Why You Should Set Up Your Own Goldmine – Literally

Recently, the price of gold has been on the up. No big deal right? Wrong. The higher the price of gold, the more miners can sell it for once they take it to market.

The gold mining industry has taken a few hits over the last five years. Back in the summer of 2011, gold hit an all-time high and miners were making a killing. But after that high, the price fell, and gold miners were hit hard. For many miners, the price that they could get for gold was less than it cost them to dig it out of the ground.

Fast forward five years, and it’s all change. Gold is on its way back up. And gold miners are doing steady business. Curiously, we’ve not seen a rally in gold on the scale that many people were expecting. Gold bugs believed that the price of gold would rise as a result of inflation. But that inflation still hasn’t fully manifested itself. Either they were wrong, or the biggest gains are still in front of us.

If you believe it’s the latter, it might be time to open your own gold mine. But how do you do that?

Do Some Prospecting

If you want to set up a gold mine, it’s a good idea to check to see if there is any gold there, to begin with. Take a shovel and a pan and take note of the concentration of gold in the sediment. Concentrate your efforts around the inside bend of the river. Make a note of the amount of gold you’re pulling up every hour. The more you pull up, the likelier it is that there’s a gold seam in the bedrock.

Set Up The Right Mining Equipment

Every mine construction project is different because the geography of every location is different. Miners will need to think carefully about the amount of rig matting they require, and how they’ll separate the ore. You’ll need sluice boxes, shakers and a supply of energy. Remember, hooking mines up to electricity can sometimes be difficult, especially in developing countries. So check whether this is an option for your company.

Set Up Living Quarters

Mines tend to be a long way from the nearest populated areas. As a result, many mining companies have to provide their workers with their own living spaces. The larger your mine, the more living space it will need. You’ll need to make sure living quarters, like the mine, have a source of power in the evenings. Also, ensure that the living areas are separated from the mine itself. This is to avoid drinking water from being contaminated by mining materials and equipment.

Excavate Ore From Most Productive Sites First

Mining for gold is a very energy-intensive operation. So do your research and mine from areas that have the highest yield. Ideally, you want to be able to extract an ounce of gold from 10 tons of rock. Many companies are forced to go higher than this, and a few are lucky enough to go lower. Following this rule will ensure that your mine remains open and profitable.

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Ive been blogging now for 5 years on various sites for the love of knowledge share. I decided to start my own blog a few years back to share everything from tech to business news. Follow me on twitter for more.