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Hey Greybeard,

If Jackthehound is right and that's the tenement I checked out, I'd recommend you tell him to take $20-30k for it from one of the neighbours if he can get it and walk away.

As a Geologist who assesses 'offered projects' quite often, one major disconnect I constantly see between prospectors and companies is that what looks really good for a prospector doesn't interest companies. If you or I were to find a few hundred ounces on our own ground we'd be over the moon. (Which reminds me, how did you get on at your patch Madtuna? Give us an update on your thread please!)

Any company, or someone serious about 'going into production' is looking for maybe 30-40,000 ounces as a minimum to justify the drilling required to prove up an economic orebody, the CAPEX of getting it all going, paying for the manpower and/or contractors, the rehab, etc. To turn a hobby into a business you need to look at the net margin you make, not the total ounces recovered.

One problem I constantly see is that prospectors (and just absolute chancers) might spend years and tens of thousands on gear and toys and diesel, not to mention their time.... But none of that actually adds value to a prospect. Scraping the top off a reef that grades an ounce is great. But that's relatively common in the Yilgarn and Pilbara Cratons. What a serious investor wants to know is how far does that reef extend, in consistent width, strike and depth? That information gives a volume, which carries ounces, which are worth real money. To get this strike and depth data you need to drill - which is expensive. But that's the only thing that will determine whether that reef has any real legs or not.

If you do drill and find a nice continuous orebody then you know and can gear up accordingly, or on-sell it with that data at a MUCH higher value than you'd otherwise get.
If you find not enough to keep going, well then you've killed it. Scrape out what makes you money and walk away. Them's the risks....
That's why a lot of prospectors AND companies don't drill until they're pretty confident of a decent result - as the saying goes, "Don't poke a hole in a good story."

To bring things back to the point of this thread, without solid data proving good continuity of economic grades, he just has a few ounces at surface. That's not worth much to anyone buying in.
If someone does buy in without much data, then THEY have to prove up that resource potential, the cost of which will come straight off the price they're willing to offer for the prospect.

So a likely company deal for that tenement may be a $5k option and commitment to spend $50k over a year. Buy in with a contributing JV if they find goodies. Walk if they don't.
IMHO I think that's about the best your mate could hope for. Or a straight but low cash-up-front offer.

Good luck!
 
Zengeo said:
Hey Greybeard,

If Jackthehound is right and that's the tenement I checked out, I'd recommend you tell him to take $20-30k for it from one of the neighbours if he can get it and walk away.

As a Geologist who assesses 'offered projects' quite often, one major disconnect I constantly see between prospectors and companies is that what looks really good for a prospector doesn't interest companies. If you or I were to find a few hundred ounces on our own ground we'd be over the moon. (Which reminds me, how did you get on at your patch Madtuna? Give us an update on your thread please!)

Any company, or someone serious about 'going into production' is looking for maybe 30-40,000 ounces as a minimum to justify the drilling required to prove up an economic orebody, the CAPEX of getting it all going, paying for the manpower and/or contractors, the rehab, etc. To turn a hobby into a business you need to look at the net margin you make, not the total ounces recovered.

One problem I constantly see is that prospectors (and just absolute chancers) might spend years and tens of thousands on gear and toys and diesel, not to mention their time.... But none of that actually adds value to a prospect. Scraping the top off a reef that grades an ounce is great. But that's relatively common in the Yilgarn and Pilbara Cratons. What a serious investor wants to know is how far does that reef extend, in consistent width, strike and depth? That information gives a volume, which carries ounces, which are worth real money. To get this strike and depth data you need to drill - which is expensive. But that's the only thing that will determine whether that reef has any real legs or not.

If you do drill and find a nice continuous orebody then you know and can gear up accordingly, or on-sell it with that data at a MUCH higher value than you'd otherwise get.
If you find not enough to keep going, well then you've killed it. Scrape out what makes you money and walk away. Them's the risks....
That's why a lot of prospectors AND companies don't drill until they're pretty confident of a decent result - as the saying goes, "Don't poke a hole in a good story."

To bring things back to the point of this thread, without solid data proving good continuity of economic grades, he just has a few ounces at surface. That's not worth much to anyone buying in.
If someone does buy in without much data, then THEY have to prove up that resource potential, the cost of which will come straight off the price they're willing to offer for the prospect.

So a likely company deal for that tenement may be a $5k option and commitment to spend $50k over a year. Buy in with a contributing JV if they find goodies. Walk if they don't.
IMHO I think that's about the best your mate could hope for. Or a straight but low cash-up-front offer.

Good luck!

or if your the single small scale miner and you happen to find a nice reef you still have costs but don't have to pay shares and spend big money on other things and if you sell the gold yourself because your not paying shares you may find you have a better turn over to then explore the lode better with drilling down the track
 
Here is a little bit of information I could find on the mines covered by the lease

Parnell (46)
357 ton for 366 oz's 1900-03
196 ton for 87 oz's 1907

Parnell West 2 No info
Parnell West 3 No info
Parnell West 4 No info

Parnell Leases (46)
Bell Exploration Co Ltd (46) 1,815 ton for 1,736 oz's 1904-05

Parnell No 1 East (46) No info

Parnell North (46)
154 ton for 257 oz's 1900-02
66 ton for 71 oz's 1903-05
179 ton for 132 oz's 1938


Parnell North (1938) west No info

Federal (46)
48 ton for 56.46 oz's 1901-02

Federal North No info

Western (46)
31 ton for 9.62 oz's 1935-36

Beatrice (46)
390 ton for 129 oz's 1935-37
 
Hunting the yellow said:
or if your the single small scale miner and you happen to find a nice reef you still have costs but don't have to pay shares and spend big money on other things and if you sell the gold yourself because your not paying shares you may find you have a better turn over to then explore the lode better with drilling down the track

Most little companies interested in anything like this don't pay dividends on shares anyway.
You're supposed to make your profit through the share price going up.

But yeah, just to stay listed - with all the direct charges and time costs of compliance and reporting requirements - costs in the order of a million dollars a year. Definitely money that could be better spent elsewhere!

Private (unlisted) gold miners - and there are a few around Kal - don't wear those overheads so can operate profitably on a smaller scale.

Either way it sounds like Greybeard's mate doesn't have much 'time down the track' to work on it.
Which leaves us to speculate: what's it worth to someone buying in now?
 
Hi jackthehound,
it's a small world. ha ha ha. Yes it's him alright, also known as the mad russian. He's spent a fortune jumping through hoops trying to satisfy the authorities.
I guess he's trying to pull the pin and get out of the game. Not a young bloke anymore. He's just returned from WA without success in trying to sell that mine.He's going to show me how to find gold in the Creswick state forest here in Victoria. I found a spot on a small reef that always produced tiny subgrammers.
For some reason it dried up. He's going to help me find the trail again. :lol:
Jackthehound said:
G'day Graybeard, are you talking about "Russian George" as he is known up that way ?
 
Allmost thought this might of been the older fella up at eastern creek at first graybeard,passed through last year and had a chat with him,small hardrock show like u mention,hes been there 30 yrs or so,said he was trying to sell it to a cuppla companies,had some great stories of when they opened the tracks back up into the area in the 80s,it was more or less left untouched when the old timers walked away from it,him and his son there working it i think,didnt meet his son.....
 
Graybeard said:
Hi jackthehound,
it's a small world. ha ha ha. Yes it's him alright, also known as the mad russian. He's spent a fortune jumping through hoops trying to satisfy the authorities.
I guess he's trying to pull the pin and get out of the game. Not a young bloke anymore. He's just returned from WA without success in trying to sell that mine.He's going to show me how to find gold in the Creswick state forest here in Victoria. I found a spot on a small reef that always produced tiny subgrammers.
For some reason it dried up. He's going to help me find the trail again. :lol:
Jackthehound said:
G'day Graybeard, are you talking about "Russian George" as he is known up that way ?

I didnt check where the Parnell Mine is on the maps but i was at Mosquito creek and environs in 2006 and i still have the GPS coordinates for a spot where 150 ounces were taken off the surface ( all within 8 inches depth and using GP3000's )

What did you say the costs are to get approval for push and detect assuming that modern detectors show more colour at greater depths ?

using a dozer or even a bobcat to scrape 10 inches off the surface on an area 300 x 200 metres is not unattractive.

I have a bobcat..
 
HeadsUp said:
Graybeard said:
Hi jackthehound,
it's a small world. ha ha ha. Yes it's him alright, also known as the mad russian. He's spent a fortune jumping through hoops trying to satisfy the authorities.
I guess he's trying to pull the pin and get out of the game. Not a young bloke anymore. He's just returned from WA without success in trying to sell that mine.He's going to show me how to find gold in the Creswick state forest here in Victoria. I found a spot on a small reef that always produced tiny subgrammers.
For some reason it dried up. He's going to help me find the trail again. :lol:
Jackthehound said:
G'day Graybeard, are you talking about "Russian George" as he is known up that way ?

I didnt check where the Parnell Mine is on the maps but i was at Mosquito creek and environs in 2006 and i still have the GPS coordinates for a spot where 150 ounces were taken off the surface ( all within 8 inches depth and using GP3000's )

What did you say the costs are to get approval for push and detect assuming that modern detectors show more colour at greater depths ?

using a dozer or even a bobcat to scrape 10 inches off the surface on an area 300 x 200 metres is not unattractive.

I have a bobcat..

if your spots on an EL headsup you can put a SPL on it,get a POW (program of works) approved and go for it,i say EL cause i think theres alot around there but if its unpegged ground well even better,then a PL on it,havent pegged a SPL but i gather a POW has to be submitted as well,where just going through the motions at the moment on a PL,we made a bit of a boo boo with the POW and now dealing with native title hoops,we could of dodged that another way.....
 
Goldchaser1 said:
HeadsUp said:
Graybeard said:
Hi jackthehound,
it's a small world. ha ha ha. Yes it's him alright, also known as the mad russian. He's spent a fortune jumping through hoops trying to satisfy the authorities.
I guess he's trying to pull the pin and get out of the game. Not a young bloke anymore. He's just returned from WA without success in trying to sell that mine.He's going to show me how to find gold in the Creswick state forest here in Victoria. I found a spot on a small reef that always produced tiny subgrammers.
For some reason it dried up. He's going to help me find the trail again. :lol:
Jackthehound said:
G'day Graybeard, are you talking about "Russian George" as he is known up that way ?

I didnt check where the Parnell Mine is on the maps but i was at Mosquito creek and environs in 2006 and i still have the GPS coordinates for a spot where 150 ounces were taken off the surface ( all within 8 inches depth and using GP3000's )

What did you say the costs are to get approval for push and detect assuming that modern detectors show more colour at greater depths ?

using a dozer or even a bobcat to scrape 10 inches off the surface on an area 300 x 200 metres is not unattractive.

I have a bobcat..

if your spots on an EL headsup you can put a SPL on it,get a POW (program of works) approved and go for it,i say EL cause i think theres alot around there but if its unpegged ground well even better,then a PL on it,havent pegged a SPL but i gather a POW has to be submitted as well,where just going through the motions at the moment on a PL,we made a bit of a boo boo with the POW and now dealing with native title hoops,we could of dodged that another way.....
:Y:
 
Well, a whole year has gone by, poor old George has still not sold the mine. The last I heard was that he's got some foreign people coming down for a look.
.............good luck George.
 
Equipment? LOL. I looked at the site on google earth and I could not find a single thing! All that's down there is a a hole (opening to the mine). He's spent a fortune getting in a surveyor, getting bores done and then getting an assay on the bore samples. He rang me just a few hours ago. He's just come down with some bug, lost sensation to his legs and is on antibiotics in some hospital in Perth. Talk about bad luck.
Looking back on it all I wish I never put the article on this site. I doubt whether it will sell. If anyone is interested I could send the assay results and all other relevant information to you. just PM me.
 

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