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Buying Your Own Mining Claim: Let The Buyer Beware


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Always been the type to keep quiet about the few areas I work. That are claimable and do produce well. I have been going for almost ten years to three great spots and never a problem. It's only a miles and a half hike in. I guess that keeps the "others" out.  

 I do think folks should beware and do the homework. I know some that were screwed this way. Thank you both for posting. I'll be sure to share. 

 John

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There's so much open ground and club claims out there I've never understood the attraction to owning/filing your own claim and dealing with all the hassles and expenses. It's probably a great learning experience but it also sends up a big red flag to everyone as a public record you're finding gold there.

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Tortuga,

It's funny that you would think just because a claim is filed a "red flag" is raised.  Because a claim is filed, you now know that it is "off limits" to prospecting.  Not a good place to go.

I once thought I might join the GPAA so I called their office to see if they had any claims in my area.  Their response was that I needed to join to find out.  I might "trespass" on their claim if they told me.?????   Same line of thinking... I don't understand it.

I've had claims for almost 45 years.  I have a place to go that hasn't been worked out by club members every year.

Yes, still a little open land that you can hike to.....

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On 1/10/2017 at 5:26 PM, whitebutler said:

Always been the type to keep quiet about the few areas I work. That are claimable and do produce well. I have been going for almost ten years to three great spots and never a problem. It's only a miles and a half hike in. I guess that keeps the "others" out.  

 I do think folks should beware and do the homework. I know some that were screwed this way. Thank you both for posting. I'll be sure to share. 

 John

There is a down side to this method. When I still lived n Alaska i operated in the same way and with the same reasoning. "Why, I was so far out there and no one ever went this far. Never saw anyone else so why file a claim and alert people to where I was getting gold?" This was 20 miles upriver from the nearest road, only access was an air boat because the river was so shallow.

The problem I had with this method is that there are guys out there that are pros, they know what they are doing and how to do it. I found out the hard way that one of these pros flew in, miles above where I worked and took the summer to walk the river back to civilization, sampling all the way. He found where I had been working and checked the land status, of course he found that it was not claimed, so he claimed it.

He was a prospector, miner and geologist. He was also a gentleman of the highest caliber. I went to talk to him when I found he had claimed where I had worked and he generously offered to let me dredge there whenever I liked.

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That was a great find Steve, thanks for posting it. This should be required reading for every precious metals investor. But then the "dream" would vanish for those who cannot get past the concept of fabulous riches to be had for just a few bucks more.

As I read through this article I could see some experiences I have had with some of the nefarious methods described. I vividly remember trying to work with mine owners who knew nothing about proper, time tested methods for evaluating ore. I am not a scientist, but I do know that there are certain protocols that cannot be ignored. There are assaying methods that do work when done by reputable labs and there are correct and incorrect methods of prospecting and sampling that can lead to honest evaluations or just palin scams.

Some mine owners only interest is in attracting investors by any means possible. Some of these owners live for years off of investor money, never actually producing even an ounce of gold. There is another level of deceit to produce more money above the actual ore/assay schemes and that is where the owner needs to continually buy and sell recovery systems/equipment of an ever increasing dollar value.

This scheme depends on being able to convince investors that different recovery equipment is needed on a continual basis, supposedly because of the extreme difficulty in recovering microscopic gold. The investor has fronted money for purchase of recovery equipment, plus expenses, received nothing in return, yet is convinced that with more money to buy different (better) equipment he will realize his profit. On the buying end the owner will convince the owner of the equipment he needs to sell for a "promise" of payment in gold at a vastly reduced price. This effectively induces the seller to give away his equipment for a promise. The mine owner then pockets the difference between what he got from his investor and what the new equipment costs, which is zero.

It is amazing that these types of investor fraud can go on indefinitely without investors wising up at some point. One would think that eventually word would get around the investment community. But I guess P.T. Barnum was right, "there is a sucker born every minute".

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  Hey Fred! I have a mine with $1,000,000 of gold. Would you happen to have $2,000,000 to invest?

 Happened to get another call from a claim owner that seems to have been defrauded. That's 4 this month.

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Klunker - what is the complaint these guys are giving you?

Is it that they thought they were getting a really valuable property and it turns out its not?

Is it that they want you help to get all that gold?

Is it that they were not treated fairly?

I'm just curious.

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