Gold Quarry Is Newmont's Largest Open Pit Mine In Nevada
GREENWOOD VILLAGE, CO - Newmont has been pouring gold in Nevada for 45 years along a 100-mile corridor through the north section of the state. The Nevada properties operate as an integrated unit, boasting the widest variety of processing methods employed by any gold mining complex in the world. This allows the company to maximize economic recovery of gold from a wide range of ore types and grades. Operations include 14 open-pit mines, four underground mines, and 14 processing facilities. In addition to gold, the operations produce silver and copper.
Newmont's diverse Nevada workforce includes members of the Te-Moak and Duckwater Tribes of Western Shoshone, Hispanic-Americans, Basque-Americans and other ethnic minorities. Most of the workers reside in and around the communities of Elko, Spring Creek, Carlin, Battle Mountain and Winnemucca, where Newmont is one of the largest private employers.
Newmont Nevada produced 420,000 equity ounces of gold at costs applicable to sales of $601 per ounce during the second quarter of 2010. Production was slightly higher than the year-ago quarter due to higher underground production at the Midas and Leeville underground mines. This was partially offset by lower mill throughput at the Carlin and Twin Creeks surface operations and lower leach tons placed. Costs applicable to sales per ounce increased 9% in the second quarter of 2010 from 2009 due to additional surface mining costs related to a 2009 geotechnical event at the Gold Quarry open pit operation. Newmont continues to expect 2010 equity gold production from Nevada of approximately 1.6 to 1.725 million ounces at costs applicable to sales of between $590 and $630 per ounce.
Gold Quarry, which began production in the 1980s, is currently Newmont's largest open pit on the Carlin Trend, a region dubbed by many as the most prolific goldfield in the Western hemisphere. When it first began, mining at the site was originally expected to last six years. However, many subsequent discoveries and expansions have allowed it to continue operating. The site is located 7 miles north of Carlin, Nevada.
High in the hills about 15 miles north of Gold Quarry, the Leeville underground mine began production on the Carlin Trend in 2006. It is Newmont's first underground mine in Nevada that is accessed via a shaft, which in this case, descends to between 1,400 and 2,100 feet below the surface. Leeville is located 20 miles northwest of Carlin, Nevada.
The Phoenix open pit gold and copper mine, located in the high desert of Lander County, Nevada, began production in 2006. The property on which Phoenix was developed was part of the Battle Mountain Gold acquisition in January 2001. Phoenix has one of the largest milling operations in North America. Upon commissioning in 2006, the operation had an estimated life of 20 years, but exploration could reveal deposits that would extend the mine's life. Phoenix lies 12 miles south of Battle Mountain, Nevada.
Twin Creeks continued mining high-grade ore after it was acquired by Newmont in 1997. The deposit is filled with various types of ore, which combine to create unique processing challenges. Twin Creeks is 50 miles northeast of Winnemucca, Nevada.
Nestled in a remote cluster of hills in north-central Nevada, Midas began high-grade underground mining in the late 1990s, under the ownership of Franco-Nevada Mining Corp. In May 2001, Normandy Mining Limited purchased Midas from Franco-Nevada. Six months later, Newmont became owner of the mine following its merger with both Normandy and Franco. Midas is 60 miles northeast of Winnemucca, Nevada.
Newmont Mining Corporation reported second quarter adjusted net income of $377 million, compared to $211 million in the prior year quarter. The Company anticipates improving operating costs during the remainder of the year, with higher ore grades and lower stripping at Batu Hijau in Indonesia, as well as higher processing-plant availability now that regularly scheduled second-quarter mill maintenance at a key processing facility in Nevada is complete.
In the second quarter of 2010, the Company reported global equity gold production of 1.3 million ounces at costs applicable to sales of $492 per ounce on a co-product basis. Costs applicable to sales per gold ounce increased 16% in the second quarter of 2010 from 2009 due to higher costs in Nevada, Yanacocha (Peru) and Batu Hijau (Indonesia), as well as higher-cost production from Boddington (Western Australia).
The company's address is 6363 South Fiddler's Green Circle, Suite 800, Greenwood Village, CO 80111, 303.863.7414, fax: 303.837.5837.