USGS Overestimating 2012 US Silver Production

August 9, 2012 By 3 Comments

Submitted by SD Contributor SRSrocco

I am amazed at the lack of credibility in some of the government agencies (geared towards the USGS).  The last 2010 USGS Silver Mineral Yearbook showed the following top 25 silver producing mines in the United States in 2010.

You will notice as of 2010, the RED DOG MINE was the number one silver producer in the country beating out HECLA’S GREENS CREEK.  However, this is simply not true.

You will notice as of 2010, the RED DOG MINE was the number one silver producer in the country beating out HECLA’S GREENS CREEK.  However, this is not true.  Teck who runs the Red Dog mine does not give out their silver production.  So, the Alaska Dept of Geology has to do the calculation themselves.  They do an excellent job.  All the USGS has to do is call them up and ask for the figures.  Both the 2011 USGS SILVER YEARBOOK & ALASKA MINERAL REPORT are not yet published.

If we look below at the next two tables from the 2010 ALASKA MINERAL REPORT, we will see the exact silver production coming from RED DOG and GREENS CREEK;

If you look at the top table which is the RED DOG MINE, you will see that they produced 6.78 million oz of silver in 2010.  The Alaska Dept of Geology calculates the silver from Red Dog’s lead production (where most of the silver is contained).  The second table which is GREENS CREEK, shows that they produced 7.2 million oz of silver.  This is also in Hecla’s 2010 annual report.  Green Creek produced 400,000 more oz than Red Dog, but according to the USGS, Red Dog was the larger producer.  Go figure…

Regarding rising zinc and lead ore grades at Teck’s RED DOG MINE.  If we look at the Q2 2012 report we see the following:

Even though Teck is getting better recovery out of lead and a bit out of zinc, their production in 2012 is less than 2010 when the RED DOG MINE produced 6.78 million oz of silver.  In 2010 they produced 121,144 tons of lead and 593,004 tons of zinc.  So far the first half of 2012 Red Dog has only produced 46,800 tons of lead and 260,000 tons of zinc.  Thus, lead production is down 23% since 2010 and zinc production is down 12.3%

Because the lead part of the ore contains more of the silver, Red Dog will produce even less silver this year than in 2010.  If lead is down 23% in the first 6 months of 2012, I would imagine it will be down at least 20% for the full year.  If we take 6.78 million oz times 20% we get the following:

6.78 X 20% = 1.35 million oz decline

So, the RED DOG MINE, is slated to produce about 5.4-5.6 million oz of silver in 2012…. even though lead recoveries are much higher this year.

-SRSrocco


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Comments

  1. Avatar of silver psycho silver psycho says:
    August 9, 2012 at 1:25 PM

    Once again SRSrocco, you have presented an amazing set of facts on the actual supply of silver.  By doing the work from ground up, you have given the readers a real presentation of the truth in silver production.  I was semi convinced listening to Brother John F, when he posted the video the other day showing the US Debt clock, which also showed Silver production and use.  John was highly suspect of the figures presented.  I believe your post here provided the facts that bring a new angle to the US-Debt Clock “supposed” silver production  figures. Great work!

  2. Avatar of AGXIIK AGXIIK says:
    August 9, 2012 at 2:05 PM

    There is a pretty good chance that any government statistic is manipulated to the government’s own devious means.  A few weeks ago when the LIBOR rigging was announced.  I noted that if there is money and a market it will be manipulated.  It is always to the government’s own ends to change data to suit the the government’s perception of what we the people should know.  After a certain amount of time the government statisticians believe their own data since it becomes institutionally embedded within the culture. No one will rock the boat.  The Emperor’s clothes are regal.  MOPE becomes institutionalized. 

    False and misleading statistics on the production  or availability of any commodity,  whether it is as vital as food, oil, power or water, or something as seemingly as unimportant at silver production, as byproduct of base metals,  will take a life of its own given enough time.  The reason for the falsification of data are as numerous as the items being reported on.  It is often easier to continue a long term lie than admit to the truth.

      Silver is beginning to assume a real importance in the world, right along with gold and yet the lies can’t be changed to the truth without admitting the entire scheme was based on a web of falsehood.  Did I tell you I don’t trust the government as far as I can throw of 2 ton anvil of—silver?

  3. Avatar of UglyDog UglyDog says:
    August 9, 2012 at 9:05 PM

    SRSrocco…How do you come up this?  Incredible detail.  Wow.  More coins to you.  But, what about the Hoffman gang from the Gold Rush show on the Discovery Channel or that kid, Parker Schnabel and his Big Nugget mine.  That Todd Hoffman really knew what he was doing…not.

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