NEVADA EXPLORATION SURVEY 2007
Nevada government survey projects $800.9m in global exploration in 2008
The Nevada Commission on Mineral Resources says favorable geology and high commodity prices drew the majority of U.S. hardrock exploration dollars to the Silver State in 2007, which is projected to increase again this year.
Author: Dorothy Kosich
Posted: Monday , 22 Sep 2008
RENO, NV -
A survey by the Nevada Division of Minerals and the Commission on Mineral Resources said the 31 companies which responded project spending $800.9 million in worldwide exploration this year, up from the $756.7 million spent last year.
The respondents also indicated they would spend $197.1 million this year on Nevada exploration activities, up from the $167.9 million expended in 2007. Nevada's percentage of worldwide spending is projected to increase to 24.6% this year, up from 22.2% in 2007.
Spending in Nevada was 84.5% of the respondents' total U.S. spending in 2007, which is projected to increase to 24.6% this year for a total of $90.1 million. Exploration spending for the rest of the U.S. in 2007 was reported to be $30.7 million, down from the $35.6 million reported the prior year.
The commission sent questionnaires to 108 companies and received responds from 31 companies, of which 20 spent more than $1 million each for Nevada exploration. For all respondents collectively, 67% of their budgets were actually spent on exploration in 2007, down from 72% in 2006. They spent 12% on land holding costs, up from 10%; 12% on corporate costs, up from 9%; and 9% on permitting and compliance costs, the same as in 2006.
Those responding to the survey reported 938 geologists at work globally in 2008, down from 963 in 2006. The respondents project an increase to 1,017 geologists worldwide, of which 23% will be working in Nevada exploration. Projects for 2008 show the companies spending an average of $839,000 per geologist. The worldwide spending per geologist last year averaged $807,000.
FACTORS INFLUENCING ACTIVITY
The respondent ranked the factors influencing their level of exploration activity.
1. Favorable geology
2. Commodity prices
3. Actual length of permitting times
4. Announcements of new discoveries
5. Uncertainty over permitting time frames
6. Uncertainty over mining law reform
7. Federal claim maintenance fees
8. Land exchanges/withdrawals
9. Wilderness study areas
10. Changes in foreign mining laws.
MINING CLAIMS
The Nevada State Office of the Bureau of Land Management said there were 81,292 claims in Nevada and 87,712 in the U.S. as a whole in 2007. Projections for 2008 show an increase in the number of claims held by respondents. The total number of claims held by those responding to the survey is projected to be 89.046 in the U.S. as a whole and 82,352 in Nevada this year. In 2008, 93% of the claims held by the respondents are projected to be in Nevada.
ATTITUDES
Respondents were asked if they were optimistic, neutral, or pessimistic about domestic exploration of which 61% said they were optimistic, while 25% were neutral and 14% were pessimistic.