1996: A LOOK BACK — U.S. mining industry remained strong in 1996

A host of new discoveries and mine openings contributed to the overall strength of the American mining industry, and the sector appears poised to remain highly active throughout 1997.

While Nevada remains the focus of mining activity in the U.S., last year’s discoveries were not limited to the Silver State.

In South Carolina, Cepeda Minerals (CMM-V) uncovered significant gold mineralization at the Buzzard project, with an intercept, from surface, of 179 ft. grading 0.129 oz. per ton. The company followed this up with the discovery of deeper, higher-grade material, including 75 ft. of 0.308 oz.

gold and 96 ft. of 0.313 oz. gold.

Meanwhile, in Arizona, AMT International (AAI-T), is increasing the size of an underground copper target at Copper Creek. So far, the company has outlined a resource of 3 billion lb. copper (125 million tons grading 1.19% copper).

Recently, AMT discovered deep, high-grade sulphide mineralization northwest of its known American Eagle porphyry. The hole in question intersected 700 ft. of mineralization, 400 ft. of which has been assayed with an average grade of 0.98% copper, including 110 ft. at 2%.

According to AMT President Kushal Singh, another large zone of relatively shallow high-grade copper may exist on the property.

New mine openings

The year saw the opening of several important mines in the U.S.

Barrick Gold (ABX-T) cut the ribbon on its Meikle operation, which ranks as the largest underground gold operation in the country. Situated in the Carlin trend of northern Nevada, the mine is expected to crank out 400,000 oz.

annually.

And in Colorado, a state not exactly renowned for its mining activity, Redaurum (RRK-T) opened the Kelsey Lake mine — North America’s first diamond producer. In September, the company announced the discovery of a 28.3-carat diamond from the mine. The stone, the largest ever found in Colorado and the fifth-largest to be found in the U.S., was recently cut and sold to an anonymous buyer.

Meanwhile, in southeastern California, Canyon Resources (CAU-X) opened the Briggs gold mine, which is expected to yield 75,000 oz. per year.

Several other projects in the U.S. have reached development decisions and are close to the production stage.

In southeastern Utah, Summo Minerals (SMA-T) has given the go-ahead for development of the Lisbon Valley copper project, which contains an estimated 38.6 million tons grading 0.46% copper. Capital costs are projected at US$42 million (not including working capital and financing fees).

Alaskan projects

In Alaska, where exploration has picked up markedly in the past two years, Kennecott and Hecla Mining (HL-N) reopened the Greens Creek polymetallic mine near Juneau. And in the west-central interior of the state, USMX (USMX-Q) readied its Illinois Creek gold mine for a 1997 startup.

In what many perceived

to be an election-year tactic, the administration of U.S. President Bill Clinton persuaded Crown Butte Resources (CBL-T) to suspend permitting of the New World project in Montana, near Yellowstone National Park.

Crown Butte agreed to exchange its interest in the New World for US$65 million in property rights and complete a US$22-million voluntary reclamation of the site.

Also in Montana, Phelps Dodge and Canyon completed the permit application for the McDonald gold project. The environmental impact statement is expected to be submitted in the third quarter.

The year will also be remembered for several major mergers.

In December, Homestake Mining (HM-N) outbid Newmont Mining (NEM-G) for Santa Fe Pacific Gold (GLD-N) in a deal valued at US$2.3 billion (Newmont has since made a second offer); earlier in the year, BHP acquired Magma Copper; and Battle Mountain Gold (BMG-N) took over Hemlo Gold Mines.