Would you buy a lease, or going in shares of a lease?

[Perth Tim]

I'm curious on how you would value a lease or confirm it's value.
After my last trip it confirmed to me everything can look perfect, and theres little gold.

Leases come up for sale fairly often, but I'm highly skeptical of them, guessing the owners have picked them clean.

Going partners in a lease seems more viable, especially if you could split the costs of pushing some dirt to get to larger nuggets.

How would you do it?

 

[madtuna]

Don't buy one...peg your own :Y:

 

[Ded Driver]

Buying a lease is a gamble more than an investment.
Unless you had the time, money & permission to sample & have analysis done, you don't know what you're buying.
Or, if the lease holder gave you some time on it & pointed out productive area(s), & you then satisfied yourself that you could make a return out of it.
OR, as Madtuna pointed out, find a vacant patch & peg it if you think its worthwhile ... & wait for your lease to be granted while the rest of us pillage it ickshovel: :goldpan: :goldnugget: oop:

 

[20x]

I get lease adverts from gumtree on my Facebook alot, the other week there was one west of cairns.
From memory ad said there was 144,000 cubes of river eluvial ground, I did a rough calculation in my head on the numbers and worked out to about 2grams per cube..

 

[Danny13]

Mad tuna has a point . But I did purchase a second hand lease , had been drilled and managed to obtain the drill results and assay results . Payed off with 5 ounces ounces in 8 days . Got an offer from a Chinese owned organisation nearby to purchase the lease and it payed off . However I would agree with madtuna , I just got lucky in my case , I knew where to detect and push .

 

[goldtruck59]

I think this is a great question and one that from afar(vic) I have also thought about.
Tyranny of distance and not retired yet has stopped me from any further work on leases bought or pegged. Not long now cranked over 60 last week !!
I will be in Kal in November for a few weeks and will spend a bit of time in the DPM learning what I can. The last time I was there I was checking out the museum part and got talking to a very helpful staff geologist, She opened my eyes and I must say learned twice what I knew in a short conversation.
I will follow this thread with interest.

GT

 

[Goldtalk Leonora]

I sell a few leases here and there.....but I agree 100%with MadTuna. No lease is worth more than a grand or two but it really comes down to supply and demand.
At the moment there is very little ground available and it will be that way for some time. Unless you know the 'ins and outs' of prospecting then buying a lease is not a crazy idea. However....why would someone be selling a lease?...because they have finished with it and they do not believe there is anything left!! I'm sure there are other reasons...but I reckon I'd be close to the mark. As with everything in life it's a case of buyer beware...there are more sharks in this game than we have swimming in the Indian Ocean!...I love seeing adds on Gumtree of tenements going for 20k or so and they show pics of handfulls of nuggets...dah.

The key is (in my opinion) to work out why you need a lease. For most recreationals it's not necessary. Maybe if you want to push some dirt it can be a good option....I've sold tenements to retired folk that just wanted somewhere to detect and be left alone...and if the budget is there then fair enough

Even though everything is pegged out at the moment their is still plenty of VCL out there that carries gold. Perhaps do what good prospectors have always done...get out into these remote areas and prospect.

 

[kingswood]

Peg your own....Wait until a P lease you are interested in drops and be there at just before midnight, ready and raring to peg
If there's an E lease, peg an SPL.
Plenty of opinions other than buying one....

 

[Perth Tim]

I wonder how the previois owner would react to a midnight pegging

 

[madtuna]

Who cares, its no longer their lease if they dropped it or didnt renew

 

[HarryHoudini]

I wonder how the previois owner would react to a midnight pegging

Well if they really wanted it they would have done something about it.

Cheers HH

 

[Ded Driver]

Additionally, the cost is not only the purchase price of the Lease, there are ongoing fees & charges associated with holding a Lease.

 

[kingswood]

I wonder how the previois owner would react to a midnight pegging

Never really an owner, just a holder of a licence....
A P licence is for 4 years with a possible 4 year extension. You can easily see when the 4 years is due to expire and see if an extension of term has been lodged. If it hasnt, then it drops to vacant land generally just after midnight on the expiry day. If no extension lodged, you are 100% absolutely free and more than within your legal rights to be hammering pegs in and digging trenches as soon as the expiring time happens.
Oh and take photos with time stamps....if someone else is pegging the same lease at the same time, it may come down to seconds to decide who is first in time with meeting the requirements of the mining act and regulations in regards the legal procedure for marking out tenements.

 

[Goldtalk Leonora]

I wonder how the previois owner would react to a midnight pegging

Never really an owner, just a holder of a licence....
A P licence is for 4 years with a possible 4 year extension. You can easily see when the 4 years is due to expire and see if an extension of term has been lodged. If it hasnt, then it drops to vacant land generally just after midnight on the expiry day. If no extension lodged, you are 100% absolutely free and more than within your legal rights to be hammering pegs in and digging trenches as soon as the expiring time happens.
Oh and take photos with time stamps....if someone else is pegging the same lease at the same time, it may come down to seconds to decide who is first in time with meeting the requirements of the mining act and regulations in regards the legal procedure for marking out tenements.

That is true enough in theory......in practice however, tenements rarely 'expire naturally at midnight on an given day'... ..if they are any good!!....if your the tenement holder there are loopholes in the system...you just need to know them. What that means for all but the very experienced is it's unlikely you will get a look in.

 

[Jaros]

Additionally, the cost is not only the purchase price of the Lease, there are ongoing fees & charges associated with holding a Lease.

Do you have any idea how much those fees are DD?
Jaros

 

[Goldchaser1]

Additionally, the cost is not only the purchase price of the Lease, there are ongoing fees & charges associated with holding a Lease.

Do you have any idea how much those fees are DD?
Jaros

We were paying rates of about $525 for a 200ha P,different shires in wa vary in there rates i think,a 10ha lease or under around kal attracts no rates,other shires maybe the same for any under 10ha?

 

[Ded Driver]

GC1, what about the yearly fees to the DMIRS ? What would you reckon would be an average sort of total fees /year?

 

[Jaros]

Looks like you would have to be very lucky or REALLY research your selection very well!!
Even saying that it is a cheap holiday following your hobby.

 

[Goldchaser1]

GC1, what about the yearly fees to the DMIRS ? What would you reckon would be an average sort of total fees /year?
https://www.prospectingaustralia.com/forum/img/member-images/12692/1570323519_dmirs_pl_fees.jpg

DD that was the yearly rent i quoted,the rates were seperate,rates to the council were @ $120 every 3 months the boss said,so ya lookin at over $1k per year around kal on a 200ha P,i had to ask her as she handles the bills.....

 

[Ded Driver]

Chief Financial Officer
.
without doing the numbers on it I had guessed at around a couple of $K/yr, so that's a bit cheaper than I had figured ... first half Oz has fess covered then, unless you score a lease of barren ground