Nevada gold production slips 5 percent

Friday, March 22, 2002 | 11:14 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- Gold production fell 5 percent to 8.125 million ounces valued at $2.2 billion, but Nevada remained the nation's top gold mining state in 2001.

The Nevada Division of Minerals said Thursday that reasons for the decline were that gold prices remained below $300 per ounce and that miners faced high energy costs.

Division Administrator Alan Coyner said Nevada is the third largest gold producer in the world trailing only South Africa and Australia.

"The continuing high production rate is evidence of the substantial contribution Nevada's mining companies make to the state's economy. Nevada has some of the most efficient mines in the world."

The division said the total value of all mines production in 2001 was an estimated $2.5 billion.

Silver production dropped from 23.2 million ounces in 2000 to 17.5 million ounces last year, which was worth about $76 million. Doug Driesner of the minerals division said the drop was due to the closure in mid-year of the McCoy /Cove mine in Lander County, one of the big silver producers. He said the mine ran out of reserves.

Even with that, Nevada still led the nation in silver production.

The total value of industrial minerals, which include aggregates, barite, clays, copper diatomite, dolomite, gypsum, lime and limestone, magnesite, opals, perlite, salt, silica sand and zeolites was about $200 million.