Placer Mining in BC

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Risks

Placer mining (including prospecting and exploration) are risky.

Whether a person is into placer mining as a hobby or as a business, the most common risk is spending time and money and then not recovering enough gold to make it worth while.

A fundamental aspect is that most exploration and mining are done in areas that have been known to be gold-bearing for a long time - generally over a century. It can be difficult or impossible to establish how thoroughly any particular location has been explored and mined.

Another fundamental aspect affects buying existing claims. It is like buying a used car. The owner knows a lot more about the car than you do. The question is why the owner wants to sell. There is always a nice reason provided. But the owner may be trying to sell now before it is obvious to anyone that it is not a good deal.

The costs of placer exploration and mining vary considerably:

Difficulties can be an advantage. Modern equipment and techniques can make it practical to mine a deposit that was inaccessible in the past. Modern excavators, pumps, generators, etc. have changed placer mining, opening up new opportunities. But there are always risks.

These risks include:

Exploration - spending money to find gold in paying quantities - can uncover great opportunities, but there is almost always a high risk that the exploration will fail to lead to a mine.

Developing a profitable mine on a well-explored property can involve less uncertainty, but it generally means that a substantial amount of money must be put at risk.


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