We own mineral rights in Elko, Nevada. Reserving the dry mineral rights of less than 80 acres , but willing to lease our oil & gas rights. What could we expect a major oil & gas exploration company who is been in negotiations with a major mining company for just thier of thousands of acres of oil & gas only rights for leasing in this county? We are adjacent & surrounded by the mining companies acreage. What would be the terms most likely offered to us for oil & gas lease in Elko county? What if any difference would the offer be if we owned 12 sections in Lander county?
It would be more helpful if you would give the section township and range. Location matters for an answer.
T33N, R52E, section 4 or 10 Elko, Nevada. 40 to 80 acres.
What would mineral rights only for buy-out value per acre ? What would oil & gas rights value or terms of lease for drilling be? We dont own any of the surface rights but only the below ground mineral rights.
I do not see any wells in that township. Nothing nearby for decades. Doubtful that you would have any interest in oil and gas at this time.
I just got some clarity on info related to our 1/4sw of 1/4 sw of secrion 4 T33N , R 52E in Elko ,nevada. Oxy is not interested in drilling or givingbup thier for oil ,gas uranium or gravel. Its Nevada Gold Mines want to lease Oxy mineral rights holdings of precious metal rights.
We are smack in the middle of change in mega corporation negotiations & ownership… Oxy has the east side of us locked up & NGM acquired the Magie Creek project from Origon & US Gold deal mix. Which was $7000 acre buy up instead I million $ for 7.5 square kilometers = $2000 /acre with a2% nsr share lease.
So, for our 50% partnership with NGM of 40 acres of the above, we get $5000 to seal the deal. & supposely the same oxy will get when they agree on the fine points, but the 2% to 5% nsr has not been reveaked yet? And a ridiculous low annual, he said, might be $500 to $1000 annually, pay out total per year for us 10 relatives?
I just dont see if they originally wanted to buy us out & and change their minds. Maybe because I said you are 50% partners & have all the surface rights, why would you offer a buy-out unless You know what under our acres. This, is not a speculative offer?
Now I suppose to believe they will ooenly give us what Oxy will finnaly negotiate?
What do you think is a fair offer surrounded by a proven Maggy Creek open pit mine that has been halfway dug extracting paydirt? And turned over to NGM with the above terms? Waiting anxiously for your respected opinion. Now with a lot more detail compared to my vagueness before?
The forum is focused on oil and gas, but maybe someone knows more about mining in Nevada. Not my area of expertise.
This is an interesting situation to me. I moved to Reno a little over 20 years ago. I have been active in purchasing oil/gas mineral rights several States for my own account as well as managing properties for clients since 1981. I researched an involvement in purchasing “hard rock” mineral rights in NV, but decided it was too high of a learning curve at the time. OXY will perform an analysis using some type of discounted cashflow rate of return (DCROR) analysis for the project. This will help them determine the terms of any development agreement. NGM has performed a similar analysis since the will have a “Hurdle Rate” for the project. It looks like NGM is related to Barrick and Newmont, so you may want to look at their investor presentations to gain some insight on the value of this property. If they need your property for efficient development (location), then you may be able to work on better terms. You may want to look to UNR and/or Colorado School of Mines for relevant publications. Good luck and be patient.
James, thank you. For your sharing your knowledge. NGM lawyer did mention a formula he had to work out & seened he was not inspired to jumo into the math? Lol. So that was right on. Yes, Newmont & Barrick formed as a partnership Nevada Gold Mine llc. Right again. I been doing for more than 5 month research on the value of buyouts & leases, and mining activity & and who has what. I even found the price Newmont paid in 92 for the net 38 acres surface rights & 50 % partnership, $150,000 when gold was $350/oz. We have in addition 80 mineral rights acres on the adjacent section 10 too. Beside 8,000 in Lander. And the lawyer did mention that our acres are part of a 3,000 plus acre developement. He must mean they attained the rights to the 3,000 acre ranch to the east of our parcel? I got most if my info from a US Gold announcement of their sale of Magie Creek project & Oregen Royalties corporate web site of thier involment in ownership of Maggy Creek
I would like to ask you would you be so kind to explain " if they need our property for effient developement."< And I will pursue your resouce references in Colorado. Thank very much , you have given good info & good leads for further study. Maybe some day we can talk about mineral rights in Lander? Stay safe & God Bless!
I will start by saying I have a very limited knowledge of surface and specifically gold mining operations. It would seem you have done some good initial research. Negotiating with a lawyer is a sign that NGM considers your property to have value to the project. Whenever you look at any surface development operation, there are key parcels that allow for greater cost efficiencies in the development. Have they performed any core drilling in the area? In some cases core drilling may indicate areas of higher productivity for the operation. Access can be an efficiency component also. Without diving into the entire project, it would be difficult to highlight efficiencies/values.
I would be interested in talking to you mineral right in Lander. Good luck.
James, I reread your comments. You are from Reno? So, I was advised to look up the Reno lawyers for mineral rights. I guess it’s because it’s a university town with a good geology culture? IDK? I need a Nevada lawyer who can straighten out our wills in 3 counties & 2 states, be experienced in Nevada mineral law & state regulations, and finally have experience in negotions with mining companies? 2 out of three would suffice. And who do you to value mineral rights or title searches? So, who would you recommend in Reno? Thanks, James, enjoy the holidays!
I would suggest Alicia Johnson, in Reno, for your Estate work. Since I do not do anything with mining, I have no suggestions. You may want to talk to Johnson for some suggestions in that area of expertise. Mining is a specialized field, so I would look to have someone involved that mining is their primary practice.
Thanks. again James. Do you know Erwin Thomas Faillers? .He is a mineral lawyer in Reno & member of the landsmen association. He agreed to look at our situation in 33N, 52 E sec 4. He an old timer who knew the original lawyer involved in my great Uncle Jess’s dealing & drillings years ago. I hope he takes on the case for us ten family hiers? He feels like a good fit?He said he just helped a mineral rights owner to get a better deal from Jason the lawyer for NGM? But I still waiting from the holidays to hear from him? I found out NGM owns thru acre app all the surface land for miles around our 40 acres the rights in sec 4 & our 80 ac rights in sec 10.
I am not familiar with the law firm. They look like they have expertise in your area of concern,
James, Thomas P.Erwin finally got back to us. He is a very busy guy at 72. All the attorneys that I ask in that field knows him well & has high praise. . He written over 20 articles or papers in a wide assortment of law issues in geology, mining & mineral law. And he is even a member of the landmen association in Nevada. His qualifications in mining law & mineral law is a rare thing. And has 49 years of experience in negotiating with the big mining outfits. He very friendly guy. I hope I can get him to represent us?
Erwin looks to have the experience you will require. Touch base if you ever get to Reno, I will buy you a cup of coffee. Good luck.
Will do! Thanks again!
James_Garner1, I just got some so called privileged info. When a geologist or assayer says the parcel in question has a yield of 31%? In normal use per industrial standards , does that mean the whole parcel is concidered or valued as a 31 % yielding soil? Or some average of a few core drillings to indicate with confidence that the 40 acres if mined will produce 31% by wieght precious metal to ore removed? It’s mix is gold, silver, copper & nickle. It seems like 31% is extremely high yield? Thats might be the key why they are so interested? Otherwise in my own thinking a 31 % yield can be understandablly by being just one lucky shovel full sample that was assayed?
Lloyd, you are getting way outside my expertise. The 31% could be as you have supposed. The other possibility is the 31% may refer to a rate of return (IRR, MIRR, DCFROR) which would allow for the analysis of processing/mining costs and expected product prices. I can make a guess this is not a shovel full estimate, but is possibly based on core drilling and geological analysis. Since I do not do any hard rock mining in my investments, this is just speculation. See if you can find someone at UNR’s mining department to point you to better reference information and possibly some good teaching videos.
Thanks, James, will do. You are much appreciated & some day we may meet over coffee when I am in the neighborhood! God bless
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