ABSTRACT
Gold and silver production in Honduras never accounted for more than about 5 percent of that produced in Spanish America at any one time during the colonial period, but it was of considerable importance to the local economy and employed a significant proportion of the total workforce. The silver and gold was found in mineralized veins associated with volcanic intrusions mostly Tertiary in age. These veins were located in the metamorphic and sedimentary rocks that form the rugged interior highlands around Tegucigalpa and Comayagua. There was always a shortage of labor in the mining industry of Honduras. The small size of the Indian population and its dramatic decline during the first half of the colonial period limited the supply of labor, whilst Crown restrictions on the employment of Indian labor limited the types of mining activities in which Indians could be employed. Due to shortages of labor and capital, mines were abandoned after only short periods of exploitation.
