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Gold Fever Strikes Mom and Pop Prospectors in US West
CNBC ^ | Wednesday, 15 Sep 2010 | 10:37 AM ET

Posted on 09/15/2010 4:04:15 PM PDT by DeaconBenjamin

When John Brewer's construction business soured along with the economy, he sought to replace lost income by prospecting for gold from the river valleys of central Idaho to the wilds of Alaska.

Armed with the tools of the trade -- a metal detector, gold pan and sluice box, a series of screens that sort gold from alluvial material like sand and gravel -- the Montana man represents the new face of a pursuit that once paved the way for settlement of the Western frontier.

The poor economy and a record price of gold have renewed interest in prospecting in Western states where public lands are rich with deposits and small-scale operators are all but free from government regulation.

What Brewer has in common with 19th century prospectors is a drive for gold equaled in intensity only by the instinct to keep quiet about its location and volume.

"Asking a miner where they found it and what they found is like asking an angler about his secret fishing hole," said Brewer. "We're not going to tell anybody. As soon as you tell anybody, there will be a crowd—and that would be counterproductive."

Gold prices hit a record $1,275.20 per ounce Tuesday.

Some gold mining sites economically feasible for the first time in years, prompting mid- and large-scale operators to apply to mine on national forests and on acreage overseen by the U.S. Bureau of Land Management in the Rocky Mountains.

"When gold goes over $1,000 an ounce, everybody becomes a miner," said Russ Bjorklund, minerals manager with Salmon-Challis National Forest in Idaho.

He is among federal land managers reporting a marked resurgence in gold mining, from amateurs armed with pans to corporations working hardrock mines.

Susan Elliott, geologist with Humboldt-Toiyabe National Forest in Nevada, said the rush is on in a state that is the fourth largest producer of gold in the world.

Elliott linked a 75 percent increase in mining activity on the 6.3 million-acre forest to the rise in gold prices in recent years.

"We've got all types: individuals out there with pick and shovel and companies with heavy equipment," she said.

Jon Cummings, who promotes gold-mining adventures at his Idaho resort, says finding what prospectors call "color" in the pan ignites a passion.

"You start finding a little gold in the pan—that's when gold fever kicks in. It's like a drug and you're ready to work all night," he said.

International gold-mining giant Barrick Gold in February gained approval from the federal Bureau of Land Management to expand its Bald Mountain mine in northeastern Nevada.

Bald Mountain represents one of the company's 25 operating mines, eight of which are in the western United States.

Large-scale operators like Barrick must clear a number of hurdles in advance of gold mining, often a years-long process.

But Ray TeSoro, minerals specialist for the U.S. Forest Service region that includes Montana, also described an influx of "mom and pop operations."

Those small-time prospectors, like Brewer, mostly engage in low-impact, stream-side mining like gold panning and sluicing, techniques which rely on gravity to separate heavy gold from sediment.

In the mountains of central Idaho, gold fever is behind trespassing incidents.

Beverly Cockrell, a rancher near Salmon, Idaho, has confronted strangers with "sticky fingers" on her creek-side land, including one who reportedly raided a sluice box.

"We're having to run people off," Cockrell said.

And some economists take a dim view of the gold rush.

"You've got this pretty metal—what does it do?" said James Hamilton, economics professor at University of California, San Diego. "It doesn't create dividends, it doesn't create more productivity; it's a hedge against certain kinds of risks."

But it will take more than discouraging words to dampen the enthusiasm of gold hunters like Brewer, who declined to say what profit he turns from prospecting.

"It doesn't replace a full-time job with benefits, but you work hard enough at it, you might get lucky," he said.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: gold

1 posted on 09/15/2010 4:04:15 PM PDT by DeaconBenjamin
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To: DeaconBenjamin

I know a guy who prospects here in NM. Doing pretty well. The first gold rush was in the 1830’s near Madrid NM. In the 1970’s when gold was “high” they went in and ground up all the remaining adobe structures near the mine and were able to recover enough to make it worth their time.


2 posted on 09/15/2010 4:06:58 PM PDT by Tijeras_Slim (Live jubtabulously!)
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To: DeaconBenjamin
North To Alaska
3 posted on 09/15/2010 4:12:52 PM PDT by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)
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To: DeaconBenjamin

15-20 years ago, there was a kid who worked his way through college by panning gold in the summer...and gold prices were a lot lower then.


4 posted on 09/15/2010 4:14:51 PM PDT by goldfinch
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To: Red_Devil 232

http://www.google.com/search?q=shirley+bassey+goldfinger&sourceid=ie7&rls=com.microsoft:en-us:IE-SearchBox&ie=&oe=


5 posted on 09/15/2010 4:20:32 PM PDT by rahbert
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To: DeaconBenjamin

Gold will go much higher as China, OPEC, India and others decide that that they don’t want to get caught holding dollars as 0, Ben, and Tim ramp up the printing press.


6 posted on 09/15/2010 4:25:19 PM PDT by updatedscreenname
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To: goldfinch
worked his way through college by panning gold in the summer...and gold prices were a lot lower then.

So were tuition costs and textbooks.

7 posted on 09/15/2010 4:29:34 PM PDT by DeaconBenjamin (A trillion here, a trillion there, soon you're NOT talking real money)
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To: goldfinch; All
"15-20 years ago, there was a kid who worked his way through college by panning gold in the summer...and gold prices were a lot lower then..."

So were beans, ramen noodles, and keg beer...

8 posted on 09/15/2010 4:32:19 PM PDT by conservativeharleyguy (Democrats: Over 60 million fooled daily!)
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To: DeaconBenjamin; nw_arizona_granny

I find this thread rather intriguing. After a couple of trips to Alaska, my husband got “gold fever”. We live in the Black Hills of South Dakota, where there is a history of gold mining. He is semi-retired and this hobby, thank God, gets him out of this house and gives me a break. After nearly fifty years of marriage, I still love him dearly, but I treasure the quiet times when he is out prospecting. He has invested nearly two thousand dollars in his “equipment” (sluice boxes, pans, dredges, pumps, metal detectors, etc.) He has a great time doing it and has actually found enough flakes and “pickers” to pay for his investment. Our youngest grandson loves to go with him. He also caught “the bug”. It’s a great hobby....just don’t count on it being a job.


9 posted on 09/15/2010 4:43:30 PM PDT by Rushmore Rocks
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To: DeaconBenjamin

There’s plenty of gold where I live if you want to break your back prospecting. Georgia was where America’s first gold rush began and people still work the streams. Most would do better working at a Burger King but there is always the chance of that big strike.


10 posted on 09/15/2010 4:59:38 PM PDT by Oshkalaboomboom
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To: Oshkalaboomboom

Ahh yes, the big strike.

http://www.roadsideamerica.com/story/14107


11 posted on 09/15/2010 5:17:14 PM PDT by vietvet67
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To: DeaconBenjamin

“”You’ve got this pretty metal—what does it do?” said James Hamilton, economics professor at University of California, San Diego. “It doesn’t create dividends, it doesn’t create more productivity; it’s a hedge against certain kinds of risks.”

What an idiot... electronics, computers, some medicines and jewelry are all heavily dependent on gold.

LLS


12 posted on 09/15/2010 6:34:10 PM PDT by LibLieSlayer (WOLVERINES!)
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To: Rushmore Rocks

There is no cure for gold fever.

It is a good hobby, and if times got real bad, you would find enough to keep eating.

But oh, the fun it is.


13 posted on 09/16/2010 3:18:46 AM PDT by nw_arizona_granny ( garden/survival/cooking/storage- http://www.freerepublic.com/focus/chat/2299939/posts?page=5555)
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To: Rushmore Rocks
See this:

Prospectors find largest gold nugget in 120 years[Black Hills-SD]

14 posted on 09/17/2010 11:56:45 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach

Thanks, we went to the Journey Museum to see it yesterday. Quite impressive!


15 posted on 09/17/2010 12:36:44 PM PDT by Rushmore Rocks
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To: Oshkalaboomboom
There’s plenty of gold where I live if you want to break your back prospecting.

The typical gold prospector in Alaska makes $1,000/month. Robots are still clumsy but the technology is all there for them to autonomously pan for gold. If a prospector instead oversaw 20 stream-water powered panning robots, they might make $20,000/month.

16 posted on 09/17/2010 1:05:30 PM PDT by Reeses (First they came for the communists... but the Secret Service stopped them at the White House gate.)
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To: DeaconBenjamin

I guess it’s time to reread this book...

Bacon and Beans from a Gold Pan

Amazon link:

http://www.amazon.com/Bacon-Beans-Prospecting-Treasure-Hunting/dp/0944194125

Partial review from Bedrock Dreams website:

If you are a true placer gold mining enthusiast then “Bacon and Beans from a Gold Pan” (by Jesse Coffey with George Hoeper) is a must read. This little gem of a book chronicles the true story of a young married couple (Jesse and Dot Coffey) who used small-scale placer mining methods to support themselves at the height of the Great Depression during the 1930s.

Unlike so many these days, they never felt sorry for themselves, played the roles of “victims,” or expected others (including the government) to bail them out of their predicament. Instead, they worked (and often struggled) together as a couple and as a team, keeping life and limb together through perseverance, hard work, and a good grasp of fundamental placer gold mining principles. And, in the end, they triumphed. Even with gold at a spot price of $35.00 per troy ounce.

http://goldbedrockgold.blogspot.com/2008/10/bacon-and-beans-from-gold-pan.html


17 posted on 09/17/2010 2:34:45 PM PDT by Tahoe4x4
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