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How would you determine fair value of a claim?


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I would think it would ultimately be based on gold that was there, but what about an area that is still repleninshed from time to time... seems like you would try to figure how long it would take you to recoup that amount, but it also seems like the claim itself would retain some value if not possiby increasing. I saw the question posed awhile back about an 80 acre claim for $10K and the consensus seemed to be unless it would support a commercial mining operation, NOT...

I recently found one for sale, and if you just took into account claim size, it seems expensive, but when you factor in other things, it really seems like it COULD be a pretty descent deal. I hesitated on asking because I figured if it was a deal, calling attention to it would probably mean I missed the chance, but the couple people I have talked to think I am crazy for even considering it and I thought I would ask and see what somebody with more experience has to say. To me the somewhat rarity of location (precott national forest) and year round water is what makes me think it is (or could be), I really dont expect this to be for sale long anyway.

I have talked to him and know some things about it over and above what is in the ad, that I would not feel right posting on a public forum... suffice it to say when you hear the name of the creek (Not Lynx), it is one that is in every book about where to find gold around Prescott. The ad gives size, so I will say one thing it does not, the claim is centered on the creek, 2500' long x 300' each side.

Seems to me being within the Prescott national forest and land that is unclaimable any more, the only way to be able to work this creek otherwise would be to find another piece of it that was never claimed or where the claim had expired and now became public land again... then only on a small scale with pick/pan and shovel. For this reason, it seems like the claim should retain value even if I worked it for years...

SO, that said, his ad is not hard to find if you are looking. I would think most anybody really watching for claims to come up for sale has already seen it probably, I figure by the time I got done researching it and making sure he owned it, etc. then talking myself into it before spending that kind of coin somebody else will beat me too it anyway, if it really is a good deal... but without giving what he says is the value, or his asking price, to influence opinions, just wondering how you would actually go about determining what a fair value on this claim would be?

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I would think it would ultimately be based on gold that was there, but what about an area that is still repleninshed from time to time... seems like you would try to figure how long it would take you to recoup that amount, but it also seems like the claim itself would retain some value if not possiby increasing. I saw the question posed awhile back about an 80 acre claim for $10K and the consensus seemed to be unless it would support a commercial mining operation, NOT...

I recently found one for sale, and if you just took into account claim size, it seems expensive, but when you factor in other things, it really seems like it COULD be a pretty descent deal. I hesitated on asking because I figured if it was a deal, calling attention to it would probably mean I missed the chance, but the couple people I have talked to think I am crazy for even considering it and I thought I would ask and see what somebody with more experience has to say. To me the somewhat rarity of location (precott national forest) and year round water is what makes me think it is (or could be), I really dont expect this to be for sale long anyway.

I have talked to him and know some things about it over and above what is in the ad, that I would not feel right posting on a public forum... suffice it to say when you hear the name of the creek (Not Lynx), it is one that is in every book about where to find gold around Prescott. The ad gives size, so I will say one thing it does not, the claim is centered on the creek, 2500' long x 300' each side.

Seems to me being within the Prescott national forest and land that is unclaimable any more, the only way to be able to work this creek otherwise would be to find another piece of it that was never claimed or where the claim had expired and now became public land again... then only on a small scale with pick/pan and shovel. For this reason, it seems like the claim should retain value even if I worked it for years...

SO, that said, his ad is not hard to find if you are looking. I would think most anybody really watching for claims to come up for sale has already seen it probably, I figure by the time I got done researching it and making sure he owned it, etc. then talking myself into it before spending that kind of coin somebody else will beat me too it anyway, if it really is a good deal... but without giving what he says is the value, or his asking price, to influence opinions, just wondering how you would actually go about determining what a fair value on this claim would be?

First thing I would do is check the history of the claim by going to the County in Prescott, and the BLM. Check the paperwork and ownership history. Go and SAMPLE the claim - not where the owner tells you to, but in several different places on the claim. If you do not have the means to do that, you have no business buying a claim for thousands of dollars. We sample and appraise Arizona gold claims all the time, and there is a lot of people buying that just have NO clue. Don't be one of them! - Terry

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Agreed....

Get out there and do some sampling and if you are not comfortable doing the sampling hire, bribe, or by beer for an experienced friend to do it for you. Then you will have an idea of if the claim will be worth you time based on what your plans are, recreational, seasonal , etc.

Do not expect someone will sell a claim you could actually expect to make a living on or supplement your retirement for a few thousand dollars...

There are allot of scammers out there, but allot of honest folks as well. Why is it for sale? Is the seller painting vivid pictures in your mind of rolling naked in huge piles of gold? Does it just sound too good to be true?

If after all that you still think it is a good purchase that meets your needs and budget buy it....

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First check that ALL PAPER WORK is in order, if not WALK AWAY from it and don't give it a second thought!

Don't fall in love with a few feet of ground, save your love for your wife or girlfrend!

Your buying minerals not the ground that holds them, make DAM sure there is enough to pay for it plus!

If you don't know the right way to sample it, find someone that knows how and pay them to do it!

You should not just go out there and dig a few holes to run a few pans and expect to know how much Gold

is there, it don't work that way. You must get to bedrock in every hole. Why? To know how much overburden you

have to go through to find the pay layer or layers, the amount of oversize rock you will have to deal with etc.

How much time will you have to work it?

Do you have the right equipment needed to work it?

Will you be able to live on site while working it or will you have to drive back and forth?

My dear old daddy use to tell me " Make your sure then go ahead "

You would do well to do the same!

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Agreed....

Get out there and do some sampling and if you are not comfortable doing the sampling hire, bribe, or by beer for an experienced friend to do it for you. Then you will have an idea of if the claim will be worth you time based on what your plans are, recreational, seasonal , etc.

Do not expect someone will sell a claim you could actually expect to make a living on or supplement your retirement for a few thousand dollars...

There are allot of scammers out there, but allot of honest folks as well. Why is it for sale? Is the seller painting vivid pictures in your mind of rolling naked in huge piles of gold? Does it just sound too good to be true?

If after all that you still think it is a good purchase that meets your needs and budget buy it....

Thanks for the input! At least makes me again want to go take some samples and see what it is all about...

The few people (non prospector types) I mentioned it too thought I was crazy for even thinking about it, period.

I guess what I am really asking, is how much do I need to be finding in a test hole to know it would be worth it?

At $6K you would need 4+ ounces of gold to break even on the claim itself, not including the cost of getting those 4 ounces.

He says there has been about 2-3' of overburden to bedrock in the places he has tried, very similar to where I have dug at Lynx Creek. He said he is selling because he does not have the time to get out and work it, but the few times he has, he got about a gram for 4-5 hours work going to bedrock... Again almost exactly what I have averaged over 3 different day trips to Lynx, with pick pan and shovel, but closer to 6 or 7 hours for a 2' dia hole down to bedrock (panning all the material, all the way down). So if he is using a dredge or highbanker for his 4 hours, that does not seem very good to me, comparing that to the free public use area at Lynx... if it were legal to use a highbanker, I would like to think I could find more than a gram at Lynx in 4 hours.

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I think buying a claim could be a good thing if the area is hard to mine due to ALL the claims and it is somewhere you enjoy prospecting at.

If you plan on mining a lot it could be a good thing to have a spot you know you will not have problems with claim jumping and such and produces.

As far as price? Well that depends I guess.

I have a few claims i would never think of selling but one is really good, really good. 10k would be a reasonable price IMO because it has good gold there period. I used to have 5 to 10 gram days there dredging with my 2 inch all the time. Also there has been a lot of nice nuggets found here. Penny weighters are common. I am confident there are pound pockets here also, however i have not found any yet <_< but I know they exist down there. I know a 3/4 ouncer was found here just laying in the muck on the bank.

So if your happy about the type and size of gold your finding in an area it might be worth buying one but yes definately test it out at the least.

Jerry

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Have you tried finding your own claim first out of curiosity? A lot of people think it's a lot harder to file a claim than it really is, and for me at least, the research, exploration, and sampling involved in finding a new claim is just as satisfying as going there to dig gold full time.

Just saying, because only VERY rarely do I ever come across a claim for sale that I think is actually worth buying, and I've never found one in my price range that I'd pay more than 1-2k for personally and that's usually because its in one particular area that I can't get into, but maybe that's just me.

Yeah I have not had alot of luck finding much gold on unclaimed ground. It does seem like I am very good at finding claim markers though... I spent the first year or so after I got into prospecting, just exploring, taking samples and marking them and then panning them over the next week or so and pretty much went out every weekend. I agree that the exploration is alot of fun, Sort of how all this started for me, just for fun and a reason to get out and go 4 wheeling and find old pieces of History, I love that part too. I am definately not into this as a full time job... then I would have to sell at least some of what I found to live, I want to keep what I find for some point in the future that Gold may be the only thing worth anything anymore... As an investment, I see gold as "Aquire and HOLD". But after over a year of the weekend sampling trips, I was really no closer to having a place I wanted to go back too than when I started. Then After Going up to Lynx Creek one weekend and getting a gram out of a 2' dia 3' deep hole, Well this was huge compared to what I had been finding. A couple friends went up the next weekend and we belled out the bottom to see about 4' dia. circle of bedrock, and after 3 hours working got 2 more grams when we panned out our combined cons back home. I sure was more comfortable working up there than down in the hot dusty desert... This particular claim caught my interest primarily because of the year round water... Any claim I find in the desert I will be hauling water... I have seen claims around San Domingo in the $1-2K range, but never even went and looked at them, seems like I acted to slow and they got snatched right up, but that is the area that I spent the first year in too... I will keep going out there and searching, perfect distance for me for a day trip... Maybe I did not get far enough out yet, but All I can seem to find there is claim markers or ground that leads to pans with very little color. After my few Lynx weekends, I would love to be able to work similar ground and be able to process it a little easier and faster than it goes with pick/pan and shovel...

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:inocent: Just a observation--just because the math looks good =4 oz =$6k is NOT right ifn' it costs ya $7k to get the 4oz--simple mistake as GOLD FEVER blinds many and reality based mining is based on economic viability and not blue sky bs-- :and you ARE talkn' serious cash $$$$$ :miner: John
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