Can anyone help me on the gold mine in Carson Hill, California? To be specific, we have an investment opportunity on the gold mines in this area. We need to know more information about it.
Thanks, Simon Ng
Don’t know anything about gold mining except that it is very high risk, and too often a promoter’s dream, so be very careful, lots of due diligence, risk no more than you can comfortably lose.
Simon,
I do know a lot about gold mining and Harry is absolutely correct. It takes a lot of due diligence and chances are you will lose whatever you put into it. As an accountant, research the SEC definition of “PROVEN RESERVES” then prove to yourself that the “gold mine” has proven reserves. The degree of reserves will help you determine risk of the investment. Proven reserves are inversely proportional to risk in mining investments.
Hi Gary,
Thanks for your advice. In particular this company claims they bought tons (3.5 tons to be exact) of WMU Waste Management Units. Through them the company is going to recover gold from these mesh using some froth flotation system. Have you heard of any success stories in your career? I have checked their SEC filing, OTCBB listed (ORO). Nothing about Proven Reserve was mentioned. Was it a scam?
Separately we have clients from China who want to invest in a mineral company in the form of EB5 as Investment Immigrants. Should they just invest into an exploration company or do we need to set up a special purpose vehicle SPV to handle these types of clients?
Best Regards, Simon Ng
Simon,
Here is a short definition of reserves,
“reserve is that part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.”
7000 lbs. of material is nothing for a flotation process and hardly worth the set up. The use of flotation is dependent on the matrix housing the metal. The matrix must be crushed to a size that, by predetermination, will allow the metal particles to be free for the frothing chemicals to adsorb them and literally float them to the surface of the fluid to be concentrated and treated further by chemical precipitation or electrowinning. Eventually the concentrate must be combined with a flux and melted before pouring into a more pure concentrate. Many times other metals such as silver, copper, zinc, and lead, will not allow the process of making gold bars to work and must be removed from the matrix before gold can be concentrated.
The concentration of gold (oz./ton) and the chemical composition of the matrix are key to determining the process used. The trial and error testing is also the basis of knowing if the gold can be “economically and legally extracted”.
All of the gold mines and properties I have been directly involved with have been successful but the determination to explore, mine and process have all been based in science, followed by sound economic principles.
I’ll send you a personal message request if you want to discuss how to invest in mineral properties or operations.