Entrepreneurial spirit guides development of Gardner’s Point gold mine in Northern California

Introduction Some people say it is almost impossible to get mining permits in California. Some say the day of the lone mining entrepreneur is past. And some say you cannot make money mining gold where old-timers have already mined it, especially in Tertiary gravels. But a young mining operator and SME member, Tim Callaway, is proving these ideas wrong. Callaway's company, Brush Creek Mining and Development Inc., has the necessary permits for its Gardner's Point gold mine in Sierra County, CA. And, Callaway has secured funds for the 7.7 km'/d (10,000 cypd) Tertiary gravel operation. The company's initial goal is to produce 373 to 466 kg/a (12,000 to 15,000 oz per year) of gold at Gardner's Point mine at a cost of less than $6.43/g ($200 per oz). Feasibility studies are currently being conducted to consider product levels up to the 1555 kg/a (50,000 oz per year) involving additional plants and infrastructure. While exploring for other hard-rock properties, the Brush Creek company already operates the Brush Creek lode gold mine. The mine sits high on a ridge south of Goodyear's Bar, which is located on the North Yuba river. It might be noted that the Brush Creek mine has been the subject of media stories recounting how a mine can operate with sensitivity to the environment. Gardner's Point project In 1983, Callaway negotiated with the Gardners Point Ltd. Partnership for control of the Gardner's Point property. The Partnership had been engaged for three years in securing permits, mapping and drilling, and test mining. The Partnership actually mined about 43.5 dam3 (57,000 cu yd) of gravel, which yielded 25.2 kg (810 oz) of free gold. Later, the Brush Creek company acquired ownership of the property. The company then began its own exploration and development program. As underground development proceeded at the Brush Creek mine, plans matured for a high-volume operation at Gardner's Point. Australian and English investors contacted Callaway. A joint venture was negotiated. The Australian owners became majority participants; the Brush Creek company, a minority participant and the operator. The Australian investors agreed to contribute $3.5 million (60%) to the Brush Creek Joint Ventures. The Brush Creek company will contribute its expertise as well as assets and liabilities valued at $2.3 million (40%). About $2 million has been allocated to the Gardner's Point project. Later, Brush Creek Mining and Development Inc. sold 50.4% of the company's common stock to English investors for $5.4 million. Callaway negotiated this private placement, which permits further exploration of projects being investigated. Geography and history The Gardner's Point mine is located in the northern Sierra Nevada of California, about 9.6 km (6 miles) east of the little town of La Porte in Plumas County. The mine lies high on a ridge above Slate Creek, which divides Plumas and Sierra Counties. La Porte is accessible from the Sacramento area by a winding, paved, two-lane highway. But the mine is reached only by two different unpaved county and Forest Service roads. Both roads include steep grades in and out of the Slate Creek canyon. Mine elevation is about 1.4 km (4600 ft) above sea level. The area is thus threatened by occasional heavy winter snows, though it