Precious Metals Capture 1982 Exploration Budgets

The only good news in the exploration sector in 1982-a year plagued by low metal prices and weak demand-was precious metals. Gold in particular remained in the forefront, as it has for at least the past three years. The reason for this is partially due to gold's seeming resilience to conventional supply side factors-such as new production-that normally influence many other metals. Also, with projected production costs of about $6.40-$9.65/g ($200¬$300/oz), modest deposits with average grades can offer an early return on capital investment and good profit potential. Keeping escalating capital costs for new mining ventures within reason has shifted gold exploration efforts in recent years. Many mining companies are seeking relatively low grade, modest tonnage, near-surface gold mineralization. This, of course, leads to lower development costs using open-pit mining methods. Recent refinements in the carbon-in-pulp recovery process also has enhanced the economics of such deposits. Slumping economic conditions certainly played a key role in shaping exploration activity last year. Nearly every major mineral-producing state recorded exploration slowdowns. In Alaska, for example, development expenditures approached the level of exploration spending for the first time in the state's history. This not only reflects major companies' decisions to move toward production but also the economic slowdown. The worldwide recession stopped Nevada's exploration and mining boom "dead in its tracks," said John Schilling, state geologist. The year was one of layoffs and closings for the state's mines and exploration offices, he reported. Similar trends were noted in most other states, especially in the West and Southwest. In the Pacific Northwest, however, exploration appeared to continue at a relatively good pace considering the metals market. In the mining geophysical community, recent advances in telecommunications and microprocessor technology are continuing to provide a positive impact. Many geophysicists have begun using satellite digital communication links to access computer systems from remote sites where using a microcomputer would be difficult. There were also major contributions made in exploration geochemistry last year. Highlights include progress in formulating mineral deposit models, geochemical exploration in glaciated and arid environments, and publication of many informative books. The following state-by-state summary and articles on geophysics and geochemistry provides a detailed view of exploration events throughout the US in 1982.