A brief look at the long, storied history of silver mining in Nevada, as well as an overview of a few companies mining the white metal in the area.

Nevada: The Land of Silver

Silver mining has a long, storied history in Nevada, and to this day the state’s silver deposits remain economically important. So much so that Nevada is nicknamed “the Silver State.”

According to the Nevada Mining Association, Nevada’s silver deposits led the way to it joining the United States, as they drove the economy and the development of settlements. Indeed, silver and gold were involved in the state’s first mining boom from 1849 through the 1880s, and then in the resurgence of mining activity at the beginning of the 20th century.

Much of the silver discovered in Nevada during the first mining boom was present at surface in heavy grey crusts known as horn silver; miners could simply scoop it off the ground. The resource in this form is now depleted — miners quickly had to turn to tunneling underground — but silver still abounds in Nevada. Currently, the state is the second-largest producer of silver in the US after Alaska, according to the US Geological Survey.

Silver mining now takes place throughout several regions of Nevada, but the most important area in the state is the Comstock lode. It was the first major silver discovery in the US, and is in the western part of Nevada, as per Legends of America. After it was found, Western Nevada became a hotspot for silver mining, and many mining camps and towns emerged, some of which became hugely important and influential parts of the landscape of the west.

Here are a few of the producers currently operating in the state.

Newmont Mining (NYSE:NEM)

Newmont Mining has been working in Nevada since 1965. The company also has operations in Australia, Peru, Indonesia, Ghana, New Zealand and Suriname, and was founded in 1921. Though its core commodities are gold and copper, its Nevada operations produce silver as well as gold. The company has community and sustainability initiatives that aim to increase shareholder returns and keep the communities where it operates safe and economically healthy.

Newmont’s Nevada operations span 100 miles in the northern part of the state, and include 11 open-pit and eight underground mines, as well as 13 processing facilities. With those facilities, the company can recover gold from many types and grades of ore, and can pour gold on site.

Allied Nevada Gold (TSX:ANV,NYSEMKT:ANV)

Allied Nevada Gold owns the Hycroft open-pit gold and silver mine near Winnemucca, Nevada. Plans are currently in place to expand the project, according to a news release from October 15. A recently updated feasibility study projects that the mine will produce an annual average of 22.9 million ounces of silver for the first five years following the expansion.

The mine produced under other owners from 1987 to 1998, and produced around 1 million ounces of gold during that time. Under Allied Nevada’s ownership since 2008, the mine has produced has 700,000 ounces of gold and 3.6 million ounces of silver. The expansion plan involves creating a milling and oxidation plant to process sulfide reserves, along with the oxide reserves that the company currently mines at the site.

Coeur Mining (NYSE:CDE)

Coeur Mining is a primary silver producer — the largest in the US. Its gold production is also growing. Its Rochester silver-gold operation in Nevada, owned through its wholly owned subsidiary Coeur Rochester, consists of two deposits. It is near the town of Lovelock in West-Central Nevada, and is a surface mine.

The Rochester district itself has a rich mining history, dating back to the days of the first discovery of silver in Nevada. Currently, Coeur Mining’s Rochester project is in the residual leaching stage, as well as the new mining and leaching and exploration stages. In 2013, the Rochester mine produced 2.8 million ounces of silver and 30,860 ounces of gold. Its proven and probable resources amount to 101.4 million ounces of silver and 681,000 ounces of gold.

Comstock Mining (NYSEMKT:LODE)

While Comstock Mining may be more known for its gold deposits, it has a rich history of silver deposits in Nevada as well. Its worked is centered in the Comstock lode district, which has seen 400 companies pass through. The company recently came out with a commemorative pure Comstock silver medallion celebrating Nevada’s mining history. In two to three years, the company has mined almost 27 million ounces of silver in all resource categories, averaging about 10 ounces of silver for every ounce of gold resource.

The company is looking to start drilling again at the end of the month to expand its project and is planning on expanding its development of the Dayton area next year.

 

Related reading: 

Nevada Gold Companies Digging Deep: Part 1

Nevada Gold Companies Digging Deep: Part 2

Gold in Nevada: Juniors Leading Resurgence

Gold Mining in Nevada

Featured
FIRST MAJESTIC SILVER CORP. is pleased to announce it has filed an updated technical report in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects for its Santa Elena SilverGold Mine in Sonora, Mexico. The report also includes positive results of a Pre-Feasibility Study completed for its 100% owned Ermitaño Project which is located only four kilometres east of the Santa Elena ...

FIRST MAJESTIC SILVER CORP. (NYSE: AG) (TSX: FR) (the "Company" or "First Majestic") is pleased to announce it has filed an updated technical report in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects for its Santa Elena SilverGold Mine in Sonora, Mexico. The report also includes positive results of a Pre-Feasibility Study ("PFS") completed for its 100% owned Ermitaño Project which is located only four kilometres east of the Santa Elena processing plant. The Company has filed the Technical Report on its website (www.firstmajestic.com) under the Reserves and Resources section and on SEDAR (www.sedar.com) under First Majestic's issuer profile. All amounts are in U.S. dollars unless stated otherwise.

UPDATED MINERAL RESERVE & RESOURCE ESTIMATES FOR SANTA ELENA
(compared to Mineral Reserve and Resource estimates on December 31, 2020)

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MAG Silver Corp. has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Raymond James Ltd. under which the underwriters have agreed to buy on a bought deal basis 2,340,000 common shares at a price of US$17.15 per Common Share for gross proceeds of approximately US$40 million . The Company has granted the Underwriters an option, exercisable at the ...

MAG Silver Corp. (TSX NYSE American: MAG) ("MAG" or "MAG Silver" or the "Company") has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Raymond James Ltd. under which the underwriters have agreed to buy on a bought deal basis 2,340,000 common shares (the "Common Shares"), at a price of US$17.15 per Common Share for gross proceeds of approximately US$40 million (the "Offering"). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to close on or about November 29, 2021 and is subject to the Company receiving all necessary regulatory approvals.

The net proceeds of the Offering will be used to fund exploration on Juanicipio and MAG's other projects including Deer Trail, certain sustaining capital requirements at the Juanicipio Project not included in the initial project capital estimates, and for working capital and general corporate purposes.

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Sponsored by: Laurentian Bank Securities Featured Keynote Speakers & Panelists:Rob McEwen - Chief Owner & Chairman - McEwen Mining Inc.David Garofalo - President & CEO - Gold Royalty Corp.Denis Larocque - President & CEO - Major DrillingByron King - Editor - Whiskey & GunpowderJustin Reid - CEO & Director - Troilus Gold Corp.Steven Bowles - Senior Director, Investment - Investissement QuébecKelsey Gunderson - Chief ...

Sponsored by: Laurentian Bank Securities

Featured Keynote Speakers & Panelists:
Rob McEwen - Chief Owner & Chairman - McEwen Mining Inc.
David Garofalo - President & CEO - Gold Royalty Corp.
Denis Larocque - President & CEO - Major Drilling
Byron King - Editor - Whiskey & Gunpowder
Justin Reid - CEO & Director - Troilus Gold Corp.
Steven Bowles - Senior Director, Investment - Investissement Québec
Kelsey Gunderson - Chief Executive Officer - Laurentian Bank Securities
Barry Allan - Managing Director, Research - Laurentian Bank Securities

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Catch up and get informed with this week's content highlights from Charlotte McLeod, our editorial director.

Top Stories This Week: Powell Gets Fed Nomination, Using Gold in a Market Correction youtu.be

We're back after a break last week with quite a bit to cover in the gold space.

After running up past the US$1,860 per ounce mark midway through November, the yellow metal has taken a tumble. At the time of this writing on Friday (November 26) afternoon, it was sitting just under US$1,790.

Gold's losses this week have been attributed to elements like a stronger US dollar and better Treasury yields, although Jerome Powell's US Federal Reserve chair renomination has pulled other factors into play — some market watchers believe he may move to taper and raise interest rates faster than anticipated.


If the Fed follows its previously laid out timeline for tapering, it will wrap up in mid-2022; the central bank has said it won't raise rates until after that. It has also emphasized that its roadmap may change if necessary.

Looking at the larger picture for gold, I heard recently from Nick Barisheff of BMG Group, who believes the stock market is due for a major correction.

"The market is due for a major correction. What will cause it and when it will happen is anybody's guess — it could be tomorrow, it could be six months from now" — Nick Barisheff, BMG Group

It's impossible to know when this correction will happen, but Nick emphasized the importance of acting before it's too late. He pointed out that investors are typically slow to get out of the market once a crash actually begins — they wait for a turnaround, and by the time it's clear there won't be one, they've experienced big losses.

In his opinion, the solution is to get out of the stock market early and transfer money into gold.

Here's how Nick explained it:

"Instead of taking your money off the table and going into cash … you go to gold (because cash is devaluing daily). Gold will at least hold its own and probably appreciate … so by sitting it out in gold you can wait until the market finishes correcting and then buy back in" — Nick Barisheff, BMG Group

With gold's future in mind, we asked our Twitter followers this week what price they think the metal will be at the end of 2021. By the time the poll closed, most respondents had voted for the US$1,800 to US$1,900 range.

We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, in the cannabis space, INN's Bryan Mc Govern spoke with Dan Ahrens of AdvisorShares to get his thoughts on 2021 trends and what's ahead in 2022.

Dan was candid, and said if he had to choose one word to describe the cannabis market in 2021, it would be "painful." Like many others, he's been disappointed in the industry's performance — while positivity initially ran high due to excitement about potential federal changes in the US, ultimately progress has been slow.

"Cannabis started with a big run-up in January and February ... and things dragged from there" — Dan Ahrens, AdvisorShares

Still, Dan has hope for 2022 and said it will be a "huge year" for cannabis. He believes US reforms will come sooner rather than later, and in his opinion those widely anticipated changes will bring a wave of M&A activity.

Specifically, he expects to see alcohol, tobacco and other consumer packaged goods companies making deals with cannabis players, not just cannabis entities doing transactions with each other.

"Those big alcohol companies, tobacco companies, other consumer packaged goods product companies — they're waiting. They're waiting on the US" — Dan Ahrens, AdvisorShares

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.

And don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

cannabis plant layered with German flag graphic
Dmytro Tyshchenko / Shutterstock

Catch up on some of the biggest news of the week for the cannabis investment world.

Three political parties have formed a coalition in Germany, leading to a new government, and it has promised cannabis reform in the European nation.

Meanwhile, a popular cannabis retailer confirmed consumers will now find its products available for delivery on the Uber Eats mobile application in Ontario.

Keep reading to find out more cannabis highlights from the past five days.


Coalition of parties promises forward-looking cannabis policy

Germany, a country with comprehensive and elaborate medicinal rules for cannabis, is in a time of transition as a new government is set to begin to take over after 16 years of Angela Merkel.

Olaf Scholz, the proposed next chancellor of Germany, leads a three party coalition that will become the country's governing body. As part of its promises, talk of adult-use cannabis regulation has now gained even more momentum. A report from MJBizDaily quotes a German policy document that shows the coalition's stance:

"We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors."

However, despite the promise and excitement, it remains to be seen how these ideas will be applied since no formal regulations have been drafted or approved yet.

Canadian cannabis retailer partners with popular delivery app

Tokyo Smoke, a cannabis retail operator in Canada owned by Canopy Growth (NASDAQ:CGC,TSX:WEED), announced a collaboration agreement with Uber Canada (NYSE:UBER) whereby cannabis consumers will be able to use the Uber Eats app to order products before they visit stores.

While the app won't let consumers get cannabis delivered to them, this new method opens the doors to more dynamic ways of buying cannabis.

"As a market leader in innovation and a platform used by so many Canadians, we believe this is the ideal next offering that can be done safely and conveniently on the Uber Eats app," Mark Hillard, vice president of operations with Tokyo Smoke, said in a press release.

A report from the Canadian Press indicates Ontario is considering allowing dispensaries to have delivery and pickup options made available to consumers permanently. The province allowed some of these purchasing options at the outset of the COVID-19 pandemic, but then removed them.

Lola Kassim, general manager of Uber Eats Canada, said this new end-to-end experience will provide consumers with responsible access to legal cannabis products.

Cannabis company news

  • Organigram Holdings (NASDAQ:OGI,TSX:OGI) issued financial results for its Q4 2021 period. In its report, the company notes a net loss of C$26 million despite a 22 percent uptick in net revenue to C$24.9 million. Beena Goldenberg, the newly appointed CEO of the firm, is encouraged by the market share position earned by the company, which said it became the fourth biggest producer in Canada during the reporting period.
  • Halo Collective (NEO:HALO,OTCQB:HCANF) confirmed the decision for Akanda, its spinoff company focused on international cannabis opportunities, to begin trading on a US exchange. "The number of shares to be offered and the price range for the proposed offering have not yet been determined," the company told investors in a press release.
  • High Tide (NASDAQ:HITI,TSXV:HITI) announced the acquisition of 80 percent of NuLeaf Naturals, a CBD product wellness developer, for an estimated US$31.24 million. The deal includes a three year option clause for High Tide to complete a total acquisition. "As international markets open up and as export regulations evolve, NuLeaf's cGMP-certified facility positions us to take advantage of the global CBD business opportunity," Raj Grover, president and CEO of High Tide, said.
  • Humble & Fume (CSE:HMBL,OTC Pink:HUMBF) released the financial report for its first 2022 fiscal quarter to shareholders and the market. "As the legal cannabis market in North America continues to mature, Humble remains agile and focused on providing a leading solution for brands to scale quickly and retailers to focus on their customers," Joel Toguri, CEO of Humble, said.

Don't forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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