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Got Gold?
It is also not as expensive as you might think it is. In my case, I am an investor in a private
equity project where a group of investors purchased a historic gold mine
project. The mine was last commercially produced
in the 1930’s. The mine starting out as
a patented claim in the middle of a national forest, but has since generated
more profits as a timber farm by being selectively logged every few decades.
Today, the property is growing a nice cedar forest in the Pacific
Northwest. The property produced gold on
and off for 40 years at the turn of the last century. The old historic tailings still have a trace
of gold in it, per ton.
Our property is for sale, and has started to generate a real
interest in it. Historically, the
resources associated with the mine, while not large enough to capture any commercial
interest, is large enough to generate interest from small operators who are
looking for a source of rock to process.
Our mine has about 13,000 oz of estimated gold resources associated
with it. It has never been drilled, so
these resources are based on a quartz blow out at surface which could be loaded
up and hauled out by dump trucks to an off-site milling facility.
We purchased the mine, as a long term investment so that we
would have an asset to be sold during an economic blow off crisis that drives
up gold above the long term average price.
You have to have inventory in order to make a profit when others want
what you have. This is our inventory.
It has been publically for sale now since Gold was around
1,000 per oz. We have marked up our
total investment by over 300% and would gladly take a cash offer for the
property. In the first 12 months the
property was for sale, we didn’t hear from anyone who was serious.
That changed a few weeks ago, when we started to get real
interest from real miners. In one case,
a geologist with a history of gold mining in the area made an offer for the
property. In another case, a professional
hard rock miner is pondering an offer to operate the property. We have an exploration permit that is already
in effect.
Now, this weekend, we have a new 3rd group of
investors touring the property. These
people already bought and built a “free gold” milling facility, but have not
lined up a source of rock ready to be processed. Our location “may” fill that bill
perfectly.
I share all of this, as an example of how not all physical
gold, has to be in a mobile condition.
We own hard physical gold still embedded in the quartz that has held it
for millions of years. This gold is
sitting at the surface of our property. The Gold trapped in the rock will have
doubled its physical quoted value ($700 per oz or so at purchase, $1,400
current gold quote) while we are looking at booking a multi hundred % change in
value for that raw gold.
One of the real benefits of our cedar forest & historic
mine, is that it has year around water and provides a great place to take the
family camping. It’s paid off and sits
in a national forest. Because the property is a forest right now, it has an
extremely cheap holding cost. Finally, the mine property provides us with a
leveraged bet on Gold, Timber and we have a supply of 5 acre building lots in a
national forest.
So while the property is for sale, we are in no rush to
sell. We may even pull the property from
the market, and relist it at a higher price, if we get a chance to have the
quartz blow out drilled and a new resource estimate is generated. That is the ironic thing about this type of
investment. The resell value can
increase, even if our hard costs have already been fixed.
Not all oz. are the same, some of them are still frozen in
time, but that doesn’t mean their resell value is frozen. Far from it.
Disclosure: Jack H Barnes owns a slice of a historic gold
mine, and is looking for a buyer. I am
long physical metals, private equity in historic reserves, but does not have
exposure to paper metals at this time. This disclosure and others are available at JackhBarnes.com
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No, no, no ZH community.....you totally misunderstand this guy's generous offer...
Look closely at the weeds in the picture....this is MISSOURI GOLD that he's talking about!!!
Either that or Missouri Gold is what he's smoking!
When he says "mine" he means "it's mine, dude, you can buy it but don't pick it...besides, it's not ready yet."
That it is "that" kind of property is the most generous assessment I've seen.
Seriously though Tyler needs to ax this and revoke contributor privileges for this. Shameful.
And they are free, cost me nothing to create except for the nutrition needed to carb-up my brain and the food I buy is a tax write off.
I have ideas buried in my head that I would like to monetize.
ZeroHedge = CraigsList ?
Excellent +1
You are making an offer to sell ? Here?
and the full text, too...not a mere one sentence HTTP refer..
FYI: please tell the REST OF THE STORY, of why you cannot mine/get permits/nor find a buyer of the low grade tailings tonnage...why, environmentally, the site is probably a disaster...
""we have a new 3rd group of investors touring the property"" Oh, an 'investment prospectus', you are the perfect little guy SEC setup, SUCKER
Bohemia is it? Up out of Culp Creek?
and if you only had a silver mine ....
you will be at the mercy of the forest service for access to your patented claim. if the claim is not patented they will drive you off. we sold all our usa investments in patented claims in the 80s before the forsest service began driving private interests in the little guys hands off the national forests. now only big concessionaires like disney can do business on mining claims. we hold nothing in the us now and are thankful we got out in the 80s.
I think it was Mark Twain who said that a gold mine is a hole in the ground with a liar on top.
Does this property come with a bridge?
i tore down an old miners shack once for the estate and found some nuggets ( phoney ) in a small leather pouch ,(poke).i also found a few decks of cards that were marked, ( roughed edges). got me thinking about the real ' nice old man ' who spent his life chasing his golden dream.
If it's so freaking great, why are you trying to sell it?
This post is worse than what an ad would look like from the dividend lady in the hat... with her 47 dividend checks each month...such as it is...
so if i have property to sell, can i become a zh contributor and post what is essentially a classified ad about it here?
change a few words here and there and this sounds like a sales pitch for a timeshare.
Looks like my uncle's property by the Applegate river in Southern Oregon next to some BLM land. So, Uncle Dean died and no one called me?
He sell some timber off every ten years and we'd pan for gold. Long before he owned it, the creek banks were firehosed and sluice-boxed for gold as an ongoing mining operation.
You can just pan for gold anywhere these days though.
Camping? Ha!
Recently I was researching South American history, and learned how mining was set up there. The first thing I realized was the first thing the conquistadores did was head straight into the forest in search of gold. The leaders would litteral not look left or right before plunging headfirst into the rainforest. Very few were successful in their endevors. Many claimed heroic journeys before dying, and many times with little to show for it. A few times the men were successful.
The second thing I realized was how the little gold that was mined was highly valued. For example, a team of twenty natives (working in cheap working conditions) would get 1 and half ounces during a two week stint. And that was the high water mark. The monied class of Europe saw no cost at hiring the natives free and shipping their work across the Atlantic. No we rely on oil to do our dirty work. When we can not rely on oil, it will be back to the old ways, and those old ways are not very productive.
Any idea what the mining permit hurdles will be for a national forest? How about supplying the energy needs? The roads?
You got yourself a pig in a poke. Not saying it can't be done. Just lot's of unanswered questions. Good luck, and I mean that. I hope to read you were successful.
.0001 pinkys!!
TO DA MOOOOOOOOOON!!!!!!!
COILED SPRING!!! GET ON NOWOOWOWOOWWWWW!!!!
Hell, I can pan for gold in the mountains to the east of me. No cost, fair color, and the sore back is free.
How exactly do people get the ability to post articles?
Inquiring minds want to know...
Thanks for the sales pitch
I've got sum wonderful gold properties up here in Canada for ya'll
Kehuck bring you daughters and wives along.
Next..........................
shucks and golly
For a moment there I thought the top was in
Interesting.
Seems fitting.
"What should I do with my Gold?"
http://thevictoryreport.org/2010/03/24/listen-gold-what-should-i-do-with...
~MV
Low and outside.
The land banks are coming out of the woodwork now. Truth is, the USA is nothing but LAND. everywhere... LAND. There's no shortage, and it is NOT liquid. These guys been sitting on dead real estate money for possibly decades, thinking "Ok: NOW is finally the time!"
It's becoming increasingly difficult to assign a value to non-liquid equity assets. One needs to consider capital recapture, and be prepared to get past sexy ideas of going into mining before considering the costs. Its a money loser, and oil is going up.
You end up being cash poor and land rich.
I know a lot of folks who would rather be the OPPOSITE of that right now.
They end up languishing as there is no way to determine value in a buyers market. Sure, its worth millions, or its worth $5,000... who knows, when no one is buying it? One cannot factor favorably for abstract valuations when capital is so important now.
You certainly cannot risk being stuck in dead equity that cannot be sold.
Physical gold is readily liquid. Most importantly, its readily liquid amongst the public, without any assistance from a broker. Real estate is not, and the rips on commercial land approach 10% on resale. Why are the comissions so high on raw land? Because the owners get desperate to sell the crap, and get into something else!