The basics of proof and perfection of mining claims
Hi Barry, does Land Matters include a guide to "Proving and Perfecting" a mining claim? If so I was unable to find it in the LM library. I think you may have posted an outline of the process on TN but I haven't found that either. When time permits could you link or post more info about this.
Thanks Barry,
Mike
Yes Land Matters does have that information Mike but it's not in a tutorial or in the form of complete step by step instructions. I hope one day to write a more comprehensive article on the process.
The basis of perfection is described in the
Land Matters Law Library and it's titled "
The General Mining Law of 1872". That covers all the basic requirements to prove and patent your mineral claim - including the need to perform a mineral and boundary survey.
For more instruction about the industry standards to prove a placer claim you will find "
Placer Examination, Principles and Practice" in the
Mining Library describes best practices for proving the nature and extent of a placer deposit.
Basically once a valuable mineral deposit is discovered it's the responsibility of the locator to prove the nature and extent of the deposit. This is the exploration phase of perfecting your right to the deposit. Even though there is no time limit on this phase you only have a possessory right to the claim against subsequent prospectors or locators until you complete your proof.
It's important to understand that minerals already mined on a claim are not proof of a valuable deposit. They are only proof there may have been value in the past. To prove your claim you will have to establish the nature and extent of the
unmined valuable minerals on your claim.
Once you have determined the nature and extent of the deposit (how much recoverable valuable mineral exists on the claim and where it is located in three dimensions) you will need to determine whether the now defined deposit would reasonably be worth mining. This phase is all about figuring the costs of mining, transportation, refining, marketing and rehabilitation of your deposit.
All of the above needs to be documented and organized in such a way as to be able to show government agencies and potential investors that the deposit has a certain value. This provides the "proof" aspect for your mining claim.
Once a mineral claimant has "proof" of the actual verifiable value of the mineral deposit claimed they are immune to mineral withdrawals even to the extent of National Parks or Wilderness designation. Even though the United States could still take the claim by eminent domain they would have to pay the full value of the proven valuable minerals minus the cost of extraction. These "takings" payments are not available to unproven claims. An unproven claim can only be defended against subsequent locators and uninvited prospectors - not against government action.
There are some pitfalls to look for in the proof stage. If you are considering selling investors shares in your future mining plans the standards of proof will include some rather strict
SEC standards. The cost of mining changes with the cost of materials, labor and financing. The value of your mineral changes with the markets. These factors can make a paying deposit too expensive to mine and then you lose the values you have previously proven. A marginal deposit can be tricky and expensive to maintain.
The perfection stage is in the completion of the requirements to prepare for patent. A
Mineral Survey can be completed even though Patent processing funding is suspended. You can find out the standards for Mineral Surveys in the
Land Matters Mining Library by searching for the "
Mineral Survey Procedures Guide".
That should give you a good basis for understanding the process. Mining companies, from the very beginning, approach each deposit with the intent of proving the value in place. It's how the laws and the mining economy has been structured for more than 150 years. It's done every day as a profession by thousands of people in the United States. Even a small miner can accomplish these simple tasks to proving their claim. Our ancestors did it with picks and shovels.
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