MT Nuggets (L150)
looking for Investor
$172,500 required
offering 80% of daily returns until investor is made whole and then 45% of daily returns for the life of the project.
Most nuggets here are jewelry quality.
These sell at 3 to 4 times spot price of gold!
EQUIPMENT & EXPENDITURES:
- Ground Lease, Good Faith, Advance on Gold $10,000.00
- D8 Dozer and Insurance @ 5 months, Lease or Rent $20,000.00
- (3) 5 i nch suction Dredges $ 10,200.00 (2) 6" Gas Pumps $ 5,000.00
- 200foot6" Discharge Line $ 500.00
- Fuel (Diesel) @ 5 months $21,200.00
- Oil, Filters, Grease @ 5 months $ 2,500.00
- Gas for Dredges, Pumps, Transportation $ 3,000.00
- Portable Restrooms @ 5 months $ 1,000.00
- (Winter) Wages and Insurance @ 4 months (2) manpower $35,380.00
- (Spring) Wages and Insurance @ 1 month (3) manpower $20,572.00
- Diese' Fue'Tank $ 1,500.00
- Gas Fuel Tank for Pickup,12Volt $ 800.00
- (2) Storage Sheds 10'x 12' Portable $ 2,000.00
- Welder, Generator $ 4,000.00
- 16'Trailer for Hauling $ 2,500.00
- Bond (estimated) $10,000.00
- Lawyer Fees (Contracts) $ 4,000.00
- Metal Detector $ 800.00
- Misc. Items: Buckets, Tubs, Boots, Gloves, Sieves, Wet Suits, Shipping and Handling $ 1,800.00
- Unexpected and Hidden Cost $ 15,750.00
- All Hand Tools, Supplied by self $ 0.00
- Grand Total: $172,500.
MINE HISTORY:
I have been around this site for 18 years and have been mining the area since 1 975. I know the landowners (ranchers). I have run trommels, sluices, shakers and suction dredges and explored and prospected on and around this ground since the early 1980's. I read all of the history and have studied the old working floating bucket dredge.
I have been in several old mining tunnels (drifts) and know the placer deposit. I've read about and have seen some of the placer nuggets from this deposit.
The old floating bucket dredge had to dig itself along while bringing the needed water with it. The average size rock they hauled up while digging was 1 1/2 foot. In the old drifts and placer works around the dredge, I have seen rocks that range in size from 2 feet to 6 feet on or near bedrock. (Bedrock is known as the bottom of the deposit).
When the floating bucket dredge hit large boulders or bedrock, it would begin bouncing as it hit them sa they had to pull up the digging buckets (only 2 feet across) and left behind the best pay gravel.
In panning for gold, you put placer materials in your pan and put it under water, then shake it vigorously and the gold goes right to the bottom of the pan. As the floating dredge dug, it stirred up the materials and a fot of the gold kept settling to the bottom thus concentrating the gold even more around the larger boulders and bedrock where the bucket dredge couldn't retrieve it. The bedrock itself is shaped like a little mountain range with high and fow areas. The trommel on the old dredge only had 3/8 inch size holes in it thus anything larger went into the tailing pile. They began to notice that on some occasions they were losing larger nuggets so they put a man on the discharge conveyor to pick out the nuggets as they passed by into the tailings pile.
Several people over the years have metal detected the surface rock on these old tailing piles and have found a few nice sized nuggets, but without digging into these 40 foot piles. They only retrieved nuggets from the top.
We'll be looking for some of these larger nuggets, with a metal detector as we are re-stacking the old tailing piles.
BRIEF OPERATING PLAN:
We will begin operations this winter, while the water table is low. This operation consists of working in and around rock piles (tailings). There is no topsoil to reclaim. We will remove the tailing piles and use suction dredges and the dozer to work the lower 2 to 6 feet of pay gravel to bedrock in 2 foot lifts.
I have run Goldfield 3 and 4inch dredges. They are eff'cient and their recovery rate is excellent. They are built well and are very durable to last many seasons. By the time dredging season begins in the early spring, the whole pit will be laid out and ready to begin dredging the high grade ore. We will then begin working 6 days a week from daylight to dark on the mining and recovery of the operation. After the first month of mining operations, the mining site will be self-supporting. There will not be any reclamation so we will leave the sloped pit, as a watering pond for the iandowner's cattle and for fishing.
MINING PRODUCTION AND PROJECTIONS:
The majority of the gold from this operation will be jewelry size to large nuggets.
This type of gold can be sold 3 to 4 times the spot price. With gold currently around $275.00 an ounce, l'll use a conservative figure of $500.00 per ounce.
- Using (3) 5 inch suction dredges our production rate will be @ 30 yards per hour or 45 tons per hour.
- Working the dredges 10 hours per day, our daily production rate is estimated at 300 ypd or 450 tpd.
- Weekly (6 days) rate @ 1,800 ypw or 2,700 tpw
- Monthly rate @ 7,200 ypm or 10,800 tpm.
- Seasonal Rate @ 43,200 yps or 64,800 tps.
Based on my knowledge of the area and the fact that we would be running only high-grade ore, l expect to recover 40 to 60 plus ounces per day. Keep in mind that 20 ounces of gold is less than 1/2 pint jar. I'll use 40 ounces per day to give you a minimum in my overall projections.
- Mining recovery rate @ 40 oz per day
- Sell nugget gold @ $500.00 per oz = projected figure of $20,000.00 per day
- Times projected daily figure by 6 days per week = 240 oz per week or $120,000.00
- Times projected weekly figure by 4 weeks per month = 960 oz per month or $480,000.00
- Times projected monthly figure by 6 months production = 5,760 oz per season or $2,880,000.00
Once the old main channel has been located within the deposit, the area will be worked first for a couple of seasons (high grading the deposit). The bedrock material in any placer deposit is highly concentrated especially in the old main channel. During this phase of the operation, l expect the above figures to double per season.
PROPOSED AGREEMENT:
The first party shall be the Investor; the second party shall be the Mine Supervisor and the Operating Crew; and the third party shall be the Landowner.
Upon funding, the agreement between the 1st and 2nd parties shall be drawn up and signed. Then the agreement between the 1st and 2nd parties as one with the 3rd parly shall be drawn up and signed.
A 5 year lease is in order here, with an option to renew for another 5 years.
The operating plan shall then be drawn up by myself and submitted. Upon approval, the operating plan will be set in motion to prepare for an early spring dredging operation.
The 1st party shall receive 80% of the daily returns, paid weekly, either in gold or cash. The cash option shall be paid after the 2nd party has had time to sell the gold on the market.
The above statements shall be true until the $172,500 initial investment has been returned to the 1st party. The remaining 20% of daily returns shall remain as continuing operating funds and any funds left over in the account from the initial investment of $172,500.00 shall be added to the continuing operating fund also.
Upon total repayment of the initial investment, the agreement shall read:
- 1st party will receive 45 %of the daily returns
- 2nd party will receive 29% of the daity returns
- 3rd party will receive 15 % of the daily returns
- Finder's Fee @ 1 % of the daily returns
- Continuing operating fund, 10% of the daily returns
The finder's fee will be paid out of the continuing operating fund unti! repayment to the 1st party is complete. This agreement will remain in effect until the mining operation has completed the said mining on the leased ground.
Daily records will be kept, weekly reports and payments will be sent and monthly progress reports will be sent.
To receive more information please contact us
and ask about
Montana Nuggets (L150)
