Question about Sand and Gravel Companys

[DolanDave]

Was just wondering how common it is for a sand and gravel company to secretly prospect for gold? I have heard that some company's cannot prospect for gold in certain areas, so they set up a sand and gravel company's in certain areas and just use them as a front.

Dave

[Reno Chris]

Pretty unlikely. You mine all that sand and gravel and it costs a lot to store it.

A lot of gravel mines produce certain amounts of gold as a by-product, but the aggregate sales are far, far more than the amount of $$$ they make on gold.

Chris

[clay]

For the most part Chris has described the reality of the situation. Although there can be good money in government sand and gravel contracts, as in any business, inventory control has to match demand and production.

There are some notable exceptions. White Oaks New Mexico is a known past and present producer of placer gold. A portion of White Oaks itself has been absorbed by a huge sand and gravel operation that operates two dragline shovels feeding two large custom trommels on the largest Tertiary gravel bench I have ever seen outside of California. This outfit is not operating in "secret" and is a major supplier of both the county and State hiway depts. They are operating on patented land as opposed to most operations that work on State or Federal Leases. They make good money off their aggregate contracts by all accounts but their huge stock of sorted gravel is testament to their ultimate purpose.

clay

MinerDiggins