From top left, Robert Friedland (Executive Chairman Ivanhoe Electric), Crown Prince Mohammed bin Salman (“MBS”), Minister Bandar Alkhorayef (Ministry of Industry and Mineral Resources of Saudia Arabia) at FMF 2025
The global transition towards a greener economy has ignited a fierce competition for critical minerals, the essential building blocks for technologies like electric vehicles, wind turbines, and solar panels. This scramble for resources has placed immense pressure on mining and exploration activities, reshaping global supply chains and driving significant investment in the sector. Currently, the Future Minerals Forum in Riyadh, Saudi Arabia, is playing a pivotal role in shaping this evolving landscape.
Current Affairs in Critical Minerals Mining and Exploration
The current state of critical minerals mining and exploration is marked by several key trends:
Surging Demand: The demand for minerals like lithium, cobalt, nickel, and rare earth elements is skyrocketing, driven by the global push for decarbonization and technological advancements. This surge has led to increased exploration efforts and the development of new mining projects worldwide.
Supply Chain Vulnerabilities: The concentration of critical mineral production and processing in a few countries, notably China, has raised concerns about supply chain security and potential geopolitical risks. This has prompted nations to diversify their sources and invest in domestic production and processing capabilities.
Environmental and Social Concerns: Mining activities often have significant environmental and social impacts, including habitat destruction, water pollution, and displacement of communities. There is growing pressure on mining companies to adopt sustainable practices and ensure responsible sourcing of minerals.
Technological Advancements: Innovation in mining and processing technologies is crucial for improving efficiency, reducing environmental impact, and unlocking new sources of critical minerals. This includes advancements in exploration techniques, extraction methods, and recycling processes.
Global Forces Involved in Securing Resources and Critical Supply Chains
Several key players are vying for influence in the critical minerals arena:
Governments: Governments are playing a crucial role in securing critical mineral supplies through strategic partnerships, investments in domestic production, and the development of regulatory frameworks. They are also increasingly focused on promoting sustainable mining practices and ensuring responsible sourcing.
Mining Companies: Mining companies are at the forefront of exploration and extraction activities, investing heavily in new projects and technologies. They are also facing increasing pressure from investors and consumers to adopt sustainable and ethical practices.
Downstream Industries: Companies in sectors like automotive, renewable energy, and electronics are heavily reliant on critical minerals and are actively involved in securing their supply chains through direct investments, offtake agreements, and partnerships with mining companies.
Financial Institutions: Banks, investment funds, and private equity firms are providing crucial funding for mining and exploration projects, driving innovation and expansion in the sector.
Current Investment Capital Allocation
Investment in critical minerals has seen a significant uptick in recent years, with capital flowing into various segments of the value chain:
Exploration and Development: A significant portion of investment is directed towards exploration activities to discover new deposits and develop new mining projects.
Mining and Processing: Investments are being made to expand existing mines, develop new processing facilities, and improve extraction and refining technologies.
Recycling and Circular Economy: Growing attention is being paid to recycling and circular economy initiatives to recover valuable minerals from end-of-life products and reduce reliance on primary mining.
Research and Development: Investments in R&D are crucial for developing new technologies and sustainable practices in the critical minerals sector.
The Future Minerals Forum and its Impact on Future Mining Investment
The Future Minerals Forum in Riyadh, Saudi Arabia, has emerged as a key platform for global dialogue and collaboration on critical minerals. The forum brings together government officials, industry leaders, investors, and experts to discuss the challenges and opportunities in the sector.
The forum is particularly significant for future mining investment for several reasons:
Promoting Investment Opportunities: The forum showcases investment opportunities in the mining sector, particularly in the Middle East, Africa, and Central Asia, attracting global capital to the region.
Fostering Collaboration: The forum facilitates partnerships and collaborations between governments, mining companies, and investors, creating a conducive environment for investment.
Driving Sustainable Development: The forum emphasizes the importance of sustainable mining practices and responsible sourcing, encouraging investments that align with environmental and social goals.
Shaping Global Policy: The forum contributes to shaping global policy discussions on critical minerals, influencing investment trends and regulatory frameworks.
The Future Minerals Forum is playing a crucial role in shaping the future of the critical minerals sector, driving investment, promoting sustainable development, and ensuring a secure and responsible supply of these essential resources for the global economy.
The dusty plains and rugged mountains of the western US whisper tales of gold rushes and silver booms. These days we are more likely to see lithium, copper, REE, and uranium booms turning heads with high-tech exploration and proprietary devices humming above the fertile ground. For centuries, mineral exploration has carved its mark on this landscape, fueling economic growth, sparking frontier expansion, and leaving behind a legacy of both prosperity and environmental scars. But what does the future hold for mineral exploration in this iconic region?
Golden Echoes: The history of the West is intertwined with the pursuit of minerals. The California Gold Rush of 1848 painted the region with a frenzy of prospectors, forever altering its demographic and economic trajectory. Subsequent discoveries of copper, lead, and silver cemented the West’s reputation as a treasure trove. These explorations were often rough-and-tumble affairs, leaving behind abandoned towns and environmental concerns. Many of these towns are still lively communities while others are barley visible on a modern road map with over grown roads and rusted out gas stations.
Shifting Sands: The 20th century saw a shift towards larger, mechanized mining operations, focusing on base metals and industrial minerals. While bringing economic stability, these ventures raised concerns about water usage, land reclamation, and pollution. Public awareness led to stricter environmental regulations and a decline in traditional large-scale mining. In reality, the high-minded “save the environment” folks only accomplished pushing those jobs and resource production over-seas, something that is now a big concern for our local supply chain security.
Green Gold Rush: But the Wild West’s geological story is far from over. The 21st century has brought a new wave of exploration, fueled by the demand for minerals crucial for the green revolution. Lithium, cobalt, and rare earth elements, needed for batteries, wind turbines, and solar panels, are now drawing prospectors to forgotten corners of the West. This “green gold rush” offers environmental benefits, reducing reliance on fossil fuels, but also poses new challenges, such as ensuring responsible sourcing and minimizing ecological impact. The ‘elephant in the room’, of course, is uranium and nuclear power (the ONLY baseload power capable to replacing carbon sources of energy).
Technological Treasure Hunter: Technology is revolutionizing mineral exploration. Advanced geophysical surveys, data analysis tools, and even drones are helping prospectors identify potential deposits with greater accuracy and efficiency. This can minimize environmental disruption and open up previously inaccessible areas, but also raises concerns about land access and data ownership. Additionally, technological advancements have made current small modular reactors (SMRs) intrinsically safe and quite lucrative for the electrification transition.
The Human Terrain: The human dimension remains crucial in shaping the future of mineral exploration in the West. Communities must have a say in how their land is used, and mining companies must operate with transparency and accountability. Striking a balance between economic development, environmental protection, and community interests will be key to ensuring a sustainable future for both the land and its people. But this has always been the case, the only things that has changed in the last 100 years ago is nearly every aspect of human life. It is naïve to measure yesterday’s faults against today’s norms, but such is the usual criticism.
Looking Ahead: The western US stands at a crossroads in its mineral exploration journey. The lessons of the past, the technological advancements of the present, and the challenges of the future demand a nuanced approach. Collaboration between government, industry, academics, and communities is essential to develop responsible and sustainable practices that not only unearth natural resources but also build a thriving, environmentally conscious future for the Wild West. If we don’t do it someone else will and in a more environmentally costly manner without our oversight.
The Earth’s crust holds a treasure trove of minerals, vital for everything from smartphones to wind turbines. Your local geology holds more under your feet than you will most likely imagine… unless you are a geologist, miner, prospector, or metallurgist. Yet, the buzz of pickaxes and drill rigs exploring for these hidden riches seems muted in recent times. The question begs: where has all the investment for mineral exploration gone?
It’s true, mineral exploration spending has seen a decline in the past decade. Compared to the heady days of the early 2010s, when commodity prices soared, exploration budgets have tightened. Usually, price begets sentiment and with $2,000 gold one would think that investors would be flocking towards producers and explorers alike. So, where’s the beef? But to say it’s vanished entirely is painting an incomplete picture. The story here is one of shifting sands, not barren deserts.
The Green Shift: The tide is turning towards minerals critical for the green energy revolution. Lithium, cobalt, and rare earth elements, once niche players, are now rockstars, with demand skyrocketing fueled by electric vehicles, solar panels, and wind turbines. Investment in exploration for these “clean energy minerals” is booming, with lithium exploration spending alone nearly doubling in the past year. This, in the face of a current slump in lithium price. Here price and sentiment have diverged. Weird. Furthermore, even in the face of the “green revolution” our governing bodies and regulatory agencies can seem to pivot fast enough to provide a clear path forward.
The Risk Factor: Mineral exploration is a high-risk, high-reward game. It’s like searching for needles in a vast haystack, with most endeavors ending in dust. I’ve heard in the past, only 1 in 100 prospects will actually find something (this might as well be 1 in 1,000 with current investment levels). This inherent risk has pushed investors towards safer bets, especially during commodity downturns. Additionally, environmental concerns and complex permitting processes further dampen enthusiasm for traditional exploration methods. All while other countries and other ‘Super Regions’ (such as being promoted by Saudi Arabia) could easily surpass more traditional mineral rich nations and producers.
Tech to the Rescue: However, innovation is changing the game. New technologies like drone-based surveys and advanced data analysis are lowering exploration costs and increasing the odds of finding viable deposits. This is attracting renewed interest from investors, particularly in greenfield (undiscovered) areas. Very few patches of ground haven’t seen some level of prospective interest, state-funded geologic surveys, or past exploration and diggings. But usually, if you look more closely, these bygone districts only saw activity when the mule and shovel were the best extraction methods available. Modern economies of scale provide the heavy lift anymore. Perhaps it is time to re-visit these storied districts?
The Geopolitical Puzzle: The global map of mineral exploration is also being reshaped by geopolitical factors. Tensions between major economies have prompted countries to secure domestic sources of critical minerals, leading to targeted investments in exploration within their borders. This trend is likely to continue, adding a layer of complexity to the global picture. In recent months China has restricted export of critical minerals such as graphite, Russian uranium supplies are in unsavory hands, and Kazakh well-fields lack the needed sulfuric acid to keep up in-situ recovery. These are symptoms of coming shortfalls and supply chain issues. Beware!
So, where has all the investment gone? It hasn’t disappeared, it’s simply undergone a metamorphosis. It’s flowing towards greener pastures, driven by the surging demand for clean energy minerals. While traditional exploration faces headwinds, technological advancements and a shift in priorities are opening new avenues for investment. The future of mineral exploration is likely to be defined by a strategic blend of technological innovation, green ambitions, and geopolitical maneuvering. But all will be for not if local governments and permitting efforts continue to find obstruction and uninspired political maneuvering.
The question, then, becomes not just where the investment has gone, but where it should go. A sustainable future demands responsible and efficient exploration practices, coupled with investments in recycling and resource substitution. The battery of today will NOT be the battery of the future. And the coveted energy source of now will inevitably turn more nuclear over time. Finding the right balance between meeting our mineral needs and protecting the environment will be the true test for the future of mineral exploration. And as past sins continue to the poster child for how not to mine, these same deposits and districts hold the key for future, sustainable extraction. Only through modern mining can we properly clean up the past wrongs. Taxing your way into reclamation is the most inefficient use of tax-payer funds when that same populous needs the minerals locked up in fought-over, legacy mining areas. The only reason the ski bunnies of today are able to easily access Colorado slopes is due, quite literally, because of mine roads carved into some of the steepest terrain within the North American cordillera.
This post, of course, merely scratches the surface of a complex and evolving issue. Further research into specific regions, policy issues, mineral districts, and technological advancements can paint a more nuanced picture of where the investment is heading and the challenges and opportunities that lie ahead. But one take way from this is clear: we need to get out of our own way!
There is a global shift to the domestic production of minerals. This is happening across the world and is having ripple effects both up stream and down stream in this forward looking economy. It might seem somewhat backward to look inward for stable economic pillars for the global economy. But I might argue the opposite in the face of the ESG (economic social governance) paradigm we, as a species, seem to be self-implementing in this post-pandemic world. It is a natural step to draw from domestic natural resources, should we want to have a greater say in how those resources are produced. It might be the hallmark of the Dotcom boom that most of the materials that built it came from a supply chain wholly opaque to the consumer. And perhaps that system was built with the exact purpose of keeping such machinations obscured from the public eye. Nonetheless, it is perhaps an outdated mode given the current global climate. Imagine the backlash in today’s global economy. Imagine if all companies adhered closely to the transparent ESG paradigm.
As a quick re-cap, the Environmental/Social/Governance paradigm is a global movement for business to be conducted in a transparent way that responds to the socially responsible investor. But in reality it is a current day risk mitigation that takes into account “non-financial” factors when assessing sustainability. In a mineral industry context, the days of a mine’s sustainability equaling its mineral resource or mine life is long past. In truth, this reality has been long-coming and began decades ago here in the U.S. with NEPA (National Environmental Policy Act, 1970). While NEPA is a laudable step towards sustainability, it’s main problem is it’s scope; it only affected the U.S. In short, NEPA was one step forward, two steps back for domestic production of minerals here in the U.S. While the U.S. implemented what is known today as the “NEPA process” other jurisdictions, such as China or Russia, continued business as usual. In this way, the U.S. has continually become less a producer and more a consumer, not only when it comes to mining but across all sectors.
Why does this shift matter? And how could this global transparency and awareness bolster a budding domestic mineral industry? In a way, the ESG paradigm could be harnessed to level the playing field between the un-regulated, “Wild West” mineral producers and the well-regulated non-producers.
We stand at a crossroads. Should the U.S. source it’s resource needs from within or continue to push the social/environmental liability elsewhere? If COVID taught us anything, global supply chains can be swiftly eroded and being self-reliant, even within an ever-expanding global economy, will pay dividends. And in the context of the socially responsible investor & ESG, we should all be able to pull the veil back and see exactly how the sausage is made.
In the Kingdom of Saudi Arabia, as part of their Vision 2030 initiative, they are pivoting towards a future that is diversified to include domestic production of green metals, energy metals, and other precious & base metals production. The Kingdom is most obviously known for its hydrocarbon production, but there is a long history of gold and copper production as well. The Arabian Shield is geologically very old and host to untold riches that have yet to be exploited. In fact, the USGS during the 1950s thru 70s had numerous field mapping campaigns to try and encapsulate these resources outside of the scope of oil & gas.
If a key player within the supply of current fuels has the wherewithal to begin to pivot towards the future, surely the U.S. can find the backbone to do the same. But there is one question that would need to be answered before that could happen: Can we reconcile the fact that, in order to build the green future of the electrification transition, we will need to mine minerals? Current policy from the Biden administration seems keen to promote domestic production of minerals but actual investment from the Dept of Defense is looking beyond our borders to non-domestic mineral resources. This is quite discouraging given the vast endowment of natural resources the U.S. already has within its borders.
I’ve seen this bumper sticker, found in many a mining town, that goes something like: “If it’s not grown… it’s mined.” There’s nothing like some bumper sticker wisdom to solve any problem, right? Seriously though, this might seem like an over simplification of a complex problem, but is it? Resources, by their very definition, are something that must needs be exploited. Now. This exploitation can be done ethically, with all stakeholders at the table, or we can continue to allow other countries to do our dirty work for us. In short, if we don’t mine it cleanly (per our own NEPA regulations) then someone else will mine it however they see fit (without regulatory oversight, most likely). To be honest, unregulated mining is the most profitable (for the mining company)… that’s why it was done that way historically. So then, what is the point of ESG (or any set of standards, for that matter) if we are not all playing by the same rules?
The domestic production of minerals (aka, mining) is ultimately the logical conclusion of the green energy thought experiment. Don’t shoot the messenger when you find out that in order to transition away from carbon you will need to invite some other elements to the party. As Hunter S. Thompson encapsulated so eloquently, “Buy the Ticket… Take the Ride!” If the goal is to electrify our energy and transportation sector by means of transitioning away from carbon sources of fuel, then the only alternative is a suite of other elements/minerals. These minerals have be enumerated in the critical minerals list put out by the USGS. And here is the good news: all of the elements found on the critical minerals list can be found here within the U.S.
It’s no secret to those who’ve been paying attention. Minerals equal life. And in order to produce said minerals, they must be mined. The only true debate left is when, where, and how. When will we start to mine these minerals that are required to move forward? Where will we decide to mine these minerals so we can have a say in how they are produced? And how will we do so in an ethical, socially responsible, and sustainable way?
It’s not a giant feat by any stretch. Many of these questions can be answered by visiting your local phosphate, lithium, copper, or gold & silver mine found thought out the Western U.S. They have been quietly producing these vital minerals for decades. The problem now, of course, is there are precious few of them opening up anew. Many of these deposits have a long, battle-worn history of achieving the hard-won state of “in production,” and perhaps rightly so. But it’s it about time we found a more cooperative solution to guiding the mineral producer through the NEPA process and onto actual mineral production. I can see more opportunities to help the miner and the conservationist alike through cooperative permitting. But that sort of “kumbaya” moment doesn’t make for sexy headlines for the 24 hour media cycle to sell. And few environmental activist firms would be able to set up shop with that kind of business model.
Dating to 1865, this historic silver camp in the geographic center of the Silver State has an interesting history and continued interest in today’s silver mining legacy. Within the context of current electrification efforts, it is important to secure domestic silver production for the transition of the energy and transportation sectors. Silver’s single largest industrial consumer is photo-voltaic solar panels, raking in a total of 11% of annual silver supply. The Silver Institute estimates this figure could rise to 50% in the coming years.
Nevada will have a big role to play in mining domestic sources of critical minerals, and among those minerals critical to the transition is silver. Nevada has numerous historic and producing silver districts. Many of these precious metals systems can become metal-dominant to either gold or silver. Historically, the silver-dominant systems have been overlooked by the gold explorationist. So in a counter-intuitive way there is more silver to be exploited within the Silver State than ever before.
Archway doors of a historic bank building in Belmont, NV
Belmont is located 45 miles Northeast of Tonopah, NV in northern Nye County. It is located on the Southeastern flank of the Toquima Range of central Nevada; located 20 miles Southeast of Round Mountain gold mine. The historic mining district is centered within some Private Patented mining claims from the original mining in the late 1800’s.
There are 10 precious metal deposits across complex geology along the Northumberland – Tonopah Silver-Gold Belt. This Belt runs Northeast from Tonopah in the south to Manhattan, Round Mountain, and Northumberland mines in the North. Within this trend there are both gold and Silver-dominant systems that are hosted within both Tertiary volcanics and Paleozoic sediments.
Historic Belmont Courthouse served as Nye Co. seat from 1867 until 1905
There still stands today, the original Nye County seat courthouse in the middle of town at Belmont, NV. Established as the county seat in 1867, Belmont served that role for the county until 1905 when Tonopah was gathering more than a little attention. There are still several surviving store fronts and original buildings within Belmont town site today, such as the archways of an old bank building that you pass on your traverse thru town on NV State Route 82.
The Belmont silver mining district is attributed with 20 years of original production from 1865 thru 1885. This was during the height of the Nevada Silver Rush within such famed districts as the Comstock in Virginina City, NV. Other names for the Belmont district were: Philadelphia, Silver Bend, Barcelona, & Spanish Belt. It is commonly confused with the Belmont mine and mine-fire in Tonopah, NV. As is common in mining culture, successful names get re-used in other districts, such as the well-known name of ‘Belmont’ by the time Tonopah was coming on line after the turn of the century.
Original Caterpillar Model 20
There are various reports that publish estimated silver production numbers anywhere from $4 million to $15 million (citing Kral, 1951 & Lincoln, 1923, respectively). Ore was reportedly produced at $80 per ton and grades of 25 ounces per ton. With these numbers we can calculate the estimated amount of mined silver ounces between 1.5 and 4.7 million ounces. Considering that these numbers come from primitive underground drift and stope mining methods it is impressive nonetheless as this represents at least 50 tons of mine muck per day stretched over 20 years.
Monitor-Belmont Mining Co.’s Highbridge Flotation Mill, built around 1914
Continued interest over time saw revitalization of the Belmont district since first mining. The Monitor-Belmont Mining Co. built a 20 stamp flotation mill on the site of the old Highbridge Mill. Purportedly, these same bricks were used in the original mill or stolen from surrounding mill ruins such as the Combination Mill located closer to Belmont town site. Again in the 1960’s, Summa Corp., a subsidiary of Howard Hughes, backed exploration and sampling efforts at Belmont. Followed up by with a heap leach facility ran in the 1980’s to treat old mine dumps.
Until the 1860’s, silver was at a set price of $1.29 per ounce due to the Mint Act of 1792. At this time, the US was on a bimetallic monetary system that backed the dollar against both gold and silver. Civil War debt was the orginal stressor that saw silver price nearly triple within a short period of time. Even before this price spike there was a fair amount of gold and silver interest and mining within Nevada such as the Comstock. Several governmental policies successively undermined and drove down the price of silver such as the Coinage Act of 1873 that effectively demonetized silver. Followed up by the Sherman Act of 1890, that saw buying and minting of silver to the Federal government resulting in the Panic of 1893. And then the final nail in the coffin, the Gold Standard Act of 1900 where gold became the sole monetary precious metal.
There was a brief-lived rebound in silver price during war-time again with war debt from World War I. At Belmont, this saw the building of the new Highbridge mill and brought electicity in from Manhattan, NV to help dewater the old underground workings. Even still, the renewed effort was short-lived as silver price continued its slump until its nadir during the Great Depression. The first US-led effort that helped silver price was the Bretton Woods agreement of 1944, where President Franklin Roosevelt signed with other european nations to set the dollar as the world’s reserve currency, backed by gold. Gold price was set at $35 per ounce for this agreement, which was a devaluation of the metal by 70% at the time.
Historic Silver Price Chart
Several Nixon Era policies completely dissolved the Gold Standard and decoupled gold from backing the dollar. So by the time the Hunt Bros. caused a run on physical silver bullion in 1979, silver was long overdue a significant price increase and re-valuation. If you adjust for inflation, the silver price set during the Hunt Bros time is nearly $45 per ounce. This throughline of history for silver price can be seen through the lens of the Belmont silver district with it’s own ups and downs.
In the context of Belmont history some key take-aways can be summarized thus; producing years coincide with the Nevada Silver Rush, it was the Nye County seat from 1867 until 1905, the district mined in decline, constantly chasing down a declining silver price, the district was forced to mine more narrow & high-grade each subsequent year, all while using primitive mining methods with simple tools and manual labor.
USGS Topo Map for the Belmont District area (sections are one square mile)
The physical town site of Belmont is located Northwest of the mining district by about a mile or more. Some mill sites were located in Belmont itself, but most of the larger scale mills and all underground workings and mining occured in the main part of the district Southeast of the town. Geographically, the Belmont mining district runs along a North-South set of hills that defines the line between Ralston and Monitor Valleys. There are numerous adits, shafts, declines, and associated dumps and tails thru out the district. Additionally, there are several old stone-built cabins that presumably prospectors lived out of during mining or perhaps before the town of Belmont got fully established.
District Geology (Sections 25 & 36)
District geology consists of Cretaceous Granite and Paleozoic strata along a structurally complex axis bewteen two larger mountain ranges. The Belmont Pluton is the name of the Cretaceous Granite that lies in the Southwest of the Belmont District. This pluton underlies the Paleozoic carbonates, argillites, and quartzite of Ordovician age. These sedimentary rocks dip East to Northeast into Monitor Valley on the Southeast flank of the Toquima Range. In addition to complex structure, involving both thrust faults and basin & range normal faulting, the Belmont Pluton has associated contact metamorphism with the Paleozoic strata. Throughout the district can be found aplitic dikes and sills as well as base-metal porphyritic alteration in the southern end of the district.
The vein mineralization style at Belmont is a silver, lead, zinc quartz vein system. Other metals associated with the system is copper, antimony, and bismuth. Two historic vein trends extend North-South thru-out the district separated by about 1,000′ (1 kilometer). The Highbridge/Transylvania vein system is on the East side of the district, whereas the Arizona/Eldorado vein system sits on the West side of the district. Historic workings have relatively shallow workings in the North with progressively deeper workings going South. Presumably this progression correlates relative to time, with the earliest diggings in the North and the youngest shaft and headframe in the South (still “standing” today) that reaches 1,000′ (1 kilometer) deep into the earth. Initial mining focused on the supergene enriched silver ores found near surface. Vein width within the quartz vein system varied from 2 feet up to 30 feet wide.
Many of the quartz veins and “pay zones” were found in fault gouge parallel with the vein system. The syn-bedding structures and veining dip shallow to steep across the district from West to East. There is right-lateral vein offset along East-West striking faults, presumably youngest. This youngest set of faulting would most likely be associated with regional Walker Lane tectonic motion. Recent mapping in the district suggests that there could be isoclinal folding of the Paleozoic strata, especially on the Eastern side along the Highbridge/Transylvania vein system. The recent mapping also confirmed base-metal porphyry alteration in the south end. However, copper mineralization can be found along with quartz veins throughout the district.
Cerargyrite in core sample that ran 440 grams per ton Ag
The silver-bearing quartz veining carries silver chlorides such as cerargyrite. Sulfide, pyrite, and arsenopyrite along with other lead or zinc minerals are found throughout the system. One refractory copper mineral, Covelllite, was found in recent core drilling.
Nevada Silver Corp. conducted exploration work at the Belmont project area including: IP/Res geophysical survey, geologic & structural mapping, initial exploratory core drilling, and surface sampling. The IP survey identified twenty-four discreet targets across the project area. Mapping identified the vein system footprint and favorable geology. The first-pass drilling completed six core holes with an average depth of 550′ (180 meters). And the surface sampling collected 40 plus samples from old workings, dumps, vein outcrops, and open cuts.
IP/Res Survey voxelation brought into Leapfrog Geo with Targets (in red)
The IP/Res survey was collected on seven lines spaced 200 meters apart. The survey identified a potential zonation of altertion or differing host rocks. The twenty-four targets were chosen from the interplaying anomalies across the survey. The survey helped to highlight the vein systems at depth and the breadth of the mineralizing system.
The surface geologic & structural mapping included lithologic units such as: limestone, siltstone, sandstone, shale/schist, quartzite, as well as aplitic dikes and granite. The mapping includes detailed structural data for use to unravel the complex structural story. All of this information was brought into 3D modeling software to digitize the mapping, highlight the fault and vein trends, integrate with IP survey data, and visualize the system in 3D and at depth.
The recent exploration drilling is unwittingly the first exploratory core drilling completed on the property. All previous exploration was during original prospecting and mining efforts in the 1860’s, prior to any modern-style drilling or exploration. This was the first half dozen core holes to test ground that has seen an estimated 5 million ounces of silver produced within a precious metals belt (Northumberland – Tonopah Ag-Au Belt) that has nearby silver deposits of 50 million ounces or more.
Drilling results, logging, and assays posted in Leapfrog along with fault modeling and surface mapping
All drilling utilized private patented ground wherever possible and each hole was designed to intercept the vein system or IP survey target across a two square-kilometer area. The average dept of each hole was 550′ (180 meters), generally drilling West with a moderately steep dip to cross-cut the lithologic units. The entire hole, after logging, was sent to an assay lab for analysis. Each hole came back with silver mineralization. Two holes encountered bonanza grades at shallow depths (holes BS-22_002 & 003). Hole BS-22_003, located along the Highbridge vein system encountered silver mineralization from 0′ to 150′ deep at 28 grams per ton silver with 25′ of 90 grams per ton therein. Hole BS-22_002, located along the Transylvania vein system, encountered 20′ of 107 grams per ton silver with a high-grade core of 440 grams per ton silver at only 90′ deep.
In addition to the geophysics, detailed mapping, and core drilling program, there was also some surface sampling completed as well. The surface sampling effort makes up 40+ samples from vein outcrop, old mine dumps & tails, plus open cuts. About 25% of the samples came back with bonanza style silver mineralization. One sample in particular assayed to 1,061 ppm Ag (or nearly 35 ounces per ton silver). These results confirms the silver-dominant system with a base-metal signature. The bonanza grades also confirm the historic production reports that cited a grade of 25 ounce per ton.
In all, the recent exploration results at Belmont have been positive. Initial drilling has yielded positive results. The IP survey and mapping have illustrated a complex but favorable mineralizing system. Interpretation of drill results in 3D have put things in context such that follow-up targets can be developed going forward. In the coming years this old district could see a revitalization and reevaluation of the true size and scale of the silver-dominant metal system in place.
“Sleepy” Headframe at southern end of district above 1,000′ deep shaft
Leading up until the 1860’s silver had a set price, about $1.29 per ounce. And it had stayed that price since 1792 with the inception of the Mint Act. What changed in the 1860’s to bring about the first drastic price change? And what effect did that change have on the Western US?
Silver Price – keys events in the last one and a half century
Historically speaking, the price of precious metals has been a currency base and set price by the government. Of course, until Nixon fianlly floated the dollar and removed the gold standard altogether in the early 1970’s. But that is later on in the story, so let’s rewind to the start again.
The first significant change in silver price after setting it’s price with the Mint Act at $1.29/ounce was the US Civil War. The debt from war drove the price of silver up. In tandem with this was budding silver mining in Nevada, which became a state at the same time that the Comstock Lode in Virginia City was taking off. Seemingly over night, silver price had tripled ($2.94/ounce) and supergene silver ores in Nevada were ripe for the picking. Not only did Virginia City take off at this time but other towns such as Belmont, Eureka, and Austin in Central Nevada were getting their start during this era as well.
The bimetallic monetary system from the 1792 Mint Act began to unravel with Coinage Act of 1873 which effectively de-monetized silver. This in turn created weakness in demand and with increased silver production in the Comstock and elsewhere throughout Nevada this led to a steady declining price. Still more government policy, in the Sherman Silver Act of 1890, attempted to correct for a price that had dipped below its previous fiat of $1.29/ounce thru the purchase of silver and minting of coins. However, this policy ultimately resulted in the Panic of 1893.
The complete abandonment of silver within a bimetallic monetary system came about thru the Gold Standard Act of 1900. Gold became the sole precious metal where paper notes could be exchanged for gold on demand. Thus, silver continued its decline in price lasting nearly until the end of WWII but seeing a nadir during the Great Depression.
One noteworthy price rebound was a brief spike centered around the war debt from World War 1. During this time the Monitor Belmont Mining Company built a flotation mill on the site of the orginal Highbridge Mill at Belmont, NV (circa 1915). This brief episode capitalized on the price rebound of silver and reprocessed some of the old mine dumps as well as dewatered some old mine level for additional underground mining efforts.
Monitor-Belmont Mill, Belmont, NV (built 1915 on site of original Highbridge Mill)
The turning point for silver came about thru the Bretton Woods agreement in 1944, where countries adopted the dollar as the world’s reserve currency backed by gold, which was set at $35/ounce by FDR (a devaluation of the metal by 70% at that time). Again, throughout Nevada there was a brief lived interest in silver district such as Belmont, Tonopah, Austin, and Eureka during this war time era.
Interestingly enough, the majority of the silver mining that put Nevada, “the Silver State”, on the map, came from the period of time when silver price was at historic lows. Aside from the initial spike in price due to the Civil War, silver mining was continually chasing down a declining silver price until the Great Depression. Any and all silver mines and deposits from that time would have suffered from a continual need to mine more and more high grade ores. This continual pressure would have driven many out of business and forced many to leave much that is economic today still in place.
By the time Nixon completely dissolved the Gold Standard in the early 1970’s, silver had already benefited from several decades of rebound. So by the time the Hunt Brothers caused a run on physical silver bullion by 1979 we still haven’t seen its equal. When you adjust for inflation, peak silver price in 1979 is nearly $42/ounce in today’s money.
So it would seem that silver has seen a long-lived macro bull market from its nadir in Great Depression era. And this would be true at face value except for one important fact. Silver’s base price of $1.29/ounce, when adjusted for inflation, is closer to $6/ounce in today’s money. This means that since the end of the Civil War until the end of the Gold Standard was simply one big silbver price trough. And realistically, in today’s electrification future since the Dot Com era and now with solar panels and EVs becoming so much more prevalent, we are finally in an era where a) the government is not price fixing silver’s value and b) the industrial worth of the metal can be freely expressed in terms of it’s value outside of a monetary system.
Additionally, silver is mined moreso as a byproduct theses days; chiefly from gold mines that aren’t mining for the white-colored metal. In the Silver State there are several abandoned silver-dominant districts that has been entirely overlooked by gold exploration companies time and again. And as I’ve written in a previous article, these silver-dominant systems could also be an excellent source for other critical minerals.
Below are some charts for reference with links to the source of this data. Each chart is logrithmic and inflation adjusted with recessions marked out in grey. These are 100 year charts, so they don’t reach as far back as my original data set above, but they tell the story nonetheless.
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