Gold Mining in Nevada: Exploring a Golden Opportunity

Nevada’s prolific gold production, mineral potential and mining-friendly policies make it a world-class jurisdiction for high yields and exciting profits.

Landing on a gold mine is no longer akin to searching for a needle in a haystack like it used to be. Gold production has been incredibly strong in certain jurisdictions and miners are reaping the benefits. In 2020, gold miners reported record-high margins, with gold prices hitting a record high of US$2,070 per ounce.

Although gold is produced around the world, production in North America is led by the US, which was the fourth highest gold-producing country in the world in 2020. Gold production in the US is preceded by several key benefits, including mine security and stability.

US gold production is credited largely to the state of Nevada. The state was responsible for 83 percent of gold production in 2018, with a staggering 173.6 metric tons of gold produced. Nevada’s geologically diverse landscape backed with a rich mining history has made it one of the world’s most attractive gold jurisdictions.

Nevada ranked top jurisdiction in the world for mining

According to the Fraser Institute, Nevada was ranked the number one mining jurisdiction in the world based on the Investment Attractiveness Index. Nevada has also consistently ranked in the top 10 jurisdictions over the last eight surveys based on investment attractiveness. The Investment Attractiveness Index is based on two major factors: mining policies and mineral potential.

Nevada’s mining policies are so strongly supportive of mining that in the same survey conducted by Fraser Institute, more than half of the respondents had high confidence that they would be granted the required permits, with the rest having confidence. The reason for this confidence likely stems from legal and regulatory stability given that the mining policies in the federal Mining Act of 1872 can only be changed by Congress.

In addition to stable mining policies, Nevada is also secure and economically attractive compared to other regions around the world. Nevada’s tax regime includes no corporate or personal income tax, no inventory tax, no franchise tax, no unitary tax and no special intangible tax. The state also has strong mining infrastructure with access to power, natural gas and transportation.

Nevada’s mineral potential is thanks to three key geological trends — the Cortez trend, the Carlin trend and the Walker Lane trend. These three key geological trends are responsible for the majority of Nevada’s gold production and gold potential. From 1986 to 2018, the three trends have produced almost 170 million ounces of gold in Nevada, with the Carlin trend producing the largest share. The Carlin trend is considered to have the second largest concentration of gold in the world, with 255 million ounces of gold including past and current reserves and resources. Nevada is also considered one of the most important sources of critical base metals including copper, zinc, molybdenum, gold and silver.

Gold production in Nevada

Nevada was home to two of the 10 largest gold-producing mines in the world in 2020.

The Carlin trend gold mine is ranked sixth in the world and is owned and operated by Newmont (TSX:NGT,NYSE:NEM). The mine had combined and probable gold reserves of 12.46 million ounces. The mine produced 927,000 ounces of gold in 2018 and 972,000 ounces of gold in 2017. The Carlin trend gold mine features open-pit and underground mining methods.

The Cortez gold mine is ranked 10th in the world and is owned and operated by Barrick Gold (TSX:ABX,NYSE:GOLD). The mine had 8.6 million ounces of gold including 1.13 million ounces of proven and 7.59 million ounces of probable reserves. The Cortez gold mine also features open-pit and underground mining methods.

Barrick Gold and Newmont recently entered into a joint venture agreement to establish Nevada Gold Mines (NGM). The joint venture combined both company’s assets to create the single largest gold-producing complex in the world including the Cortez and Carlin trend mines. NGM is operated by Barrick Gold and is expected to produce more than 3 million ounces of gold in 2021. Barrick Gold owns 61.5 percent and Newmont owns 38.5 percent.

A company that is strategically positioned to leverage this success is Golden Independence Mining (CSE:IGLD,OTCQB:GIDMF,FWB:6NN). The company’s Independence project is surrounded by NGM properties and is 25 miles southwest of Battle Mountain in Nevada. Golden Independence has the option to earn up to a 75 percent interest in the project.

The Independence project contains near-surface gold mineralization with a measured and indicated total resource of 537,000 ounces of gold and 8.1 million ounces of silver, and an inferred total resource of 147,300 ounces of gold and 1.2 million ounces of silver. The high grade underground gold inferred resource is an impressive 796,000 ounces of gold. The company’s project target types include shallow, low-sulfidation epithermal and a deeper Carlin gold-copper skarn

Takeaway

With the average price of gold reaching US$,1828 in 2020 and Nevada producing more than $8 billion in gross mining revenue in 2016, investors looking to benefit from the gold market will likely be interested in opportunities in Nevada. Nevada’s prolific gold production, mineral potential and mining-friendly policies have made Nevada a world-class jurisdiction for high yields and exciting profits.

This INNSpired article was written as part of an advertising campaign for a company that is no longer a client of INN. This INNSpired article provides information which was sourced by INN, written according to INN's editorial standards, in order to help investors learn more about the company. The company’s campaign fees paid for INN to create and update this INNSpired article. INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled. If your company would benefit from being associated with INN's trusted news and education for investors, please contact us.

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GoldGroup Mining team in safety gear standing in front of a rocky cliff.

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Goldgroup is guided by an experienced leadership team with deep expertise in building and optimizing mines in Mexico. The company benefits from strong financial support from the Calu Group and founders of Luca Mining, with proven track records of value creation through mine development, operational turnarounds and strategic M&A.

Company Highlights

Two operating or near-term production gold assets in Mexico, 100-percent-owned and fully permitted.
Cerro Prieto expansion completed, increasing from ~12,500 oz/year to 30,000+ oz/year during 2026 and beyond, including tailings re-processing.
Its second asset, Pinos, is a fully permitted high-grade underground development project with historical resources and +90 percent metallurgical recoveries.
San Francisco acquisition in progress, a past producer capable of ~40,000 oz/year with significant exploration upside.
Aggressive M&A strategy aimed at fast-tracking Goldgroup into the mid-tier producer category with advanced due diligence nearing completion. .
Backed by the Calu Group and the founders of Luca Mining, bringing extensive operational and financing expertise in Mexico.

Key Projects

Cerro Prieto Open Pit Gold Mine

Cerro Prieto is Goldgroup’s established producing operation in the Cucurpe mining district of Sonora, Mexico. It’s been in production since 2013 and is augmented by a newly expanded processing capacity that has more than doubled throughput. The mine is the cornerstone of Goldgroup’s near-term growth strategy, with ongoing optimization, a planned tailings re-processing and re-leaching initiative, and multiple drill-ready targets across the property. An updated NI 43-101 resource estimate for the Esperanzas deposit further reinforces the reliability of the mineralized system while underscoring the potential for continued resource growth.

Aerial view of GoldGroup Mining's Prieto Mine with labeled exploration and production zones.

Project Highlights

Producing open-pit gold mine in Sonora with 120,000+ ounces produced since 2013
Throughput recently doubled to 4,200+ tons per day (tpd) with installation of a second crushing circuit
Tailings re-leaching strategy expected to add up to 9,000 oz/year over ~5 years
Expansion plan targeting 30,000+ ounces of annual production
Updated NI 43-101 outlines 37,209 oz measured and indicated, and 1,504 oz inferred gold resources
Multiple exploration targets across the property, including Esperanza, Nueva Esperanza and additional zones all under definition drilling.

Pinos Gold Development Project

GoldGroup Mining's Pinos project mountainous backdrop.

Pinos is a fully permitted, advanced-stage underground gold project positioned within the prolific Zacatecas mining belt. The district hosts 29 concessions over 3,816 hectares, with 52 shafts and more than 40 km of underground workings. Goldgroup’s internal roadmap outlines 12,700 oz/year of potential annual production from Pinos in a development scenario.

Project Highlights:

Multiple high-grade veins historically mined at 30 to 50 g/t gold
Historical measured and indicated estimate: 86,000 oz gold and 1.3 Moz silver (Candelaria Mining, 2018). Note: Historical resource only; not treated as current NI 43-101
Metallurgical recovery of +90 percent gold via cyanide leaching and Merrill-Crowe
Fully permitted for mine construction

Goldgroup plans to launch targeted exploration and resource-definition drilling at Pinos, followed by an updated economic study (PEA or PFS) that will guide a production decision for this fully permitted high-grade project.

San Francisco Open Pit Gold Mine

Aerial view of GoldGroup Mining's San Francisco Mine

The San Francisco mine is a past-producing, large-scale open-pit gold operation in Sonora with extensive existing infrastructure and significant resource and exploration upside. Goldgroup has acquired the majority of creditor debt connected to the mine, enabling it to control the restructuring process and advance toward full ownership pending final court approval. With historical production of approximately 1.3 million ounces and strong metallurgical recoveries, San Francisco presents a near-term opportunity for Goldgroup to restore a proven gold mine to production and add meaningful scale to its growth profile.

Project Highlights:

Large-scale past producer with ~1.3 million ounces of gold produced from 2010 to 2019
Strong existing infrastructure: grid power, wells, ADR plants, assay lab, haul roads
High processing capacity of 16,875 tpd via two parallel crushing circuits
Good metallurgical recoveries ranging from 77 percent to 90 percent
Multiple new high-grade zones identified behind and below pit walls
Restart plan underway, including drilling to upgrade resources and update the mine plan

Management Team

Ralph Shearing – Chief Executive Officer

A professional geologist with nearly four decades of experience in mining and exploration, Ralph Shearing founded and led Luca Mining Corp, where he oversaw major development milestones such as the exploration, initial development construction and pre-production of the Tahuehueto gold mine, the acquisition and successful restart of production of the Campo Morado zinc poly-metalic mine in Mexico.

Anthony Balic – Chief Financial Officer & Director

Previously the director of finance for Goldgroup, Anthony Balic has extensive experience in mining finance, including senior roles at Deloitte LLP specializing in assurance and advisory for mining companies. He oversees corporate finance, accounting and capital strategy for Goldgroup.

Corry Silbernagel – Director

Corry Silbernagel is a veteran financial and technical specialist with experience across mining and energy. He is the former CFO of Cabo Drilling and project manager for large-scale initiatives at Suncor and TransAlta. Silbernagel brings expertise in strategic finance, project development and operational oversight.

Blair Jordan – Director

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Roberto Guzman – Director

Roberto Guzman is a finance leader with more than 25 years of experience in Mexico’s financial sector. Jordan holds an advanced degree in finance from Universidad Tecnologica de Mexico and has served as finance manager for numerous public and private Mexican companies.