Exploration: Gold Searches Continue at Healthy Pace

Although gold's market price dropped considerably from 1980's all time high, exploration for the precious metal remained a particularly bright spot last year, especially in the western US. For example, in Nevada-the nation's largest gold producer-further exploratory drilling at Louisiana Land & Explorations Co.'s deposit at Round Mountain and Newmont Mining Corp.'s find near Carlin resulted in sharp boosts in estimated reserves at both sites. Louisiana Land said its deposit is well on the way to being one of the largest gold reserves in the US. Based on further drilling, Newmont said its Gold Quarry property near Carlin could now produce 4.7-6.2 t/a (150,000-200,000 oz/ year). Reserves at Newmont's two properties near Carlin and a third property in southeast California are reportedly at least 218 t (7 million oz), up from the previously announced 128 t (4.1 million oz). Gold exploration activities were brisk in many other states, including a noticeable effort to explore and reopen dormant properties. Although the return on investments didn't appear as favorable last year as they did in 1980, the gold price was apparently sufficient to spur healthy exploration activity. Outside precious metals, market conditions, and subsequent exploration activity, appeared much more bleak. In the molybdenum market, for example, prices continued to slide, and Amax Inc. tightened its exploration budget. (Amax supplies 60% of the domestic market and 45% of the world demand for molybdenum.) The company spent 16% less on exploration during the first six months in 1981, compared to the same period in 1980. Copper and many other base metal producers appeared in similar straits throughout the year. Uranium exploration activities continued to suffer last year also due to depressed market conditions. Among others, Gulf Minerals Resources and Amoco Minerals Co. suspended uranium exploration activities in the West. Despite current unfavorable conditions, some companies continue uranium searches, confident that market conditions will rebound. On a brighter note, interest in exploring for some industrial and strategic minerals appeared on the upswing last year. Minerals used for oil and gas drilling, such as barite and special sands, were especially noteworthy. In geophysical activity, significant developments were achieved for electromagnetic techniques in both frequency-domain and time-domain systems. Geophysical logging activity declined due to decreased uranium exploration, and computer hardware continued to impact the way mining geophysical data are being acquired. Many presentations and papers were given last year to help exploration geochemists develop new techniques to locate concealed ore bodies. Among techniques described were statistical and computer modeling for enhancing anomalies over blind deposits.