** Lost Gold At The Dead Man's Mine ** A Miners Journal **

[GhostMiner]

September 10   2002     Part Three

 

   We ended up the day stopping with 100 yards of washed gravels. The cleanup will be done tomorrow with Conor and myself while Jacob and Clay continue to dig and haul pay gravel to the processing site. 

   It actually started to rain as the crew was getting ready for supper so we went into Jacobs camper and ate. We were all eager to get that cleanup done tomorrow and find out if the gold values were getting even richer. Jacob figured they were and I thought so as well. We were all talking about gold and mining. Jacob told us that this glory hole was something for all of us to remember. He said we would be able to tell our kin about it someday. He seems to think that there is over 1000 ounces in the hole but possibly much more. There is a big drop in the bedrock there for sure. He is down about 25 feet and also widening the dig to the west. We all want to see the bottom of that pit. We finished supper and hit the sack. Tomorrow will give us more answers.

   TO BE CONTINUED ................

[dig4gold]

Hope you took photos so that you can show us.

D4G

[GhostMiner]

5 hours ago, dig4gold said:

Hope you took photos so that you can show us.

D4G

   We didn't bother to take very many pictures in 2002. However, I will look around or see if anyone else has any. I am not much for taking pictures & didn't even own a camera back then. Even today I do not own a smart phone but have a chrome book for occasional pictures. There are some pictures taken on the mine from much later yrs that were taken by one of my partners but by then that 2002 project was completely reclaimed and buried. The bond was huge for the 2002 project because of all the ground we were disturbing. Cheers.

[GhostMiner]

   I was thinking it might be interesting to take a look at our mining equipment & supply information from one of our exploration & mining seasons. I will see if I can post something later. This would give anyone who is interested in starting a small operation an idea of what it takes in costs to get started. The latest yrs I have are from either 2019 or 2020 so you could figure to adjust the expenses at least another 20%.

[GhostMiner]

   So here is a small scale plan executed in 2020. It was a 3 month operation involving 3 - 5 people. It used 4 separate plans of operation so as not to trigger SMARA (surface mining and reclamation act. SMARA is triggered when surface disturbance exceeds 1000 yards and requires much more detailed and expensive permitting. We do our own plans of operation at no cost by using federal and state agencies to do the proper environmental evaluations. Average time for plans to be approved can vary depending on how busy the agencies are but 4 - 6 months should be expected. 

   Our bond was moved from one site to the next as each plan was finished and reclaimed. If you want to run multiple sites at once you would need a bond for each site. Our bonds vary from around $3500 for a small plan like this upwards to $10,000 or more for larger scale operations. The bonds are refunded as reclamation is finished and approved and all equipment removed. 

   I am posting a very small scale plan here first. We did this plan after several years of hand prospecting to ensure success by proving the ground as best we could. One word concerning mining in California now - I noticed on Dave Turin's new show when he was up at Happy Camp he kind of clouded the issue on mechanized mining. Mechanized mining can still be done in California but you must be at least 300 ft from the creeks. For our claims this is not an issue as our commercial grade ground is anywhere from 600 - 2500 ft from any creeks. If you are planning to mine with equipment closer than 300 ft to a creek in California you may as well forget that plan for now. Perhaps it will be changed someday. Here is the small scale plan with the gold values conservatively adjusted for today's price per ounce. I will be posting a larger scale mining operation here as well.

 

        MINING PLAN FOR 2020  

 

Equipment & Starting Expense  :  Super Hog Highbanker                                     $ 2033 

                                                      Custom built hopper/grizzly                                   500

                                                      Small 2 Yard/Hour Highbanker (Vern)                       0

                                                      Semi Trash  Water Pumps                                   2000 

                                                      2100 ft 3 inch Lay Flat Hose & Fittings                2267

                                                      300 ft 2 inch Lay Flat Hose                                    149

                                                      Extra Fittings & Clamps                                         100

                                                      Bobcat E85 Excavator Rental (one month)          4667

                                                      Delivery & Return Fee                                            500

                                                                                       

                                                      Porta John    (one month)                                       300

                                                      Storage Shed                                                        2000

                                                      Fuel                                                                         500

                                                      Misc & Shipping                                                      500               

 

                                                     Total :        $ 15,516

 

Production Estimates  :              Run Time (8) hrs/day  Monday - Friday

                                                   Saturday/Sunday make up time & gold

                                                   cleaning & processing.

                                                                                                                                                                                     

                                                   7 yds/hr

                                                   56 yds/day

                                                   280 yds/wk

                                                   1120 yds/month

                                                   $ 50/yd gold value after refining

                                                   $ 2800/day

                                                   $14,000/wk

                                                   $56,000/month

 

Operating Cost  :                        $ 5467 1st month  (fuel & excavator rent & misc)

 

Net Revenue :                            $ 50,533 per month

                                            Would be scaled up to the larger operation

                                                   

                                                   

 

Description of Operation : At Site #3 the north bluffs at Upper North Mine have 300 ft of baseline gravels that will provide 37 cuts or trenches into the base to bedrock. From each trench 45 yds of pay gravel will be processed.

At Site #2 the west facing bluffs at Upper North Mine there will be 250 ft of baseline gravels that will provide 31 cuts or trenches into the base to bedrock. From each trench 45 yds of pay gravels will be processed.

 

Site #2 Production  :  31 cuts 

                                  1395 yds @ $ 50/yd

                                   $69,750

 

Site #3 Production  :  37 cuts

                                  1665 yds @ $ 50/yd

                                  $ 83,250

 

Total From Production  :  $153,000

 

[GhostMiner]

   Here is an old start up cost sheet set up about 8 yrs ago to run 100,000 yards per season. I'd have to check but i'm guessing you'd need to add about 20% to the final number today.

 

   Fault Line Gold Mine & Extensions Start Up Expense Sheet 

 

 Additional Permitting & Bond                                                               $150,000

Trommel & Spare Parts                                                                          235,000

Water Pumps                                                                                           100,000

Pipe & Hose                                                                                              20,000

Excavator                                                                                                 100,000

Backhoe/Loader                                                                                          60,000

Company Truck                                                                                          50,000

Company Step Van/Storage/Workshop                                                     15,000

Company 4 Wheeler with Utility Bed                                                         10,000

     (10) Steel Mesh Utility Trailer                                                                            2000

     (11) Campers   (5) @ $7500 ea                                                                       37,500

     (12) Diesel Fuel Storage Tank  (500 gal)                                                           2500

     (13) Gasoline Storage Tank      (500 gal)                                                           2500

     (14) Generator    15,000 W                                                                                2500

     (15) Generator       4000 W                                                                                  500

     (16) Storage Building/Workshop                                                                        5000

     (17) Gold Room   (Gold Cleanup & Smelting)                                                    5000

     (18) Shaker Table                                                                                             10,000

     (19) Pro Camel 24 in Spiral Wheel                                                                       900

     (20) Repairs        (2 Seasons)                                                                           40,000

     (21) All Fuel        (2 Seasons)                                                                           80,000

     (22) Skidsteer                                                                                                    50,000

     (23) Loader                                                                                                      100,000

     (24) Kiln                                                                                                                 600

     (25) Misc & Shipping                                                                                         20,000

 

     (26) Total :                                                                                                    $1,113,000 

     

 

 

[geof_junk]

As shown the costs can be high..............SO SAMPLING IS ESSENTIAL BEFORE COMMITTING TO THE PROJECT.

[GhostMiner]

53 minutes ago, geof_junk said:

As shown the costs can be high..............SO SAMPLING IS ESSENTIAL BEFORE COMMITTING TO THE PROJECT.

A low cost and small scale start & then scale up if possible. Some may prefer to stay small. Usually when the larger scale is considered it is time to find investors. 

[GhostMiner]

On 3/25/2024 at 12:44 PM, GhostMiner said:

   So here is a small scale plan executed in 2020. It was a 3 month operation involving 3 - 5 people. It used 4 separate plans of operation so as not to trigger SMARA (surface mining and reclamation act. SMARA is triggered when surface disturbance exceeds 1000 yards and requires much more detailed and expensive permitting. We do our own plans of operation at no cost by using federal and state agencies to do the proper environmental evaluations. Average time for plans to be approved can vary depending on how busy the agencies are but 4 - 6 months should be expected. 

   Our bond was moved from one site to the next as each plan was finished and reclaimed. If you want to run multiple sites at once you would need a bond for each site. Our bonds vary from around $3500 for a small plan like this upwards to $10,000 or more for larger scale operations. The bonds are refunded as reclamation is finished and approved and all equipment removed. 

   I am posting a very small scale plan here first. We did this plan after several years of hand prospecting to ensure success by proving the ground as best we could. One word concerning mining in California now - I noticed on Dave Turin's new show when he was up at Happy Camp he kind of clouded the issue on mechanized mining. Mechanized mining can still be done in California but you must be at least 300 ft from the creeks. For our claims this is not an issue as our commercial grade ground is anywhere from 600 - 2500 ft from any creeks. If you are planning to mine with equipment closer than 300 ft to a creek in California you may as well forget that plan for now. Perhaps it will be changed someday. Here is the small scale plan with the gold values conservatively adjusted for today's price per ounce. I will be posting a larger scale mining operation here as well.

 

        MINING PLAN FOR 2020  

 

Equipment & Starting Expense  :  Super Hog Highbanker                                     $ 2033 

                                                      Custom built hopper/grizzly                                   500

                                                      Small 2 Yard/Hour Highbanker (Vern)                       0

                                                      Semi Trash  Water Pumps                                   2000 

                                                      2100 ft 3 inch Lay Flat Hose & Fittings                2267

                                                      300 ft 2 inch Lay Flat Hose                                    149

                                                      Extra Fittings & Clamps                                         100

                                                      Bobcat E85 Excavator Rental (one month)          4667

                                                      Delivery & Return Fee                                            500

                                                                                       

                                                      Porta John    (one month)                                       300

                                                      Storage Shed                                                        2000

                                                      Fuel                                                                         500

                                                      Misc & Shipping                                                      500               

 

                                                     Total :        $ 15,516

 

Production Estimates  :              Run Time (8) hrs/day  Monday - Friday

                                                   Saturday/Sunday make up time & gold

                                                   cleaning & processing.

                                                                                                                                                                                     

                                                   7 yds/hr

                                                   56 yds/day

                                                   280 yds/wk

                                                   1120 yds/month

                                                   $ 50/yd gold value after refining

                                                   $ 2800/day

                                                   $14,000/wk

                                                   $56,000/month

 

Operating Cost  :                        $ 5467 1st month  (fuel & excavator rent & misc)

 

Net Revenue :                            $ 50,533 per month

                                            Would be scaled up to the larger operation

                                                   

                                                   

 

Description of Operation : At Site #3 the north bluffs at Upper North Mine have 300 ft of baseline gravels that will provide 37 cuts or trenches into the base to bedrock. From each trench 45 yds of pay gravel will be processed.

At Site #2 the west facing bluffs at Upper North Mine there will be 250 ft of baseline gravels that will provide 31 cuts or trenches into the base to bedrock. From each trench 45 yds of pay gravels will be processed.

 

Site #2 Production  :  31 cuts 

                                  1395 yds @ $ 50/yd

                                   $69,750

 

Site #3 Production  :  37 cuts

                                  1665 yds @ $ 50/yd

                                  $ 83,250

 

Total From Production  :  $153,000

 

   We actually ended up using a Kubota 80 on this plan. We got a deal from a guy who owned it. They are good machines & fairly powerful for their size. Normally I would not go smaller than a mid size but the big mini was all we needed. Bedrock was only 6 - 10 ft in depth and there weren't any huge rocks to worry about. 

 

[GhostMiner]

On 3/25/2024 at 12:44 PM, GhostMiner said:

   So here is a small scale plan executed in 2020. It was a 3 month operation involving 3 - 5 people. It used 4 separate plans of operation so as not to trigger SMARA (surface mining and reclamation act. SMARA is triggered when surface disturbance exceeds 1000 yards and requires much more detailed and expensive permitting. We do our own plans of operation at no cost by using federal and state agencies to do the proper environmental evaluations. Average time for plans to be approved can vary depending on how busy the agencies are but 4 - 6 months should be expected. 

   Our bond was moved from one site to the next as each plan was finished and reclaimed. If you want to run multiple sites at once you would need a bond for each site. Our bonds vary from around $3500 for a small plan like this upwards to $10,000 or more for larger scale operations. The bonds are refunded as reclamation is finished and approved and all equipment removed. 

   I am posting a very small scale plan here first. We did this plan after several years of hand prospecting to ensure success by proving the ground as best we could. One word concerning mining in California now - I noticed on Dave Turin's new show when he was up at Happy Camp he kind of clouded the issue on mechanized mining. Mechanized mining can still be done in California but you must be at least 300 ft from the creeks. For our claims this is not an issue as our commercial grade ground is anywhere from 600 - 2500 ft from any creeks. If you are planning to mine with equipment closer than 300 ft to a creek in California you may as well forget that plan for now. Perhaps it will be changed someday. Here is the small scale plan with the gold values conservatively adjusted for today's price per ounce. I will be posting a larger scale mining operation here as well.

 

        MINING PLAN FOR 2020  

 

Equipment & Starting Expense  :  Super Hog Highbanker                                     $ 2033 

                                                      Custom built hopper/grizzly                                   500

                                                      Small 2 Yard/Hour Highbanker (Vern)                       0

                                                      Semi Trash  Water Pumps                                   2000 

                                                      2100 ft 3 inch Lay Flat Hose & Fittings                2267

                                                      300 ft 2 inch Lay Flat Hose                                    149

                                                      Extra Fittings & Clamps                                         100

                                                      Bobcat E85 Excavator Rental (one month)          4667

                                                      Delivery & Return Fee                                            500

                                                                                       

                                                      Porta John    (one month)                                       300

                                                      Storage Shed                                                        2000

                                                      Fuel                                                                         500

                                                      Misc & Shipping                                                      500               

 

                                                     Total :        $ 15,516

 

Production Estimates  :              Run Time (8) hrs/day  Monday - Friday

                                                   Saturday/Sunday make up time & gold

                                                   cleaning & processing.

                                                                                                                                                                                     

                                                   7 yds/hr

                                                   56 yds/day

                                                   280 yds/wk

                                                   1120 yds/month

                                                   $ 50/yd gold value after refining

                                                   $ 2800/day

                                                   $14,000/wk

                                                   $56,000/month

 

Operating Cost  :                        $ 5467 1st month  (fuel & excavator rent & misc)

 

Net Revenue :                            $ 50,533 per month

                                            Would be scaled up to the larger operation

                                                   

                                                   

 

Description of Operation : At Site #3 the north bluffs at Upper North Mine have 300 ft of baseline gravels that will provide 37 cuts or trenches into the base to bedrock. From each trench 45 yds of pay gravel will be processed.

At Site #2 the west facing bluffs at Upper North Mine there will be 250 ft of baseline gravels that will provide 31 cuts or trenches into the base to bedrock. From each trench 45 yds of pay gravels will be processed.

 

Site #2 Production  :  31 cuts 

                                  1395 yds @ $ 50/yd

                                   $69,750

 

Site #3 Production  :  37 cuts

                                  1665 yds @ $ 50/yd

                                  $ 83,250

 

Total From Production  :  $153,000

 

   We ended up doing good on this low cost plan. At one of the trenches on the operation we hit a honey hole that we got pretty excited about. I was at a creek about half a mile away running concentrates through a spiral wheel (Gold Magic) while my partners were running gravel. I saw my partner pull in with his truck and told me I needed to come check out the area they were digging. I had him stay with the cons while I drove up to the the dig site. They were test panning from the trench and were pulling pans of coarse gold like I hadn't seen there before. This stuff ended up being in the ounces to the yard. We all thought we had struck it rich but as soon as it started it faded away. It was a hot spot but it didn't last long. Mining can be cruel. However, sometimes I think running the small and inexpensive plans are the best ways to go. You have little to lose but your time and if you have done your homework on the ground you should make some money. For me it's not a fever any longer but a business. I like to get paid for my work. So do my partners. However, it will always be a thrill to see gold in the pan. It's something that never grows old. I just got smarter about how much money I spend to get it.