Modern Laws for Claimjumping

Modern Laws for Claimjumping

Throughout mining history, there are stories of scoundrels, cheats, bandits, and liars. The gold rush towns had their share of bad actors but above everything else, there is one title that nobody wanted to have, “the claimjumper”.

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In the world of mining, claimjumpers are the lowest of the low. During the gold rushes of North America miners traveled into areas where laws didn’t exist yet. In the California Gold Rush of 1849, the territory had no government, police or administration of any kind. Despite the lawlessness and disorder of the early gold rushes one thing was held sacred above everything else, the right of the miner to locate a mining claim and to hold it against all comers.

What does claimjumping mean? There are two forms of claimjumping but they both amount to the same thing:

  • Producing minerals from a claim that belongs to someone else
  • Attempting to seize the land on which another party has already made claim

Historically, stealing or mining ore from someone else’s mine was referred to as highgrading. While claim jumping referred to the actual seizure or taking over of someone else’s claim. Today the two terms are intertwined.

Claimjumping is illegal today just as it was in the mid-1800s and even before that. You can’t shoot a claimjumper anymore but the modern laws are quite powerful nonetheless. In British Columbia and throughout Canada you can face huge fines, jail time and being banned from the right to hold claims. As well as having to forfeit any ill-gotten minerals or profit. If, in the process of claimjumping, you break any environmental regulations or mining laws you will be on the hook for those penalties too. On top of that your equipment and even your vehicle can be forfeited if proven to be involved in the crime.

There are honest and dishonest forms of claimjumping in which the law does make a slight distinction. Honest being that you were unaware that you were engaging in claimjumping. The difference only applies in terms of repayment for the ore that was extracted, the fines and other penalties still apply whether you are knowingly claimjumping or not.

It’s difficult to find the information on Canadian claimjumping laws. Part of that comes from the fact that there isn’t an accepted term for the crime. In legal terminology claimjumping has been referred to by many titles including:

  • Mineral Trespass
  • Wrongful Abstraction of Ore by Trespass Workings
  • Wrongful Working of Minerals
  • Highgrading
  • Wrongful Interference with Personal Property
  • Wrongful Conversion
  • Trespass and Conversion
  • Willful Trespass

My favorite is “Wrongful Abstraction of Ore by Trespass Workings”, it has a certain ring to it. There are slight differences to some of those terms but they all point towards the same thing. Trespass and benefiting from something that doesn’t belong to you. Trespass is actually a complicated part of the legal system. There are different kinds of trespass. We are all familiar with what it means to trespass on private property but a mining claim isn’t necessarily private property. Perhaps we should clarify what a mining claim really is.

mining claim dispute

Trespass and Conversion

In Canada, and specifically in BC, mineral rights are held by the crown. The actual “Crown” in Canada is a story in itself but basically means that the mineral rights are owned by the people of British Columbia. When you are the holder of a mineral or placer claim, you lease the rights to those minerals for the duration of your tenure. From the issue date to the “good to date” of your claim the minerals in that plot of land belong to you and nobody else. Surface rights are a totally different story. Check out our post on Free Miners for more info on that.

Trespassing is defined as “the wrongful interference with one’s possessory rights in real property.” When it comes to claimjumping you are definitely interfering with the claimholder’s rights when you are extracting ore that belongs to them. The trespass itself is not listed as a crime under the Canadian criminal code, but it does allow the claimholder to sue the claimjumper for damages.

In Canadian law there are two ways to deal with the proceeds of trespass and conversion. The mild rule, and severe rule.

Under the mild rule, the guilty party has to pay the claim owner for the value of ore that was extracted. The costs of mining the ore, bringing it to market, etc are not included. This rule applies when the trespass (claimjumping) was not intentional.

The severe rule forces the guilty party to pay the realized value or stolen ore including the cost of mining.

Either way you have to pay back the claim owner for whatever gold you mined on his claim, the severe rule means that you have to pay the full value not accounting for the costs that you incurred in the process. The mild rule is quite lenient that way but you have to prove beyond a reasonable doubt that you commited the crime unintentionally.

There are plenty of examples of supreme court rulings where the trespasser had to pay back the claim owner for their ill-gotten gains. Here is an example from 1907 in the Yukon in which one miner produced ore an another miner’s claim and mixed the ore with his own.

Here’s some info on a more recent case in the Yukon. I actually worked with one of the miners in this story in Klondike back in 2010, I won’t say which one though.

Claimjumping supreme court cases are common in Alberta although the claimjumping takes a slightly different form. These cases are regarding mineral rights for oil instead of precious metals but the concepts are the same. In Alberta, mineral rights are divided by different sedimentary layers that contain petroleum. So different companies can own the mineral rights in the same location but at different depths. Due to the complexities of this system, companies drill into other company’s leases all the time.

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The consequences of mineral trespass vary, but the Alberta Energy Regulator introduced a penalty of $50,000 per occurrence. In addition to the penalty, compensation is owed for the value of any minerals obtained during trespass. Alberta mineral trespass is treated the same in a legal sense as gold claims in BC just with a much higher frequency of settlements.

Miner’s Meetings

During the gold rushes you couldn’t file a complaint to any governing body. Miners took justice into their own hands and had a form of democracy called Miner’s Meetings. The meetings were notorious for their swift justice but they were considered fair. In order to participate in a miner’s meeting you had to be the holder of an active claim.

A journalist named Baryard Taylor gave this account of the situation in the California Gold Fields in 1849:

In the absence of all law or available protection, the people met and adopted rules for their mutual security rules adapted to their situation, where they neither had guards nor prisons, and where the slightest license given to crime or trespass of any kind must inevitably have led to terrible disorders. Small thefts were punished by banishment from the placers, while for those of large amount or for more serious crimes, there was the single alternative of hanging.

As gold rushes progressed further North the miners took their knowledge and customs with them. During the Fraser River gold rush, the miners brought with them knowledge of mining placer gold with long toms, rocker boxes and hydraulic mining as well as their own customary law that had spontaneously developed in the California Goldfields.
During the Fraser River gold rush each bar had it’s own set of rules which were democratically chosen by the miners.

The Daily Alta California published the laws passed by a miners’ meeting held on May 12th, 1858 on Hill’s Bar, Fraser River, which included:

  • Claim sizes were defined as twenty-five feet along the river bank’s high water line for each person.
  • Miners were restricted to to one claim by preemption and one by purchase.
  • Claims were “not considered workable” between May 20th and August 20th.
  • During the non-workable period the work requirement was removed.
  • During the workable times claims must be “represented”, or worked, within three days or they were otherwise free to be jumped.
  • There was a regulation declaring that any thieves or claimjumpers would be expelled from Hills Bar and lose their claims.
  • And anybody “interfering with or molesting any Indian” would be punished as “the community shall see fit.”

miners meeting gold rush

Just up the river at Yale, the rules were slightly different:

  • There was a rule concerned with equality, limiting miners from holding more than one claim.
  • A one-day work requirement every five-days was established.
  • The office of recorder was created to keep track of claim registration.
  • Proven claimjumpers were to be banished from the placers and have their claims and gold forfeited.

All along the Fraser, mining communities drew on norms established in California to regulate society on the lower Fraser. This community didn’t legitimate itself based on an external authority. Instead, the miners assumed their own legitimacy and authority.

Miner’s meetings progressed into miner’s boards which were legislated under the Goldfields Act in 1859. The miner’s boards stayed in place until 1888.

More remote areas still used the principles of the miner’s meeting since police presence and regulations were often slow to follow the prospectors. Here’s an account of the legal landscape in the notorious Circle City which is situated just over the Alaska border from the Klondike by Arthur Walden in 1896, two years before the brunt of the Klondike Gold Rush:

Here was a town . . . which had no taxes, courthouse, or jail; no post-office, church, schools, hotels or dog pound; no rules, regulations, or written law; no sheriff, dentist, doctor, lawyer, or priest. Here there was no murder, stealing, or dishonesty, and right was right and wrong was wrong as each individual understood it. Here life, property, and honor were safe, justice was swift and sure, and punishments were made to fit the case.

Eventually communities grew, the North West Mounted Police set up outposts and federal and provincial laws began to take over. The days of frontier justice faded into the background but many of the principles that the miner’s meetings established made their way into legislation.

Current Laws

In the United States many individual states have clear laws regarding claimjumping, or as it is now referred to “mineral trespass”. They vary from state to state but almost all have similar rules on the proceeds of mineral trespass.

For example when a willful trespass occurs in Colorado, the trespasser is not entitled to set off the mining costs. In addition Colorado allows punitive damages for “Willful and Wanton” trespass claims. Punitive damages are a fancy word for additional fines to punish the defendant for outrageous conduct. That is uncommon in Canada.

US penal codes clearly list claimjumping as a crime which isn’t quite as easy to find in Canada. For example in Washington state Mineral Trespass (RCW 78.44.330) is considered a class C felony which carries a punishment of up to 5 years in prison and up to $10,000 in fines

In British Columbia, claimjumping falls under our Mineral Tenure Act. There are two sections of the law that deal with claimjuping:

9(2)A person must not hand pan on a valid mineral title unless the person receives permission from the recorded holder of the mineral title.

As well as

11(2)(e)The right of entry under subsection (1) does not extend to land lawfully occupied for mining purposes, except for the purposes of exploring and locating for minerals or placer minerals as permitted by this Act.

Punishments are listed under section 63 of the Act, which states:

63 (1) A person commits an offence who does any of the following:

(a)wilfully and without lawful excuse pulls down, defaces, alters or removes a staking or legal post, a legal corner post or other survey monument;
(b)explores for, develops or produces minerals contrary to this Act or the regulations;
(c)knowingly makes a false statement or provides false information under this Act, or in a registration;
(d)offers for sale, or sells, a mineral title for a non-mining usage.

(3) A person who is convicted of an offence is liable to a fine of not more than $25,000 or to imprisonment for not more than 6 months, or to both.

In addition to a potential fine of $25,000 or 6 months in prison anyone who is proven to be claimjumping will lose their FMC and any claims for a period determined by the Gold Commissioner. That means that you can lose your free miner rights for life and no longer be able to own claims.

The Criminal Code of Canada has provisions for selling unrefined ore and specific laws regarding fraud of unrefined ore. If you are engaged in claimjumping it will be difficult and illegal to sell your ill-gotten gold. Precious metal assayers and buyers know these laws and will not accept placer gold unless you can prove the source.

394(1) (b) of the Criminal Code, makes it an offence for anyone to sell or purchase any rock, mineral or other substance that contains precious metals “unless he establishes that he is the owner or agent of the owner or is acting under lawful authority”.

The punishment for violation of that part of the Criminal Code states:

A person who contravenes subsection (1), (2) or (3) is guilty of an indictable offence and liable to imprisonment for a term of not more than five years

In addition to the fines and penalties for those caught in the act of claim jumping you can also be on the hook for any illegal mining or environmental practices that you conduct. The mining and environmental laws are extensive but I’ll list a couple common ones here.

There are a lot more environmental inspectors than there are mining inspectors. They are likely the ones to catch you.
The most common fine is under Environmental Management Act Section 6(3) which states:

a person must not introduce or cause or allow to be introduced into the environment, waste produced by a prescribed activity or operation.

The standard fine for a small highbanker or river sluice is $575. You can see a list of some of the most recent fines here.

In his book Poachers, Polluters and Politics: A Fishery Officer’s Career, former fisheries officer Randy Nelson recounts on an incident where he caught some claimjumpers operating an illegal dredge in the Cariboo:

It was two days before Christmas, I had just caught up with a pile of paperwork and I decided to go for an afternoon patrol North of Quesnel. I crossed the Cottonwood River on Highway 97 North and climbed the big hill from the river valley. I glanced down a side road and saw a parked pickup truck with fresh footprints leading away from it down the snow-covered road.

It could have been any number of activities but I decided to check it out. I walked through the deep snow for over a mile, climbing along the upper banks of the Cottonwood River. The tracks finally turned off and headed downhill toward the river where I could hear a small motor running. Surely no one would be dredging for gold in this salmon stream in the winter?

They were so surprised I’m not sure their wet suits remained dry. They said, “Don’t you ever take time off? We never dreamt you’d be working this time of year or walk into this spot” I took it as a compliment and made sure to to pass that information on to the judge.

There wasn’t much the two of them could say. They were caught and one had a previous conviction. I seized everything at the site, including their dredge, gold dry suits, diving gear and tools. I loaded whatever I could carry and walked out with them out to their vehicle. I told them I would give them a ride home because I was seizing their truck too. Merry Christmas!

It would have taken several days to dismantle and pack the dredge out from the river and it was two days before Christmas so I hired a helicopter to sling the hear out from the river. The two miners were convicted in court and received fines of $3,000 each plus forfeiture of $4,000 worth of gear.

That was a bad day for those two claimjumpers. In situations where you are running bigger equipment that requires a Notice of Work permit (NOW) you can get into a whole bunch of fines and penalties. In a recent Mines Act decision a mine in the Cariboo was fined $28,000 for operating without a proper permit.

How can you avoid claimjumping?

Just like any other law in Canada your ignorance of the law does not exempt you from it. That means that if you are gold panning, mining or producing mineral of any kind it’s up to you to understand the laws and claims in that area.

Before you go out gold panning make sure that you’re not on someone else’s claim. The best place to check is the BC MTO website (mtonline.gov.bc.ca). That is the website run but the Mineral Titles Branch of BC’s Ministry of Energy, Mines & Petroleum Resources. The MTO maps are a bit daunting to a newcomer but all the information is there.

Local mining laws can take a bit to understand at first but you can always email or phone the MTO with any questions.

Mineral Titles Oline

Claims are rarely marked in the field since BC now has an online staking system. If you are out gold prospecting a GPS is just as important as your gold pan these days. Make sure your maps are up to date and you know how to use your GPS.

The best place to prospect is a panning reserve, your own claim, or a claim where you have permission from the owner. If you aren’t certain that you’re operating legally then don’t start digging.

In summary, these are the penalties for claimjumping in BC:

  • Repayment for full value of the ore that was stolen
  • $25,000 fine or 6 months in prison
  • Loss of FMC, potentially for life
  • Up to 5 years in prison for selling ore without proving the source
  • Fines for violation of mining and environmental laws
  • Possible confiscation of mining gear and your vehicle

Modern-day prospectors and miners work hard to explore their claims. It takes time and money to locate a claim, stake it and begin exploration work. There are hurdles to operate a mine legally. Most miners put a lot of effort into setting everything up properly so that they can mine and reap the benefits of their hard work. Claimjumpers try to cut corners and steal resources from the people that have done the hard work. There’s a reason that nobody wants the earn the title of “claimjumper”.

You can’t be banished from the land or hung you like they did during the gold rushes but you will have to repay all the gold you steal and face penalties for your crimes.

Drone Mapping of a Coal Mine

Drone Mapping of a Coal Mine

West Coast Placer was contracted to conduct high resolution aerial drone mapping of a coal mine in Alberta, Canada.  We were hired by the environmental department to map two parts of the coal mine to aid in their reclamation efforts.  We produced high resolution imagery and 3D models.

3D_terrain
3D DSM

With our fixed wing mapping drone we were able to produce several custom mapping and imagery products.  We made a beautiful high resolution orthophoto, a digital surface model (DSM) with topographical accuracy up to 30cm, a LAS format point cloud and one more 3D model.  We were also able to format the 3D data so that it could be used in their mine planning software (Minesight).

OLYMPUS DIGITAL CAMERA

Two sections of the mine were surveyed.  We flew a total of three flights in the same day.  The mine asked to have the main pit flown two times to confirm the accuracy and repeatability of the data.  We were happy to oblige and of course the flights matched within 2cm of each other.  Each section that was flown was about 2 square kilometers and our drone has the flight duration to cover each section in one flight.
UAVflightPath
UAV Flight Path

The photo quality on the still photos and orthomosaic was outstanding.  We were able to achieve an image resolution on the georeferenced mosaic of 4cm/pixel.  That means that each pixel in the photo represents a real world footprint of 4cm by 4cm.  That kind of resolution cannot be matched by current satellite imagery providers.  Actually they are not even in the same league.  The best satellite imagery that you can buy today is provided by WorldView-3 satellite and has a resolution of 31cm/pixel.  It also costs a lot of money.  Google Earth come in at a pitiful 65cm/pixel in the best locations.

View from the top of the pit
View from the top of the pit

Here are some examples of our imagery.  First is a shot of the truck that we used as a base station for the drone.  You can clearly see the truck, the two operators and even the pickets in the bed of the truck.  You can click on these images for a larger view.

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Here is a Google Earth image of the exact same location.  I love Google and everything that they do but this image is just no comparison.  To start with it’s three years old (despite the 2016 copyright note at the bottom), the mine does not even look like that today.  The resolution is so poor that you can’t even tell what you’re looking at.

Here are a couple more shots from the same flight.  You can clearly see this orange excavator and other details.

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The 3D data is also incredible.  Check out the video below for a great example of the 3D data that we produced.  That video shows a virtual fly though of a LAS point cloud.  LAS is the same format that LiDAR data produces.

Drone technology is just making it’s way into the mining world.  With the low cost and amazing imagery it is a no brainer for many applications.  In the case of this coal mine the environmental team now has excellent data to aid in their reclamation planning that would not have been available only a couple years ago. Check out this post on drone applications in mining.

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Our client was very happy with the products that we produced especially for the price.  Check out our Drone Services page for details on pricing.

Harrison Lake Adit Exploration

Harrison Lake Adit Exploration

Last week my neighbour phoned me and asked if I wanted to go on a road trip to check out an adit by Harrison Lake.  Of course I said yes.  Who wouldn’t be down for a short road trip to check out an old mine adit.

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The trip only took two hours from my home in Abbotsford, BC.  We drove up to Harrison Hot Springs then transitioned to the 4×4 road called Harrison East FSR.  Conditions were great for the trip out we got hit by rain on the way back but that’s to be expected on the West coast in March.

I brought along my mountain bike night riding light and it worked awesome!  You can see the difference between my super light and a standard headlamp in the video.  Check out the video below showing our exploration in the adit:

This adit was created a long time ago, probably a during the period of the Fraser River and Cariboo gold rushes (1860s – 1880s).  No records have been found from that time period describing the adit though.  During the gold rushes the Harrison was one of the major routes to the Cariboo and many miners worked in the region.

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The adit extends for approximately 50m with a slight bend half way in.  It cuts through altered schist formations and has several small quarz veins exposed inside.  We sampled one of the veins which will be sent to a lab for fire assay.  The map below is taken from a 1983 geological report of the area.

AditMap

In addition to the 50m adit a vertical shaft had also been excavated.  Unfortunately the shaft is filled with water so it cannot be explored at this time.  Both excavations were carried out to explore a sizable quartz vein.  The shaft is right on the 1m wide vein and driven vertically into the bedrock.  The adit that we explored was intended to intersect the shaft and the vein.  It seems that the miners missed.  It is difficult to tell by how much.

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Inside the adit there are wooden tracks that line the whole tunnel.  These were probably part of an old rail system used to remove the excavated rock.  It is not known why the miners abandoned the property, without any information we can only guess.  There are other adits in the area that we’ll explore another time.  Not bad for a Tuesday afternoon.

Introducing WCP Placer Mining Club

Introducing WCP Placer Mining Club

Hey guys, I am pleased to announce that West Coast Placer is starting a mining club.  There have been a number of inquiries from people who want to prospect and mine on WCP claims.  So we’re starting a club that will provide the opportunity for members to use our claims.

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Club members will have access to all of West Coast Placer’s claims.  Currently that includes 12 placer claims and two mineral claims in BC.  Access to some of my partner’s claims is also available.  We have claims all over BC including the Tulameen, Similkameen, Fraser River, Cariboo and Kootenays.
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Members will be able to work the claims as if they own them.  You can run a sluice, pans or whatever you want.  Of course members can keep all the gold that they find.
You will be able to camp on the claims in tents or with an RV (where accessible).  Family members are automatically included in your membership.  Gold panning is a great activity for the whole family, kids love it.  You can bring your friends too, the more the merrier.
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There are a few obligations that will have to be met.

  • The first rule of prospecting club is you do not talk about prospecting club.  Just kidding I had to throw that in there.
  • Members must follow all the regulations regarding placer mining in BC.  If you don’t know all the regs don’t worry, information will be provided.
  • Activities will have to be recorded.  This will help with our reports to the MTO.  It’s not much work, just keep some notes on the work that you do.  Keep track of things like, hours spent working, size and location of holes, and take pictures.  This information will also be shared with the group.
  • If you plan on running a sluice or highbanker you will need to have a Free Miner’s Certificate.  If you need help getting one, just ask.

There will be an annual fee of $50.  Why a fee?  That is required to limit club membership to people who are truly interested.  $50 is pretty much free compared to similar clubs.  The others are looking for $300 and up.  We’re not interested in making money off of memberships.

As a member you will also have the opportunity for instruction in the art of gold prospecting.  This is great for novice miners.  You can join myself and more experienced members on prospecting trips.  That is the best way to learn, you can watch youtube videos and read books all day but nothing beats hands on training.

The Map Lies

Members will have support from experienced miners.  You can even get help with your own MTO reports for your own personal claims.  You can ask advice at any time and we’ll try our best to get back to you as soon as possible.

As a member you will be entitled to a discount on the purchase any of West Coast Placer’s claims.  There will be more perks as the club grows.

If you are interested please send an email through the WCP contact form on this link, Contact Form.  Please share any suggestions or comments that you might have.

Mining the Ocean Floor with Robots

Mining the Ocean Floor with Robots

Mining under Earth’s oceans is just starting to happen.  We have gotten pretty good at mining deposits that are accessible by land but 71% of the Earth’s surface is covered by water.  To date no large scale mining operation has succeed under the ocean which means that it’s all virgin ground.

Amazingly the human race has spent more time and money exploring outer space than we have under our own oceans.  Over 500 people have been to space while only three have ventured to the deepest part of the ocean, the Mariana Trench.  We have better maps of the surface of Mars than the bottom of the ocean, although the ocean maps are pretty cool.

ocean_floor_map

The same geological processes that happen on land also take place under the ocean.  There are volcanoes, mountain chains, faults and earthquakes.  All the same types of mineral deposits occur under the ocean such as epithermal gold, porphyry, and placer.  There are also diamond pipes, massive sulphides and everything else that we mine at the surface.

Deposits

The ocean also has types of deposits that we can’t find on land.  One special mineral deposit is called Polymetallic Nodules.  These are concretions of metallic minerals that occur under the ocean.  The nodules grow sort of like stalactites do in a cave, over time layers of metallic minerals precipitate out of seawater and add to the nodule.  The growth of nodules is one of the slowest known geological processes taking place at a rate of one centimetre over several million years.

noduleBig2nodules_floor

Polymetallic nodules are roughly the size and shape of a potato and contain primarily manganese as well as nickel, copper, cobalt and iron.  They can be found on the sea floor or buried in the sediment.  Nodules can technically occur anywhere in the ocean but seem to be in greatest abundance on the abyssal planes around 5000m deep.  Nodule mining would be similar to placer gold mining except under water.

Anouther resource that is unique to the ocean floor is Ferromanganese Crusts.  These are similar to nodules but occur as a coating on other rocks.  These crusts can be found all over the ocean with thicknesses ranging from 1mm to 26cm.  Ferromanganese crusts typically occur in the vicinity of underwater volcanoes called seamounts or near hydrothermal vents.  Crusts with mineral grades that are of economic interest are commonly found at depths between 800m and 2500m.

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Ferromanganese Crust

Ferromanganese crusts are composed primarily of iron and manganese, hence the name.  Typical concentrations are about 18% iron and 21% manganese.  Cobalt, Nickel and Copper occur in significant quantities as well.  Rare earth metals such as Tellurium and Yttrium can be found in metallic crusts at much higher concentrations than can be found on the surface.  Tellurium is used in solar panels and is quite valuable.

Sea-floor massive sulphides (SMS) are a younger version of volcanic massive sulphides (VMS).  The two deposits are similar except that VMS are typically ancient and SMS are currently forming.  SMS deposits occur where superheated hydrothermal fluids are expelled into the ocean.  They typically form around black smokers near continental rift zones.  SMS are know to hold economic concentrations of Gold, Copper, Silver, Lead, Nickel and Zinc.

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BlackSmoker

Black smokers create SMS deposits by expelling superheated sea water that is rich in metallic elements.  Cold sea water is forced through the sea floor by the pressure created from the weight of the water column above it.  The water is then heated to temperatures in excess of 600°C when it is brought close to the magma that lies below.  The heated water becomes acitic and carries with it a high concentration of metals pulled from the surrounding rocks.  Once the hot, metal rich, water comes into contact with cold sea water the metals crystallize and deposit on and around the black smoker.

Mining

Large scale ocean floor mining has not taken off yet.  Attempts have been made since the 1960s and 70s  but failed due to technological and financial challenges.  Small scale shallow ocean mining has been a lot more succesful in recent years.  A great example is the popular TV show Bering Sea Gold.  The miners in Nome Alaska are using modified suction dredges to comb the sea floor in shallow waters.

Currently proposed sea floor mining ideas are essentially super high-tech placer mining.  They involve ways to dig through the surface layers of the ocean floor, bring the material to the surface and ship it to a processing facility.  Its a lot like dredging but on a massive scale.  As mentioned above, normal hard rock deposits also occur under the ocean but no plans have been proposed to build open pit mines under the ocean.  That would involve all the challenges of building a mine on land with the added complexity of operating under the ocean.

Why is ocean floor mining possible now when it wasn’t 20 years ago?  The answer comes down to one word, robots.  The world of under water mining is the domain of autonomous drones and human controlled ROVs.  Robot submarines are nothing new, they have been around since the 70s and have been used to explore depths of the ocean that are very difficult for humans to get to.  UUVs or unmanned underwater vehicles are a little bit newer, they are basically an autonomous version of ROVs.  Ocean mining robots have just been invented and share a lot of the technology used in these devices and they look like something straight out of science fiction.

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The Cutter

The first deep sea mining project is currently being developed off the coast of Papua New Guinea.  The project is called Solwara 1 and is being developed by a Vancouver BC mining company called Nautilus Minerals.  Solwara 1 is a copper/gold SMS deposit with estimated copper grades of 7% and gold grades in excess of 20g/t and an average gold grade of 6g/t.  The property sits at about 1600m depth.

Nautilus has developed a suite of underwater mining robots and a complete system to mine the precious metal and bring it to shore.  There will be the bulk cutter pictured above, an auxiliary and a collection machine.  Please take a moment and marvel at these amazing achievements of engineering.

Transporter Bridge TeessideTransporter Bridge Teesside
 After the robots dig up and collect the ore a custom designed Riser and Lift System (RLS) will bring the material to a giant ship that acts as the mine control center dubbed the Production Support Vessel (PSV).  The RLS is basically the world’s most powerful suction dredge.  It’s pretty complex, this is the description on the Nautilus Minerals website:

The Riser and Lifting System (RALS) is designed to lift the mineralised material to the Production Support Vessel (PSV) using a Subsea Slurry Lift Pump (SSLP) and a vertical riser system. The seawater/rock is delivered into the SSLP at the base of the riser, where it is pumped to the surface via a gravity tensioned riser suspended from the PSV.

Once aboard the Production Support Vessel the mined slurry will be dewatered and stored until anouther ship comes to take the material on shore for processing.  The removed sea water is pumped back down the RALS which adds hydraulic power to the system.  Pretty cool stuff!  Check out the video below for an visual explanation of how it will all work.

Exploration

Ocean floor prospecting is not a good place to be gold panning or hiking around with a rock hammer.  It is also difficult to take usable photos due to poor light and lots of debris in the water.  So how do you explore for minerals in the ocean?  Geophysics and robots.

Geophysical exploration is not unique to the ocean.  The same techniques are used routinely on land to find every type of mineral deposit.  Ocean geophysics is also not new.  The main workhorse of mining exploration is magnetometry.  Which means mapping changes in earth’s magnetic field using a specialized sensor.  The technique was actually developed to detect enemy submarines during World War II.  Since then magnetometers and the science behind them have evolved into accurate tools to measure geology.

I’m using a proton precession magnetometer in the photo below.  There is some sample magnetometer data on the left.  Mag maps look similar to a thermal image except the colour scale represents magnetic field changes (measured in nanoTesla) instead of temperature.

Walk Mag in ActionSampleMag

Magnetometers are excellent tools for ocean mining exploration.  They are not affected by the water and are excellent at detecting metallic anomalies.  There are now underwater drones that can collect ocean magnetometer surveys without the need for human intervention.

Autonomous Magnetometer Drone
Autonomous Magnetometer Drone

Other geophysical techniques have been used in ocean mineral exploration.  Electomagnetics (EM) techniques are also great tools for exploration under water.  EM works in a similar way to magnetometry except that they emit their own source.  Conventional metal detectors are actually a small version of an EM system.  While mag passively measures Earth’s magnetic field EM measures the difference between a source and received pulse.  EM also works great for discovering metallic anomalies and is being incorporated into autonomous drones as well.

There are other types of ocean geophysics such as seismic refraction which uses a giant air gun to send a sound wave deep into the crust and measures the response on floating hydrophones.  Sonar and other forms of bathymetry can provide detailed maps of the ocean floor.  Bathymetry techniques can create imagery similar to LiDAR that is used on land.

Sample Bathymetry
Sample Bathymetry

Ocean mining is just in its infancy and some really cool technology is being used.  Advancements in the robotics have allowed mining and exploration to be completed without a person having into enter the water.  As technology advances further we will be able to explore vast areas of the ocean floor and discover immense mineral reserves that are presently unknown.  It is estimated that we have only explored about 5% of the ocean floor, who knows what we’ll find down there?

How Much Gold is Left on Earth?

How Much Gold is Left on Earth?

Is the world running out of gold?  That seems to be a common theme in investment circles in recent years.  This eye catching article on Visual Capitalist estimates that we’ll be out of gold by 2030. This article based on a report from Goldman Sachs claims we’d hit “peak gold” in 2015, GoldCore.
Gold_reservePeak gold is the same idea as peak oil.  Where the peak is the moment when maximum world production is reached and declines from then on, eventually reaching zero production.  Unlike oil though gold is not used up in consumption.  It is typically stashed away in a vault or worn as jewellery.

Estimates for all the gold in the world mined to date hover around 165,000 metric tons.  Some estimates go as high as 1 million tons but most experts would agree that under 200,000 is accurate.  World gold supplies are difficult to quantify. That is because gold reserves are not always reported accurately.  Over 50% of gold above ground is used for jewellery which makes it difficult to track.  Gold rings, necklaces and such can change hands without any records.  About 35% is stored as bullion for investments and reserves.  Large holders of gold give misleading numbers regarding their reserves, presumably for security reasons but who knows?

pourLiquidGold

The United States, Germany, Italy and France are the worlds largest holders of gold respectively.  Each has their share of controversy surrounding their claimed gold deposits.  There are conspiracy theories about the amount of gold stored in Fort Knox.  Some believe it is empty and the government is just pretending its full of gold.  Without seeing it for ourselves we’ll just have to accept the disclosed numbers.

To further add uncertainty to global gold production small scale miners do not typically report their take.  This is especially true in third world countries.  A lot of gold is mined in this way, primarily placer but hard rock as well.

AfricaMiners

How much gold is left in the ground?  Nobody really knows.  Mining companies of all sizes spend their exploration budget to map out potential deposits.  They are a long ways from mapping the entire earth.  The peak gold estimates are based on proven and indicated reserves that are reported by public mining companies.

There is no shortage of gold on earth.  The problem is that it is much deeper than we can mine.   Current scientific theories estimate that there is enough gold in the core to cover the surface of the earth with a 4 meter thick layer of pure gold.  The density of the core is measured using several techniques including seismic geophysics.  Seismic waves are measured from earthquakes all over the world.  The wave properties change as they pass through the liquid outer core and the super dense inner core.  S-waves can’t travel through liquid, that is how the outer core is mapped.  The density of the inner core is greater than iron at 5,515 kg/m3.  Clearly there are large amounts of substances that are heavier than iron to achieve that density.

seismicCoreMeasure

We are limited to several thousand meters below the surface as far as mining is concerned.  Check out this blog post on the origins of gold.

Lets do a little math.  The average concentration of gold in Earth’s crust is estimated to be between 0.0011 ppm(source) and 0.0031 ppm(source).  Now we can calculate the volume of the portion of the crust which can potentially be mined.  The deepest gold mine in the World is TauTona Mine in South Africa which reaches 3.9 kilometers below ground.  The TauTona mine, operated by AngloGold Ashanti, is a gold mine so its a good yard stick for how deep we can go.

The volume of the earth (approximated as a sphere) is 1,086,832,411,937 cubic kilometres.  The calculated volume for the earth with 4km stripped off the top is 1,084,788,886,213 km3.  Subtracting the two and using the average abundance of 0.0031 ppm we arrive at 6.3 billion cubic meters of gold in the top 4km of the crust.  One more calculation, gold has a known density of 19.3 tons per m3.  Which gives us a total mass of 122,264,143,828 or 122 billion metric tons.  That is a lot of gold.

Nuggets

Our calculated estimate of 122 billion metric tons of theoretical gold includes the entire surface of the earth.  Currently we are not equipped to mine the oceans, although technology is advancing quickly.  Check out this article on sub-sea mining robots, LINK.  The same processes that accumulate gold into deposits occur in the ocean just as they do on land.  With 71% of the surface covered by ocean that is a significant area that is yet to be explored.
earth-core
Lets adjust our estimate to account for only continental land which can be mined with today’s technology.  So by subtracting the oceans we are left with 35 billion tons of gold on dry land.

Global production throughout the entirety of human history is 165,000 metric tons as previously mentioned.  So in a very theoretical sense we have mined 0.00047% of the world’s surface gold.  That’s very encouraging.  Although not all of that gold is accumulated in mineable deposits.  Typically you need at least 0.5 ppm to make a mine profitable.  Depending on logistics, location, overburden and other factors that cut off grade can rise quite steeply.  So all of that 35 billion tons is not really available to us.

IMG_1741

Once gold is discovered it will be mined.  We are too greedy to leave it in the ground.  Take a look at the gold rushes of North America between 1849-1900.  There are some great blog posts on the subject here, Gold Rushes.  The hoard of gold hungry prospectors would descend on a creek once a discovery was made.  They would move in, erect a town and mine it for all its worth.  Within 2-3 years all the easy gold is gone and only the tenacious miners would remain to mine the small gold.  The rush would continue elsewhere and repeat the cycle.  The same thing happens with hard rock mining but on a longer time scale.

Peak gold takes this phenomena into account.  Much like peak oil we’ve picked the low hanging fruit wherever it has been found.  Gold is a little different because it is very hard to find.  When it comes to oil reserves the big ones stick out like a sore thumb.

MineBarrick

Typically it takes about 20 years to go from discovery to full scale gold mine.  That involves all the steps to test a property using prospecting, geophysics, and diamond drilling.  Delineating the reserve and all the stuff that it takes to build a modern mine (permits, studies, infrastructure and so on).

With the current state of the mineral exploration that 20 year lead time is going to come back to bite us.  Over the last few years mineral exploration has dropped off to the point that it is almost non-existent.  That seems counter-intuitive if we are running out of gold.  Exploration is a high risk investment and people don’t take the risk unless commodity prices are high.  The good news is that when prices spike again like they did in 2010 there will be a massive feeding frenzy.

IMG_1746

So we’ve estimated that within 4000m of the surface of Earth’s crust there is 35 billion tons of gold.  With a remaining 87 billion under the ocean.  Only a small portion of that is concentrated enough to mine.  Its a big world out there and we’ve only properly explored small pockets of it.  The super easy stuff is largely gone but with advancements in technology and some ingenuity its there for the taking.  For those explorers who are willing to put on their thinking cap and step outside of their comfort zone there is a bonanza waiting for us.