Gold Mining is Making a Comeback in Southern Nevada
Experts and investors have long been predicting the gold rush and it is going strong in Nevada. The town of Ely, Nevada, is experiencing a modern-day boom thanks to the growing opportunities in the mining industry.
This small town was established in the 1800s as a Pony Express Stop but it became so much more than a mail delivery stop. According to Wayne Cameron, the executive director of White Pine Chamber of Commerce, potential mining companies have injected new life in the town economy.
This comeback is being compared to the old-time gold rush in Nevada prior to the 1930s.
Nevada has always produced incredible amounts of gold and it remains the fourth biggest gold producer in the world. It should be noted that Nevada produces nearly 5 million ounces of gold every year.
Long-closed mine is set to reopen
Easy Junior mine, which was shut down in the 90s, is about to be reopened under new ownership.
Located fifty miles west of the town of Ely, this old mine will be renamed the Gold Rock Mine. The new general manager, Randy Britton, is already operating the Pan Mine which is about ten miles away from soon-to-be Gold Rock Mine.
He said that in order to open the mines, there must be a demand at the existing price and the market has to be just right. He also said that access to the right technology is equally crucial in mining operations.
Britton added that whether a mine will be profitable or not depends on the cost of production versus the gold price.
His company is planning to use state-of-the-art technology and equipment, including ground-penetrating radar and sophisticated computers, to produce an average 70,000 ounces of gold annually.
Britton says that his company is also highly focused on keeping the environment clean so the entire mining process will be eco-friendly.
It goes without saying that these new operations will generate job opportunities as well. According to Britton, the company will employ hundreds of workers with wages ranging between $21-37 per hour.
These new jobs will have a great impact on the economies of Ely as well as Eureka, another nearby town. Again, this boom in jobs is not that different from the one in the early 1900s.
The Bureau of Land Management has already approved the Gold Rock mine for production, which will begin by 2023. The mine is estimated to generate large quantities of gold for at least the next decade.
This article contains the author's opinions. These are not investment-related recommendations. Do not consider the article as any type of commercial solicitation or an investment product offer.
About the Company
Ely Gold Royalties Inc. is a Vancouver-based emerging royalty company with development assets focused in Nevada and the Western US. Its current portfolio includes 33 Deeded Royalties and 21 Optioned Properties including two separate royalties on the Gold Rock Mine. The portfolio is currently generating significant revenue..
Ely Gold’s royalty portfolio includes producing royalties, fully permitted mines, mines under construction and development projects that are being permitted for mine construction.