Would You Try Opening A Gold Mine In Australia?

[Reg Wilson]

Where to go from here?

Firstly, find out who has an EL over this area. (exploration lease) Turns out that the EL lease owner is only interested in the line of mineralization to the east of the shallow lead and would not be adverse to us putting in an application for a MRC (miners right claim) within their lease provided that we advise them of any discovery of a reef that may have been the source of the alluvial lead. They were actually surprisingly supportive and co operative in what we were contemplating.

That turned out to be the easy part.

Lefty, tipped off by our interest in the abandoned reef mine had pushed a dozer track into the old mine site and with the help of some of his dodgy mates with a knowledge of mining, had opened up a section of the reef line to the north of the main shaft and had with the help of an excavator hit some good colour. This was both good and bad. It drew attention from our area of interest, but it drew attention to the area that Lefty and his pals had illegally ripped open ground without any legal permit.

This was getting more difficult with each development. One option was to buy the land, and we did succeed in purchasing a block of 1100 acres to the south of the deposit which we succeeded in putting in a lease and did cut the old drainage line which produced reasonable gold for the effort but not as rich as our original test site.

Old harry felt sorry for us and one day took us to a site which he had prospected to the north of a rich reef deposit. ( this was the line that a mining company had under lease and had high hopes for). Harry explained that he had spent half his life chasing this line, and he was getting too old to do much more with it. He had a small drive, very well hidden running from south to north into a hill side. There in this small tunnel we lit up with a torch a seam of shattered quartz and ferruginous gossan running vertically from floor to ceiling of the drive. Gold was readily visible to the naked eye along the seam. Harry really wanted us to pursue this deposit although we knew next to nothing of hard rock mining. He was too old to now do anything with his discovery but would love to see us make something of it. The company that owned the EL had never found this extension of the worked line, and Harry never trusted them enough to share his knowledge.

Not long after this our friend with amazing knowledge of this remote and mysterious gold field passed away. He took with him an extensive collection of tales and experience. Harry never wrote anything down, so the only records of a lifetime of scratching in the dirt for gold in this wild place are the few secrets that he passed down to his friends around a camp fire. This treasured knowledge, or at least a small part of it still resides with me and a few others.

to be continued.

  

[Reg Wilson]

It was painfully obvious that we could never do a deal with the old cattle thief that owned the alluvial lead.

I ended up selling most of the property that I had bought keeping only a small part which I still own. Bill however bought a small holding to the north of the ground that we had dreamed of one day working. He ran a small herd of cattle and worked where he could get occasional employment. We would at times get together and still talk of whether we would ever get to put plans of mining the lead into reality.

About five years ago Bill phoned me and said "guess what"? "Old Lefty has kicked the bucket". He had made it to his nineties, a miracle really, due to the life of boozing and brawling for which he was noted. He outlived two of his sons and his remaining son was much more approachable about mining, although his crazy daughter was a bit of a worry. She had four kids from different fathers and was as dodgy as her dad. Her brother managed to get her on side after a great deal of persuasion.

 Bill finally got to peg the lead some time after I had returned south to work some claims here that were very successful in some cases but less so with others. Bill had passed all the obstacles that were part and parcel of getting his lease officially granted, including having the local indigenous elders inspect the ground for any sites that may have been of importance. They came to the conclusion that their ancestors would not have camped there nor would have had put any importance on the area. A quite high bond was put on the lease and many rules and stipulations put in place. This was a lengthy process that took some time and money to conclude, but finally Bill got the okay to proceed with the necessary infrastructure, after having to watch out for unwelcome visitors.

Two big settling dams were dug using an excavator and dozer plus a large retaining bank which was stipulated to retain any flooding that may unexpectantly occur. After preparation of the site a large wash plant was built by Bill and a friend designed specifically to handle the percentage of clay in the wash. Bill had years to get his planning right and to his credit he had covered all eventualities and possibilities. All he needed now was water to fill the dams, but the rains had failed for the last few years, so the equipment remained on a nearby property where it was safe from theft or vandalism.

to be be continued.

 

 

[delnorter]

Very interesting Reg, thank you for posting these ventures.

Mike

[Reg Wilson]

Now we come to the reason why I have told this story. Good news. Really big rainfall has come with the La'Ninya Pacific effect that has dumped massive rainfall on parts of Australia.

My good mate Bill has recently contacted me with the latest news.

"Mate, the settling dams are full and the retaining wall is directing water down into the valley." "In short, we have all the water we need to start treating the wash that is already stockpiled, and enough to treat material yet to be extracted".  "I have moved the loader and excavator up to the lead, the treatment plant is now located and levelled and engine and pump moved up and connected". "After all these years we are ready to go". "I say we because it was we, you and me that discovered this abandoned project and I hope that we can work it together". "I am camped on site and have a big caravan with all comforts".

Wow! That's what good mates are all about. Bill has put in an enormous amount of work in putting this into place after so many years of perseverance and  persistence. Bill has offered the land owner a percentage of the gold recovered which has been accepted by Lefty's son who has stated that he trusts the agreement and requires no further compensation provided that the land is rehabilitated at the conclusion of the operation. A quite large bond has been posted to ensure that this occurs. 

The agreement that Bill has negotiated is as follows: the split will see the recovered gold divided as such; the land owner will get to 'cherry pick' his percentage, and the balance will be divided three ways. A share for Bill, a share for me and the third share for the machinery. Bill and I will split the fuel and basic running costs. A fair split to my way of thinking. After negotiations the land owner will settle for ten percent.

All that is left is for me to pay outstanding bills and expenses here and convince my partner that she will be able to get on without me here for a few months. (or more)

To be continued.

[Reg Wilson]

Finally to answer the original question.

I have worked a number of claims and leases over the years, and I have to admit some were 'duffers', but even the ones where I broke even or did my dough taught me something. Where I made good money was a blessing and probably spurred me on to keep trying my luck, which on occasions paid off very well.

A price cannot be put on the experience, and the buzz of a lucrative clean up at the end of a hard day is something only the lucky prospector can understand. Working alone can be a rather solitary experience, but having a good mate that you trust with your life and share the highs and lows with is in my opinion the ultimate trip. I have been lucky in that regard as my partners (the odd exception) have been top blokes that it has been a delight to share the journey with. A cold beer at the end of a hot day, or a whiskey on a cold night shared with a pal is the cream on the cake, not to mention the gold in the pan.

So, yes, I think that the red tape and all the paperwork and other assorted dramas can be worthwhile provided that you have good ground to work, and someone reliable to share the experience.

"Break a leg" (it is bad luck to wish good luck) to all those prepared to have a go. Do your research to get yourself on good ground and give it your best shot.

Cheers, Reg.

[geof_junk]

Red Tape and the wait is the main problem. Even if you own the land they will still make it difficult. In this case as alluvial gold is usually on the water run constructing a dam for agriculture use in the right place has allowed the owners to get detectorist to remove the heavy metal contaminates 😉(Au) with out having all the problems. Common-sense goes out the window when extreme activists put pressure on the politicians to restrict prospecting.