Background to gold exploration in Nevada

If the state of Nevada was an independent country it would rank as the world’s third largest gold producer. Nevada consistently ranks as one of the leading geologically prospective and pro-mining legal jurisdictions in the world today Nevada mines produced 6.852 million ounces of gold in 2005, according to the Nevada Division of Minerals, contributing 85% of the U.S. total. The calculated value of the 2005 gold production is about $4.2 billion, up from $3.94 billion in 2004. This is based on an increase in the average gold price in 2005 to $614 per ounce

According to the Nevada Bureau of Mines and Geology cumulative gold production in Nevada (since mining on the Comstock lode in 1859) to 2004 stands at 4,867 metric tons (156.47 million ounces). Remarkably, 84% of this total has been produced during the current boom (since the Carlin mine began production in 1965), and 49% of this total has been produced in the decade from 1995 to 2004.

Nevada’s silver production in 2005 was 9.946 million ounces. Based on an average silver price in 2005 of $7.32 per ounce, the calculated value of Nevada’s silver production was $103 million. Most of this production has come from the Carlin Trend which is North America’s most prolific Gold producing region. Analysts believe that up to 180 million ounces of Gold are still undiscovered.

A second trend running parallel, but some 50 miles to the Southwest has been developed. This is called the Cortez Trend and it may carry even more resources.

Still further to the southwest and running in parallel with the Carlin and Cortez Trends is the older established Virginia City -Tonopah Trend which hosted many of the 19th century bonanza mines. Great Western’s 21 claims lie within this trend. Eleven of these claims were the subject of an extensive geological report carried out on the claim area in 1980.

A further 10 prospective Uranium claims were acquired by Great Western Mining independently and are located in the same region.

According to the Nevada Bureau of Mines and Geology, University of Nevada, Reno, as a result of its favourable geology, Nevada has tremendous potential for the discovery of additional mineral deposits. “Areas where prospective rocks are beneath a cover of young, valley-filling sediments and volcanic rocks have only been explored to a limited extent, and ore deposits continue to be discovered in and near Nevada’s 526 historical mining districts.”