Can I strike it rich looking for gold in Alaska?

[Minermike]

Some times you have to say enough is enough with mining. I worked as an opal miner in Andamooka, for 12 months, a lot of very hard work. In some 60 ft. shafts there was 20 ft. of hard rock that had to be blasted. On that we would use a whole box of gelignite , 200 sticks, you drilled 5 holes, loaded 2 sticks per hole. Then you lit them by hand and hoped you mate would pull you out in time. We were using a drilling rig but it would not go though the hard rock. At the end of 12 months, I was making $30 a week, so I decided to go to the city, work as a tradesman for $150 a week. This was in the early 70's.

[Minermike]

Back to Alaska and gold. I knew Chris Kelsey, he was the inventor of the Kelsey Jig, it ran at high speed.They are still made. It was good for very fine gold, they bought a lot of beach leases in Alaska but I do not know what happened to them. Chris worked for a big mining company and was the head of 50 draughtsmen. He won an award for composing trad. jazz. He also played in a band.

[Dylan McFarlane]

Here are my three arsy ideas for "striking it rich". You need to be:
A. Very lucky and obtain high grade/easy to mine ground
B. Very Effective in Prospecting (or Very Lucky)
C. Very well financed, or use old beat-up equipment, and if it doesn't break down and cost ya, than you are Very Lucky

I agree that most placer miners in Alaska are Subsistence Placer Miners. Last year I think the average amount of gold produced per mine was 300oz (although the figure is probably much higher). So let's say it was 400. That's a little over $500,000. This is on land, heavy equipment operations. Figure in labor costs, fuel costs, equipment parts, admin overhead, food, lodging, transport, etc etc, And then pay State Production Royalty 3% and Corporate Tax, etc. etc. (One prospective mine in Chandalar was going to have to pay over 40% in taxes if they started mining - and so they didn't!) and so overall, very few miners break even.

I think in reality, like during the Gold Rush, there were a few, lucky individuals (and some very good miners) who made it rich.

The vast majority struggle to survive, and then there's a trillion people out there speculating, with a hobbyist's passion for gold mining/exploration.

[jjfish1]

Wow if I could avg 400oz even after my 100k for expensive I'd say I would be doing OK

Here are my three arsy ideas for "striking it rich". You need to be:
A. Very lucky and obtain high grade/easy to mine ground
B. Very Effective in Prospecting (or Very Lucky)
C. Very well financed, or use old beat-up equipment, and if it doesn't break down and cost ya, than you are Very Lucky

I agree that most placer miners in Alaska are Subsistence Placer Miners. Last year I think the average amount of gold produced per mine was 300oz (although the figure is probably much higher). So let's say it was 400. That's a little over $500,000. This is on land, heavy equipment operations. Figure in labor costs, fuel costs, equipment parts, admin overhead, food, lodging, transport, etc etc, And then pay State Production Royalty 3% and Corporate Tax, etc. etc. (One prospective mine in Chandalar was going to have to pay over 40% in taxes if they started mining - and so they didn't!) and so overall, very few miners break even.

I think in reality, like during the Gold Rush, there were a few, lucky individuals (and some very good miners) who made it rich.

The vast majority struggle to survive, and then there's a trillion people out there speculating, with a hobbyist's passion for gold mining/exploration.

[jjfish1]

ahhhhh....So Jim care to elaborate a bit on areas?

[Steve Herschbach]

"Wow if I could avg 400oz even after my 100k for expensive I'd say I would be doing OK"

That was before expenses. If you read the post again Dylan is pointing out how hard it is to turn the kind of profit you are imagining.

If you are looking for information on areas please start another thread.

[lv2plyguitar]

Steve,

Now that I have spent the $10,000.00 at AMDS on a 6" mini and misc other equipment, any suggestions where I can start making it pay? You can reply to my email @ danielstudies@gmail.com.

Thanks for the Info

[DavidRamey]

I would think that if somebody bought $10,000 worth of mining equipment, they would already have a mine. Did you buy a claim or go out and stake your own claim? If you don't already have a claim, then you had better start researching where you can get a claim and then try to get permitted so that you can use your new 6" dredge since mining season is already underway for this year. Good luck on your project.

[Steve Herschbach]

If you have been hanging out on the forums you will know that the public sites are listed at http://www.akmining.com/mine/recsites.htm

Other than that the forum was created to help answer your question. A good place to start is http://www.akmining.com/forums/showt...als-for-Alaska


I will spend half my summer working on my own claims and the other half working on other peoples claims.

[geowizard]

Gold mining in Alaska isn't for the faint-hearted.

I spent $10,000 to get a 3" Proline combo set up on east beach at Nome. I didn't have any claims in Alaska at the time. I sold two mining properties in the lower 48 and invested $100K in mining property and equipment over the next two years.

I went broke.

I advertised for a JV partner. The phone rang and the rest is history! As a result, I have spent all winter shipping supplies and equipment. Tomorrow, May, 2nd, I will be boots on the ground mining at Ophir.

Moral of the story is you have to be willing to sacrifice everything. Be willing to adapt. Accept challenge and keep pushing the ball toward the goal.

- Geowizard