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Having gone through the process of bringing a placer gold mine into production and profitability, I thought it would be good to share some of the experience with others that might be interested in doing the same thing. :)

 

In the following posts, I will attempt to provide insight and understanding of the steps I took in formulating a concept and going through a reasonably logical process to achieve a life-long ambition. That ambition - to operate a self sustaining, profitable gold mine. 

 

I will provide photos and explanations along the way and encourage readers to jump in and ask questions on different aspects of what happened and why.

 

- Geowizard

 

 

We're on the same ambition level. 

 

I believe you should reconsider your reliance upon petrol.  There's got to be a better way.  I think petrol will not provide a self-sustaining future for your profitable gold mine.  It provides for a short term success which will vary with time.  Your profits will not be predictable nor withstand political change.  You hold the gold,  you have the ace in the hole. 

 

It's a brain teaser for sure,  which are you?

      A.  Sell the discovery and move on.

      B.  Keep the discovery,  sell the gold and expand your mine?

 

I'm more miner than speculator.  I'm absolutely curious about the undiscovered riches.  I would dig-in and dream for tomorrow.

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"What will happen to gold prices as the cost of fuel increases? Because gold is mined all over the world, as fuel prices increase, the cost of mining gold increases and so does the selling price of gold."

 

That's true,  until you mix in the politics of global oil combined with speculators of oil and gold.  They don't move in lockstep nor reflect the fair market value based upon production.  They can move contrary to one another for a knock-out punch.  Eliminate the HU.  It's adventuresome enough rolling with the gold spot market and selling correctly...compound that with the correct time of buying oil and BLEWY.

 

We're gonna depend on petrol, of course.  We do need to manage the degree of dependence.  Less is better in my mind.

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Geo....great reading, keep it coming.  These forums have been kind of quiet over the summer as I imagine most folks have been out in the field.  It's good to get some activity going once again.  Hat's off to you for the dialog, very informative reading not to mention the "big cajones" it takes to step out like you did.  Sounds as if it's all starting to pay off for you!

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"The gold comes from epithermal intrusives that occurred 70 million years ago. Ok... So where are those elusive intrusives? You can't see them because they are buried. What tools are there available to mankind that can see into the subsurface?"

 

The answer is in the question.

 

Stop attempting to "see" them.  Use a human sensoring adaptability.  Learn how to develop the "nose for the gold"  No we can't smell it either.....but we can sence it.  Oldtimers were known to call in for an expert who had a different and proven skill.  That is not exactly science but it can be a path to discovery.

 

Each of us gold seekers have previously demonstrated an uncanny or unexplainable find.  Things happen.  I think it stems from self-confidence.  Right now you believe in your intrusives(so do I).  The next step is to verify your hunches.  Locate and identify the second intrusive which is probably close at hand.


 

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Sure, but I have to ask,  "Will your assemblage of scientific data find your second intrusive quicker than your own intuition will?"

 

As a coincidence,  I too would use the metal detectors before the willow branches.

 

I merely refer to your mind as being your best tool.  The mind is an extension of what the nose knows.  You are no doubt wanting to increase your know-how.  You will strike the second intrusive, if possible, and you have a hunch where it is.

 

Are you equipped to be a driller?  Or do you plan to hire that out?

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"Next, I will show a few excellent examples of how and why technology provides an efficient, low cost way to manage your exploration efforts!"

 

 

Previously, you mentioned the Ophir Pluton.  I've studied the Moore Pluton as depicted in your examples and links. 

 

Can you illustrate the Ophir Pluton?  Hard as I try, I don't see it.

 

Dodge Creek, Anvil Creek and the near-by known placers are each a part of the whole. Right? 

 

Also, the extensive Ophir tailing piles appear (in your photos) to be fine grained material which is pleasantly lacking in cobbles or boulders.  Can a mechanical miner like a bucket-line excavator be considered as a self loader to the washplant? 

 

 

 

 

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Interesting, I studied sheets 1-A thru 13-A, for a few hours.

 

I ruled out that feature as being too obvious.  I'm certain that I looked over it several times.  Beaver Creek runs thru it.  Not many mines are shown within it.  Ganes Creek flows N on the eastern edge,  are we thinking the richest ground is east of the Ophir Pluton?

 

The Ophir tailing piles,  was my assumption close in reference to rock content?

 

Thanks.

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Geo & Rod,

 

Spare me a minute or two if you will and kindly back up to Posts 21 & 22. ( I'm a slow reader ) O.K., the numbers may not seem economic or even realistic but let's change a couple of the assumptions and see what it looks like. I think there is in fact something in there that may be worth a second look.

 

Assume for a minute that there is at the very least 1,000,000 Cu. Yards of re-workable Tailings at Ophir averaging 1 Oz. / 100 Yards. That's roughly 10 Years work in most people's book at an average of 100,000 Yards per Season. If we're going to be realistic about running 100,000 Yards then we have to assume a bigger Loader. Let's say we got hold of a low-hour Cat 966 which usually runs as standard a 5 Cu/Yard Bucket. There's no chance that we will find a better way to run that Machine on anything other than Diesel so let's forget about the Heavy Equipment for the time being. 

 

So we move on. Getting back to the 100,000 Yards per Season, we're also going to need a bigger Washplant. Now we can maybe start talking alternatives to the GenSet although we would probably still need a GenSet on Stand-by for cloudy days. There's plenty of Washplants which run with Electric Motors. We're going to need to run at least 75 to 100 Yards per hour so I would estimate that a Plant that size would need at least a 50 Hp. Electric Drive Motor. At least the Washplant will be for the most part in a fixed position so how feasible then is it to try and set up a Battery Bank mounted in a Trailer, running through an Inverter/s and charging off Solar to run the Electric Motors on the Washplant and the Discharge Conveyor ? How big a set-up in terms of Batteries and Panels would that have to be ? I suppose the main question is would any potential savings in Fuel justify the additional Capital cost of setting up an alternative ?  

 

Keep the ideas flowing and eventually a Plan will fall in to place. Good luck.

 

Steve.                         

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OK, now we revealed some not-so-secret stuff,  I agee GEO and urge you to go for it.

 

 

"The going forward plan is simple:

2014 will bring in a Doosan DL-250 loader. Mine production will be 1000 cu yds per day. = 10 oz gold per day = 1200 ounces for the season.

 

2015 will bring in two additional wheeled loaders i.e. DL-350 class and a 100 cu yard per hour MSI wash plant. = 3600 ounces for the season. 
 

2016 will bring in four additional DL-350 loaders and two additional 100 cu yard per hour wash plants  = 8000 ounces for the season."

 

You're making a strong assumption of the gold available.  I hope, as do you, that the gold is there.  I've learned by experience that a sure-thing in placer mining, normally is not.  The plan "B" for backup also needs to be developed. 

 

Other than leasing equipment, and then attempt to enlist good help, maybe owner/operators of equipment might be considered.  I wouldn't mind driving my own excavator to 10oz a day tailing piles.  Who's got the wash plant? 

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Hey steve62,

 

Thanks for pointing out the idea.  I'm thinking of year-round work.

 

Solar powered mining at latitude 63 ain't gonna get enough sunshine nor warmth.

 

I think geothermal ranks #1,  probably just a dream because it's not available.

 

LNG, liquified natural gas, to me is the future, not diesel.  There's lots of LNG in Alaska.  The distribution is the tough nut to crack.

 

I know that Jules Verne could've figured out how to air-lift with gas bouyancy.  haha

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"The cost of fuel has very little affect on mining."---Geowizard

 

 

I'm nearly speechless.

 

The cost of fuel has unmatched affect on everything humans pursue in the physical world.  Today because of fuel, at any price, we work 300 HP tractors, race 2,000 HP cars, fly from AZ to AK to prospect for gold and enjoy a universal high standard of living.  We are limited only by the cost.  The cost each of us pay for fuel is controlled by enemies, governments, and basic greed.  There is no way to survive as a miner without granting creedence to the ever increasing fuel bill.

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