Dick grew up with the claimant!
- Geowizard
Gold Spot
Moderator: chickenminer
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Geowizard
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Re: Gold Spot
It ain't gonna be easy;
According to the best estimate, the response comes from a depth of 10 meters. That's why nobody discovered it.
The good news is that this deposit could be expected to be 1068 feet wide (width proportional to length).
Early analysis is that this is a lode deposit with disseminated gold.
"Pie are round"; (Jim Foley)
It's a 1068 foot pie!
1068 * 3.14 * 3.14 = 10,538 square feet.
10,538 square feet = 1170 square yards. 1170 square yards x 10 yards deep = a volume of 11,700 cubic yards.
Does It get better?
- Geowizard
According to the best estimate, the response comes from a depth of 10 meters. That's why nobody discovered it.
The good news is that this deposit could be expected to be 1068 feet wide (width proportional to length).
Early analysis is that this is a lode deposit with disseminated gold.
"Pie are round"; (Jim Foley)
It's a 1068 foot pie!
1068 * 3.14 * 3.14 = 10,538 square feet.
10,538 square feet = 1170 square yards. 1170 square yards x 10 yards deep = a volume of 11,700 cubic yards.
Does It get better?
- Geowizard
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Geowizard
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Re: Gold Spot
Relevance of the foregoing discussion;
Kitco explains how political change affects gold pricing.
Gold miners continue mining by making changes in their strategy. In simple economic terms, its a matter of cutting costs and increasing income in a potentially suppressed gold market. The discussion is about finding new sources of gold that improve the income side of the equation.
Geophysical data from Alaska DGGS surveys provides miners with new prospects that can be sampled and drilled to evaluate the potential for an improved revenue stream.
Because gold spot prices directly affect the revenue of a gold miner, the one single option for counteracting a retracting gold market is increasing gold grade through new discoveries.
Placer gold mining has certain economic advantages. Prospectors went for the easy money in the beginning. old was more plentiful and a gold pan could put grub on the table. Successful miners used all of the well known innovative measures already having been discussed here on this forum.
Today it comes down to finding gold in, on, and around lode gold deposits. Fortunately, hidden gold deposits are discovered every day using technology. It isn't new technology, it's old technology applied in a more demanding market. Gold miners must remain innovative in selecting technology that applies to prospecting using improved methods.
For recreational miners, the common discriminating metal detector is sufficient. For Commercial miners, prospecting involves teaming up with an advisor that can provide a deeper look into the earth beneath our feet.
Taking that step is a leap of faith for many commercial miners! I often refer skeptics to resources like
https://www.juniorminingnetwork.com/
for examples of what miners around the world are doing to get on the gold.
- Geowizard
Kitco explains how political change affects gold pricing.
Gold miners continue mining by making changes in their strategy. In simple economic terms, its a matter of cutting costs and increasing income in a potentially suppressed gold market. The discussion is about finding new sources of gold that improve the income side of the equation.
Geophysical data from Alaska DGGS surveys provides miners with new prospects that can be sampled and drilled to evaluate the potential for an improved revenue stream.
Because gold spot prices directly affect the revenue of a gold miner, the one single option for counteracting a retracting gold market is increasing gold grade through new discoveries.
Placer gold mining has certain economic advantages. Prospectors went for the easy money in the beginning. old was more plentiful and a gold pan could put grub on the table. Successful miners used all of the well known innovative measures already having been discussed here on this forum.
Today it comes down to finding gold in, on, and around lode gold deposits. Fortunately, hidden gold deposits are discovered every day using technology. It isn't new technology, it's old technology applied in a more demanding market. Gold miners must remain innovative in selecting technology that applies to prospecting using improved methods.
For recreational miners, the common discriminating metal detector is sufficient. For Commercial miners, prospecting involves teaming up with an advisor that can provide a deeper look into the earth beneath our feet.
Taking that step is a leap of faith for many commercial miners! I often refer skeptics to resources like
https://www.juniorminingnetwork.com/
for examples of what miners around the world are doing to get on the gold.
- Geowizard
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Geowizard
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Re: Gold Spot
The Investor connection;
Investors come from every sector of the economy. Exploration companies are in the business of making new discoveries. The first important step for any prospector is making a discovery! Prospectors naturally follow other prospectors. Where possible prospectors use specialized tools to gain advantage in exploration. Discoveries are made and capital is needed for the up-front cost of equipment and a long list of assorted support "hardware" to mine a "deposit". The deposit is a valuable mineral mass of inferred, possibly yet unseen, precious and/or base metals located in a reasonably well defined space.
Investment in the form of venture capital is a well known tool for getting the hardware in position to mine the deposit. The investor connection becomes the second step in completion of a mining campaign. Mining can only be done with the investor connection.
- Geowizard
Investors come from every sector of the economy. Exploration companies are in the business of making new discoveries. The first important step for any prospector is making a discovery! Prospectors naturally follow other prospectors. Where possible prospectors use specialized tools to gain advantage in exploration. Discoveries are made and capital is needed for the up-front cost of equipment and a long list of assorted support "hardware" to mine a "deposit". The deposit is a valuable mineral mass of inferred, possibly yet unseen, precious and/or base metals located in a reasonably well defined space.
Investment in the form of venture capital is a well known tool for getting the hardware in position to mine the deposit. The investor connection becomes the second step in completion of a mining campaign. Mining can only be done with the investor connection.
- Geowizard
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Geowizard
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Re: Gold Spot
I asked Google AI;
Constraints on venture capital investment in gold mining?
High Front-Loaded Capital & Long Lead Times: Moving a gold prospect from initial exploration to an operational mine typically spans 10 to 15 years, a timeline that far exceeds the standard 7-to-10-year fund life of a conventional venture capital firm.
Geological & Discovery Uncertainty: Early-stage exploration involves high "alpha" risk—drilling can yield empty results or uneconomic grades, erasing capital with no predictable product-market fit or software iteration. Traditional private equity and institutional debt stay away from this tier, leaving early uncertainty to project generators or specialized junior explorers rather than classic VC.
Illiquidity and Exit Mismatch: VC requires a clear, high-multiple exit strategy (such as an IPO or a lucrative trade sale). In mining, small exploration companies often suffer from thin public market liquidity, cyclical commodity crashes, or sentiment-driven capital freezes (such as historic lows in institutional participation) that trap capital.
https://goldsilver.com/industry-news/vi ... old-price/
- Geowizard
Constraints on venture capital investment in gold mining?
High Front-Loaded Capital & Long Lead Times: Moving a gold prospect from initial exploration to an operational mine typically spans 10 to 15 years, a timeline that far exceeds the standard 7-to-10-year fund life of a conventional venture capital firm.
Geological & Discovery Uncertainty: Early-stage exploration involves high "alpha" risk—drilling can yield empty results or uneconomic grades, erasing capital with no predictable product-market fit or software iteration. Traditional private equity and institutional debt stay away from this tier, leaving early uncertainty to project generators or specialized junior explorers rather than classic VC.
Illiquidity and Exit Mismatch: VC requires a clear, high-multiple exit strategy (such as an IPO or a lucrative trade sale). In mining, small exploration companies often suffer from thin public market liquidity, cyclical commodity crashes, or sentiment-driven capital freezes (such as historic lows in institutional participation) that trap capital.
https://goldsilver.com/industry-news/vi ... old-price/
- Geowizard
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Geowizard
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Re: Gold Spot
JP Morgan and the Kennecott Copper story;
JP Morgan invested tens of Millions in the Kennecott Copper Mine in Alaska and made Many more Millions.
https://www.youtube.com/watch?v=s2c1AAy8eGY&t=2098s
https://en.wikipedia.org/wiki/Alaska_Syndicate
That's liquidity.
- Geowizard
JP Morgan invested tens of Millions in the Kennecott Copper Mine in Alaska and made Many more Millions.
https://www.youtube.com/watch?v=s2c1AAy8eGY&t=2098s
https://en.wikipedia.org/wiki/Alaska_Syndicate
That's liquidity.
- Geowizard
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Geowizard
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Re: Gold Spot
An AI overview:
Gold is trading around $3,912.30 per troy ounce, pulling back for a third straight session as strong macroeconomic pressures weigh on the market.
The primary drivers currently pushing gold prices down include:
• Stronger U.S. Dollar: The U.S. dollar has gained strength, making gold more expensive for holders of other currencies and reducing foreign demand.
• Hotter-Than-Expected Inflation: Recent U.S. Consumer Price Index (CPI) data came in above forecasts (rising 0.4%), fueling market anxiety.
• Hawkish Federal Reserve Expectations: Hotter inflation reports and increasingly hawkish comments from Federal Reserve officials have reinforced expectations of further interest rate increases, raising the opportunity cost of holding non-yielding bullion.
• Broader Market Pressures: Profit-taking and lower short-term safe-haven flows have also contributed to the pullback below the $4,000 threshold.
- Geowizard
Gold is trading around $3,912.30 per troy ounce, pulling back for a third straight session as strong macroeconomic pressures weigh on the market.
The primary drivers currently pushing gold prices down include:
• Stronger U.S. Dollar: The U.S. dollar has gained strength, making gold more expensive for holders of other currencies and reducing foreign demand.
• Hotter-Than-Expected Inflation: Recent U.S. Consumer Price Index (CPI) data came in above forecasts (rising 0.4%), fueling market anxiety.
• Hawkish Federal Reserve Expectations: Hotter inflation reports and increasingly hawkish comments from Federal Reserve officials have reinforced expectations of further interest rate increases, raising the opportunity cost of holding non-yielding bullion.
• Broader Market Pressures: Profit-taking and lower short-term safe-haven flows have also contributed to the pullback below the $4,000 threshold.
- Geowizard
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Geowizard
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Re: Gold Spot
The short answer;
I never price in new equipment at a commodity high. The trade-off in depreciation in value of the asset combined with a drop in gold prices becomes a double bite in the shorts.
The added cost of the asset combined with depreciation in the value of the asset are two different factors affecting the same business bottom line. The added cost of the asset along with interest on a loan are deductions on the State Tax form. Depreciation is also a deduction as a calculation of amortizing the asset over a given life-time.
Please note: I'm not a tax accountant and never offer tax accounting advice.
My advice centers around establishing newer, better, more productive ground as a means of "hedge", to counter-act decreasing profits as a result of commodity prices. It's easier said than done!
Staying married to a marginal grade deposit that remains marginal in the face of the added cost of an asset in a declining market squeezes the bottom line where the two lines of cost and revenue cross. This crossing is predictable and is the definition of "going bust".
The "dump it?" decision can come now or later. Palm readers with a crystal ball avail themselves for purposes of forecasting what happens next in the market.
- Geowizard
I never price in new equipment at a commodity high. The trade-off in depreciation in value of the asset combined with a drop in gold prices becomes a double bite in the shorts.
The added cost of the asset combined with depreciation in the value of the asset are two different factors affecting the same business bottom line. The added cost of the asset along with interest on a loan are deductions on the State Tax form. Depreciation is also a deduction as a calculation of amortizing the asset over a given life-time.
Please note: I'm not a tax accountant and never offer tax accounting advice.
My advice centers around establishing newer, better, more productive ground as a means of "hedge", to counter-act decreasing profits as a result of commodity prices. It's easier said than done!
Staying married to a marginal grade deposit that remains marginal in the face of the added cost of an asset in a declining market squeezes the bottom line where the two lines of cost and revenue cross. This crossing is predictable and is the definition of "going bust".
The "dump it?" decision can come now or later. Palm readers with a crystal ball avail themselves for purposes of forecasting what happens next in the market.
- Geowizard