Byline: Associated Press
VIRGINIA CITY, Nev. -- More than 150 years after the discovery of one of the world's richest silver veins touched off a mining frenzy that drew thousands of people west and made Virginia City a wealthy boomtown, a mining company wants to resume digging for riches in the dusty hills southeast of Reno.
But unlike the scrappy miners who used picks and shovels to chisel away at the massive, underground pocket of silver and gold known as the Comstock Lode, the company's plans are for open pit mining. They aren't being met with open arms.
Residents in the historic Comstock region embrace the catacombs of century-old mines with pride and purpose. But these days, it's not wealth from gold and silver but the mining of tourists lured by the rich history of the Old West that keep the town humming.
Tours are conducted in an old underground mine beneath a saloon, and The Way It Was Museum displays artifacts from the past. Camel and outhouse races and a Rocky Mountain oyster festival keep tourists coming to take a "Step Back in Time" -- the region's marketing slogan.
Residents fear that Virginia City image is threatened by the Comstock Mining Co.'s proposal to use earth-moving machinery to dig up truckloads of earth and process the loads to extract flecks of the minerals that have reached record prices.
With the stock market fluctuating wildly, the price of gold soared lastl week, setting new records -- $1,800 an ounce on Wednesday, for example.
Using high-tech modern mapping techniques and historic records, the company says it has identified roughly $2.8 billion in gold, if prices hold around $1,750 per ounce. That's roughly double the price the company estimated was needed to make the venture profitable.
Doug McQuide, Comstock public relations director, said the company hopes to begin production sometime this year.
Comstock thinks modern mining can coexist with history and complement the tourist trade, he said.
The company purchased the historic Gold Hill Hotel, and has shored up old mill sites to preserve the region's history. "We want to be overwhelmingly supported" by the community, McQuide said.
But it has been a tough sell.
For many folks in Virginia City, Gold Hill and Silver City, the idea of open pit mining in this state and national historic district is repugnant.
"Mining does work for Nevada," said Daan Eggenberger, proprietor of the restored Tahoe House Hotel, an antique-laden lodge on Virginia City's main drag. "It just doesn't work in a historic district."
The National Trust for Historic Preservation named Virginia City to its 2009 list of a dozen "Distinctive Destinations" across the country. The historic mining boomtown still boasts mines, mansions, saloons and museums that provide a glimpse into frontier life.
Founded with the discovery of the Comstock Lode in 1859, Virginia City made so many millionaires that the town was called the "richest place on earth."
The wealth it generated helped finance the Union cause during the Civil War and to build San Francisco and the Bay area.
Mining has come and gone in the Gold Canyon region since the lode played out. Tailing piles that have stood for decades at old mill sites dot the mountainsides.
In Gold Hill and Silver City, tiny towns a few miles down a twisting highway from Virginia City, residents say their serenity was disturbed last fall when Comstock Mining renewed exploration drilling at an existing site and disclosed it had begun exploration on parts of mining claims it has acquired covering 6,100 acres. …