Experienced Advise Sought

[luckystrike]

Hello, An oppurtunity has risen to be involved in alluvial gold mining overseas. An Assay has been done and mining leases, water permits etc given.

As I am not in the gold business I would like to see there venture established to provide for their community. Of course nothing beats real experience working in harsh enviroments and realistic expectations of returns. On the surface it looks too easy.

Any help would be appreciated. Cheer's.

[Deleted]

How much are they asking you to invest up front
Ron

[luckystrike]

They are asking for 2.5 Million US. 50 year life span and 700,000 ounces. I suggested they start with a small machine and sluice to see how the system will work in their enviroment. Study the returns and help them build up their own capital to buy bigger equipment. Currently they have mined most of the upper layer over the last 70 years and need to go deeper.

I have read the reports prepared by the University. Up front it all stackes up. Just the logistics and security are a concern.

At 10m3 an hour the return is 4 ounces a day which will not take long to upgrade to a bigger setup.

I just need advise on the type of gravel and rock which will return this quantity.
Primarily the safetest way is not to invest too much up front but slowley build the asset base from site. This is what I need to find out.

Thanks'

[jarrahrules]

Hi. Maybe you could contact some like Patrick Keene as he is a big time business "Keene Industries" and ask his opinion. The only problem is he will probably try and sell hi equpment. But its worth a shot i know if I had a lot of experience and in business I would help.
Just a thought
Jamie

[Deleted]

Not in Nigeria by any chance ;D

[luckystrike]

No not Nigeria. This is a corperation of customary land owners close to a very large commercial gold mine. I work for the countries largest civil contractor. The Goverment has established assistance for local landowners to become self sufficent and develop the rescourses to maintain the bulk of wealth in the country. It is a high risk country no doubt but there are many international corperations operating here.

Early days and i would not put 1 cent in unless there is substance and some credibility shown by the landowners.

[luckystrike]

Thanks, This is the real experience money cannot buy. The country is PNG and the Gold is real as I work with the local people in the city. There is no end of scams here and so desperate they will do anything to survive. Just need time to sort out how best manage the situation.
As I said to the boys. Show me the gold first. Anyway it is another interesting industry to learn about. An interesting storey from the local paper tells of the police organising a robbery of the metals refinning company. Cleaned them out of plenty of bullion. Great to work here I can assure you. Never a dull moment.

[aushunter]

PNG has a lot of gold for sure but if you are unawares you could more than likey disappear never to be seen again.
When I go to PNG they usually have you pretty well locked up for your own safety. You'll be be robbed as PNG is not for the faint hearted.
Dont get sucked in by a scam as if it is that rich, Someone like Ok tedi or some other mining giant would of grabbed this parcel of land sooner.
Brad...

[luckystrike]

Thanks everone for your input. It's definatly not for the faint hearted up here. Our men are shot, stabbed, chopped up with machettes bashed given AIDS, TB and everyother thing known to man. I personally have been stoned, threatned, bashed and abused. It's the wild West for sure. Good luck Gents. And this shall close off my intrests.