Gold Fever Is Spreading -- Opening Up Mines In Arizona

FROM:
http://www.azcentral.com/business/ar...-gold0122.html

Mines are being reopened
as gold fever sweeps state

Max Jarman
The Arizona Republic
Jan. 22, 2008 12:00 AM

Gold fever is sweeping Arizona.

Mining companies are scouring the earth, looking for new
deposits and working to reopen venerable mines, some with
histories that date to territorial days.

With the yellow metal selling for just under $900 per once,
more weekend gold diggers are heading for the hills with
pans, picks and metal detectors.

Prospecting outfitter Promack Treasure Hunting in Apache
Junction has seen its business triple in the past year,
and membership in the Superstition Mountain Treasure
Hunters gold-panning club has grown to 400 from 70 in the
same period.

Club leaders say members can return from a weekend of
prospecting with $1,000 or more in gold.

"I wouldn't recommend quitting your day job, but you can
make some real money out there," "Minnesota" Ray Ose said.

Ose said he has been prospecting in Arizona since 1948,
when he and his father came out from Minnesota to search
for the Lost Dutchman Mine in the Superstition Mountains.

Investors increasingly have looked to gold as a haven
because of falling stock prices and the real-estate slump.

Demand has pushed up the price of gold as much as 45
percent in the past 12 months and brought a dozen or
so mainly Canadian mining companies into the state.

While the state is known as one of the world's top
copper-producing regions, it also has a gold-mining
legacy.

Gold has been found at thousands of locations around
the state, with the largest concentration of claims
and mines in Yavapai, La Paz, Mohave and Pima counties.
Since 1860, Arizona has produced more than 16 million
ounces of gold, valued at today's prices at about $15
billion. It also is home to one of the world's
best-known "lost" mines: the enigmatic Lost Dutchman.

All of Arizona's gold mines eventually closed as ore
bodies played out or price declines made them
unprofitable. The last, the Gold Road near Oatman,
closed in 1998.

But interest is surging again, and a lot of the
activity is focused in La Paz and Mohave counties in
western Arizona.

There, American Bonanza Gold Corp. of Vancouver,
British Columbia, is working to reopen the old
Copperstone Mine, 10 miles north of Quartzite. Bonanza
President and Chief Executive Brian Kirwin said the
group has identified a high-grade gold deposit of about
400,000 ounces and has made new discoveries nearby that
are being evaluated.

Bonanza is converting the original open-pit mine, which
produced 500,000 ounces of gold before closing in 1993,
into an underground operation.

The company hopes to have the Copperstone back in
production by 2010, with a full-time crew of about
100 miners.

Kirwin said the company also is exploring other
promising sites along "Walker Lane," a narrow
gold-bearing strip that runs through Arizona,
California and Nevada.

"There are a lot of potential gold mines in western
Arizona that have been overlooked for a long time,"
he said.

Other companies prospecting for gold or looking to
reopen old mines include:

.. Columbus Gold, exploring four projects in
western Arizona.

.. Patriot Gold, drilling at the Moss Mine
near Oatman.

.. Tonogold Resources, which optioned the Deeman
mine property and is exploring the site west of
Kingman.

.. Sage Gold, which optioned the Gold Hill
property and is exploring the site in Maricopa
County north of Phoenix.

Investment capital
"There are a lot of people out there looking,"
said Nyal Niemuth, chief mining engineer with the
Arizona Department of Mines and Mineral Resources.

The activity has been spurred by soaring prices
for copper, silver and gold. Since 2002, gold
prices have risen to more than $900 per ounce from
$280, and copper has gone from 60 cents to more
than $3 per pound. Silver prices also have
increased substantially.

The high metals prices are making old mines
economically viable again and are attracting
investment capital, which is helping drive
exploration.

"There are a lot of people who want to put money
in mineral exploration," said Andy Wallace,
owner of Cordex Exploration Co. in Reno.

Wallace is exploring several Arizona gold
prospects for Vancouver's Columbus Gold Corp.

Arizona Deputy Land Commissioner Jamie Hogue
said applications for permits to explore for
minerals on state trust lands are up significantly.
The 12-month permits cost $100 and cover 20 acres.

Hogue estimates they will bring the state $300,000
in revenue this year, up from $96,000 in 2006. If
something is found, the discoverer then has to
negotiate a mineral lease before any mining can occur.

Unlike federal leases that require no royalty
payments, Arizona collects an excise tax on the
value of the extracted ore.

Mining claims on federal land in Arizona also
have risen sharply.

Weekend prospectors

While high metals prices have drawn companies to
the state, they also have sparked an interest in
weekend prospecting and treasure-hunting.

Membership in gold-panning clubs, which often own
their own claims and leases, has skyrocketed.

"These days, our store is constantly full of people,"
said Dan Ware, owner of Promack Treasure Hunting.
Promack sells gold pans, scales, sluice boxes,
rockers and other weekend gold-mining supplies.

Gold-panning is allowed on Bureau of Land Management
and U.S. Forest Service land where there are no
existing claims. Determining ownership of surface
and mineral rights can be a complex process, however.

The Lynx Lake Area near Prescott has been set aside
for recreational gold-panning. Gold pans and hand
tools can be used, but not mechanized equipment. No
permit is required.

Weekend prospectors can pick up bits of ore to turn
into cash, but many dream of stumbling into a
bonanza, as legend says Phoenix prospector Jacob
Waltz did in the 1880s.

Nicknamed "the Dutchman," Waltz died penniless in
1891 but told a caretaker about a fabulously rich
mine he had discovered in the Superstition Mountains
east of Apache Junction. People have searched for
the mine since, and tales of mysterious deaths,
peculiar signs and enigmatic stone maps have
embellished the story.

The Superstition Mountains have been declared a
wilderness area. Mining and motorized equipment
are prohibited today, as is taking any artifacts.
But the lore of the Dutchman has made Apache
Junction sort of a treasure-hunting mecca.

Although some believe the Lost Dutchman is a
myth, Ose is convinced it is real.

"I can tell you where it isn't," he said, "but
it's out there somewhere."


Reach the reporter at
or 602-444-7351.

On Jan 22, 6:47*am, "Arizona Coin Collector"
wrote:
FROM:http://www.azcentral.com/business/ar...-gold0122.html

Mines are being reopened
as gold fever sweeps state

Max Jarman
The Arizona Republic
Jan. 22, 2008 12:00 AM

Gold fever is sweeping Arizona.

Mining companies are scouring the earth, looking for new
deposits and working to reopen venerable mines, some with
histories that date to territorial days.

With the yellow metal selling for just under $900 per once,
more weekend gold diggers are heading for the hills with
pans, picks and metal detectors.

Prospecting outfitter Promack Treasure Hunting in Apache
Junction has seen its business triple in the past year,
and membership in the Superstition Mountain Treasure
Hunters gold-panning club has grown to 400 from 70 in the
same period.

Club leaders say members can return from a weekend of
prospecting with $1,000 or more in gold.

"I wouldn't recommend quitting your day job, but you can
make some real money out there," "Minnesota" Ray Ose said.

Ose said he has been prospecting in Arizona since 1948,
when he and his father came out from Minnesota to search
for the Lost Dutchman Mine in the Superstition Mountains.

Investors increasingly have looked to gold as a haven
because of falling stock prices and the real-estate slump.

Demand has pushed up the price of gold as much as 45
percent in the past 12 months and brought a dozen or
so mainly Canadian mining companies into the state.

While the state is known as one of the world's top
copper-producing regions, it also has a gold-mining
legacy.

Gold has been found at thousands of locations around
the state, with the largest concentration of claims
and mines in Yavapai, La Paz, Mohave and Pima counties.
Since 1860, Arizona has produced more than 16 million
ounces of gold, valued at today's prices at about $15
billion. It also is home to one of the world's
best-known "lost" mines: the enigmatic Lost Dutchman.

All of Arizona's gold mines eventually closed as ore
bodies played out or price declines made them
unprofitable. The last, the Gold Road near Oatman,
closed in 1998.

But interest is surging again, and a lot of the
activity is focused in La Paz and Mohave counties in
western Arizona.

There, American Bonanza Gold Corp. of Vancouver,
British Columbia, is working to reopen the old
Copperstone Mine, 10 miles north of Quartzite. Bonanza
President and Chief Executive Brian Kirwin said the
group has identified a high-grade gold deposit of about
400,000 ounces and has made new discoveries nearby that
are being evaluated.

Bonanza is converting the original open-pit mine, which
produced 500,000 ounces of gold before closing in 1993,
into an underground operation.

The company hopes to have the Copperstone back in
production by 2010, with a full-time crew of about
100 miners.

Kirwin said the company also is exploring other
promising sites along "Walker Lane," a narrow
gold-bearing strip that runs through Arizona,
California and Nevada.

"There are a lot of potential gold mines in western
Arizona that have been overlooked for a long time,"
he said.

Other companies prospecting for gold or looking to
reopen old mines include:

. Columbus Gold, exploring four projects in
western Arizona.

. Patriot Gold, drilling at the Moss Mine
near Oatman.

. Tonogold Resources, which optioned the Deeman
mine property and is exploring the site west of
Kingman.

. Sage Gold, which optioned the Gold Hill
property and is exploring the site in Maricopa
County north of Phoenix.

Investment capital
"There are a lot of people out there looking,"
said Nyal Niemuth, chief mining engineer with the
Arizona Department of Mines and Mineral Resources.

The activity has been spurred by soaring prices
for copper, silver and gold. Since 2002, gold
prices have risen to more than $900 per ounce from
$280, and copper has gone from 60 cents to more
than $3 per pound. Silver prices also have
increased substantially.

The high metals prices are making old mines
economically viable again and are attracting
investment capital, which is helping drive
exploration.

"There are a lot of people who want to put money
in mineral exploration," said Andy Wallace,
owner of Cordex Exploration Co. in Reno.

Wallace is exploring several Arizona gold
prospects for Vancouver's Columbus Gold Corp.

Arizona Deputy Land Commissioner Jamie Hogue
said applications for permits to explore for
minerals on state trust lands are up significantly.
The 12-month permits cost $100 and cover 20 acres.

Hogue estimates they will bring the state $300,000
in revenue this year, up from $96,000 in 2006. If
something is found, the discoverer then has to
negotiate a mineral lease before any mining can occur.

Unlike federal leases that require no royalty
payments, Arizona collects an excise tax on the
value of the extracted ore.

Mining claims on federal land in Arizona also
have risen sharply.

Weekend prospectors

While high metals prices have drawn companies to
the state, they also have sparked an interest in
weekend prospecting and treasure-hunting.

Membership in gold-panning clubs, which often own
their own claims and leases, has skyrocketed.

"These days, our store is constantly full of people,"
said Dan Ware, owner of Promack Treasure Hunting.
Promack sells gold pans, scales, sluice boxes,
rockers and other weekend gold-mining supplies.

Gold-panning is allowed on Bureau of Land Management
and U.S. Forest Service land where there are no
existing claims. Determining ownership of surface
and mineral rights can be a complex process, however.

The Lynx Lake Area near Prescott has been set aside
for recreational gold-panning. Gold pans and hand
tools can be used, but not mechanized equipment. No
permit is required.

Weekend prospectors can pick up bits of ore to turn
into cash, but many dream of stumbling into a
bonanza, as legend says Phoenix prospector Jacob
Waltz did in the 1880s.

Nicknamed "the Dutchman," Waltz died penniless in
1891 but told a caretaker about a fabulously rich
mine he had discovered in the Superstition Mountains
east of Apache Junction. People have searched for
the mine since, and tales of mysterious deaths,
peculiar signs and enigmatic stone maps have
embellished the story.

The Superstition Mountains have been declared a
wilderness area. Mining and motorized equipment
are prohibited today, as is taking any artifacts.
But the lore of the Dutchman has made Apache
Junction sort of a treasure-hunting mecca.

Although some believe the Lost Dutchman is a
myth, Ose is convinced it is real.

"I can tell you where it isn't," he said, "but
it's out there somewhere."

Reach the reporter at
or 602-444-7351.

Historic mining terminology: "A mine is a hole in the ground with a
liar standing besides it". - Mark Twain

oly

Historic mining terminology: "A mine is a hole in the ground with a
liar standing besides it". - Mark Twain

You just hit one of my favorite pet peeves.
No record of the "gold mine" quotation in Twain's books or papers
http://searchenginewatch.com/showPage.html?page=2160991

There are many quotes atrributed to Twain because they sound
like something he might say, but can not be documented.


Best Regards, Bob Johnson

Directories
--------------------------------------------------
GOLDSHEET Mining http://www.goldsheetlinks.com
COINSHEET Numismatic http://www.coinsheetlinks.com
OILSHEET Energy http://www.oilsheetlinks.com
--------------------------------------------------

On Jan 23, 9:45*am, Bob Johnson wrote:
Historic mining terminology: "A mine is a hole in the ground with a
liar standing besides it". - Mark Twain

You just hit one of my favorite pet peeves.
No record of the "gold mine" quotation in Twain's books or papershttp://searchenginewatch.com/showPage.html?page=2160991

There are many quotes atrributed to Twain because they sound
like something he might say, but can not be documented.

Best Regards, Bob Johnson

Directories
--------------------------------------------------
GOLDSHEET Mining * *http://www.goldsheetlinks.com
COINSHEET Numismatichttp://www.coinsheetlinks.com
*OILSHEET Energy * *http://www.oilsheetlinks.com
--------------------------------------------------

Bob - in public speaking class, they always tell you that whenever
you're pulling a reasonably witty "quote" out of the pure blue ether,
attribute it to Mark Twain. Unless it's economics related, in which
case you should attribute it to Lord J.M. Keynes.

If you are on the conservative parts of the East Coast (damn hard to
find, IMHO) and your imaginary quote is sonerous, ponderous,
moralistic or just pompous, attribute it to Dr. Sam'l Johnson. Ditto
if you find yourself in the British Isles (and double ditto if your
made up quote is about Scotland).

At any rate, Mark Twain (Samuel Clemens) really was on hand during the
glory days of the Comstock Lode. If memory serves, his older brother
was appointed territorial Governor of Nevada by Abraham Lincoln and
Twain went west as an assistant. Twain wrote a lot about both
hardrock and placer mining and the fine art of "projecting" the stock
of a mine.

oly

On Wed, 23 Jan 2008 17:34:14 -0800 (PST), oly
wrote:

At any rate, Mark Twain (Samuel Clemens) really was on hand during the
glory days of the Comstock Lode. If memory serves, his older brother
was appointed territorial Governor of Nevada by Abraham Lincoln and
Twain went west as an assistant.

"On March 22 the President commissioned James W. Nye of New York as
Governor and Orion Clemens of Iowa as Territorial Secretary of
Nevada. The Territorial Governor arrived at Carson City July 8,
1861, via the Isthmus of Panama. Secretary Clemens came by overland
stage accompanied by his young brother Samuel."

REF:
http://dmla.clan.lib.nv.us/DOCS/nsla...cal/hist06.htm

"What is certain is that on May 29, 1864 the failed prospector who
had come to Virginia City as Samuel Clemens departed as Mark Twain."

REF: http://www.territorial-enterprise.com/tee.htm

Spent less than three years there, and didn't do much mining.

The "glory days" of the Comstock Lode were the 1870s, in my opinion.

Virginia and Truckeee Railroad was opened in January 1870.
In May of 1873, a huge body of high grade ore was discovered in
Mackay and Fair's Consolidated Virginia Mine. The discovery was the
largest ever on the Comstock and became known as "The Big Bonanza."
Peak production was achieved in 1877. Twain was long gone by then.


Best Regards,
Bob Johnson

On Jan 24, 1:53*am, Bob Johnson wrote:
On Wed, 23 Jan 2008 17:34:14 -0800 (PST), oly
wrote:

At any rate, Mark Twain (Samuel Clemens) really was on hand during the
glory days of the Comstock Lode. *If memory serves, his older brother
was appointed territorial Governor of Nevada by Abraham Lincoln and
Twain went west as an assistant. *

"On March 22 the President commissioned James W. Nye of New York as
Governor and Orion Clemens of Iowa as Territorial Secretary of
Nevada. The Territorial Governor arrived at Carson City July 8,
1861, via the Isthmus of Panama. Secretary Clemens came by overland
stage accompanied by his young brother Samuel."

REF:http://dmla.clan.lib.nv.us/DOCS/nsla.../historical/hi....

"What is certain is that on May 29, 1864 the failed prospector who
had come to Virginia City as Samuel Clemens departed as Mark Twain."

REF:http://www.territorial-enterprise.com/tee.htm

Spent less than three years there, and didn't do much mining.

The "glory days" of the Comstock Lode were the 1870s, in my opinion.

Virginia and Truckeee Railroad was opened in January 1870.
In May of 1873, a huge body of high grade ore was discovered in
Mackay and Fair's Consolidated Virginia Mine. The discovery was the
largest ever on the Comstock and became known as "The Big Bonanza."
Peak production was achieved in 1877. *Twain was long gone by then.

Best Regards,
Bob Johnson

I distinctly recall that Twain wrote about people in Nevada who were
selling shares in mines in his days there & that frequently, even if
Twain would turn down the chance to buy one hundred or two hundred
shares, the same people would give him ten or twenty shares as a small
gift or even a "tip" as Twain was connected with the territorial
administration and certain newspapers. Twain was happily amazed that
the same odd lots of shares could be converted into small amounts of
cash or even used in lieu of money.

In the same sense, I would not be greatly enthused to buy into the
modern minimg projects mentioned in the orginal post. Sheesh, in the
Midwest, if you want to throw your money away, you can always "invest"
in an new ethanol producing plant. Or you could buy some slabbed
Lincoln cents.

oly

On Jan 24, 2:22*am, oly wrote:
On Jan 24, 1:53*am, Bob Johnson wrote:





On Wed, 23 Jan 2008 17:34:14 -0800 (PST), oly
wrote:

At any rate, Mark Twain (Samuel Clemens) really was on hand during the
glory days of the Comstock Lode. *If memory serves, his older brother
was appointed territorial Governor of Nevada by Abraham Lincoln and
Twain went west as an assistant. *

"On March 22 the President commissioned James W. Nye of New York as
Governor and Orion Clemens of Iowa as Territorial Secretary of
Nevada. The Territorial Governor arrived at Carson City July 8,
1861, via the Isthmus of Panama. Secretary Clemens came by overland
stage accompanied by his young brother Samuel."

REF:http://dmla.clan.lib.nv.us/DOCS/nsla.../historical/hi...

"What is certain is that on May 29, 1864 the failed prospector who
had come to Virginia City as Samuel Clemens departed as Mark Twain."

REF:http://www.territorial-enterprise.com/tee.htm

Spent less than three years there, and didn't do much mining.

The "glory days" of the Comstock Lode were the 1870s, in my opinion.

Virginia and Truckeee Railroad was opened in January 1870.
In May of 1873, a huge body of high grade ore was discovered in
Mackay and Fair's Consolidated Virginia Mine. The discovery was the
largest ever on the Comstock and became known as "The Big Bonanza."
Peak production was achieved in 1877. *Twain was long gone by then.

Best Regards,
Bob Johnson

I distinctly recall that Twain wrote about people in Nevada who were
selling shares in mines in his days there & that frequently, even if
Twain would turn down the chance to buy one hundred or two hundred
shares, the same people would give him ten or twenty shares as a small
gift or even a "tip" as Twain was connected with the territorial
administration and certain newspapers. *Twain was happily amazed that
the same odd lots of shares could be converted into small amounts of
cash or even used in lieu of money.

In the same sense, I would not be greatly enthused to buy into the
modern minimg projects mentioned in the orginal post. *Sheesh, in the
Midwest, if you want to throw your money away, you can always "invest"
in an new ethanol producing plant. *Or you could buy some slabbed
Lincoln cents.

oly- Hide quoted text -

- Show quoted text -

In Twain's day, the "search", to the extent that it was legitimate,
was for Gold ore. A few years later, the Mexicans convinced the
Yankees to be looking for Silver in Nevada. Nobody ever thought to
sell a newfangled damn small cent for 50,000 times face value.

oly