Mining claim partnership

[IDAu]

I'm looking for advice about what experienced people would do in this situation. I keep hearing horror stories about partnerships.


Last year I acquired an underground mine. I thought the guy had passed and that's why it was let go, but then found out he was alive. In the last few weeks we got in contact. At first he swore he paid the fee and spent a week trying to find receipts, and talking to BLM/lawyers. He called me again and said he thinks we can come to an agreement without involving lawyers and partner up. He knows he didn't pay the yearly fee and admits the cards are in my hands.

He seems like a very nice guy. He has an immense amount of history and knowledge (having had the mine in his family for nearly 30 years), and an approved NOI, as well as a lot of money at his disposal. He's put hundreds of thousands of dollars in this mine. And while he doesn't want to give me specifics until we agree on a partnership, it sounds like an enormous amount of gold has come out of there. He spoke of at one time thinking of selling it to an interested corporation. Talk of an old vein/drift he was trying to get on with very high grade, etc.

After all the bad stories my gut says no, don't involve him at all, but my heart says yes. I feel really bad for this guy. He's a lot older and not in great health. When he thought he still owned it he mentioned wanting to partner with me. If his story is true that he's been waiting on an NOI just to screw up and lose it not long after it got approved....ouch.


Where do I even begin with this? It sounds like with his financial backing, knowledge, and NOI, a partnership would likely allow us to get in and mining immediately. By myself, I may struggle getting much done due to lack of funds and knowledge of the situation.

But I've been warned about "subtle takeovers" and a lot of other legal things that could be used against me to take it back or at least gain control if he's on the paperwork at all.


What would you do? How would you protect yourself? If I could 100% protect myself and retain control I would have no problem splitting the gold or working something out to keep him involved in something he's so emotionally attached to. If this was a small hobby operation rather than a possible full time job operation, I wouldn't care so much.

 

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[Assembler]

Yes, that's pretty much what I am saying. I live in another country to you, so you'll need your own legal advice obviously, but that setup could get the complaining (and potentially disruptive) ex-owner on your side and allow you access to his intimate knowledge of the lease without granting him any actual rights to or ownership of, that lease.

A half year or full year of "Contracted work" or "Consulting" comes to mind depending on health issues etc.

 

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[Assembler]

I'm looking for advice about what experienced people would do in this situation. I keep hearing horror stories about partnerships.


Last year I acquired an underground mine. I thought the guy had passed and that's why it was let go, but then found out he was alive. In the last few weeks we got in contact. At first he swore he paid the fee and spent a week trying to find receipts, and talking to BLM/lawyers. He called me again and said he thinks we can come to an agreement without involving lawyers and partner up. He knows he didn't pay the yearly fee and admits the cards are in my hands.

He seems like a very nice guy. He has an immense amount of history and knowledge (having had the mine in his family for nearly 30 years), and an approved NOI, as well as a lot of money at his disposal. He's put hundreds of thousands of dollars in this mine. And while he doesn't want to give me specifics until we agree on a partnership, it sounds like an enormous amount of gold has come out of there. He spoke of at one time thinking of selling it to an interested corporation. Talk of an old vein/drift he was trying to get on with very high grade, etc.

After all the bad stories my gut says no, don't involve him at all, but my heart says yes. I feel really bad for this guy. He's a lot older and not in great health. When he thought he still owned it he mentioned wanting to partner with me. If his story is true that he's been waiting on an NOI just to screw up and lose it not long after it got approved....ouch.


Where do I even begin with this? It sounds like with his financial backing, knowledge, and NOI, a partnership would likely allow us to get in and mining immediately. By myself, I may struggle getting much done due to lack of funds and knowledge of the situation.

But I've been warned about "subtle takeovers" and a lot of other legal things that could be used against me to take it back or at least gain control if he's on the paperwork at all.


What would you do? How would you protect yourself? If I could 100% protect myself and retain control I would have no problem splitting the gold or working something out to keep him involved in something he's so emotionally attached to. If this was a small hobby operation rather than a possible full time job operation, I wouldn't care so much.

My point is this is likely once in a lifetime opportunity and that is why I ask some of the questions I have to start with. Having a backup plan of just covering your wages and food is a better mind set when all efforts shows that the mine is cleaned out.
This mind set will help you reach a goal of a reasonable return even if others don't think you have a successful mine or have failed.

Even if you find very small pockets you will know for your self that the breadcrumbs deposits left is a reasonable return success.

 

[IDAu]

My point is this is likely once in a lifetime opportunity and that is why I ask some of the questions I have to start with. Having a backup plan of just covering your wages and food is a better mind set when all efforts shows that the mine is cleaned out.
This mind set will help you reach a goal of a reasonable return even if others don't think you have successful mine or have failed.

Even if you find very small pockets you will know for your self that the breadcrumbs deposits left is a reasonable return success.

I have the same questions. If he's to be believed, which I do at least mostly, there is plenty left. Even if he's exaggerating there's still plenty left for me. I have a feeling what will satisfy me and be worth it is far less than what he considers.

I basically have two options. One(my original plan) is to take my time and do as much as I can by myself. Cutting timbers, clearing it out by hand and retimbering a little at a time as I can afford it. Keep overhead as low as humanly possible. I have plenty of time and labor in me, but not tens of thousands of dollars I can just dump into a mine without seeing a possible good return with my own eyes.

Two, go all in with a partnership, with him buying timbers and likely wanting to mine it out faster and explore to locate a nearby very high grade vein. He knows some history on this vein that I may never find without him, but I'm plenty happy with lower grade material.

For what it's worth, I have secure income to keep my bills paid while I take my time and work on it full time. I wont starve, I just wont have much to put into it financially and planned on sweating my way through. As long as I know it's relatively safe I plan on pulling my trailer up and working daily on what I can by hand.

I just don't know what exactly I need as far as money to put in. I talked to an exploration geologist and it sounds like drilling and all of the more commercial options are far, far beyond reach anyway.

 

[Assembler]

I have the same questions. If he's to be believed, which I do at least mostly, there is plenty left. Even if he's exaggerating there's still plenty left for me. I have a feeling what will satisfy me and be worth it is far less than what he considers.

I basically have two options. One(my original plan) is to take my time and do as much as I can by myself. Cutting timbers, clearing it out by hand and retimbering a little at a time as I can afford it. Keep overhead as low as humanly possible. I have plenty of time and labor in me, but not tens of thousands of dollars I can just dump into a mine without seeing a possible good return with my own eyes.

Two, go all in with a partnership, with him buying timbers and likely wanting to mine it out faster and explore to locate a nearby very high grade vein. He knows some history on this vein that I may never find without him, but I'm plenty happy with lower grade material.

For what it's worth, I have secure income to keep my bills paid while I take my time and work on it full time. I wont starve, I just wont have much to put into it financially and planned on sweating my way through. As long as I know it's relatively safe I plan on pulling my trailer up and working daily on what I can by hand.

I just don't know what exactly I need as far as money to put in. I talked to an exploration geologist and it sounds like drilling and all of the more commercial options are far, far beyond reach anyway.

You could do well either way with your lower realistic goal and have the position of a secure income to keep your bills paid that many don't have.

I like the idea of sinking a discovery shaft to get over that hurtle of proof of work and mineral exposure / knowledge out of the way first even if the results are not the best. You could learn a lot just in this step alone what to not do with the next step going in further.

It may not hurt to both talk and write the district forest service and ask what the past NOI's have covered? This could answer where all of the waste rock / tailing have gone for adding to and testing for what rock was processed and what may have been sorted out as a better grade rock etc.

Yep if you are not willing to camp out in a trailer or tent this will not likely be for everyone.

 

[IDAu]

You could do well either way with your lower realistic goal and have the position of a secure income to keep your bills paid that many don't have.

I like the idea of sinking a discovery shaft to get over that hurtle of proof of work and mineral exposure / knowledge out of the way first even if the results are not the best. You could learn a lot just in this step alone what to not do with the next step going in further.

It may not hurt to both talk and write the district forest service and ask what the past NOI's have covered? This could answer where all of the waste rock / tailing have gone for adding to and testing for what rock was processed and what may have been sorted out as a better grade rock etc.

Yep if you are not willing to camp out in a trailer or tent this will not likely be for everyone.

You could ask the fellow if he would he be open to another option other then "Partnership"?

No idea why you keep mentioning discovery work. As I said, I’ve already got that out of the way. Nothing else is required.

As far as the NOI, I tried. Short of filing a FOIA request, I can’t view it.

 

[Assembler]

No idea why you keep mentioning discovery work. As I said, I’ve already got that out of the way. Nothing else is required.

As far as the NOI, I tried. Short of filing a FOIA request, I can’t view it.

"Such work shall not be deemed a part of the assessment work required by the Revised Statutes of the United States". Is an example. What have you come up with?
Have you looked up the comparative legislation I pointed out to you at a local law library?


Have you made a written request from the district forest service office yet about all NOI's that have been mailed on record?

 

[IDAu]

"Such work shall not be deemed a part of the assessment work required by the Revised Statutes of the United States". Is an example. What have you come up with?
Have you looked up the comparative legislation I pointed out to you at a local law library?


Have you made a written request from the district forest service office yet about all NOI that have been mailed on record?

I have met the prudent man and marketability test...It's part of what's required for every claim...

 

[Assembler]

No idea why you keep mentioning discovery work. As I said, I’ve already got that out of the way. Nothing else is required.

As far as the NOI, I tried. Short of filing a FOIA request, I can’t view it.

The location is made on the surface, and the discovery must be of a vein or lode the top or apex of which is within the limits of the surface lines of such location.

Have you asked the NFS district office where the NOI's are located specifically on a map other then the "Claim"?

 

[Assembler]

I have met the prudent man and marketability test...It's part of what's required for every claim...

The Secretary of the Interior held that, to qualify as "valuable mineral deposits" under 30 U.S.C. § 22, it must be shown that the mineral can be "extracted, removed and marketed at a profit" -- the so-called "marketability test."

 

[IDAu]

I’m

The Secretary of the Interior held that, to qualify as "valuable mineral deposits" under 30 U.S.C. § 22, it must be shown that the mineral can be "extracted, removed and marketed at a profit" -- the so-called "marketability test."

I mean no disrespect man but once again I have no idea what the hell you are talking about or why you keep at it. I already said multiple times I met the marketability and prudent man test. Not even my mining law attorney is questioning what you keep harping on. The claim is valid. I’m not trying to be rude, but please stop with that. What you keep referencing is required for any claim to be staked. No one is even remotely checking, and if they were, I’d easily pass the check.

The USFS has nothing to do with this. The only public info on the previous NOI is that it was tied to the claim name and approved for 5 acres.


I’m filing my own NOI for occupancy and the adit work. I may have found a partner that is far more useful and viable with equipment to process several tons per hour, as well as fall timber and get the adit safe to do proper sampling and exploration.

 

[Assembler]

I’m

I mean no disrespect man but once again I have no idea what the hell you are talking about or why you keep at it. I already said multiple times I met the marketability and prudent man test. Not even my mining law attorney is questioning what you keep harping on. The claim is valid. I’m not trying to be rude, but please stop with that. What you keep referencing is required for any claim to be staked. No one is even remotely checking, and if they were, I’d easily pass the check.

The USFS has nothing to do with this. The only public info on the previous NOI is that it was tied to the claim name and approved for 5 acres.


I’m filing my own NOI for occupancy and the adit work. I may have found a partner that is far more useful and viable with equipment to process several tons per hour, as well as fall timber and get the adit safe to do proper sampling and exploration.

Sounds like there is some frustration not being able follow and perhaps answer some questions.
Check up is taking place at the "County Records" with "State of Idaho" requirements and any such State "Agencies"

The information just posted about NOI for 5 acres with just the claim name gives a clue that you should be able to perhaps spot.

You asked me to stop. No problem.
Good luck.

 

[IDAu]

Sounds like there is some frustration not being able follow and perhaps answer some questions.
Check up is taking place at the "County Records" with "State of Idaho" requirements and any such State "Agencies"

The information just posted about NOI for 5 acres with just the claim name gives a clue that you should be able to perhaps spot.

You asked me to stop. No problem.
Good luck.

The only frustration is being asked the same off topic thing repeatedly that I’ve already answered. I appreciate your input but please put to rest whether I meet the requirements of staking and keeping a claim. I’m way beyond that. My assessment work has already been completed and recorded up to Sept 1 2026

County records has nothing other than the recording the previous owner filed over two years ago. If you have some actual sources of this “check up” please post them.

What you’re referring to is the mineral discovery requirement that should be done before recording. I would absolutely love to be proven wrong and see that anyone is “checking up” on that. I firmly believe a lot of claims are BS and few meet the yearly work requirement for their waiver, but no one calls them on it. Or maybe you're talking about maintenance fees, which replace the work and discoveries you're describing. BLM doesn’t even seem to give a damn if people top file on other claims, so I hope you can see why continually saying I have a deadline to make some large discovery gets tiresome.

I welcome you to post some actual laws or evidence to the contrary. Because I’m learning as I go and want to cover my ass. But so far you seem to be stuck in second gear.

 

[Assembler]

"County records has nothing other than the recording the previous owner filed over two years ago. If you have some actual sources of this “check up” please post them." " see that anyone is “checking up” on that"


" Because I’m learning as I go and want to cover my ass."
"discovery requirement that should be done before recording".
"I would absolutely love to be proven wrong". "please put to rest whether I meet the requirements of staking a claim. I’m way beyond that."


"talking about maintenance fees, which replace the work and discoveries"
"BLM doesn’t even seem to give a damn if people top file on other claims,"