Nevada gold production down, but value increases

Friday, March 28, 2003 | 9:41 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- Gold production in Nevada dropped by 5 percent to 7.7 million ounces in 2002 compared with the previous year -- but the state remains the nation's top gold producer.

The state Division of Minerals said Thursday that Nevada continues as the third largest gold producer after South Africa and Australia.

While the amount declined, the value of gold production rose to $2.4 billion, up from the $2.2 billions in 2001. The division said the increase was due to higher gold prices. They rose from $271 an ounce in 2001 to $310 in 2002.

Silver production fell by 22 percent in 2000 to 13.5 million ounced, but Nevada continued to be the leader in the United States. The division said the value of silver production fell to $62 million, down from $76 million in 2001.

Alan Coyner, administrator of the division, said despite the decline in production of precious metals, exploration activity increased significantly in 2002. He said that should lead to additional discoveries and production in the future.