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NEWMONT'S NEVADA OPERATIONS

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NEWMONT'S NEVADA OPERATIONS
Classification: Active/Verified
Status: Producer
Type of Work: Open-Pit/Underground
Location: USA, Nevada


Property News

July 23, 2009
Newmont Mining reported that gold sold from its its Nevada operations decreased 25% in the second quarter of 2009 from 2008 due to lower leach tons placed and lower throughput and mill ore grade. Surface ore mined in the second quarter of 2009 decreased to 6.2 million tons, down from 9.2 million tons in the previous year quarter primarily due to mine sequencing at Gold Quarry. Underground ore mined in the second quarter of 2009 increased to 587,000 tons, up from 575,000 tons in the second quarter of 2008. This increase was due to 23% higher tons at Chukar and remnant mining at Carlin East, partially offset by 15% lower tons at Midas due to ground failure which curtailed production in March and April 2009. Underground ore grade decreased 7% in the second quarter of 2009 from 2008 primarily due to lower grade at Leeville. Second quarter ore milled was 5.9 million tons in 2009 compared to 6.1 million tons in 2008. Ore placed on leach pads in the second quarter of 2009 decreased 69% from the second quarter of 2008 to 1.7 million tons due mainly to mine sequencing at Gold Quarry and equipment availability. Costs applicable to sales per ounce increased to $549 in the second quarter of 2009 from $430 per ounce in the second quarter of 2008 due to lower production and by-product credits, partially offset by lower diesel prices.
March 31, 2009
Newmont reported on it's Nevada mining operations for the quarter ended Mar31/09. Gold ounces sold in Nevada decreased 2% in the first quarter of 2009 from 2008 due to lower leach tons placed and lower mill ore grade, partially offset by higher mill recovery rates. Surface ore mined in the first quarter of 2009 decreased to 6.3 million tons, down from 8.4 million tons in the previous year quarter primarily due to mine sequencing at Gold Quarry. Underground ore mined in the first quarter of 2009 increased to 629,000 tons, up from 526,000 tons in the first quarter of 2008. This increase was due to 34% higher tons at Leeville, 9% higher tons at Chukar and the addition of Carlin East in 2009, partially offset by 9% lower tons at Midas due to ground failure which curtailed production in March but is expected to resume by the end of April 2009. Underground ore grade decreased 12% in the first quarter of 2009 from 2008 primarily due to lower grade at Leeville. First quarter ore milled was 6.1 million tons in 2009 compared to 6.2 million tons in 2008. Ore placed on leach pads in the first quarter of 2009 decreased 45% from the first quarter of 2008 to 2.6 million tons due mainly to mine sequencing at Gold Quarry. Costs applicable to sales per ounce increased to $509 in the first quarter of 2009 from $409 per ounce in the first quarter of 2008 due to lower production, lower surface ore tons mined, higher underground contracted service costs, lower by-product credits and higher royalties, partially offset by lower diesel and power costs.
December 31, 2008
Nevada operations sold 601,000 equity ounces of gold at costs applicable to sales of $497 per ounce during the fourth quarter. Equity sales were slightly lower than expected primarily due to slower than anticipated recoveries from the Carlin South and Twin Creeks leach pads, lower recoveries at the Phoenix and Carlin mills, and the timing of gold sales with respect to Phoenix copper concentrates which remained in inventory at the end of the year. Lower sales were partially offset by higher grades resulting from higher underground production. Costs applicable to sales during the fourth quarter were higher than expected primarily due to lower than expected gold sales, higher underground contracted mining costs and lower by-product credits due to the significant drop in copper prices and volumes, partially offset by lower diesel costs. Equity sales for the year were 2.2 million ounces at costs applicable to sales of $460 per ounce.
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