Geology Corner

by Ron Graichen

Gold is almost $1000 per ounce.

Lately there has been so much unemployment and some people might be tempted to prospect for the noble metal with a gold pan.

But there are a lot of considerations before venturing on this endeavor.

For the hobbyist most of the economic factors are not so important.

Gold panning is not a gold production method but merely a prospecting tool.

Finding good “color” leads to consideration for acquiring some sort of a sluice box.

This tool is necessary for processing enough “ore” to collect any significant amount of gold.

If you are intent on producing enough placer gold to sell and pay for the equipment then the total economics of the project must be considered.

We do not live close to any gold mining districts with significant production and so travel and lodging represent a significant cost.

Also, streams that are known to have gold may not be available to you.

Fish and Game agencies might limit when placer working may occur.

And private landowners might limit access to productive areas.

Also, the “other guy” may already have the best spot.

If you have produced gold and wish to sell it, what is it worth in cash to you?

Naturally found gold is never pure—it is alloyed with other metals, often predominantly silver.

A serious buyer will only pay for pure gold and then they will not give you full value because they are buying it to make a profit for themselves.

A jewelry buyer for nugget gold will be discerning about the size, shape and character of the gold he buys and therefore won’t necessarily buy everything offered.

I found over two million ounces of gold during my career. Perhaps less than half a dozen times did I ever see any gold!

Far more visible was a steady paycheck.

My first gold project was in the Black Hills of South Dakota on a “played out” 1880’s to 1930’s gold mine named the Dakota Maid mine.

My first drill core hole intersected 110 feet of 0.11 ounce per ton.

That was high grade by modern standards.

That property became a modern open pit gold mine.

So in my opinion, panning for gold for economic gain must be considered carefully.

For the gold novice looking for cash, I recommend considering fishing for local pike minnow to cash in on the bounty.