Copperstone gold operation ceasing operations

 American Bonanza Gold Corp. has put its Copperstone gold mine on a 'care and maintenance' status while it tries to find additional investment to bring the mine up to capacity.

Our sources indicate the mine's production reached only about 1/3 of the planned capacity at the same time that the price of gold has dropped 23%.   The price drop is making it difficult for gold companies to raise money.   [Right, aerial view of existing mine operations and targeted underground zones.  Credit, American Bonanza Gold Corp.]    The mine is north of Quartzite in La Paz County in western Arizona.

Walter Heinrichs, Jr.

We received just a brief note that Walter E. Heinrichs, Jr., one of Arizona's best known mining geologists, passed away on Thursday, October 10.

I had the pleasure of presenting the Arizona Geological Society's Honorary Lifetime Membership to Walt in 2008 [right].

Air quality permit issued for Holbrook potash mine

Arizona Department of Environmental Quality officials announced today that an air quality permit has been issued to American West Potash, the first permit to be issued for a large, proposed potash mining operation 30 miles southeast of Holbrook in Navajo County.  [Right, lease/ownership map of the Holbrook basin potash play.  AWP lands in purple on east side of Petrified Forest National Park in pale yellow]

The permit incorporates all applicable state and federal regulations and all appropriate pollution control requirements, monitoring and record keeping provisions to ensure protection of human health and the environment. While not required by air quality regulations, American West Potash addressed ADEQ’s request to work with the United States Forest Service and the National Park Service to document that the project would not adversely impact air quality at Petrified Forest National Park, which is located in close proximity to the project site.

American West Potash expects to begin construction of the mine in early 2015 and hopes to begin potash production in late 2017 or early 2018. The company anticipates creating  more than 750 full-time positions  and another nearly 200 jobs are expected to be created by outside businesses that will provide goods and services for mine operations.

“This mine could add nearly 1,000 much needed jobs to northeast Arizona’s economy and our air quality permit is highly protective of human health and the environment,” said ADEQ Director Henry Darwin. “This is an excellent example of how all parties can work together to protect the environment and grow the economy.”

American West Potash LLC, headquartered in Denver, Co., owns mineral claims covering an area of 32,000 acres in the Holbrook Basin. The company has estimated that as many as 2.5 billion tons of potash could be extracted in the next 60 years from the region. Potash contains potassium in water soluble form that is used in fertilizers throughout the world.

      

In addition to the air quality permit, American West Potash is expected to need an aquifer protection permit, an Arizona Pollutant Discharge Elimination System (AZPDES) permit  and possibly other permits from ADEQ before construction activities can begin.

[This post is the ADEQ news release]

Invitation to participate in global survey of mining jurisdictions

The Fraser Institute, Canadian public policy think-tank, conducts an annual survey of how miners and explorers rate the investment climate of jurisdictions around the world. The results identify the countries, states and provinces whose policies create the greatest barriers to investment in the mining sector.

[Update 10/13/13:  Fraser Institute advised us that they are having some difficulties with the link to the Mining Survey embedded in some of the advertising material. This has resulted in participants receiving an error message when they try to access the survey. Please use the following link: http://www.cvent.com/d/24q7w7/3B ]

To participate in this year’s survey, please click here. To find out further information about the survey, please contact Alana Wilson, survey coordinator, at +1(604)688-0221 Ext.547 or alana.wilson@fraserinstitute.org.

Officers, managers, and other experts with mining exploration and development companies, and their advisors, are asked to complete the 2013 survey questionnaire with respect to jurisdictions about which they are knowledgeable. Participation is electronic, at:  2013 Mining Survey

The Survey of Mining Companies: 2012/2013 (published February 2013) ranked the investment climate of 96 jurisdictions around the world based on the opinions of mining executives representing 742 mineral exploration and development companies. Participating companies reported exploration spending of $6.2 billion US in 2012 and $5.4 billion US in 2011.

They have shortened the survey questionnaire this year and it can be completed in less than 15 minutes. Participants will be thanked by receiving an electronic copy of the survey at the time of its release, as well as being entered into a draw to win $1,000 (USD) if they provide their contact information. All information collected through the survey remains confidential. 

[excerpted from Fraser Institute materials]