In New California Gold Rush, Old Mines Reopen

[XXX Snow]

http://www.nytimes.com/2011/02/11/us/11gold.html?_r=2&ref=us

[Joanne]

I've read about a company hoping to open a new gold mine just south of Beatty, NV adjacent to the old Gold Ace mine. With the price of gold at record highs, there are a lot of previously marginal mines that are starting to look promising.

Joanne

[Therrin]

A lot of mines that were always suspected to be "marginal" after WWII probably would have been decent providers for the last decade or so. The article hits on a key point that I think few people understand.

Many of the mines weren't "mined out", it just wasn't worth it to extract the gold at the time, with the government controlling the price, and the expenses rising. Couple that with people dying in the wars then not returning to their claims, and other's tiring of mining life, and there's lots of abandoned mines which are still quite profitable in today's market.

[Mike]

Interesting article. The MMT recently returned from a trip to AZ that involved helping an active mining company investigate the underground workings of some mines there were looking at reopening due to increased commodity prices.

One thing the article touches on is the requirement for environmental impact reports and permit processes. That, coupled with reclamation bonds and other hefty taxes and fees, makes it impossible for Skeeter McGoo to file a claim do any kind of mining with any form of decent equipment, especially in states like Utah that require a $1,000,000+ reclamation bond before a single penny is earned.

[Danb]

It is a shame we have to go through so many regulations and $ to extract minerals that we all use.
But the environmentalists keep coming after us. They are hypocrites.
They use the same minerals we do in our daily lives. The word ‘extortion’ comes to mind.

Danb