1

GOLD

By John M. Lucas

World gold production declined in 1994. Commercial-grade refined gold came from remainder was derived from base metal and

The Republic of South Africa remained the about 2 dozen producers. A few dozen other precious metal ores and from placer

world's largest gold producing nation, followed, companies, out of several thousand companies deposits. By comparison, similar data

despite a slight decline in production, by the and artisans, dominated the fabrication of gold assembled for 1980 indicated that gold ores

United States, which has been the second into useful products. Nearly all jewelry provided 63% of the total gold produced and

largest producer since 1991 when its manufacturing was centered in the New York, the remainder, 37%, was derived from base

production, for the first time in nearly five NY, and Providence, RI, areas. Estimated uses metal and other precious metal ores and placers.

decades, surpassed that of the former Soviet in 1994 were as follows: jewelry and arts, In both years, 1980 and 1994, the contribution

Union. Nevada, followed by California, 70%; industrial (mainly electronics), 23%; and from placer mines amounted to less than 2% of

continued to be the dominant gold-producing dental, 7%. the total gold produced.

States, where combined output for 1994 The Engelhard Industries/London daily price

accounted for nearly 75% of the U.S. total. of gold ranged from a low of about $370 per

Though most domestic gold mines were surface troy ounce on April 22, to a high of nearly $398

or open pit operations, conversion to on September 28. The average for the year was

underground methods had begun to accelerate about $385. The previous year's prices ranged

as more near-surface deposits reached depletion. from about $327 to $407 and averaged about

Some of the deeper deposits, accessible only by $36l.

underground methods, contain higher grade Identified world gold resources at yearend

sulfide ores which require more extensive 1994 were estimated by the U.S. Geological

preparation than ores encountered in most near- Survey at 75,000 tons, of which 15% to 20%

surface operations. Although most of the was byproduct resources. The world reserve

Nation's gold mines were in Western States, a base was estimated by the U.S. Bureau of Mines

few continued to operate in States east of the (USBM) at 60,000 tons and reserves at 44,000

Mississippi River. Gold also was produced at a tons. The Republic of South Africa had about

dozen or more large placer mines, nearly all in one-half of the resources and reserve base and

Alaska, and numerous small placer mines, 41% of the reserves. The United States had

mostly in Alaska and Western States. A small about 12% of world resources, 9% of the

amount of domestic gold also was produced as reserve base, and 11% of the reserves. 

a byproduct of processing the ores of base Of an estimated 116,000 tons of gold mined

metals, chiefly copper. Twenty-five mines in historical times through 1994, about 15% is

yielded 80% of the gold produced. The value of believed to have been lost, used in dissipative

U.S. gold mine production in 1994 was more industrial uses, or otherwise unrecoverable or

than $4 billion. unaccounted for. Of the remaining 99,000 tons,

Domestic gold exploration activity, which an estimated 35,000 tons are official stocks held

generally peaked during the late 1980's, by central banks, and about 64,000 tons are

continued to decline, as mining companies privately held as coin, bullion, and jewelry.

pursued opportunities in other nations. In

several Latin American nations, for example,

favorable geology, combined with recently

liberalized mining regulations attracted an

influx of United States and other foreign gold

exploration and development spending. Recent

overseas exploration interest and spending by

U.S. firms also was directed toward various

western Pacific regions and several areas of the

former Soviet Union. 

Conversion of old gold scrap to refined gold

provided about 74 metric tons(4.7 million troy

ounces ) of metal to the market, a quantity

1

equivalent to nearly all domestic gold

consumption. The balance of secondary

production, 73 tons, was from prompt industrial

scrap, partly toll refined.

Production

Domestic mine production data for gold are

developed by the USBM from two separate,

voluntary surveys of U.S. operations. One of

these surveys is the lode-mine production

survey of copper, gold, lead, silver, and zinc

mines. Of the lode gold producers in operation

to which a survey request was sent 206

responded, representing 98% of the total gold

shown in tables 1 and 2. The individual

company production and performance data in

this report were derived from published sources

such as company annual reports.

Of the total gold produced during 1994, 93%

was extracted from gold ore while the

Alaska.—Gold developments in Alaska

during 1994 were summarized in a report on

Alaskan mining activity prepared by the Alaska

State Division of Geology and Geophysical

Surveys (DGGS), in cooperation with the

2

Alaska Department of Commerce and Economic

Development. According to the DGGS, there

were approximately 185 mechanized placer

mines in operation during the year compared

with 196 during 1993, and for the first time in

15 years, all of Alaska's gold production was

derived exclusively from placer mines. 

According to the DGGS, the 10 largest

Alaskan gold mines accounted for 58% of 1994

production. The State reported that Silverado

Mines Ltd. recovered a 41.3 ounce (1,285

gram) nugget at its underground placer

operations at the Nolan Mine; the nugget was

unofficially determined to be the 10th largest

placer gold nugget recovered in Alaskan mining

history. 

Gold exploration and the development and

permitting of new gold mines continued to

increase in Alaska. Echo Bay Mines Ltd.

continued exploration and development of the

A-J Mine on the outskirts of Juneau and at its

Kensington joint-venture project 115 kilometers

(72 miles) north of Juneau. Amax Gold Inc.

gained Federal permit approval for its Fort

Knox Project 24 kilometers (15 miles) northeast

of Fairbanks. On Ester Dome 13 kilometers (8

miles) northeast of Fairbanks, La Teko

Resources Ltd. continued exploration of its

True North property. 

California.—California's largest gold mine,

the McLaughlin Mine of Homestake Mining

Co., processed oxide and sulfide ore mined by

open pit methods to recover nearly 7.8 tons

(250,453 ounces) of gold during 1994. The

State's second-largest gold mine, Santa Fe

Pacific Gold Corp.'s Mesquite Mine, produced

6.5 tons (207,508 ounces) of gold from open pit

operations near Brawley in Imperial County. In
2

eastern Imperial County, Glamis Gold Ltd. Ltd. continued to seek permits for its New the south near Valmy. Both operations are open

produced gold by heap leaching at its Picacho World project near Cooke City. Plans for the pits where gold is recovered by milling and

Mine and conducted further exploration at its controversial gold, copper, and silver project heap leaching, respectively. Nearby, FirstMiss

Imperial Project. Glamis, through its wholly north of Yellowstone National Park call for Gold Inc. produced nearly 7.6 tons (243,826

owned Rand Mining Co., also produced gold at underground mining and ore processing without ounces) of gold at its Getchell Mine during the

its Baltic and Yellow Aster Mines near the use of heap leaching or cyanide recovery fiscal year ending in midyear. Other gold mines

Randsburg in Kern County. Other mines methods. in Humboldt County include the

producing gold in Imperial County during the Crowfoot/Lewis Mine, Marigold Mine, Pinson

year included the American Girl Mine and Mine, and Sleeper Mine. 

Cactus Mine. South of and parallel to the Carlin Trend, the

In eastern San Bernardino County near the Battle Mountain/Eureka Trend runs from

Nevada/California State line, Viceroy Gold southeastern Humboldt County southeast

Corp. produced an estimated 5,200 kilograms through Eureka in Eureka County. Gold

(168,000 ounces) of gold at its new Castle mining operations along this trend include the

Mountain Mine. Battle Mountain Complex of Battle Mountain

In the State's Mother Lode country, Sonora Gold Co. in Lander County, the McCoy/ Cove

Mining Corp. completed mining operations at gold and silver property of Echo Bay Mines

its Jamestown gold mine at Jamestown in Ltd., the Cortez Gold Mine Joint Venture's

Tuolumne County. In Calaveras County, FMC Cortez Mine, Atlas Corp.'s Gold Bar Mine,

Gold Co. closed its Royal Mountain King Mine placed under temporary shutdown and standby

near Copperopolis. To the north, in Nevada in mid-1994, and Alta Gold Co.'s Easy Junior

County, Siskon Gold Corp. poured its first bar Mine in White Pine County. Considerable

of gold at its new San Juan Mine, an exploration activity continued to be focused on

underground placer operation located near the Pipeline, Ruby Hill, and various other

Nevada City. Siskon also conducted recent discoveries along the Battle

exploration and permitting operations at its Big Mountain/Eureka Trend in Lander and Eureka

Horn Property in Los Angeles County. Counties. 

In Lassen County, Lassen Gold Mining Inc., At Round Mountain, in north-central Nye

a subsidiary of Amax Gold Inc., completed a County, Round Mountain Gold Co. produced

successful transition from milling to an all heap- about 13.2 tons (423,504 ounces) of gold

leaching operation at its Hayden Hill Mine. during the year, an increase of 13% over the

Hayden Hill's production during 1994 was previous year. All of the increase came from a

nearly 2,050 kilograms (65,785 ounces). new "dedicated" (permanent) heap-leach pad. 

Montana.—According to an annual review of operations along the Carlin Trend are divided South Dakota.—Homestake Mining

mining and mineral developments in the State, geographically into three management areas: the Company's nearly 12-decade-old Homestake

prepared by the Montana Bureau of Mines and North Area, which includes the Post, Carlin, Mine was again the Nation's largest

Geology (MBMG), exploration activity, largely and Genesis Mines and mills No. 1 and No. 4; underground gold mine, the largest gold3

focused on gold, doubled in 1994. Of the the South Area, which includes the Gold producing mine in South Dakota, and the sixth

mines producing gold in Montana during the Quarry Mine and mills No. 2 and No. 5; and the largest gold-producing mine in the country.

year, three were owned and operated by Rain Area, which includes the Rain Mine and During the year the mine at Lead, a nearly 2.5

Pegasus Gold Inc. They were: the Beal mill No. 3. Of the tonnage mined, mines in the kilometer (8,000 foot)-deep operation with

Mountain Mine in Silver Bow County, the North Area accounted for 50.7% of the total associated surface mining, recovered about 12.3

Montana Tunnels Mine, a gold, lead, silver, and while 48.1% and 1.2% of the remainder was tons(393,934 ounces) of gold at a reported cash

zinc mine in Jefferson County; and the Zortman extracted from deposits in the South Area and production cost of $292 per ounce.

Mine in Phillips County, the State's largest gold the Rain Area, respectively. Of the total gold Performance for 1994 was impacted by a cavemine in 1994. production reported for the year, 58% was in and a 100-year record rainstorm which also

In midyear, unstable ground conditions led to derived by milling and the remainder, 42%, was affected the performance of other Black Hills

the suspension of milling operations at Placer recovered by heap leaching. During the year gold operations. 

Dome's wholly owned Golden Sunlight Mine NGC completed construction of a new At Wharf Resources Ltd.'s Wharf Mine, west

near Whitehall in Jefferson County. Remedial refractory ore treatment plant north of Carlin. of Lead, production amounted to a record of

measures and repairs occupied most of the time Construction was also underway at yearend on nearly 3,300 kilograms (105,282 ounces).

remaining in 1994; full production was resumed an $ll million bioleach demonstration project Nearby, the company's 60%-held Golden

in early February 1995. designed to process lower grade refractory ores. Reward Mine produced about 1,650 kilograms

In Park County, TVX Gold Inc. continued Northwest of Elko, in Elko County, (52,556 ounces) of gold kilogram.

production at its underground Mineral Hill Independence Mining Co. and FMC Gold Co. About 74 kilograms (2,400 ounces) of

Mine near Jardine and exploration at its nearby produced about 10.2 tons (326,667 ounces) of residual gold were recovered by releaching

Crevice Mountain project. Construction of a gold at its Jerritt Canyon Mine. To the west, in previously leached ore at Dakota Gold Mining

4.3 kilometers (2.7 mile) tunnel connecting the Humboldt County, Santa Fe Pacific Gold Corp. Inc.'s Gilt Edge Mine near Deadwood. The

two sites was begun during the year. Also in (SFPG) recovered 15.6 tons (501,891 ounces) company continued exploration and permitting

Park County, about 80 kilometers (50 miles) of gold at its Twin Creeks Mine and about 7.1 at its Anchor Hill oxide deposit on the Gilt

east of Mineral Hill, Crown Butte Resources tons(226,911 ounces) at its Lone Tree Mine to Edge property. Some residual gold also was

Nevada.—Nevada maintained its longstanding position as the Nation's dominant goldproducing State. Thirteen of the Nation's top 25

gold producing mines during 1994 were in the

Silver State.

Barrick Gold Corp., which for the first time

became the Nation's largest gold mining

company, recovered 57.5 tons (1.85 million

ounces) of gold at its Betze-Post Mine in

Eureka County. Nearby in Elko County, Barrick

continued development of its Meikle Mine, a

new underground operation scheduled to begin

production during the second half of 1996.

Barrick's operations on the Carlin Trend are

developed within a 2,800 hectare (7,000 acre)

land holding designated collectively as the

Goldstrike Property. In late 1994, Barrick

acquired full ownership of the Bullfrog Mine in

Nye County. During the year Bullfrog produced

just over 9,300 kilograms (300,000 ounces) of

gold at the mine site near Beatty.

Nearby, both geographically and in terms of

production, Newmont Gold Co. (NGC)

produced 48.4 tons (1,555,300 ounces) of gold

from its operations generally centered in Eureka

and Elko Counties. NGC's widespread
3

recovered at Barrick Gold's, formerly Lac tons(14 million ounces) in 1993 to 78 tons (2.5 Department of Energy, Mines and Resources.

Minerals Ltd.'s, Richmond Hill Mine where million ounces) in 1994. Gold Fields noted that Canada retained its position as the world's

mining of ore ceased in mid-1992. supplies of old scrap to market during 1994 rose fourth largest gold producer. In 1994, gold was

In the November elections the electorate of to the highest level ever recorded in its annual produced at about 50 primary gold mines; these

Lawrence County, host county for the surveys which record the contribution of scrap accounted for 91% of the total. Base metal

aforementioned mines, defeated a ballot to the supply side as far back as 1980. mines and placer mines accounted for 6.5% and

initiative to prohibit the issuance of new mining On the demand side of the equation, GFMS 2.5%, respectively, of the remainder. Canada's

permits, or amendments to existing permits, for reported that the overall fabrication of gold into principal gold-producing regions, in descending

surface metal mining projects within designated end products increased slightly from that of the order of output, were Ontario, Quebec, the

areas of the County. previous year but failed to match the record Northern Territory, and British Columbia. Gold

Utah.—Kennecott Corp.'s Bingham Canyon

Mine, produced gold as a byproduct of its

copper mining operations near Salt Lake City. Latin America.—Interest in gold exploration

Long ranked as one of the country's leading opportunities, new mine development activity,

gold-producing mines, Bingham Canyon was and production in many Latin American nations

the fourth largest gold producer during 1994. continued to increase during the year. Much of

Kennecott also operated the nearby Barney's the activity was focused on Chile, Mexico,

Canyon Mine, an open pit and heap-leaching Peru, and to a lesser extent the Guyanan Shield

operation. area of Guyana and Venezuela. There also

Barrick Gold Corp.'s open pit Mercur Mine in appeared to be increasing interest in the

Tooele County, Utah's largest primary gold prospectsfor expanded gold production in other

producer, recovered about 3,360 kilograms nations such as Argentina and the nations of

(108,107 ounces) of gold in 1994. Mercur Central America and the Caribbean, especially

presently has a 5-year life remaining and is the Republic of Cuba. 

scheduled to begin closure in 3 years following Gold production in Brazil, Latin America's

depletion of all open pit reserves and largest gold-producing nation, continued to

reclamation of tailings from earlier mining. decline as easily worked surface and placer

USMX Inc. reported that its Goldstrike Mine deposits are mined out by independent gold

in Washington County produced about 1,070 miners or "garimpeiros." Yet to be reflected in

kilograms (34,486 ounces) of gold. Mining Brazil's performance data is the trend toward

activities at the site were completed in late rising gold production by the formal or

1994. Reclamation of the remaining mining Australia.—Australian gold production corporate sector. 

disturbances and residual production from ore continued to expand and for the third New mines completing a first full year of

in place on the heaps is expected to extend consecutive year Australia retained its position production included Bolivia's Kori Kolo, Chile's

operations into late 1995. There was some gold as the world's third largest gold-producing Guanaco, Guyana's Omai, Mexico's Amelia and

exploration activity in the State during the year. nation. Of the 256 tons (8.2 million ounces) of Rio Yaqui, and Peru's Yanacocha. In

Most of the activity was centered around former gold produced in 1994, Western Australia, Venezuela's El Dorado region, Monarch

producing mines in the old Tintic Mining Queensland, and the Northern Territory Resources Ltd. began production in midyear at

District. accounted for about 76%, 13%, and 7%, its La Camorra Mine while in Panama,

World Review

For the first time following 15 consecutive

years of growth, world mine production failed

to exceed that of the previous year. Increasing

production from mines in developing Nations

was more than offset by a sharp decline in

production from the Republic of South Africa.

According to its annual review of world gold

supply and demand, Gold Fields Mineral

Services Ltd. (GFMS) calculated that total

4

global supplies of gold in 1994 were balanced

against total demand for gold at 3,319 tons (107

million ounces) compared with the previous

year's total of 3,563 tons (about 115 million

ounces). There were several important

developments in the individual components of

the supply/demand equation in 1994. The most

significant development was a dramatic decline

in net official/central bank sales of gold to the

market; official sector sales declined from 445

demand level set in 1992. Gold used in the was also produced in Alberta, Manitoba, New

fabrication of jewelry products globaly rose Brunswick, and the Yukon. 

more than 2% to 2,576 tons (83 million ounces)

and gold consumed in electronic products rose

more than 5% to 192 tons (about 6 million

ounces). Worldwide the use of gold in other

demand sectors such as dentistry, medals and

imitation coins, and other industrial and

decorative applications increased slightly. The

use of gold in the minting of official coins

declined 41% from the 1993 level. GFMS's

data on various facets of the gold investment

sector indicated that gold supplies to the market

from futures market vehicles, as well as gold

calculated to have returned to the market

because of disinvestment, more than offset the

quantity of gold absorbed by gold loans and

gold bars held for investment and hoarding

purposes. Bar hoarding registered a substantial

increase over quantities estimated to be held at

the end of 1993.

respectively. Western Australia's production Greenstone Resources Ltd. began open pit

was derived primarily from mines situated mining at its Santa Rosa Mine and the Eldorado

around and west of Kalgoorlie. Other Corp. Ltd. began production at its La Colorada

Australian gold-producing States, in descending Mine in Mexico.

order of output, were New South Wales,

Victoria, Tasmania, and South Australia. 

A number of gold mines were under

development or expanding capacity and several

new mines began production during the year. In

Western Australia, for example, Great Central

Mines NL began open pit production at its

Bronzewing Mine near Wiluna, and Gold

Mines of Australia Ltd. began underground

operations at its Youanmi Mine northeast of

Perth. 

Canada.—Although Canada's gold way for construction of the Lihir Island project

production decreased for the third consecutive off the east coast of New Ireland. Production

year, new mines under development at yearend was also scheduled to begin in 1995 at Dome

1994 should result, in later years, in a gradual Resources Ltd.'s Tolukuma project north of Port

recovery of production to levels seen prior to the Moresby.

decline, according to a review of Canadian gold In Indonesia, gold production increased

developments prepared by the Canadian substantially. Freeport Indonesia Inc. recovered

5

Oceania.—Gold production in Papua New

Guinea declined for the second consecutive year

reflecting to some extent the mining of lower

grade ores at two of that nation's larger gold

mines, Placer Pacific Ltd.'s Porgera and Misima

Mines. Conversely, higher grade ores

contributed to increased production at BHP Co.

Ltd.'s Ok Tedi copper-gold mine. Exploration

was continued at a number of gold prospects

and in early 1995 the Government issued a

Special Mining Lease to RTZ which opened the
4

more than 24 tons (784,000 ounces) of Foreign corporate involvement in gold

byproduct gold at its Grasberg/Ertsberg copper- exploration, development and mining activity in

gold mine in West Irian and PT Kelian the former Soviet Union continued to evolve

Equatorial Mining recovered nearly 14 tons during the year, but at a much lower pace than

(433,000 ounces) of gold at the Kelian Mine in previously anticipated. Numerous North

East Kalimantan. Several new Indonesian gold American, Australian, and European

mines began production in 1994. Gold corporations continued to pursue joint-venture

exploration activities continued to increase and opportunities in Kazakhstan, Kyrgyzstan, and

several late-stage projects were being readied elsewhere throughout the former Soviet Union.

for production in the near future. By late 1994, the Zarafshan-Newmont Joint

Gold production in New Zealand was derived Venture had nearly completed the

from three large surface lode mines and several preproduction phase at its new gold recovery

medium-sized placer mines. Underground project at the Muruntau Mine in Uzbekistan;

mining continued on Fiji's Island of Viti Levu. gold production began at a rate of 14 tons

Some gold exploration was conducted on (450,000 ounces) per year in mid-1995. 

Espiritu Santo in the Republic of Vanuatu, on

New Caledonia, and in the Solomon Islands.

South Africa, Republic of.—During the 35

years prior to 1994 gold production in South

Africa, the world's largest gold-producing

nation, has ranged from a high of 1,000 tons

(32 million ounces) in 1970 to low of 601 tons

(19.2 million ounces) in 1991. In 1994,

however, problems linked to the beginning of a

new post-apartheid government, repeated labor

disruptions, escalating costs, and declining ore

grades combined to drive the production the

lowest level since 1958 when only 549 tons

(17.6 million ounces) were produced. 

 The tonnage and grade of ore milled during

1994 by the nearly 3 dozen mines representing

the membership of the Chamber of Mines of

South Africa amounted to nearly 99 million

metric tons bearing a gold grade of 5.40 grams

per ton (0.158 ounce per short ton); this

compares with 103 million tons bearing 5.56

grams per ton (0.162 ounce per short ton)

milled by Chamber members during the

previous year. 

The six major corporate groups or "houses"

which dominate the South African gold mining

industry were as follows: The Anglo American

Corp. of South Africa Ltd. (AAC), Gold Fields

of South Africa Ltd., Gencor Ltd.,

Johannesburg Consolidated Investment Co.

Ltd., Anglovaal Ltd., and Rand Mines Ltd. The

two largest gold mines in terms of production

during 1994 were the Freegold and Vaal Reefs,

both owned by AAC. The two next largest

mines were the Driefontein and Kloof, both

owned by Gold Fields. 

Russia and the Former U.S.S.R.—Of the

seven or more gold-producing independent

countries resulting from the dissolution of the

U.S.S.R. in late 1991, Russia is by far the

largest, both in terms of output and number of

operations as well as areal distribution. Much of

Russia's production derives from State-owned

enterprises and cooperatives, known as artels,

scattered throughout eastern Russia. 

Outlook

 The course to be taken by the domestic gold

mining industry depends to a large extent upon

the outcome of the current legislative debate in

the Congress. The effect of revisions to the

General Mining Law, which governs mining

and exploration on Federal lands, and proposals

to impose additional tax and regulatory burdens

on mine production from both Federal and nonFederal lands will largely determine the course

of future domestic gold mining activity. If new

legislation places unacceptable burdens on

producers and reduces the incentive to explore,

production could decline substantially as

existing deposits are high-graded wherever

possible, or reclassified as uneconomic, and

producers, explorationists, and investors opt to

pursue opportunities in more hospitable

environments elsewhere .

What may be little understood and

appreciated in the current debate is that modern

metal mining has always been a high risk global

pursuit driven by cyclical world market prices

and by evolving geologic theories and the

accessibility to favorable geologic terrain. The

nature of the exploration process, the ability to

pursue the development of favorable prospects

once discovered, and the long lead times

generally required to effect a return on

investment are characteristics that must be taken

into account whenever the future of the industry

is considered. 

The USBM released a comprehensive

overview of the operation and economics of the

gold mining industry worldwide. An

6

overview of the economics and public policy

issues affecting the domestic gold mining

industry was published in early 1995. The

7

Gold Institute forecasts world gold production

to increase at a rate of about 1.6% annually

through 1997. 

8

Ounce refers to troy ounce. One kilogram of gold 1

weighs 32.1507 troy ounces.

Swainbank, R. C., and T. K. Bundtzen. Alaska's 2

Mineral Industry 1994: A Summary. AK Div. Geol.

and Geophys. Surv. Inf. Circ. 40, Mar. 1995, 11 pp.

McCulloch, R. Annual Mining Review Mining

3

Eng., v. 47, No. 5, May 1995, pp. 440-441.

Murray, S. K., K. Crisp, P. Klapwijk, T. Sutton- 4

Pratt, and others. Gold 1995. Gold Fields Mineral

Services Ltd. (London), May 1995, 64 pp.

Couturier, G. Gold. Advance Copy of Ch. from 5

Canadian Minerals Yearbook—1994. 21 pp.

World Gold, A Minerals Availability Appraisal. 6

U.S. Bureau of Mines Special Pub. SP 24-94, 1994.

197 pp.

Dobra, J. L., and P. R. Thomas. The U.S. Gold 7

Industry 1994. Nevada BuMines and Geol. Special

Pub. 18, 1995. 32 pp.

The Gold Institute. World Mine Production of

8

Gold 1993-97. May 1994. 9 pp.

OTHER SOURCES OF INFORMATION

U.S. Bureau of Mines Publications

Gold. Sec. in Mineral Commodity Summaries,

annual.

Precious Metals. Mineral Industry Surveys,

monthly.

Other Sources

American Metal Market, New York.

Gold Technology, World Gold Council, New

York and Geneva, Switzerland, quarterly.

Engineering and Mining Journal, Chicago.

Gold Bulletin, World Gold Council, New York

and Geneva, Switzerland, quarterly.

Gold Notes & Quotes, World Gold Council,

New York and Geneva, Switzerland, monthly.

Jewelers' Circular-Keystone, Radnor, PA.

Mining Journal, London.

Noble Metals. Time-Life Books Inc., New

York.

Platt's Metals Week, New York.

Randol Mining Directory 1994-95, Randol Intl.

Ltd., Golden, CO.

Russian Far East News, Alaska Center for

International Business and American Russian

Center, Univ. of Alaska, Fairbanks, AK,

monthly.

The Metalsmiths. Time-Life Books Inc., New

York.

The Mining Record, Englewood, CO.

The Northern Miner, Toronto.
TABLE 1

SALIENT GOLD STATISTICS 1/

1990 1991 1992 1993 1994

United States:

 Mine production kilograms 294,000 294,000 330,000 331,000 326,000

 Value thousands $3,640,000 $3,430,000 $3,660,000 $3,840,000 $4,040,000

 Gold recovered by cyanidation:

 Extracted in vats, tanks, and closed containers 2/ 136,000 160,000 178,000 177,000 169,000

 Leached in open heaps or dumps 3/ 129,000 104,000 120,000 128,000 119,000

 Refinery production:

 Ores, concentrates and dore kilograms 225,000 225,000 284,000 243,000 241,000

 Recycled materials (new and old scrap) do. 144,000 153,000 163,000 152,000 r/ 148,000

 Imports for consumption:

 Refined do. 64,800 147,000 141,000 130,000 96,400

 Exports

 Refined do. 141,000 174,000 257,000 658,000 334,000

 Net deliveries from foreign stocks in

 Federal Reserve Bank of New York do. 51,500 61,600 136,000 582,000 217,000

 Stocks, Dec. 31:

 Industry 4/ 37,100 39,400 36,700 34,400 r/ 32,700

 Commodity Exchange (Comex) 5/ do. 50,900 49,900 46,500 78,500 49,100

 Department of the Treasury 6/ metric tons 8,150 8,150 8,150 8,140 8,140

 Volume of U.S. Gold Futures Trading 7/ do. 30,300 21,200 18,700 25,500 26,400

 Department of the Treasury: 8/

 American Eagle gold coin 9/ kilograms 17,400 13,700 11,100 21,800 NA

 Other Numismatic gold coins do. 695 952 965 2,250 NA

 Consumption in industry and the arts do. 118,000 114,000 110,000 91,400 r/ 76,100

 Apparent demands, refined 10/ do. 244,000 307,000 357,000 363,000 294,000

 Price: Average per troy ounce 11/ $384.93 $363.29 $344.97 $360.91 $385.41

 Employment, mine and mill only 12/ 16,100 15,100 14,800 14,700 14,200

 World:

 Production, mine kilograms 2,180,000 2,190,000 2,290,000 r/ 2,310,000 r/ 2,290,000

 Official bullion reserves 13/ metric tons 35,600 35,500 r/ 35,200 r/ 34,700 r/ 34,500

r/ Revised. NA Not available.

1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits.

2/ May include small quantities recovered by gravity methods.

3/ May include tailings, waste ore dumps and previously mined ore at some inactive mines.

4/ Unfabricated refined gold held by refiners, fabricators, dealers, and U.S. Department of Defense.

5/ Comex division of New York Mercantile Exchange.

6/ Includes gold in Exchange Stabilization Fund.

7 /Comex only.

8/ Sales to market fiscal year 1990; thereafter, bullion disbursements to U.S. Mint coin programs. Fiscal year begins Oct. 1, of year prior to year indicated.

9/ Sales program began Oct. 20, 1986.

10/ Defined as refinery production from primary materials + refinery production from old scrap + net bullion flow to market from foreign stocks at the New York Federal Reserve

Bank + net imports of bullion. Assumed to include gold held for investment purposes. Excludes gold contained in fabricated items, imported coins, and official monetary gold.

11/ Engelhard Industries quotation.

12/ Source: Mine Safety and Health Administration.

13/ Held by central banks and governments and international monetary organizations. Source: International Monetary Fund.
TABLE 2

MINE PRODUCTION OF GOLD IN THE UNITED STATES, BY STATE 1/ 2/

(Kilograms)

State 1993 1994

Alaska 2,780 3/ 5,740 4/

Arizona 2,710 1,980

California 35,800 30,100

Colorado W 4,420

Montana 5/ 14,300 12,600

Nevada 211,000 214,000

New Mexico 995 W

South Dakota 19,200 W

Washington 7,110 7,410

Other States 6/ 37,300 50,100

 Total 331,000 326,000

W Withheld to avoid disclosing company proprietary data; included in "Other States."

1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three

significant digits; may not add to totals shown.

2/ Beginning with calendar year 1994 the U.S. Bureau of Mines ceased collecting data on

placer mine production. Placer mine data from other sources is footnoted.

3/ This figure, reported to the U.S. Bureau of Mines, probably understates production. 

Data collected by the State indicates 1993 production was 5,948 kilograms.

4/ Production data collected by the State. Data published in this table in prior years was

Bureau of Mines data only; State-sourced data was appended as a footnote.

5/ In addition to reported data shown in the table, placer production was estimated by the

State to have been as follows in kilograms: 1993--6; 1994--12.

6/ Includes for at least one of the years Idaho, Oregon, South Carolina, Utah, Wisconsin, 

and withheld placer data from other states where available.
TABLE 3

TWENTY-FIVE LEADING GOLD-PRODUCING MINES IN THE UNITED STATES IN 1994, IN ORDER OF OUTPUT

 Rank Mine County and State Operator Source of gold

1 Goldstrike Eureka, NV Barrick Goldstrike Mines Inc. Gold ore.

2 Carlin Mines Complex do. Newmont Gold Co. Do.

3 Twin Creeks Humboldt, NV Santa Fe Pacific Gold Corp. Do.

4 Bingham Canyon Salt Lake, UT Kennecott-Utah Copper Corp. Copper ore.

5 Smokey Valley Common Operation Nye, NV Round Mountain Gold Corp. Gold ore.

6 Homestake Lawrence, SD Homestake Mining Co. Do.

7 Jerritt Canyon (Enfield Bell) Elko, NV Independence Mining Co. Inc. Do.

8 Bullfrog Nye, NV LAC Minerals Do.

9 McCoy and Cove Lander, NV Echo Bay Mining Co. Do.

10 McLaughlin Napa, CA Homestake Mining Co. Do.

11 Getchell Humboldt, NV FMG Inc. Do.

12 Mesquite Imperial, CA Santa Fe Pacific Gold Corp. Do.

13 Castle Mountain San Bernardino, CA Viceroy Gold Corp. Do.

14 Lone Tree Humboldt, NV Santa Fe Pacific Gold Corp. Do.

15 Cannon Chelan, WA Asamera Minerals (U.S.) Inc. Do.

16 Denton-Rawhide Mineral, NV Kennecott Rawhide Mining Co. Do.

17 Zortman-Landusky Phillips, MT Pegasus Gold Inc. Do.

18 Wharf Lawrence, SD Wharf Resources LTD Do.

19 Ridgeway Fairfield, SC Kennecott Ridgeway Mining Co. Do.

20 Florida Canyon Lander, NV Pegasus Gold Inc. Do.

21 Barney's Canyon Salt Lake, UT Kennecott Corp. Do.

22 Crofoot-Lewis Humboldt, NV Hycroft Resources & Development Corp. Do.

23 Mercur Tooele, UT Barrick Goldstrike Mines Inc. Do.

24 Yellow Aster Kern, CA Glamis Gold Inc. Do.

25 Bald Mountain White Pine, NV Placer Dome (U.S.) Inc. Do.
TABLE 4

U.S. CONSUMPTION OF GOLD 1/ 2/, BY END-USE SECTOR

(Kilograms)

End use 1993 1994

Jewelry and the arts:

 Karat gold 61,700 r/ 49,700

 Fine gold for electroplating 373 r/ 369

 Gold-filled and other 3,530 3,650

 Total 65,600 r/ 53,700

Dental 6,170 5,430

Industrial:

 Karat gold 1,100 96

 Fine gold for electroplating 9,090 9,470

 Gold-filled and other 9,470 7,450

 Total 19,700 17,000

Small items for investment 3/ -- --

 Grand total 91,400 r/ 76,100

r/ Revised.

1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines

to three significant digits; may not add to totals shown.

2/ Gold consumed in fabricated products only; does not include monetary bullion.

3/ Fabricated bars, medallions, coins, etc.
TABLE 5

U.S. EXPORTS OF GOLD, BY COUNTRY 1/ 2/

Ores and concentrates 3/ Dore and precipitates Refined bullion Total Waste and scrap

 Year and country Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value

(kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands)

1993 216 $1,880 67,500 $686,000 658,000 $7,610,000 726,000 $8,300,000 66,800 4/ $616,000

1994:

 Argentina -- -- -- -- 285 3,480 285 3,480 -- --

 Belgium -- -- -- -- -- -- -- -- 2,660 33,600

 Brazil -- -- -- -- 255 3,120 255 3,120 -- --

 Canada 414 3,390 15,500 120,000 2,900 33,200 18,800 156,000 33,600 270,000

 China -- -- 9 115 636 8,000 645 8,120 -- --

 France -- -- 30,300 377,000 -- -- 30,300 377,000 5,020 61,700

 Germany -- -- 40 141 13,200 166,000 13,300 167,000 5,580 65,400

 Hong Kong -- -- 628 7,870 64,700 795,000 65,300 803,000 2 13

 Ireland -- -- -- -- 793 12,000 793 12,000 5 66

 Italy -- -- 3 25 12 93 15 118 351 4,330

 Japan -- -- 529 6,400 1,590 19,100 2,120 25,500 90 1,370

 Korea, Republic of -- -- 185 2,310 2,070 25,400 2,260 27,700 1 7

 Mexico -- -- 20 251 7,940 96,100 7,960 96,300 -- --

 Peru -- -- -- -- 294 3,610 294 3,610 7 89

 Singapore -- -- -- -- 1,500 18,200 1,500 18,200 60 568

 Sweden -- -- -- -- -- -- -- -- 998 12,600

 Switzerland -- -- 9,190 113,000 95,000 1,130,000 104,000 1,240,000 7,650 64,400

 Taiwan -- -- -- -- 32,500 404,000 32,500 404,000 -- --

 Turkey -- -- -- -- 429 5,250 429 5,250 -- --

 United Arab Emirates -- -- -- -- 707 8,690 707 8,690 -- --

 United Kingdom 36 360 4,140 49,700 109,000 1,330,000 113,000 1,380,000 20,200 229,000

 Other 12 29 20 158 324 3,870 356 4,060 95 1,170

 Total 462 3,780 60,600 677,000 334,000 4,060,000 395,000 4,740,000 76,300 745,000

1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits; may not add to totals shown.

2/ Bullion also moves in both directions between U.S. markets and foreign stocks on deposit in the Federal Reserve Bank. Monetary gold excluded.

3/ Includes base metal ores, concentrates, and matte destined for refining.

4/ Verification of Bureau of the Census export quantities was not possible for some months of 1993. Quantities shown are rounded estimates derived by dividing dollar values, which are believed to

be accurate, by an estimated value for waste and scrap of $9,400/kg.

Source: Bureau of the Census.
TABLE 6

U.S. IMPORTS FOR CONSUMPTION OF GOLD, BY COUNTRY 1/ 2/

Ores and concentrates 3/ Dore and precipitates Refined bullion Total Waste and scrap

 Year and country Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value

(kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands)

1993 1,240 $13,500 12,500 $135,000 130,000 $1,500,000 144,000 $1,640,000 25,500 $65,400

1994:

 Argentina -- -- -- -- 117 1,560 117 1,560 1,060 15,700

 Bolivia -- -- -- -- 711 8,600 711 8,600 14 101

 Brazil -- -- -- -- 3,370 42,000 3,370 42,000 6 42

 Canada 3 35 11,400 132,000 73,900 913,000 85,300 1,040,000 2,740 21,600

 Chile -- -- 283 3,500 7,300 90,600 7,590 94,100 13 143

 Colombia -- -- 67 494 1,900 20,300 1,960 20,800 14 176

 Costa Rica -- -- 326 4,080 3 42 329 4,120 487 4,060

 Dominican Republic -- -- -- -- 43 455 43 455 3,410 21,500

 Ecuador -- -- 104 1,260 2,840 29,100 2,940 30,300 55 557

 Guyana -- -- -- -- 174 2,180 174 2,180 636 7,490

 Malaysia -- -- -- -- -- -- -- -- 1,350 2,150

 Mexico 2,240 27,300 2,120 25,900 1,080 12,800 5,450 66,000 2,080 11,800

 Panama -- -- 549 3,670 224 2,080 773 5,750 211 604

 Peru -- -- 168 2,060 476 5,820 644 7,880 7,410 8,120

 Philippines -- -- -- -- -- -- -- -- 736 336

 Suriname -- -- -- -- 59 702 59 702 321 3,880

 Switzerland -- -- -- -- 2,220 28,500 2,220 28,500 9 59

 Trinidad and Tobago -- -- -- -- 17 199 17 199 538 7,330

 United Kingdom 1 8 -- -- 1,140 15,600 1,140 15,600 14 152

 Uruguay -- -- -- -- 201 2,480 201 2,480 -- --

 Venezuela -- -- 1 12 223 2,300 224 2,310 3 38

 Other -- -- 113 1,160 319 3,250 432 4,400 687 5,330

 Total 2,250 27,300 15,100 174,000 96,400 1,180,000 114,000 1,380,000 21,800 111,000

1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits; may not add to totals shown.

2/ Bullion also moves in both directions between U.S. markets and foreign stocks on deposit in the Federal Reserve Bank. Monetary gold excluded.

3/ Includes base metal ores, concentrates, and matte destined for refining.

Source: Bureau of the Census.
GOLD: WORLD MINE PRODUCTION BY COUNTRY 1/ 2/

(Kilograms)

Country 1990 1991 1992 1993 1994 e/

Argentina 1,400 r/ 1,730 r/ 1,110 r/ 937 r/ 1,000

Armenia e/ XX XX 500 r/ 500 500

Australia 244,000 234,000 243,000 e/ 247,000 256,000 3/

Belize e/ 1 3/ 5 5 2 2

Bolivia 5,200 3,500 4,690 10,400 r/ 12,800 3/

Botswana 46 20 165 192 200

Brazil 4/ 102,000 89,600 r/ 85,900 74,200 r/ 76,000

Burkina Faso e/ 7,800 5,600 5,400 5,000 6,000

Burundi e/ 9 3/ 25 32 20 20

Cameroon e/ 10 3/ 10 10 10 10

Canada 169,000 177,000 161,000 153,000 146,000 3/

Central African Republic 241 176 155 150 e/ 150

Chile 27,500 28,900 33,800 33,600 r/ 38,600 3/

China e/ 100,000 120,000 140,000 160,000 160,000

Colombia 29,400 34,800 32,100 27,500 r/ 27,500 3/

Congo 7 12 5 5 e/ 5

Costa Rica e/ 460 550 550 600 650

Cote d'Ivoire 20 1,100 1,500 1,500 e/ 1,500

Dominican Republic 4,350 3,160 2,380 1,500 r/ e/ 1,300

Ecuador 5/ 10,700 12,200 1,310 r/ 940 r/ 1,500 3/

Ethiopia 6/ 848 3,040 2,220 3,390 r/ 3,300

Fiji 4,120 2,740 r/ 3,700 r/ 3,780 3,440 3/

Finland 2,810 2,200 1,600 1,390 r/ 1,380 3/

France 5,430 r/ 4,610 r/ 3,060 r/ 2,160 r/ e/ 3,800

French Guiana (Guyane) 870 1,420 2,140 r/ 2,500 r/ 2,500

Gabon 5/ 80 e/ 50 70 120 72

Georgia e/ XX XX 1,500 r/ 1,000 r/ 600

Germany:

 Eastern states 1,750 XX XX XX XX

 Western states e/ 18 XX XX XX XX

 Total 1,770 10 e/ -- -- --

Ghana 16,800 26,300 31,000 39,200 44,500 3/

Guatemala 62 31 32 30 e/ 30

Guinea 7/ 6,340 4,450 2,110 2,100 e/ 2,100

Guyana e/ 1,500 1,840 2,480 9,610 11,800 3/

Honduras 156 180 163 111 r/ 106 3/

Hungary e/ 600 500 500 500 200

India 8/ 1,980 1,970 1,760 r/ 2,000 r/ 2,150

Indonesia 9/ 11,200 16,900 38,000 42,100 45,000

Iran e/ 500 500 500 417 3/ 723 3/

Japan 7,300 8,300 8,890 9,350 r/ 9,550 3/

Kazakhstan e/ XX XX 24,000 25,000 26,000

Kenya e/ 25 3/ 20 20 20 20

Korea, North e/ 5,000 5,000 5,000 5,000 5,000

Korea, Republic of 8/ 20,800 20,800 23,300 25,000 e/ 25,000

Kyrgyzstan e/ XX XX 1,200 r/ 1,500 r/ 2,000

Liberia e/ 10/ 600 600 700 700 --

Madagascar e/ 216 3/ 200 200 200 200

Malaysia 2,590 2,780 3,510 4,460 4,080 3/

Mali e/ 11/ 5,200 4,900 5,700 5,500 5,500

Mexico 9,680 10,100 9,890 11,100 r/ 13,900 3/

Mongolia e/ 1,000 800 900 1,200 r/ 2,000

Mozambique 63 394 296 149 336 3/

Namibia 1,610 1,860 2,030 1,950 2,450 3/

New Zealand 4,630 6,760 10,500 11,200 r/ 12,000

Nicaragua 1,200 e/ 1,150 1,320 1,240 r/ 1,070 3/

Panama 85 194 250 255 e/ 245

Papua New Guinea 31,900 60,800 71,200 60,600 59,300 3/

Peru 5/ 9,100 e/ 9,930 20,600 r/ 23,100 r/ 25,000 3/

Philippines 24,600 25,900 22,700 15,800 14,600 3/

Poland e/ 30,000 30,000 30,000 30,000 30,000

Portugal e/ 350 160 89 -- --

Romania e/ 3,000 3,000 3,700 3,000 4,000

Russia XX XX 146,000 150,000 147,000 3/

See footnotes at end of table.
TABLE 7--Continued

GOLD: WORLD MINE PRODUCTION BY COUNTRY 1/ 2/

(Kilograms)

Country 1990 1991 1992 1993 1994 e/

Rwanda e/ 2,160 3/ 1,000 1,000 1,000 100

Saudi Arabia 3,540 4,780 6,150 7,520 r/ 8,000

Serbia and Montenegro 12/ XX XX 7,330 3,330 4,000

Sierra Leone 13/ 32 26 92 157 123 3/

Solomon Islands e/ 35 30 25 20 5

South Africa, Republic of 605,000 601,000 614,000 619,000 580,000 3/

Spain 6,810 7,400 6,580 6,080 r/ 6,000

Sudan e/ 100 50 1,000 1,600 2,500

Suriname e/ 30 30 300 300 300

Sweden 6,330 6,250 6,160 r/ 6,550 r/ 6,500

Taiwan 8/ 72 -- -- -- --

Tajikistan e/ XX XX 1,700 r/ 1,600 r/ 1,500

Tanzania e/ 3,500 4,200 6,000 6,000 6,000

Turkey e/ 14/ 1,010 970 1,120 1,250 1,250

U.S.S.R. 15/ 302,000 260,000 XX XX XX

United States 294,000 294,000 330,000 331,000 326,000 3/

Uruguay e/ -- -- -- 300 300

Uzbekistan e/ XX XX 75,000 r/ 75,000 r/ 75,000

Venezuela 7,700 4,220 7,550 8,710 9,940 3/

Yugoslavia 12/ 16/ 8,170 r/ 6,920 r/ XX XX XX

Zaire e/ 9,300 8,800 7,000 6,000 1,080 3/

Zambia 17/ 129 136 271 235 r/ 210

Zimbabwe 16,900 17,800 18,300 18,900 20,500 3/

 Total 2,180,000 r/ 2,190,000 r/ 2,290,000 r/ 2,310,000 r/ 2,290,000

e/ Estimated. r/ Revised. XX Not applicable.

1/ Previously published and 1994 data have been rounded by the U.S. Bureau of Mines to three siginificant digits; may not add to totals shown.

2/ Table contains data available through July 20, 1995.

3/ Reported figure.

4/ Officially reported figures are as follows, in kilograms: Major companies: 1990--30,100; 1991--34,100; 1992--39,000; 1993--39,900; and 1994--45,000

(estimated). Garimpos 1990--71,800; 1991--55,500; 1992--46,800; 1993--34,300; and 1994--31,000 (estimated).

5/ Does not include undocumented production from small artisanal production.

6/ Year ending July 7 of year stated.

7/ Figures include reported Société Aurìfere de Guinea (SAG) mine production of, in kilograms: 1990--1,750; 1991--1,450; 1992--1,110; and 1993--500 

(estimated). Remainder represents approximate reported sales to Government, of artisanal production. Figures do not include artisanal production smuggled

out of the country. In 1994, the SAG mine was closed.

8/ Refinery output.

9/ Excludes production from so-called people's mines, which may be as much as 18,000 kilograms per year, but includes gold recovered as byproduct of 

copper mining.

10/ These figures are based on gold taxed for export and include gold entering Liberia undocumented from Guinea and Sierra Leone.

11/ Includes estimates of artisanal production and may include some gold smuggled into Mali. The Kalana Mine accounted for about 8% in 1990; about 2% in 

1991; less than 1% in 1992; and none from 1993-94. The Syama Mine began gold production in 1990 and accounted for about 42% of the total output that

year, 49% in 1991; 57% in 1992; 56% in 1993; and 55% in 1994.

12/ All production in Yugoslavia from 1990-91 came from Serbia and Montenegro.

13/ Data are based on official exports and do not reflect gold moved through undocumented channels.

14/ Indicates byproduct of base metals.

15/ Dissolved in Dec. 1991.

16/ Dissolved in Apr. 1992.

17/ Year beginning Apr. 1 of year listed. Byproduct of copper production by Zambia Consolidated Ltd. only. Some addtional artisinal production was

reported but data are insufficient to make a reliable estimate.