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.
There still remains some material in place along the lode that could be mined at high gold and silver prices.
Q: I’m a fairly new subscriber. I enjoy Leonard’s financial column but his ratings at the end don’t seem to make sense. He will highlight problems with the economy but rate it “Positive.” Why is that?
Tuesday morning started off much like Monday except Jack wasn’t packing a bunch of drill bits. We wandered off toward the bottom of the raise, adjusted our bed boards, had a cup of coffee from our buckets, and smoked a cigarette. Then Jack stretched, stood up, and remarked, “Guess I might as well go up and see what it looks like. You wait here for now. When I call down, send up a section of ladder and eight laggings.”
Seldom is a metal detector used for ore sampling today. Nevertheless, this procedure still works as all BFO and VLF detectors have a non-conductive mineral zone and a conductive metal zone with a neutral null zone between them.
Tired but satisfied after the first day dredging this season, I settled into my homemade oak camp chair. My eyes scanned the beautiful river, steep forested mountains and crisp blue sky, with the heat of the day fading.
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