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1 people online in the last 1 minutes - 0 members, 0 anon and 1 guests. (Most ever was 29 at 13:36:32 Sat Aug 3 2002)

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Trapper_Tom
12:25:04 Sat
Dec 14 2013

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Working for shares

Can anyone tell me what would be a fair percentage of take to work for at a small mining operation? I mined last season more as an adventure than a job. This season I have a better idea of what I'm doing and a better idea of what I need to learn.

  
geowizard
15:27:58 Sat
Dec 14 2013

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Re: Working for shares

Trapper_Tom,

Welcome to the Alaska Gold Forum! :welcome:

Every case is different.

Fairness in the process of negotiation of "work" depends on several variables.

1. What is your contribution?

Your contribution might be very minimal if your ability to "perform" is also limited.

2. Are there other workers in your party?

Are you working with ten others that also are sharing in the recovery?

3. Are you providing tools or equipment?

4. Are you paying for the cost of operations?

5. How much personal liability are you assuming?

If I said; you should get 10 percent of the recovered gold, that might not be a fair percentage. If the mine owner is providing the gold, the tools, the food, the fuel, the lodging, the training and assuming liability for the operation, that's a big burden on the owner.

The scale of mining must be considered.

If it is a recreational mine that produces an ounce of gold per day, and you do all of the work. 50 percent may be a fair split. If the operation produces 10 ounces per day and you are completely responsible for all of the production, i.e. you provide everything needed, then the typical split is 10 percent to the owner of the mine. I have seen cases that the mine owner gets 15 percent in higher grade operations.

Negotiation of the percentage given to a worker should be based on the contribution of the work done to the over-all recovery.

Working on a percentage of recovery has little value if there is no recovery. Offering a worker 90 percent of the recovery and having the worker not contributing work to the process of recovery is a loss to the mine owner.

If a worker can show that he is covering 50 percent of the work and 50 percent of the cost of operation, then a different split is negotiated. Typically, in a 50-50 sharing of work and cost, the split is 50-50. That is not always fair to the mine owner because he is also providing the mine. So, the mine owner might negotiate for a larger share.

Finally, the "what if?"

What if a major discovery is made by yourself? In the longer term, possibly short term you might make a significant discovery. Usually an agreement is made in advance that if a discovery is made by the worker, certain incentives for discovery of a high value deposit. That could be a one time payment or a long term percentage.

- Geowizard

  
Trapper_Tom
13:07:05 Sun
Dec 15 2013

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Re: Working for shares

Thanks Geo,
I guess I was looking for a simple answer, not considering all the variables.

  
geowizard
14:32:17 Sun
Dec 15 2013

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Re: Working for shares

Trapper_Tom,

I understand.

The questions that pop up "after" the simple answer are the one's I mentioned.

If time is on your side, use it to go through possible "what if" scenarios.

Usually, a written lease agreement is in order if you are intending to lease a mining property. All of the terms of the lease need to be written down in plain English so that if a disagreement occurs at a later date, the issue hopefully was included in the agreement.

Many times, agreements are made verbally and on a hand shake. Mining unfortunately can lead to conflict and the best of friends with the best intentions become unhappy, discontented and feel short changed.

Another concern in mining is reclamation. When a mine owner leases a mine to someone else, the mine owner has the responsibility for cleaning up and returning the ground to an acceptable condition similar to or better than it was to begin with. So, the lessee usually is required by the lessor (the owner) to do that work also.

If these things are not agreed upon and written down in a form that is easy to understand, you can see how things can happen that lead to conflict.

The objective for both sides should be to fully understand all of the rights and responsibilities involved in your operation.

- Geowizard

  
waveaction
13:36:55 Mon
Dec 16 2013

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Feeding the Dredge" width=100 height=100>
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Re: Working for shares

Geo provides some good guidance on your question.

Short answer is: If you are looking at dredging on someones claim and you provide all your equipment, gas, etc. then 15 Percent to the owner is fair. If the owner provides temporary housing and food then 20 percent to the owner is fair.

  
Trapper_Tom
21:20:12 Mon
Dec 16 2013

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Re: Working for shares

I was working as part of a crew for someone else on their claims. I fully lived up to my end of the deal.
I don't feel that I didn't get a fair shake and there was an agreement agreed upon before hand.
I was trying to feel out if I should be renegotiating or expecting a better share this season.

  
geowizard
21:45:57 Mon
Dec 16 2013

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Re: Working for shares

Trapper_Tom,

Welcome to gold mining!

Everyone is trying to negotiate for a larger share. :confused:

So, it's like going to the boss and asking for a raise. You probably feel that with your increased knowledge and experience, you are worth more.

I don't know what your terms were last year.

If it was based on a percentage, then with your added knowledge of what to look for and where to find it combined with how to recover it, you should make more income based on the same percentage.

If you were an hourly wage earner, then you have to convince the boss that you can make HIM more money.

- Geowizard

  

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