Leasing My Mining Claim

[snakejim]

I have staked several mining claims over the years starting in 1991, and still have 6. Now, someone wants to lease one of my mining claims. I have never leased a claim of mine for someone to work, or tried to lease a claim to work myself.  Should I sell the claim instead? Any advise would be greatly appreciated.

Thanks a heap! snakejim

[chrisski]

If the claim would be mined by machinery, I’d rather sell.  I’d be worried about being held responsible for delinquent bond issues, stuff I have no time to dedicate myself on.

if it’s just a couple fellas with a metal detector and dry washer, I’d be more willing to lease.

i have only leased a claim to a prospecting organization to share amongst its members .  They gave me a legal paperwork for the lease.  I only made about 1/6th my yearly claim fees, and when I inspected the claim, I had no complaints how it was kept.

My area is central AZ and it’s a fun place to metal detector and dry wash, and there may be between 5 and 10 small time miners in the state getting a living from small time mining across the state.

Since 2012, I have probably staked about 6 claims, but have boots on the ground prospected at least 100.  I spend around 40 hours studying an area prior to boots on the ground.

[Ridge Runner]

7 hours ago, snakejim said:

I have staked several mining claims over the years starting in 1991, and still have 6. Now, someone wants to lease one of my mining claims. I have never leased a claim of mine for someone to work, or tried to lease a claim to work myself.  Should I sell the claim instead? Any advise would be greatly appreciated.

Thanks a heap! snakejim

Jim 

 Just what type of claims do you have and are they located in New Mexico I believe where you live?

 Chuck 

[snakejim]

Hi Chuck! I have several Placer claims and yes they are in New Mexico.

[chrisski]

I did have a couple of other people contact me to lease the claims.  I talked to them a little and we decided not really for us.

Both of the people had caught gold fever and were willing to relocate from another state to work my claim with hopes of making a living off it.  Not realistic expectations.  Almost as if they had watched too many seasons of Gold Rush and were willing to jump into something totally new.

[Clay Diggins]

Hey Jim,

Leasing placer claims is complex. It's not well known but if another person has permission to prospect/work your placer claim, and they discover a lode deposit on your placer claim, they have the right to locate a lode claim over your placer. (it doesn't work the other way around lode to placer) The newly located lode claim excludes the existing placer claim from it's limits. All those leasing placer claims to mining clubs might want to review their lease agreements to make sure lessees/permittees are prohibited from locating mining claims on the lease area for any reason.

There are lots of little gotchas in mineral leasing. Mining lawyers are expensive and good ones are few and far between. Unless the lease amount is considerable it's probably not going to be worth your time and expense to create a mineral lease that works to your advantage.

Barry

[snakejim]

16 minutes ago, Clay Diggins said:

Hey Jim,

Leasing placer claims is complex. It's not well known but if another person has permission to prospect/work your placer claim, and they discover a lode deposit on your placer claim, they have the right to locate a lode claim over your placer. (it doesn't work the other way around lode to placer) The newly located lode claim excludes the existing placer claim from it's limits. All those leasing placer claims to mining clubs might want to review their lease agreements to make sure lessees/permittees are prohibited from locating mining claims on the lease area for any reason.

There are lots of little gotchas in mineral leasing. Mining lawyers are expensive and good ones are few and far between. Unless the lease amount is considerable it's probably not going to be worth your time and expense to create a mineral lease that works to your advantage.

Barry

Barry, thanks for the advice!

[RONS DETECTORS MINELAB]

It’s always better to share claims with friends and family. Any outside influence using your claims hoping for monetary gains will bring you complications or problems when they bring their own ideas that might not line up with your values. The exception would be a major company like Newmont that is going to give you huge royalties and can write up the legal paperwork at their expense.

Selling it would require selling it to a prudent buyer who has done his due diligence and can guarantee he will come out ahead on the deal. But if that’s the case then probably better for you to keep it unless age and health keeps you from fully working out it’s potential gain. 

[Robert56]

I have four river claims in Alaska and I had been thinking of leasing two of the claims out.  I am not really physically fit to work them myself and my sons can only work one at a time. But after reading these posts I'm not sure if I will lease any of them out now or not. I guess I have some more reading of the state regulations to be sure.