A GOLD RIFT IN NEVADA AND THE RUSH TO FIND IT

A GOLD RIFT IN NEVADA AND THE RUSH TO FIND IT 

November 15, 2013

Nevada is one of the world’s most productive gold sources. Mining is a major state industry that produces 80% of all American gold (6,037,000 troy ounces yearly) and creates revenues of up to USD $4.2 billion. Though Nevada was initially known for silver throughout the 19th century, gold eventually took precedence and total production in 1835-2008 was 152,000,000 troy ounces, or USD $228 billion. Currently, nearly all of Nevada’s gold comes from large open pit mining and cyanide heap leaching recovery methods. Many leading mining companies own and operate mines in Nevada, where they do not pay royalties for claims on federal public lands, thanks to the General Mining Act of 1872.

The Carlin Trend in northwestern Nevada is the United States’ most prolific gold mining district, producing more than 50,000,000 troy ounces by 2002. Eight kilometers (5 mi) wide and sixty kilometers (40 mi) long, this unique geographical feature became better known in 1961 after Newmont Mining discovered a large low-grade gold deposit there. However, only after the gold price increased in 1971 did the Carlin Trend become prominent, and now it is known as one of the world’s richest gold mining areas. The Carlin Trend has given its name to similarly structured deposits that contain microscopic (“invisible”) gold within pyrite and arsenopyrite pieces. The invisible nature of the gold makes it difficult to capitalize on these deposits. Despite this, developments in heap leaching have contributed to the American position as a net exporter of gold, and in 2012 the U.S. produced 230 tonnes of gold.

Mining operations in the Carlin Trend and surrounding regions are performed by at least 13 of the world’s major mining companies, led by Barrick Gold and Newmont Mining Corporation. Barrick Gold Corporation (Toronto) became the largest gold mining company in the world after acquiring Placer Dome in 2006. They have reserves of an estimated 3,912 tonnes. Barrick Gold is followed closely by Newmont Mining (Greenwood Village, Colorado), which produces approximately 4,921,875 troy ounces of gold per year and holds 2650 tonnes in reserve. Kinross Gold (Toronto) Corporation is also a major operator in Nevada, after several takeovers and mergers. Other gold producers with major operations in Nevada include BHP Copper, Goldcorp, Hecla Mining, Kennecott Utah Copper, and Meridian Gold. Many of these producers collaborate; for example, the Round Mountain Gold Mine, which has been expanding since 2011, is a joint venture between Kinross and Barrick Gold.

The New Destiny Mining Corporation focuses on exploring new, international opportunities for natural resources, and in particular, New Destiny focused on making large-scale inroads into northwestern Nevada. Their most recent offering is called the Rift Project, and from preliminary surveys performed between 2004 and 2009, this area would potentially contain Carlin-type, siliciclastic-hosted Battle-Mountain-type, and skarn-type deposits, as well as epithermal gold. It is 45 km west of the Carlin Trend. The proximity to the richness of the Carlin Trend makes it highly likely that Carlin-type deposits would be found. Both Barrick Gold and Newmont Mining operate nearby. Barrick Gold found new ores, particularly in the southern portion of the Carlin Trend, throughout 2011 and 2012. More specifically, the Rift Project is located 50 km southeast of the Getchell Trend and 40 km north of the Battle Mountain-Eureka Trend. Getchell Mine is under the joint ownership of Barrick Gold and Newmont Mining. In Eureka County, Barrick Gold owns and operates the Cortez Gold Mine, Nevada’s longest running gold mine, while Newmont owns the mines ten miles south of Battle Mountain. Overall, the Rift Project will offer 194 claims over 3,880 acres (16 sq km).

In October 2013, the New Destiny Mining Corporation acquired an undivided 80% interest in the Rift Property. In order to better explore, survey, and evaluate natural resource holdings, New Destiny has also created a non-brokered private placement of 15 million units, priced at $0.05 each, in order to raise $750,000. At this moment, financing is subject to regulatory approval. In addition, Upon acquiring 80% interest in the Rift Property, all parties involved will agree to further explore and develop the area, with New Destiny having the option to claim full interest pursuant to further conditions.

Jewel Aldea

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