2011 Minerals Yearbook GOLD

2011 Minerals Yearbook GOLD U.S. Department of the Interior December 2013 U.S. Geological Survey Gold By Micheal W. George Domestic survey data and tables were prepared by Wanda G. Wooten, statistical assistant, and the world production table was prepared by Lisa D. Miller, international data coordinator. In 2011, domestic mine production of gold increased to were jewelry and arts, 66%; dental and medical, 12%; electrical 234,000 kilograms (kg), slightly more than that in 2009 and electronics, 5%; and other, 17%. (tables 1–2). Although production increased for the second In 2011, the top 15 gold mining companies produced about consecutive year, production was 36% less than the record 44% of world gold production. The top five producers (in high of 366,000 kg in 1998. In 2011, the value of domestic descending order) were Barrick, Newmont Mining Corp. production increased to a record high of $11.8 billion, 30% (Denver, CO), AngloGold Ashanti Ltd. (Johannesburg, South more than that in 2010, mainly because of a 28% increase in Africa), Gold Fields Ltd. (Johannesburg), and Goldcorp Inc. the average price of gold, and 247% more than the value in (Vancouver, British Columbia, Canada), which accounted for 1998 because of a 433% increase in the average price of gold more than 25% of world gold production (Klapwijk and others, since 1998. It was the 10th straight year that the value of gold 2012, p. 51). production had increased. Gold recovery from Barrick Gold Total world mine production of gold in 2011 was 4% higher Corp.’s (Toronto, Ontario, Canada) Gold Strike Mine in Nevada than that of 2010. Estimated mine production in China increased and Rio Tinto plc’s (London, United Kingdom) Bingham by 5%, and China continued to be the world’s leading gold Canyon Mine in Utah decreased owing to the processing of producer. Annual output in South Africa decreased for the lower grade ores which became profitable with higher gold 11th year in a row because of higher costs, lower grade ore, prices. In 2011, production began at the Nixon Fork Mine in and labor issues. The leading producers among more than 100 Alaska, and the Golden Sunlight Mine restarted production in gold‑mining nations were, in descending order, China, Australia, Montana. Mines in Nevada and Alaska accounted for about 74% the United States, Russia, and South Africa (table 8). and 11%, respectively, of domestic gold production in 2011. An estimated 171,300 metric tons (t) of gold was mined The remaining production came from mines in Utah, Colorado, historically through 2011, with 29,500 t held by central banks as California, Washington, South Dakota, Montana, Arizona, and official stocks, 33,000 t held privately as investment, 84,300 t New Mexico, in descending order of production. Gold was held privately as jewelry, 20,800 t in other fabricated products, produced at lode mines in Alaska, California, Colorado, Nevada, and the remaining 3,600 t unaccounted (Klapwijk and others, South Dakota, Utah, and Washington, at two large placer mines 2012, p. 59). in Alaska, and numerous small placer mines, mostly in Alaska and the Western States. In addition, domestic gold was produced Production as a byproduct of processing base metals, primarily copper. The Domestic lode mine production data for gold were compiled 30 leading operations yielded 99% of domestic gold produced by the U.S. Geological Survey from two separate voluntary (table 3). surveys of U.S. mining operations—one for monthly production In 2011, the domestic nonfuel mineral exploration budget of copper, gold, lead, silver, and zinc from lode mines and increased to $1.4 billion, a 65% increase compared with that the other for lode mine production data surveyed annually. in 2010. Much of the increase was from exploration for copper Individual company production and performance data listed in and gold in Alaska and gold in Nevada. The major reasons for table 3 and cited elsewhere in this report were obtained from increased exploration were the improved economy and higher published sources, such as company annual reports. commodity prices. Globally, gold was the primary mineral Alaska.—In 2011, Alaska produced 25,800 kilograms (kg) exploration target and accounted for more than 50% of the 2011 of gold valued at $1.31 billion in 2011, which was 8% less by worldwide nonferrous exploration budget of $16.3 billion. In weight and 17% more by value than that produced in 2010. 2011, the gold global exploration budget was $8.3 billion, which Alaskan exploration expenditures increased to $365 million was 52% more than that in 2010. Gold exploration in Canada, in 2011, up 38% from 2010 expenditures of $264 million. Australia, and the United States, in descending order, accounted This marked the seventh consecutive year that exploration for more than 40% of the global gold exploration budget expenditures exceded $100 million. In 2011, 42 projects (Lowrey, 2011; Wilburn, 2012, p. 58–60). spent more than $1 million, and an additional 39 projects Commercial-grade refined gold was produced by about two spent $100,000 or more on exploration. Porphyry copper‑gold dozen domestic companies. Of several thousand companies deposits accounted for 33.4% of the exploration expenditures, and artisans, a few dozen companies dominated the fabrication and other intrusion‑related deposits accounted for 39.7% of gold into commercial products. U.S. jewelry manufacturing (Szumigala, 2012, p. 3–5). was heavily concentrated in the New York, NY, and Providence, The Pogo Mine, 145 kilometers (km) southeast of Fairbanks, RI, areas, with other manufacturers in California, Florida, and a joint venture between Sumitomo Metal Mining Co., Ltd. Texas. In 2011, the estimated percentages for end use of gold GOLD—2011 31.1 (Tokyo, Japan) (85%) and Sumitomo Co. (Tokyo) (15%), to produce 24 Mt of copper, 1,560 t of gold, and 1,270 t of produced about 10,100 kg of gold during 2011, which was a molybdenum during 78 years, while only developing 55% of the 15% decrease compared with that of 2010 owing to mining of known mineral resources. Production was expected by yearend lower grade ore. Sumitomo Metal announced that a new deposit, 2016 (Northern Dynasty Minerals Ltd., 2011). the East Deep deposit, has been identified 300 meters northeast NovaGold Resources Inc. (Vancouver) entered into an of the producing Liese deposit. The East Deep deposit contains agreement to sell its alluvial gold properties comprising an estimated 40 t of gold. The total resource for the Pogo Gold 4,650 hectares (11,500 acres) of fee‑simple patented mining Mine was estimated to be 12.3 million metric tons (Mt) having claims near Nome, AK. According to the agreement, Nome an average grade of 12.5 grams per metric ton (g/t) gold and Gold Alaska Corp. (Nome) would pay $21 million in three containing 155 t of gold (Sumitomo Metal Mining Co., Ltd., installments and provide a $4 million letter of credit for an 2012). environmental reclamation bond. NovaGold was also soliciting Kinross Gold Corp.’s (Toronto) underground Fort Knox Mine, buyers for the balance of its properties near Nome, including near Fairbanks, produced 9,010 kg of gold in 2011, 17% less in‑town real estate, sand and gravel holdings, and Big Hurrah than production in 2010. The decrease resulted from a planned and Rock Creek gold properties. The company was selling shift from processing mined ore to lower grade stockpile ore. properties to focus on advancing the Donlin Creek, Alaska, Yearend 2011 gold reserves at Fort Knox were estimated to and Galore Creek, British Columbia, Canada, projects toward be about 134,000 kg (Kinross Gold Corp., 2012, p. F19–F20, production (NovaGold Resources Inc., 2011b). F138). A second feasibility study on Barrick and NovaGold’s Hecla Mining Co. (Coeur d’Alene, ID) owned the joint‑venture Donlin gold project in southwestern Alaska was polymetallic Greens Creek Mine on Admiralty Island near released. The $6.7 billion project estimate, which was lower Juneau. Ore from the underground mine was milled at the mine than the original $7 billion estimate, included $834 million for a site to produce gold and silver dore, and lead, zinc, and bulk 500‑km natural gas pipeline and $984 million in contingencies. concentrates. In 2011, gold production was 1,780 kg, 17% less The proposed open pit operations would have a 27‑year mine than in 2010, owing to a slowdown in mining attributed to life and would produce an average of 34,200 kilograms per year reduced availability of low cost power (Hecla Mining Co., 2012, (kg/yr) of gold at a projected average cash cost of $585 per troy p. 25, 40). ounce of gold (NovaGold Resources Inc., 2011a). In 2011, during its first full year of mining, Coeur d’Alene International Tower Hill Mines Ltd. (Vancouver) announced Mines Corp.’s (Coeur d’Alene) Kensington Mine produced the results of an updated preliminary economic assessment for 2,750 kg of gold. The underground gold mine, 72 km north‑ its Livengood gold project near Fairbanks. The new assessment northwest of Juneau, had proven and probable reserves of 40.4 t estimated that the project could generate $3.1 billion in pretax of gold (Coeur d’Alene Mines Corp., 2012, p. 10). Beginning in cash flows and a $1.2 billion net present value, at a 5% discount November 2011, the company planned to reduce ore production rate and a gold price of $1,100 per troy ounce. The average costs at the mine by 50% for 6 months to allow for new construction of production were projected to be $557 per troy ounce of gold and improvements that were expected to increase efficiency.

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