Even as the rest of the Nevada mining industry takes a deep breath, Newmont Gold keeps on keeping on its construction of the Long Canyon Mine without even a hiccup.
Just two week ago the company slowed traffic on I-80 from Salt Lake to Oasis receiving three mega machines at the Long Canyon Mine site.
The first of the mega machines is a Caterpillar a 994F loader. It will be assembled at Site. The 994F has an operating weight of over 215 tons, which is 1,063% heavier than the average full-size wheel loader. With a net power output of 1,463 HP, it is 643% more powerful than a typical competing model in its class. The 994F has a standard bucket capacity of 47.00 cu. yd., meaning it can carry 43.08 cu. yd. more than the load expected of a typical full-size wheel loader. Traveling at speeds up to 4.8 mph, it is 16.9 mph slower than the average competitor.
The next mechanical behemoth was a Hitachi 3600 Shovel. It is being assembled in the picture above.The 3600 is one of Hitachi’s mid sized backhoe excavators, guaranteeing exceptional power and force for demanding jobs, while featuring a relatively low operating weight and high mobility. This sophisticated, powerful and efficient piece of machinery will complete any excavating task with proficiency and ease.
The last huge piece of equipment was a multi storied tall drill rig.
The Nevada and Utah Highway Patrols issued warning alerts as the three massive pieces of equipment made their way through the West Desert and eventually to the long Canyon Mine Site at Oasis 30 miles west of Wendover.
The traffic jam was a much needed shot of good news in an otherwise dismal fall and summer for Nevada mining.
The price of gold fell to a five year low to just over $1000 an once causing medium sized panic in the commodities market this August and again in early November.
In addition to the price plunge the bankruptcy of Midway Gold and the perhaps temporary closure of the Pan Mine in White Pine County illustrates that the business of mining gold is not a sure thing.
Midway Gold declared bankruptcy in July the company announced that mining activity at it Pan site 50 miles south of Ely would be suspended and up to half of its work force would be laid off. It was less than two years ago that the Pan project broke ground and just this year when the mine celebrated its first pour of gold. But even as the celebration was going on rumors began circulating that despite the initial science Pan was not producing as much gold as was expected.
In addition to troubles in gold, the price of copper continued to fall dramatically prompting by KGHM International Ltd the owner of Ely’s Robinson Nevada Mining Company to issue warning to its workforce that cost cutting and perhaps layoffs could be in the offing.
But while knees are shaking in the commodities markets Newmont is going full steam ahead in the construction of the Long Canyon Mine. Perhaps buoyed by a federal judge’s rejection to halt work on the mine from the Goshute tribe last week Newmont is doubling down.
InAugust the company issued a new call for workers, truckers, at Long Canyon and the company also announced a quarterly dividend of $0.025 per share of common stock, payable on Sept. 24 to shareholders of record at the close of business on Sept. 10. The company says the average London Bullion Market Association p.m. gold price during the second quarter fell below the company’s gold-price-linked dividend policy threshold of $1,200 per ounce. Still, the board authorized the company to maintain the dividend for the third quarter based on “strong year-to-date operating and financial performance,” Newmont says in its announcement.
Newmont’s bullish activity both for its shareholders and its workers at a time when the rest of the gold mining industry is behaving at best skittishly could be explained by the richness of Long Canyon.
Literally a mountain of gold ore lies in the once long over looked Pequop Range now in advanced exploration.
Estimated to need 500 workers during construction and 250 miners once operations are ready, the Long Canyon mine could add at least 1,000 people to the area and that may be just the tip of a gold boom in eastern Elko County.
“We think this could have as much potential as the Carlin Trend,” Geologist Moira Smith said four years previous. “It is truly remarkable.”
In addition to having ‘smoking hot’ ore, the area is a stones throw from Interstate 80, has no endangered species living anywhere near it and does not have any significant archaeological sites located on it. Despite the contention of the Goshutes, ancient Native Americans also apparently ignored Long Canyon.
