson in 1990 to access highgrade ore that would have been left in the ultimate pit wall. Both the Carlin and Rain underground mines began development in late 1993 with production commencing in 1994 (fig. C-13). Success of both of these projects led to a redesign of the Deep Star Mine from twin shafts to twin declines to access the deposit. Development for Deep Star began from the active Genesis open-pit mine in 1994 with production beginning in 1996 (Clode and others, this volume). Exploration for deeper, typically blind deposits required different techniques than those used in the 1980s. High-grade gold in the northern Carlin trend is hosted in the lower units of the Devonian Popovich limestone or in the upper units of the underlying Devonian-Silurian Roberts Mountains Formation. Drilling targeted these units below weak geochemical
43
HUMBOLDT
ELKO
WASHOE
Winnemucca Elko
80
80
80
Tara Goldbug
PERS HING
EUREKA LANDER
Lovelock
Carlin
80
Reno
CHURCHILL LYO N
WHITE PINE
Ely
MINERAL
NYE
ESMERALDA LINCOLN
Hardie Footwall
CLARK Las Vegas
Eureka County
Elko County
Chukar Footwall
Carlin
80
Emigrant Pass
0 0 2
2 4
4 6 8
6 miles 10 kilometers
Rain Underground
Figure C-12. Location of deposits added to reserves during the Going Deeper Years (19902001).
44
Reserve History
anomalies and/or favorable structures found in the overlying barren Ordovician Vinini Formation (D. Groves, 1999, personal commun.). This exploration method led to the discovery of the West Leeville deposit in 1994 on lands joint-ventured with High Desert Mineral Resources about 1.5 miles (2.5 km) north of the Carlin Mine (Jackson and others, 1997). The West Leeville deposit lies 1,600 to 1,800 feet (480540 m) below the surface and contains a drill-indicated resource of 3.2 million ounces (100 t) at an average grade of 0.436 opt (15.0 g/t) gold (Jackson and others, 1997a). While most of the exploration emphasis was on deep deposits, several small, oxide deposits including Tara and Beast were discovered (fig. C-12). Newmonts metallurgical research and development group played a significant role in increasing reserves during this period. The Refractory Ore Treatment Plant (Mill #6) was commissioned in 1994 to roast high sulfide and carbonaceous refractory ores from all its active operations. Most of Newmonts underground ore and a significant portion of the remaining open-pit ore is refractory and requires pre-treatment prior to gold extraction. Also in 1994, Newmont began a 3year commercial demonstration of its patented bioleaching technique to process low-grade refractory ore. Bioleaching uses bacteria to oxidize sulfides prior to gold extraction with cyanide or ammonium thiosulfate. In 1994, Newmont added 2.0 million ounces (62 t) of Gold Quarry bioleach ore to reserves. In 1999, bioleach processing was deemed uneconomic due to the low gold price. Currently only bio-milling ore, which is a combination of bioleach pretreatment and processing through an oxide mill, is now included in Newmonts reserves. Newmonts reserves reached a high in 1996 of 23,335,000 ounces (723 t). Figure C-5 illustrates the rising importance of the underground reserves beginning in 1994. The higher-grade underground ore has slowly increased the average grade of the reserves to 0.100 opt (3.4 g/t) gold in 2001 (fig. C-6). Depletion and the revaluing of the reserves at a lower gold price has led to declining reserves since 1996 (fig. C-7). Gold production remained relatively constant in the 1990s reaching a high of 1,866,000 ounces (58 t) in 2000 (fig. C-8). Between 1965 and 2001, Newmont produced 27,321,767 ounces (849.8 t) from the Carlin trend.
FUTURE
Newmont is confident of continuing to add quality reserves to its Carlin trend operations in the future. Development is ongoing to convert known resources into reserves and exploration continues to look for the next big deposit in this productive area. Ongoing metallurgical research of new processes continues to allow material once considered waste to be mined and processed economically.
Batch Plant
Figure C-13. A 1998 view of the Carlin East underground portal area, looking north. The portal is located in the north wall of the Carlin East pit. Photo by Matt Breitrick.
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