Exploration Lease Qld / NSW

Hi Guys,
When looking at gold mine sales over the past few years, some of them say you are paying for the exploration lease. What exactly does that allow you to do (Im talking about in QLD and/or NSW). QLD government website says the following for exploration lease :
"Permitted activities
An exploration permit allows you to prospect, conduct geophysical surveys, drilling, and sampling and testing of materials."

So from that i don't think you are actually allowed to mine anything or extract gold from crushing rocks, etc.

If you buy an exploration lease (from Gumtree for example) do you also have to then pay further government fees for getting a lease ? eg Mining lease you have to pay extra $762 (QLD) to apply for one.

Obviously its not buying land either so i guess a deal would have to be done with the land owner too.

Interested to know peoples opinions.

Berticus

An exploration lease allows you to search a given area using varying approved methods in order to discover &/or assess resources there. You are restricted in how you sample & assess an area i.e. you can't full on mine it as such but depending on what consents you have under your lease you can mine & process certain sized samples in order to establish the viability. You also need to negotiate land access with owners/land managers who are entitled to compensation for your activities and must be carried out to predetermined conditions.
If you determine that a particular area or areas are viable mining options then you need to apply for a Mining Lease/s. In NSW having the Exploration Lease doesn't guarantee that you'll get the Mining Lease on an area. There are further costs involved in applying then more once approved to take out the lease & setting up.

As far as I'm aware, it is illegal to sell an Exploration Permit for Minerals. You may be able to transfer one but as far as I'm aware selling one is fraught with danger.
I have and have had EPM's for opal on and off over the past 20 years but would never entertain the thought of selling one . You can undertake exploration , but you can't mine or sell materials found on EPM's, it is a no no.
The purpose of EPM's is to explore for deposits of gems or minerals that would be economical to work, then peg an claim or lease, to obtain a production permit (lease of claim) you need to prove to the Natural Resources and Mines Minister that there is a viable deposit and you have the necessary financial backing and access to machinery, then you need to have a Plan Of Operations approved by the Environmental Protection Agency. Then your minerals production permit might be granted.
You must have a granted mining lease or claim to undertake mining in Queensland, minerals found under an mineral production permit (lease or claim) can be sold, records must be kept and royalties paid above a very reasonable threshold of $100,000 for opal and gemstones.

Be thankful we can get a fossicking permit so we can enjoy the pleasure of digging a few gems or pan some gold swing a detector just for the shear fun of it.

I hope this helps.

Sorry mbasko, must have been typing at the same time.

Thanks for the responses guys

Does anyone have any experience in applying for an exploration license in victoria. from looking at the Earth Resources website it seems that you need to be big company with lots of money what hope has the small scale prospector got.

warrior707 said:

Does anyone have any experience in applying for an exploration license in victoria. from looking at the Earth Resources website it seems that you need to be big company with lots of money what hope has the small scale prospector got.

Click to expand...

very hard to get any lease in vic lots of red tape

warrior707 said:

....it seems that you need to be big company with lots of money what hope has the small scale prospector got.

Click to expand...

I guess it comes back to just what you consider 'small scale prospector'....but for a start, your gonna need one of these at least...(where alluvials at depth are concerned), and may get away with a 12-15t unit, but imo better to have and not need, when costs are comparable...

22 - 24 TONNE ZERO SWING EXCAVATOR Rates
With Buckets & Ripper $140.00 p/hr - min 8hr
- Float $650.00
Each way < 3 days
Grabs & Sifting Bucket +$100.00 p/day
Hammer & Augers +$280.00 p/day
Lifting Chains & Slings +$50.00 p/day
Rock Saw Diamond (min 4hr) + $140.00 p/hr
- Float $150.00

and if your open-cut operations..

http://davisem.com.au/pdf/Complete-Price-List.pdf

Even if you owned the equipment, you have operating and maintenance costs, personal & business Insurance, PL Insurance, possibly wages, taxes, etc et al...

As a business, it no longer fits the free for all that is a hobby...and the Govn't need to know how serious you are before releasing ground for mining...(let's not also forget the reclamation costs...trees ain't cheap either)...

or you could do it on a miners right but all dirt must be excavated by hand tools only and filled in when finished it is doable but you have a little red tape on it as well lot cheaper than trying to get a lease but are limited with what you can use/do to the land

True enough HTY...but you and i both know, not many hobby prospectors know how to shore up, or bench, a 3 meter deep pit... :lol:

I understand the costs but I thought you had to have a proven resource before you got a mining licence

That is why you do due diligence under the EL...(good time to have ML pieces of the puzzle already in place so all your doing is 'proving' up the ground...)

A mate of mine had 5x on book,...some pending. First one up was a duffer....so sad, too bad ($20-$30,000) down the tube...(only got to EL stage and handed it in..)

Later ones paid off tenfold...

That's MINING...