It isn't hard to find mines. I have found several. The trick is, as I have harped ad nauseam on this thread, is finding the money to build one once you have found it. It isn't easy. Let's say it you decide to build a very small, but nice little mine. One already almost built. Let's say the vein is 300 feet long, 6 feet wide, and 0.30 OPT. I know several that are not being mined that fit that description. In order to mine it properly you have to drive a ramp at a descent of 1 in 8 to a depth of 150 feet. that is 1200 feet of ramp, at a cost of 720,000. A raise will cost *90,000*. Development of the stopes we will cost out at the mining rate. A mill, milling 50 tons per day will cost you let's say 350,000 dollars, and cost that much to set up and permit. *1.4 million*. You had better run it 24-7 because that is how mills run best. Underground you only have to run one or two shifts, but the mill has to run 24. so you use back to back 12 hour mill shifts for one month at a time 7 days, and shut down to give the men a rest. 4 men to mill, and one has to be a mechanic who double as a fix it guy for underground stuff as well. 6 men mining should do it for 50 tons per day. 4 men in stopes, and one guy to run a scoop and truck. Ten men mining make about 300 a day each. You have to have 4 months of expenses, maybe five. Include energy, housing, transportation, food, ambulance 3500 per day is *525,000* exigency. If you operate in Ontario, you have to have an engineer on site, add 125,000 a year. so in five months *60,000*. Now mining energy, dynamite, rock bolts, bits, fixits, I would put at about 1100 a day. *165,000*. Operation of mill, including energy, reagants, parts, etc I would put at about 75 dollars an hour or 1600 a day. *240,000*. I did not add in underground equipment including pumps, air vent ducting, fans, electricals, compressor. Add *200,000*
Minimum itty bitty mine to do it right would be 3.2 million or thereabouts. that is to get home and under the wire with expenses and capex for enough time to get money back on your gold.
Now if each investor risked 40,000 for a 60% share to the money, that is 80 guys to pony up the cash to get it going. 80 guys.. hey that is hard to find. Unless you get a few very well heeled people, who are damn keen on mining. But in that cost work up above we did not drill it off. 50K there and 10K for assays. Admin? Oops, ad 100K. Let's just say 3.5 million. 150 dollars per ton. The mine ran 300 feet long, 150 feet deep, and 6 feet wide at 0.30 OPT. That is 22,500 tons. 6750 ounces. 4.7 million CDN. 1.2 million profit. Before you get despondent, that ain't bad. All your money back, and a little bit more. You can now mine more and confidently. The next 20,000 tons is better. Take out the capex of almost 2 mill and it is fairly profitable. In order to make it worthwhile, you need about 100,000 tons. At 50 tons per day that will be 6 years to mine out. Better add more mill capacity to the equation to bring it down to 3 years.
Is there a cheaper mine? Yes, a trench dug with a back hoe that you ship to a toll mill. Or a crushed ore dump. They can run (much)under a million dollars. In the case of a strip mine on a quartz vein, say 20 feet deep, you might be able to do it for less than 100K. Maybe. But that is ultra small. 1700 tons. Better be a grade of 0.5 opt to make it worthwhile. You might make 3 to 4 times your money in the right situation. The best mine I know is an ore dump. They may be lower grade, but the capex and permitting is non existent comparatively. I don't know how cheap the ore dump can be run, but it is cheap. And the ounces are there. It is worth a shot. Most people want the moon shot for 10K worth of investment. fine if there are another 200 people into it, and a few millionaires to boot, and they are right as rain. There are a lot more small businesses out there that are a lot less risk, even in mining. The risk in small business is about one in 4, the risk in mining is perceived to be greater but it may not be if all your ducks are in a row.
There are 70 drill offs in latter years, of fair tons in Ontario that are not being mined. They have existed some, from the 30's and some from recent times. There are far more prospects with good character that could be tackled. Perhaps 500 should be investigated that have character that I know of. Perhaps 15 situations could be started up with toll mills, and good veins, some tonnage. Free gold. Perhaps more. Throw in placers and ore dumps and tailings ponds and you have a lot to handle. A good medium sized business can be built.
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