Exploration, Development and Taxes
May 2007 by Scott HarnFurther demonstrating the importance of seeking professional assistance and advice are the tax rules governing the expenses of a mining company. The tax treatment of mine exploration and mine development costs is confusing, complex and often overlooked or ignored—except by the ever-vigilant Internal Revenue Service.
Let’s assume you are an aspiring or amateur prospector and start this article with a question: What is the single most important piece of prospecting equipment that you should carry at all times in your car, truck or RV?
Eight US coal, metal and nonmetal mines that achieved a perfect safety record in 2002—a combined 1.9 million employee hours without any time lost to serious injury or a fatality—were honored with prestigious “Sentinels of Safety Awards” presented by Assistant Secretary of Labor for Mine Safety and Health David Lauriski
Placer mining, whether for profit or recreational purposes, involves separation of free gold from the gold-bearing sands (gangue) of alluvial deposits by methods using specific gravity. The free gold can vary from 17 to 19.3 in specific gravity terms, depending on the alloy mix, which is usually silver, but can be copper, lead, sulfur, tellurium, antimony, or mercury.
We spent the morning in a meeting with one of the higher-ups at the US Forest Service. I presented him with 412 complaints received from our readers, along with a summary of the complaints to make his job easier.
And we eventually reached gold. It was a winding crevice of beautiful white quartz lined with small nuggets and loaded with fine gold. There were flakes and small granular pieces—there had to be a hundred or more.
The once very lonely phone booth in the Mojave desert 75 miles southwest of Las Vegas, reported on in last month's ICMJ and media throughout the world, became a media darling...
The Bawl Mill • Ask the Experts—Where can I find plans for a home-built suction dredge? • Ask The Experts—Can you help explain the ratings in Melman On Gold & Silver? • Recovering Values from Black Sands • Typhoon Exploration—Junior Mining Company Moves Forward in Quebec • Kalgoorlie, Australia—Born of Gold • Colorado Court Rules on Cyanide Ban • Selling Your Gold—Where To Start • The Business of Mines—Consider Your Tax Deductions Now • US v. Donald Eno—IBLA Rules in Favor of Miner • Miners Clean Washington Rivers and Streams • Melman on Gold & Silver • Mining Stock Quotes, Mineral & Metal Prices • Looking Back