Parker Schnabel: “This Mine Produces 99,9% Pure Gold Bars!”

From boasting an impressive reserve of 3 million ounces of gold… To coughing up 1.2 million ounces worth over $2 billion… This is the mine that produces 99.9% pure gold bars! And of course, where there’s gold, there’s Parker Schnabel. His team recently set out on a journey from the Pantanal to Pocone, a place renowned as the holy grail of hard rock mining. Unlike some other gold mines, this location is brimming with historical significance and geological marvels.

Millions of years ago, beneath the town of Pocone, geological activity shaped the landscape in a remarkable way. A tectonic plate folded over itself, causing big cracks to form just beneath the surface. This monumental event created massive fractures just beneath the surface, providing a pathway for gold-rich magma to rise and solidify into quartz veins. These quartz veins, now embedded in the earth, are rich with gold and remarkably accessible from the surface.

Today, this multi-billion-dollar deposit holds over 30 active mines in the Pocone region. The Salinas Gold Mine stands out as the largest and most significant among them. Spanning an impressive 1,200 acres, the Salinas Mine employs over 600 people, making it a cornerstone of the local economy. Parker, impressed by the scale and success of the Salinas Mine, engages in conversation with Nei, a veteran of the Brazilian gold mining industry. Nei shares that the mine has been in operation for 20 years.

Reflecting on his own journey, he reveals, “I started at Parker’s age, chasing the dream of finding gold across Brazil.” At the tender age of 19, Nei began his career by selling mining equipment to support his young family. His passion for gold mining soon led him deep into the jungles of the state of Pará. Here, amidst the dense and dangerous jungle, Nei faced life-threatening challenges, including contracting malaria 51 times. At one point, his weight dropped to a mere 55 kilograms. Despite these challenges, his die-hard spirit drove him back to Pocone at the age of 32.

Success finally came during his first major gold mining campaign in Pocone. Initially estimating a yield of 300,000 ounces, Nei and his team struck a shocking 1,200,000 ounces of gold. This massive haul, valued at approximately $2.4 billion today, established Nei’s reputation as a formidable figure in the Pocone gold industry. In 2015, his journey reached a new pinnacle when he acquired the Salinas Mine, cementing his legacy in the region.

As Parker observes the operations at Salinas, he notices workers extracting gold from the rich veins. The complex process of mining and the sheer scale of the operation leave him in awe. Nei points out the visible gold veins, emphasizing the richness of the deposit. At the bottom of the pit, Parker and his team observe the central vein of gold, a main artery in the vast network of gold deposits beneath Pocone. The walls of the pit are marked with smaller veins resembling rib bones branching off from a spine, a vivid illustration of the extensive gold network they are chasing.

Pocone’s geological marvel, a massive 55-mile-long gold vein, runs directly through Nei’s land, making it a prime site for gold mining. This main vein isn’t the only feature of interest. Smaller veins, each about six feet wide, extend like ribs from the main spine, spreading the wealth across the landscape. Unlike many hard rock mines where the gold ore must be laboriously blasted out, Pocone offers a distinct advantage. The region sits on loose sedimentary rock, which is significantly softer and can be excavated using machinery.

This characteristic makes the mining process more efficient and less hazardous compared to traditional hard rock mining. The loose sedimentary rock in Pocone allows for a different kind of mining operation. Machines can easily scoop out the gold-rich material, simplifying extraction and reducing the need for explosive techniques. This accessibility not only speeds up the mining process but also enhances safety for the miners, making Pocone an ideal location for large-scale gold production.

The combination of geological richness and easier extraction methods has positioned Pocone as a critical hub in the global gold mining industry. At the junction where the crossing meets the row, lies the most valuable material, yielding the highest grade of gold. This prime section extends approximately 3 kilometers, but detailed surveys and research have revealed it actually spans 10 kilometers. Within this expanse, the mine boasts an impressive reserve of 3 million cubic ounces of gold. Each day, the operation processes a staggering 11,000 tons of rock.

One of the standout features of Pocone’s mining operation is its efficiency. The costs are relatively low, primarily because the site does not require any blasting. The soft sedimentary rock can be excavated directly with machinery, eliminating the need for costly and labor-intensive drilling and blasting typically associated with hard rock mining. This direct excavation approach not only reduces operational expenses but also speeds up the mining process significantly. The plant at Pocone, which Parker and his team are invited to tour, plays a crucial role in this efficient operation.

Here, the soft yet sturdy rock allows for an open-pit mining method. Unlike traditional hard rock mining, which involves significant expenses for drilling and blasting, Pocone’s geological conditions present a unique advantage. The rock is soft enough to be freely dug out with excavators, yet firm enough for the walls to remain stable, facilitating open-pit mining. This perfect balance makes the mining process more efficient and safer, reducing costs and increasing productivity. Pocone’s approach to gold mining exemplifies the ideal scenario where geological conditions favor both the extraction process and economic efficiency.

This unique combination of factors positions Pocone as a model for modern gold mining operations, highlighting how innovative methods and favorable geological conditions can transform the industry. Together with the executive director, Nei has been diligently working on implementing a new system designed to maximize the extraction of gold from hard rock. This new system represents a significant advancement in terms of processing capacity and technological sophistication.

Notably, the process now uses cyanide instead of mercury, a change implemented over the past year and a half to enhance environmental safety and efficiency. Cyanide, despite its toxicity to humans, is used in a controlled and environmentally safe manner by Nei’s crew. If ingested, cyanide can be lethal, but the team has developed a method to utilize it safely for gold extraction. The process begins at Nei’s cyanide plant, where the ore, often referred to as “pay dirt,” undergoes an extensive filtration process. This involves passing the ore through a series of crushers and trommels to reduce it to a fine consistency.

Once the ore is adequately processed, it is introduced into a vat containing cyanide. The reactive chemical interacts with the finely crushed rock, breaking it down and dissolving the gold into a liquid form. This part of the process is crucial, as it allows for the efficient separation of gold from the surrounding material. The dissolved gold is then subjected to an innovative recovery method. An electrified steel sponge is used to attract and trap the dissolved gold, functioning similarly to a magnet. The steel sponge’s electrification creates a field that draws in the gold particles, which are then captured and can be extracted for further refinement.

This method not only improves the efficiency of gold recovery but also minimizes environmental impact, as it eliminates the need for mercury and reduces the release of harmful substances into the environment. The adoption of this modern cyanide process at Pocone signifies a substantial step forward in sustainable and efficient gold mining. By incorporating advanced technologies and environmentally conscious practices, the team is setting a new standard in the industry.

When asked about the cost of the new mill, Nei revealed that the entire setup, as it stands today, amounts to approximately $15 million. This substantial investment underscores the advanced technology and processing capabilities integrated into the plant. The high costs reflect the sophisticated machinery and the environmentally safe methods employed, specifically the shift from mercury to cyanide for gold extraction. Before the adoption of cyanide, the recovery rate when using mercury hovered around 90%. This method, while effective, came with significant environmental and health risks.

The transition to using cyanide has markedly improved the recovery rate to an impressive 98%. This substantial increase in efficiency highlights the benefits of modernizing the extraction process. The new system at Nei’s plant not only enhances gold recovery but also aligns with environmental sustainability goals. The $15 million investment in state-of-the-art technology and safer chemical processes underscores a commitment to both productivity and ecological responsibility. The higher recovery rate achieved with cyanide means that more gold is extracted from the same amount of ore, optimizing the overall yield and profitability of the operation.

This innovation sets a benchmark for the industry, exhibiting how technological advancements can lead to both economic and environmental gains. When they switched to using cyanide, the results improved significantly. This transition involved a substantial investment, but it also increased gold recovery by 8%. Nei noted that while the initial financial outlay was significant, the added recovery quickly offset the costs. The primary challenge was not the financial payback but changing the mindset of those involved in the process.

Adopting new methods and practices requires time and education, as people need to understand and adapt to the new system. Nei explained that the transition to cyanide was a major learning curve. It required not only financial investment but also time to fully grasp and implement the new process. Despite the initial hurdles, he emphasized that the shift was a crucial turning point for their operations. The benefits in terms of increased efficiency and sustainability made the investment worthwhile.

Reflecting on the experience, Parker expressed admiration for the model and expressed interest in replicating it in the future. Being on-site and witnessing the process firsthand was a valuable learning opportunity. After the cyanide process, the gold is heated to over 2,000 degrees Fahrenheit. This extreme temperature melts the gold into a molten liquid, ready for the next stage of processing. As Parker and his team watch in amazement, the molten gold is poured into molds, gradually solidifying into bars. These bars are later refined into what is known as 99.9% pure gold.

The final product is highly sought after in the global market, known for its purity and quality. Pocone’s gold mining operation, with its cutting-edge technology and sustainable practices, is setting a new standard in the industry. The combination of geological advantages, innovative processes, and a commitment to environmental responsibility makes it a model for modern gold mining. As Parker and his team prepare to leave Pocone, they are left with a profound appreciation for the work being done here.