Why Nevada?

Total historical gold production in the state of Nevada through 2015 is approximately 219 million ounces. 89% of this total has been produced since the original Carlin Mine owned by Newmont Mining began production in 1965. Nevada’s production of 5.34 million ounces in 2015 accounted for 83% of total U.S. gold production with only China, Australia and Russia producing more gold. Nevada truly is “elephant country” when it comes to major gold deposits. 2015 gold production in the state was mainly from 13 major operations which produced greater than 100,000 ounces. Through 2015, cumulative gold production on the Carlin trend exceeded 86 million ounces (Special Publication MI-2015, The Nevada Mineral Industry, Nevada Bureau of Mines and Geology). The news has also continued to be encouraging from the standpoint of a long-term sustainable gold mining industry. The Cortez Trend is a fast-growing gold district where the overall gold endowment (production/reserves/resources) exceeds 50 million ounces. Barrick Gold Corporation produced 1.05 million ounces of gold at Cortez in 2016 at an all-in-sustaining-cost (AISC) of $518 per ounce. In early 2017 Barrick announced plans to expand underground mining into the Deep South area of the Cortez Hills underground mine, as well as announcing plans for development of an underground mine at the nearby 11.5 million ounce Goldrush resource, located adjacent to Carlin Gold’s Cortez Summit property. The Goldrush resource contains 9.6 million ounces grading 9.6 grams/tonne reported in the measured and indicated category (Barrick 2016 Q4 report). Barrick has advanced Goldrush through the prefeasibility stage and contemplates a mine life of 21 years with production beginning as early as 2021. Annual production is envisioned at 450,000 ounces at average AISC of $665/oz. The permitting process is scheduled to commence in 2017, and permits to begin construction of the twin exploration decline have been received. (Barrick news release Feb. 22, 2016) The Goldrush discovery area approaches to within 1 mile (1.6 km) of the Cortez Summit property.

In 2016 Barrick also announced two new high grade holes at their “Fourmile” target 1 km north of the Goldrush resource and similarly located adjacent to our Cortez Summit property. Barrick states that these holes have encountered mineralization “well above the average grade of the indicated and inferred resources at Goldrush”, for example 14.3 meters (m) grading 31.7 (gpt) and 5.8m grading 49.6 gpt (Barrick Feb. 22, 2016 news release). Barrick geologists have stated that the mineralization style at Fourmile is slightly different than that at Goldrush, and Carlin geologists are encouraged that Cortez Summit holds promise for both Goldrush and Fourmile mineralization styles (see section on Cortez Summit property on this website).

Carlin Gold’s JDS property is also situated on the Cortez trend about 12 miles (20 km) southeast of the Goldrush resource and 2 miles (3.2 km) east of NuLegacy Gold’s recent Iceberg and Avocado Carlin-type gold discoveries

The other exciting recent development in Nevada is Newmont Mining’s commencement of production at the Long Canyon gold deposit, which is reported to contain measured, indicated and inferred gold resources totalling 2.0 million ounces (Newmont Q4 2016 Report). The deposit is located in a “new” exploration terrain 90 miles (145 km) east of the Carlin trend of gold deposits, representing further demonstration that the large “Carlin-type” gold deposits are not confined to the established Carlin and Cortez trends. Carlin Gold’s Willow property is located in this new prospective region, approximately 50 miles (80 km) northwest of Long Canyon. Willow is bordered on three sides by Newmont Mining, who has been active in the area.