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 Post subject: suppose I wanted to start an iron mining operation
PostPosted: Tue Apr 09, 2013 4:18 pm 
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Joined: Mon Apr 16, 2012 4:53 pm
Posts: 270
Location: Ringgold GA
Howdy y'all, I haven't posted here in awhile but ive been keeping an eye on the forum. The area I live in (Northwest Georgia) was a huge iron mining area until about the 1930's. The mines shut down because of the depression and never reopened. I have a piece of property on the mountain that contains outcroppings of ore. I found an old mining journal about 1905 I think, that stated the ore from my location is about 51-57% iron. So my questions are is this worth developing and how should I proceed with development?

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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Tue Apr 09, 2013 8:04 pm 
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Joined: Tue Sep 16, 2008 6:51 pm
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Location: SW Indiana
First ! Find a market for the ore.

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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Tue Apr 09, 2013 8:37 pm 
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Joined: Mon Apr 16, 2012 4:53 pm
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Location: Ringgold GA
Doug wrote:
First ! Find a market for the ore.
That may be the hard part. There aren't any smelters around here. They were all small bloomerys when the mines were running.

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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Tue Apr 09, 2013 8:54 pm 
You could set up a small smelting operation yourself, and cater to local blacksmiths, or take up smithing as a hobby, using your own steel, therefore saving money on iron you would have to buy!


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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Tue Apr 09, 2013 10:49 pm 
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Joined: Fri May 23, 2008 2:14 am
Posts: 551
Location: Binghamton, NY
My suggestion is find out if you even own the mineral rights. If so, sell them. Market to companies that have the tools and methods of selling or working with ore already in place. They come on your land, do whatever you specify (ie improve roadway, drill new well if water is contaminated) and in turn you let them mine your property. If it's not a lot of ore, then there won't be any interest. A simple Craigslist listing is all you need, scouts find these things. My guess is it's not worth doing yourself other than for fun, and there also may be little industrial interest. But it won't hurt to find out.

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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Wed Apr 10, 2013 12:45 pm 
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Joined: Mon Jun 20, 2005 11:28 pm
Posts: 1764
Location: Winnemucca, NV
It's important to make the distinction between selling and leasing mineral rights to a third party. If you sell them outright, you will only receive income from a single sale, whatever you've determined that price to be at the time. If the operation becomes extremely successful, or the price of iron goes up, you will not receive any royalties or further compensation, except perhaps to repair damage to structures or from subsidences caused by mining beneath your land. On the other hand, leasing the mineral rights will allow you the opportunity to obtain a streaming income for the life of the operation. And because you still own the mineral rights, you can even pass them on to your heirs, who may continue to benefit. There are pros and cons for each and the laws regarding the rights of both parties vary from state to state.

Is there any evidence of prospecting on your land from when the ore was sampled in 1905? I would be curious to know why it was not developed from this time until the depression. Have you consulted any geologic maps or traced the orebody to any previously developed mines?

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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Wed Apr 10, 2013 11:24 pm 
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Joined: Mon Apr 16, 2012 4:53 pm
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Location: Ringgold GA
I dont really have any idea why this was never developed other than this ridge is smaller and slightly farther east than the mountain where most of the earlier mining took place.

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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Tue Apr 16, 2013 11:37 am 
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Joined: Mon Jun 20, 2005 11:33 pm
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Location: Above the Sterling Hill Mine
While you know you had mining activity on the property, why was it abandoned? Generally operations are abandoned when it is no longer profitable to extract the ore. Many of the larger operations would have been abandoned if the costs for extracting the ore was too high. If the cost for operating pumps (due to a deep operation) is high combined with taxes, wages, other extraction costs, there may be no way to make money on it.

How developed is the properly? Is this an open pit mine or was it mined underground? Does it have shafts or adits? Do you know how deep they are? Is there ore still remaining near the surface? A lot of this comes into factor when determining how easy it is to extract the ore.

Miner Greg


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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Sat Apr 20, 2013 10:37 pm 
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Joined: Mon Apr 16, 2012 4:53 pm
Posts: 270
Location: Ringgold GA
Miner Greg wrote:
While you know you had mining activity on the property, why was it abandoned? Generally operations are abandoned when it is no longer profitable to extract the ore. Many of the larger operations would have been abandoned if the costs for extracting the ore was too high. If the cost for operating pumps (due to a deep operation) is high combined with taxes, wages, other extraction costs, there may be no way to make money on it.

How developed is the properly? Is this an open pit mine or was it mined underground? Does it have shafts or adits? Do you know how deep they are? Is there ore still remaining near the surface? A lot of this comes into factor when determining how easy it is to extract the ore.
My particular piece of property has never been mined. There are some ore outcrops on the property.
Miner Greg

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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Sat Apr 20, 2013 11:07 pm 
I think that you forgot to say what you were going to after the quotation from Miner Greg.


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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Sun Apr 21, 2013 6:07 pm 
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Joined: Mon Apr 16, 2012 4:53 pm
Posts: 270
Location: Ringgold GA
No, my response got put in the quotation for some reason. What I was trying to say was that there has not been any mining on my piece of property.

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 Post subject: Re: suppose I wanted to start an iron mining operation
PostPosted: Sun Apr 21, 2013 7:42 pm 
I see that now. That is weird.


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