We consider 3 grams a yard minimum break even. That's with easy access and workable surface placer deposits. That's 3 grams for every yard - not just the good days. We have a producing placer mine in New Mexico that consistently produces that 3 grams per yard and will continue to for many years to come. And yes it's in the desert and yes we process with water most of the year. This mine feeds it's two full time miners well and pays their living expenses. Not much more.
Sometimes you hear fantastic figures of great gobs of gold in every bucket in Arizona. They are fantastic for a reason. They are not true. The best paying mines here produced 7 - 10 ounces per ton in a few small stopes. Real life averages are closer to 7/10 ounce per ton for successful mines. They were successful because there were a lot of tons to be mined at those averages - not because a few tons averaged 7 ounces. Mines that average 7 ounces a ton day in and day out do not exist. No matter what wild tales you hear on the internet or from those looking for you to invest in their paper schemes.
We are exploring a hardrock vein that is assaying 5 ounces per ton. Assays are misleading to the inexperienced. 5 ounces per ton for higrade is a good assay but it does not mean a mine on that vein will ever produce anywhere near 5 ounces per ton. I say exploring because we are not hardrock miners by experience. We hope to prove the vein doesn't "pinch out" as so many do. If we can prove the value of the deposit as a whole we will try to sell it to real hardrock miners. For now it is just a money sink. It will become more so should we choose to go the next step and pay for some sample drilling. No profits for the foreseeable future no matter how rich the ore is.
The business of mining is about factoring in all your costs. Just looking at how much gold you mined in a day minus your daily expenses is not business nor does it prove a profit. The operation in New Mexico is barely break even but it does support two miners. It takes a lot of time and money to prove a deposit of that size. Mining before you know how much gold will be recovered is a fools game. Real prospectors always prove a deposit before mining. Once you factor in your expenses for finding and proving a valuable mineral deposit it's surprising how much gold it takes to reach a profitable position.
As you can see prospecting is a gamble. The chances of success are more related to your own skills and knowledge as well as the ability to resist betting on a low pair because it "might" pay off. That's the mistake most beginning prospectors make, working ground that doesn't pay a profit instead of spending their time looking for a good paying deposit. Digging 1/2 gram dirt is great for enjoying a weekend hobby but hoping that gram will turn into an ounce if you keep digging is a poor bet.
There is good money to be made in mining small deposits. I know of several families in New Mexico who put their children through college by mining with them in the summer. Of course they had already found and proven the gold deposit before making the leap to mining for profit.
It's still out there. It is possible to mine for a living. Keep learning and exploring. Find a good deposit and then work it and you too could become a full time profitable miner. Or keep digging the same old non paying spots and enjoy the hobby. The choice is yours. Whatever path you choose to take enjoy the ride.
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