Q&A
Mason Resources is in northwestern Nevada, in Lyon County, approximately 5 miles west of the City of Yerington.
The cost of building the project is estimated at $2.1 billion. Based on a similar-sized mine, we’ll need approximately 600 contractors to construct the project and 300 full-time employees for operations. We will create another 2,000 “indirect jobs” in the community based on these numbers. A project of this scale will also generate millions of dollars of tax revenues for state and local governments.
We are in the early planning stages of the project. We have conducted a scoping study to test the project’s viability and are engaging with various stakeholder groups to understand their views. Our next step is to perform baseline and pre-feasibility analyses that will be used in the permitting process. We anticipate the permitting process to take between 3-5 years. After we receive our permits, constructing the mine will take approximately 3 years.
Copper is the main mineral, but some gold, silver, and molybdenum are also present.
Hudbay is committed to using local sources for our workforce, contractors, and suppliers whenever possible. Our goal is to use the existing Nevada workforce to minimize the impacts of an influx of people. However, we will need to bring in temporary contractors for specialized activities. As part of our planning process, we will identify housing and other resources to accommodate these temporary workers to minimize the impact on the local community.
Most ore on the property is copper sulfide. The conventional processing option for copper sulfides is to crush and grind the ore and then use flotation to produce a copper concentrate product of 25-30% copper.
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Many factors contribute to water usage, and we need to finalize the design of the mine and decide which technologies we will use. Based on the options we are considering, the Mason Project will require between 7,000 to 16,000 acre-feet of water annually.
Water conservation and protecting neighboring wells will be essential. Modeling the groundwater levels and developing mitigation strategies will be part of the design and permitting processes.
Ensuring the safety and protection of the quality and quantity of local water resources is a top priority.
We understand that Smith Valley groundwater (Basin 9-107) is fully allocated, and no new water rights are available. We have secured an option agreement for local groundwater rights from an existing user. Any additional water rights will need to be purchased from existing water rights holders and transferred for mining use. The State Engineer will need to approve any transfers.
The short answer is the law. Regulations have improved significantly over the last 30 years. To ensure groundwater quality, we must obtain a permit from the Nevada Division of Environmental Protection before beginning operations. The permit will dictate the quality and quantity of water allowed to be discharged into the environment. We will also be required to monitor and report our water use to ensure compliance.
Modern reclamation laws require mining companies to estimate the cost of reclaiming a mine before beginning construction and to guarantee that the money will be available when needed. This “financial assurance” is typically provided through a bond in favor of a government agency that functions like insurance to cover reclamation costs if the company cannot pay them. This practice ensures that money is available for reclamation regardless of the financial status of the operator at the time of closure.
The ideal location appears to be in the valley between the Buckskin Range and Singatse Range, but that is subject to change pending baseline environmental and cultural studies and permitting reviews.