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Bureau of Mines / Minerals yearbook: Area reports: domestic 1978-79
Year 1978-79, Volume 2 (1978-1979)

Lockard, D. W.; Schilling, John H.
Nevada,   pp. 337-349 ff. PDF (1.4 MB)

Page 341

about 60 miles northwest of Ely in White Pine County. The project, a 50-50
joint venture with Occidental Minerals Corp., has delineated 50 million tons
of material averaging 0.11 ounce gold per ton. Known as Alligator Ridge,
the property is being continuously evaluated. 
 Silver King Mines actively engaged in exploration and made numerous announcements
on properties it controls. In early 1978, the company signed an agreement
with Gulf Oil Corp. giving Gulf 51% interest in the Ward properties. If the
properties go into production, Gulf will be the operator with Silver King,
either entering into a joint venture or accepting a portion of the proceeds.
The company's East Hamilton property in White Pine County, with approximately
250,000 tons of 6.3 ounces per ton silver, was leased to Treasure Hill Exploration
of Las Vegas. In 1979, the State's Division of Environmental Protection issued
a permit to Silver King to operate a crusher-concentrator in the Taylor mining
district near Ely. The concentrator will have a capacity of 1,200 tons per
 A three-phase program to reactivate the former silver producing area near
Austin, Lander County, has been undertaken by Argus Resources, Inc. 
 NRD Mining is conducting a two-phase exploration program to evaluate a tungsten
deposit about 40 miles southeast of Fallon in Churchill County. 
 In the nonmetallic sector, Sierra Chemical Co. of Reno activated a burnt
lime plant at Casselton, Lincoln County, in March 1978. Production averages
200 tons per day. The company is marketing primarily in Utah, but also in
California and Nevada. The Kerr-McGee Chemical Corp. in Henderson, sole United
States producer of boron trichloride, announced plans in November 1978, to
increase production by 200,000 pounds per year. Boron trichloride is used
in the manufacture of boron filament, a lightweight and very strong material
used as a replacement or reinforcement for metal. The military aircraft industry
remains a major boron filament user. 
 In early 1979, a small barite mine, the Barst, was opened by Milchem, Inc.,
in the Battle Mountain area. 
 Imco Services Co. acquired necessary permits from the State Department of
Conservation and Natural Resources to operate a barite dryer in its barite
grinding mill at Mountain Springs, Battle Mountain. 
 Nevada Cement Co. eliminated a dust problem at a slurry pond near its plant
in Fernley. The inactive 60-acre pond was leveled and covered with soil which
was seeded and watered to establish turf. A new technology has enabled the
firm to utilize the waste dust that previously was deposited in the pond
in the manufacture of cement. 
 Gulf Resources and Chemical Corp. exercised its options to acquire Industrial
Mineral Ventures, Inc., a small company in the developmental stage, which
is engaged in mining and processing specialty clay and drilling muds. The
newly acquired company has large reserves of bentonite, saponite, calcium
carbonate, and hectorite on the California-Nevada border in Nye County. 
 In November 1979, Basic, Inc., announced plans for major capacity expansion
of its chemical-grade magnesium oxide plant in Nye County. With the addition
of a Herreshoff roasting furnace at its Babbs facility, the $5 million program
will generate an additional 35,000 tons of magnesium oxide annually, beginning
in 1981. 
 Legislation and Government Programs.—The 60th session of the Nevada
State Legislature (1979) was involved with many diverse mineral issues. Of
primary importance to the State was a $6.6 million special appropriation
to the Mackay School of Mines, University of Nevada, Reno, for remodeling
the existing Mackay building and constructing a new facility nearby. The
new construction will house offices, research laboratories, classrooms, and
an auditorium. These additions will greatly assist the school in maintaining
engineering accreditation. The legislature passed a bill which revised the
criminal penalty for filing false documents, including mining claim information.
A bill passed in the State legislature, the so called "Sagebrush Rebellion"
legislation, may have significant impact on other Western States. A bill
supported by the State's mineral industry was enacted, which would permit
annualization of costs relating to assessmment and taxation of net proceeds
of mines. 
 The State Department of Taxation passed new regulations whereby net proceeds
of mine taxes will be expanded to cover sand and gravel, pumice, and stone.
Presently, sand and gravel producers are exempt from the tax except when
the materials are used to produce cement. The department has advised the
State Tax Commissioner that such exemptions are against the State Con- 

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