Saw this on Facebook. Have no idea if there is any truth, use your own judgment
FOR SALE BY OWNERS:
Sweet Deal
Dun Glen Gold Mine, Pershing County, NV. Tahoe Milling Inc. is offering to sell an ownership interest in it's 130ac of private land and water rights.
We offer the following:
25% of our 130ac of private land, for a commitment to fund Tahoe operations up to $125,000 over next two years.
25% of land and water for a $250,000 funding commitment over next two years.
50% of land and water for a $500,000 funding commitment over next five gyears.
Mark Twain called a NV Gold Mine, a hole in the ground with a liar standing next to it, throwing money into it. Although Tahoe holds a one in a thousand Gold properties, Twain's principles still apply. Currently,Tahoe Milling Inc. has the property leased to DGMC. Unfortunately, DGMC is a typical mining stock scam. They have not been current on the lease but 10 days in five years. They have breached the contract ten ways to Sunday. They have cheated investors of millions and millions. I have spent $40,000 trying to evict. Unfortunately, I have been cheated of every penny of my legal fees by three attorneys. I have now found the right attorney for the job. I near killed myself when I learned my previous attorney had convinced me to follow his advise. When in fact, what I wanted was what needed done. To salt my wound, my Angel stopped funding, and feed me to the sharks. I have 60 days to fund operations; or, collect my death benefits to get the dream alive.
An investor with income and a good accountant, should be able to expense this investment.
I estimate the cost to evict the lessee will be roughly $50,000. Our attorney has $10k on account. We expect to spend another $40,000 over next year. Plus, taxes and fees <$1,000, and engineer $9000. For $50,000 or $4.160 a month for a year. If we lose, DGMC will need to pay back rents of $50k plus continue paying $3,000. You get your $50,000 in 2 years. and indefinite income of 3,000 plus royalty / 25%. If we win nothing but eviction; then, the other $50k should re-permit and have the mine back in operation within 2 years. Once in operation, we should yield 15 oz AU per day for about three years. We have .05 sitting on our surface in the bottom. Or, we might contract to have our neighbor process the ore through their 1,000ypd mill. A 50/50 split should yield Tahoe 2,000 oz. / 25%=500 oz in two years is a decent return on your $50,000. Lastly, I expect to win the back rent, their $200k bond, their permit and $$$$$$$ damages.
On the risk, vrs reward curve, Gold mines and oil wells have can be a total loss, or yield an infinite return. I purchased this property in 88 from Homestake. Homestake was the foundation of the Hurst Empire. Absorbed by Newmont and now history. Newmont started as a mining scam, and is now the largest mining company. Property like Dun Glen are rare. The USGS states that Dun Glen is probably the best placer deposit in NV. We have .05 on the surface in the bottom. We have near 1/2 mile of creek. Originally estimated by USGS geologist in 1936 at .1 to .15. We have tested the top of 20' think pay zone at 1 and 2 oz per ton. If my assumptions hold true, I estimate 250,000 oz AU on ground.
We hold surface and subsurface water rights dating back to 1962. Our lessee is in default for not developing two water permits, damaging on water right and not pumping the other right. Failure to pump caused DoW to give notice of forfeiture. So, Tahoe must extend two permits and one right. What kind of a miner would spend $6m building junk mills and digging in overburden; but can't do job one of developing water. A lessee trying to fail in a short sale stock scam. Their stock at $0.01 makes them near worthless.
Because lessee trespassed on BLM ground to dig into our water permit, they pissed off the BLM. Now, the BLM requires a right of way to pump wells (forfeited) and water permit in mining permit. I have spent $5,000 on a new ROW application. Unfortunately, the operations of BLM is a mistery. We will need money to complete ROW process. We need $10,000 in equipment and fees to develop the right and two permits. And, we need $40,000 to pump the water for year under application for beneficial use..
The next step is to permit the construction of a Dam on our partners BLM ground. Typically placers divert water at the top, and mine dry from the bottom up to the diversion. The muck in the trench should yield $3 million, paying for the cost of the dam, pipeline and hydro-electic plant too. The dam brings the water to surface. It should yield about an 8" pipeline. It is 1 mile to the bottom, with a 100 foot drop. This should power a hydro-electric plant and service a bottling plant too. The water in Long term could be worth more than oil. Especially in a World going dry. I hope the cost of work to permit for dam and pipeline ROW will be less than <$150,000
I was at the annual shareholder meeting of our lessee, their lawyer introduced me to two men who he said had invested one million. I thought wow, these guys must be stupid. I later learned they were brokers getting 50% on the stock sales. The lessee has $12,000,000 of unhappy investors. I'm not a liar, I'm not selling BS. I'm selling hard assets with infinite speculative value. If nothing else, the $125,000 buys you a fantastic duck pond. A hunters paradise. When I die, you can replace me as the Mayor of Dun Glen. We don't let the ghosts vote.
