Mining Opportunity - For Sale!

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A unique opportunity to joint venture with Advanced Geologic Exploration!

The approximately 140-acre You Bet property located near the historic community of “You Bet” in the You Bet Mining District in eastern Nevada County, California. The property is owned by the Brady family, who also own another 740 acres of nearby lands. The property is approximately eight miles east of Grass Valley and seven miles southeast of Nevada City, within the foothills of the Sierra Nevada Mountains. It is located northwest of Interstate 80 and east of State Route 174, within Township 16 North, Range 10 East, Sections 31 and 32 of the Grass Valley USGS 7.5 min. Quadrangle.

The site was extensively hydraulically mined from the late 1800’s to the early 1900’s, during which millions of dollars of gold was recovered. While Nevada County has produced more gold than any other county in California, the You Bet Mining District was the richest producing district in the county.

Hydraulic mining exhumed millions of cubic yards of gravels during the late 1800s and up and until the 1940s, leaving the area in a “devastated state”. Remnant hydraulic workings include mined-out gravels to bedrock, shear vertical cliff faces exceeding 160-feet high, massive tailing piles, and sluice channels. It is not known how much gravel remain on the You Bet property, but it is likely in excess of several million cubic yards, most of which is the lower to basal sections, which happens to be the richest.

Advanced Geologic has a mining lease on the property and after conducting a preliminary testing program of over 150 yards of material, they are looking to take the next step and set up a mining operation.


The You Bet Mining District is located within the broad geologic region of California known as the Sierra Nevada geomorphic province, which includes the Sierra Nevada Mountains and the Sierra Nevada Foothills Gold Belt. The average width of the gold belt is about 75 miles and it extends over a length of about 400 miles along a northwest-southeast orientation along the western frontal slopes of the Sierra Nevada mountain range.

The Sierra Nevada are composed of an imbricated assemblage of meta-sedimentary, meta-volcanic and ocean crustal rocks that have been highly deformed by tectonic forces and intruded by granitic rocks that caused various stages of mineralization, including hydrothermal alterations, quartz veining and contact metamorphism. In the vicinity of the You Bet Mining District, the bedrock is shale and slate of the Calaveras Formation (Carboniferous to Permian age). It is light gray to black, moderately hard to hard, moderate to highly fissile, and contains numerous discontinuous quartz veins, all of which are indicators of its torturous tectonic past.

Overlying the bedrock is a thick gravel assemblage of early Tertiary age. In some nearby areas, the gravels are overlain by a volcanic sequence of tuffs and flows, but the You Bet area does not have these cap rocks. The gravels are interstratified, showing evidence of both slow and fast-water deposition, thus the particle size ranges from silt and sand to gravel and cobble. No boulder-sized rocks have been observed yet. The gravels are generally well cemented, making them hard to very hard, thus easily forming tall resistant cliffs when exposed.

The base of the assemblage is called the “Blue Lead”, and gets its name from the greenish-gray-blue color due to anoxic hydrologic conditions. This unit was the focus of intense historic mining activities because of its elevated gold content. Stream systems tend to concentrate the gold at the base of the deposit and this was the case of the Tertiary gravels at You Bet. However, all the gravels in the deposit contain some amount of gold.

Historic Gold Production

Once the gold was found in these gravels in 1849, miners attacked them with vigor and haste. They first used drift mining techniques whereby tunnels were driven in along bedrock. Work was slow but often very profitable. Some made fortunes overnight. Hydraulic mining began in the 1850s and offered a way to move thousands of cubic yards per day, and with that came larger gold recoveries.

U.S. Geological Survey geologist Waldemar Lindgren in his classic 1911 Professional Paper 73, “The Tertiary Gravels of the Sierra Nevada of California”, described, sampled and cataloged the Tertiary auriferous gravels throughout the Sierra Nevada. He visited hundreds of mines and interviewed numerous miners. The gravels in Nevada County, and in particular the Red Dog/You Bet area, are described in the Colfax Quadrangle section. He estimated that at the nearby Red Dog and Hawkins Canyon more that 47 million cubic yards of material had been removed by hydraulic mining, leaving over 100 million yards available for future mining. He estimated that $3 million (138,440 ounces) had been taken at You Bet diggings alone.

Note: The amount of gold contained in the gravels is reported here by the cubic yard. There are 27 cubic feet to a yard. Lindgren estimated that one ton of broken gravel is about 18 cubic feet or is about 0.667 cubic yards. The price of gold at the time of Lindgren’s report was $18.92 per ounce.

Historically, the gold contents of these deposits are lowest at the top and highest at the bottom. Lindgren reported that by far the highest gold concentrations are within the bottom three feet near the bedrock. Depending on the type of bedrock, high concentrations were also reported in the cracks and fissures of the bedrock. Drift mines would often tunnel along the gravel/bedrock contact, taking the richest portions of the deposit.

Lindgren reported that mines in the area typically got around $0.10 per yard (0.0053 ounces of gold per cubic yard) for the upper portions of the Tertiary gravel section, around $0.40 per cubic yard (0.0211 ounces of gold per yard) for the upper-middle sections, roughly $2.50 for the lower-middle section (0.1321 ounces of gold per cubic yard), and a 0.5 to 1.0 ounce per cubic yard for the bottom section on the bedrock. The bottom section values varied considerably and were dependent on several factors, including channel morphology, inside or outside river bends, bedrock type, etc. Some reports indicated several ounces per yard were common in the most favorable conditions. In a section of Tertiary gravels of the You Bet area, two workers took $85,000 in gold from a drift tunnel in five days (4,493 ounces). It was said the tunnel was less that 100 feet long and targeted the inside bend of a main channel.

Estimated Gold Potential Calculations

It is impossible to accurately calculate the gold reserves on the property without a comprehensive testing program consisting of drilling and bulk sampling. However, it is possible to develop a crude estimate based upon Lindgren’s general grade statements. Say there is roughly about 1.0 million cubic yards mineable gravels on the property. The resulting rough economic potential for the yards per section is presented:


Quantity (yds3)

Grade (oz.Au/yd3)

Gold (oz.)





Upper Middle




Lower Middle











Dollar Value @ $1,350/oz Au $63,000,000
Dollar Value @ $1,500/oz Au $69,997,500
Dollar Value @ $1,700/oz Au $79,330,500

Estimated average ore grade 0.0167 oz. Au/yd3 or about 60 yards to the ounce

These numbers are crude but give an estimate of the gold potential of these deposits. Note that only a half-ounce per cubic yard was used for the base section and this was a low value for recoveries of that portion of the section.

Miners of the past used crude recovery techniques and Lindgren estimated that half (50 percent) of the gold was lost during the processing. Modern recovery systems should be able to recover more than 90% of the gold, including the flour gold. Given that several million cubic yards still exists on the You Bet property and if the numbers presented above are factored in by these modern recovery systems, the You Bet property has a significant chance to be a premier placer gold mine in California.

Preliminary Testing

In the spring of 2010, Advanced Geologic conducted an exploration and testing program on the You Bet property to determine the average “grade” of the gravels. Over the course of a ten-week period, roughly 157 yards of material was processed. Equipment used included two backhoes, a six-yard bucket loader, and a portable trommel (“wash plant”) capable of processing 30 yards of gravel per day.

Previous reconnaissance revealed a 4-acre unmined basal section of the Tertiary gravel deposit in the southeast corner of the You Bet property referred to as the Brown Bros property. Rough calculations suggested the volume of remnant material was on the order of a few hundred thousands cubic yards – and it was lying directly on bedrock! A plan was developed to excavate various portions of the exposure down to bedrock and determine the grade for possible future mining operations.

A processing area was designated and a waste discharge pond excavated. Water was pumped from a nearby creek to feed the trommel. Material was excavated from the deposit, transported to a stockpile near the trommel, then processed through the wash plant. Tailings, or washed material was then moved into areas designated for reclamation. Concentrates were panned, run through a spiral bowl concentrator to recover the gold, and weighed.

A total of 2.11 ounces (65.7 grams) of gold was recovered from the 157 cubic yards sampled. This translates to about 0.0135 ounces/cubic yards, which indicates it takes about 77 yards to produce an ounce of gold.

The recovery was remarkably consistent throughout the deposit with gold in every section of the deposit sampled, suggesting that the values reported above would be a minimum recovery given the estimated volume. A number of problems were encountered during the testing program whereby it was determined that between 10%-30% of the gold was lost during the processing. As techniques were changed, the recovery became more and more efficient. The gold pan photo to the right is just over an ounce of gold recovered from the testing project.


The testing project confirmed that 1) there was gold in the gravels tested, 2) it was consistent with the averages reported by Lindgren, and 3) it is economic to mine the deposit. Direct testing of the deposit determined a ore grade of about 77 yards-per-ounce, and factoring in the 10-30% recovering loss suggests that between 54-70 yards-per-ounce would be expected (0.0186 – 0.0143), or an average of 60 yards-per-ounce (0.0164), which compares to historic recoveries.

Therefore, if one assumes there are about 200,000 cubic yards in this remnant deposit:


Quantity (yds3)

Grade (oz.Au/yd3)

Gold (oz.)

Remnant Deposit




Dollar Value @ $1,350/oz Au $4,428,000
Dollar Value @ $1,500/oz Au $4,920,000
Dollar Value @ $1,700/oz Au $5,576,000

The Ah Tie’s Legend

The area tested is just one small corner of the 140-acre property, and other portions of the property contain abundantly more material and are likely much richer. One of the former mine operators in the early 1900s, a Chinese man named Sam Ah Tie, recovered so much gold from an area of the You Bet property, referred to as Ah Tie’s Hill, that the landowner cancelled his lease and began mining it for himself. A lot of that deposit is still unmined and probably more is undiscovered.

Ah Tie went to another area of the You Bet property and began another successful mining venture. Many white men became so jealous of his success, they blew up the hoist tower over the shaft of the drift tunnel, causing a cave in and killing dozens of Chinese workers. Ah Tie was crushed by this news and closed up all his operations and moved away. The area has since been referred to as Ah Tie’s Last Stand. Nobody has gone back to mine it since the tragedy.

Advanced Geologic knows where these two locations are and the Brady family has extended the lease to include them in the Mining Agreement.

Mine and Reclamation Plan

The State of California has a number of rules and regulations that govern how mining is conducted in the state and these rely on two principal laws, the Surface Mining and Reclamation Act (SMARA) and the California Environmental Quality Act (CEQA). SMARA sets the threshold for which mining projects are deemed either significant or non-significant. That threshold is one (1) acre of surface disturbance and/or 1,000 cubic yards of processed material. Projects under this amount are generally exempt from meeting CEQA guidelines; over this amount and a number of rules and guidelines are imposed whereby a State Mine and Reclamation Plan is necessary. Our testing project was below the SMARA limits, but any more work on the property must have a Mine and Reclamation Plan. These plans involve several professionals (geologists, biologists, archeologists, engineers, etc.) and take between 8-12 months to complete, if all goes smoothly.

The Lead Agency for the permitting process is Nevada County. State Office of Mines and Reclamation (OMR) and the State Mining and Geology Board (SMGB) will play key rolls in maintaining compliance with the Mine and Reclamation Plan. Other regulatory agencies will also maintain oversight capacities to ensure compliance to specific laws.

Given that the properties have been extensively mined before and that they were left in a "devastated" condition, Nevada County and the State of California would be in favor of moving a permit forward so the lands could be reclaimed. Advanced Geologic is facilitating another Mine and Reclamation Plan for a nearby property and is well familiar with Nevada County’s permitting process.

Advanced Geologic’s plan is to do a conservative, stepwise approach whereby the initial phases are kept small in order to secure the permits, then quickly ramp up to full-scale mining. The initial plan will be an extension of the previous materials testing project, mining three areas for possible larger operations, the remnant deposit, Ah Tie’s Hill and Ah Tie’s Last Stand. The remnant deposit location will be completely mined of the 200,000 cubic yards and each of the Ah Tie’s locations will process about 50,000 cubic yards. It is anticipated that about five acres of land will be disturbed in each location, for a total of 15 disturbed acres. If these testing operations are successful, then larger operations would develop.


Quantity (yds3)

Grade (oz.Au/yd3)

Gold (oz.)

Remnant Deposit




Ah Tie’s Hill




Ah Tie’s Last Stand







Dollar Value @ $1,350/oz Au $6,642,000
Dollar Value @ $1,500/oz Au $7,380,000
Dollar Value @ $1,700/oz Au $8,364,000

Note: The Ah Tie's Last Stand and Ah Tie's Hill are calculated at 0.0164 oz.Au/yd3. It is highly likely that this is underestimated and greater recoveries are expected.

A modification of this plan would be to mine Ah Tie's Last Stand first at 300,000 yd3 (or a portion thereof). This may prove more valuable initially, however, no testing has been done to confirm the average yield there and, therefore, carry more risk. Nevertheless, we are open to modifications of the mine plan.

Typical Mine Plan

The mine plan for these deposits is a relatively straightforward, phased-approach
hillside operation with leapfrog-style production and reclamation procedures. Typically, it is mined in a top down fashion, using a bulldozer to rip and stockpile the material for transport to the processing facility. Prior to mining, topsoil is salvaged and stored in selected areas for use during reclamation. Once the material has been ripped, a dozer pushes the loosened material down the slope to create a surge pile at the base of the slope. A rubber-tired loader loads the gravel from the surge pile either directly into the processing facility or into a dump truck and transported to the processing facility.

The processing plant will consist of a primary classifier to direct oversized material to a waste pile. The material will then be transported via conveyor belts to a trommel and a series of jigs that will wash and classify the gravels and recover the gold. Concentrates will be further refined with a vibrating shaker table, and then stored in drums to be delivered to a certified offsite refiner. An independent firm will perform security and all phase of the operation will be video taped.

Timing and Costs

Advanced Geologic is looking for private capital to fund this project. It is anticipated that $1,250,000 would be needed to secure the mining permit, buy the equipment and start mining. Advanced Geologic has done significant work to research the property, negotiate the lease from the landowner, test the deposit, and develop the mining plan. Therefore, a $1,250,000 “buy in” will be required to become involved with the project. This is a fixed, non-negotiable fee.

We suggest establishing a Limited Liability Company (LLC), such as the “You Bet Mining Company”, to run the operation. Advanced Geologic would contribute geologic skills and project management and retain 40% of the net gold returns. The You Bet property owner will retain 10% net gold returns. The capital investor or investor group will garnish the remaining 50% net gold returns. This percentage can be adjusted such that capital investment would be paid off sooner in exchange for a reduced share afterwards, for example, 60%/30%10% that would flip to 40%/50%/10% after the capital was paid back. They can be either an active or passive partner in the operations, however, Advanced Geologic will make all mining and processing decisions. A binding legal agreement prepared by an attorney will consummate the Company.

Permitting usually takes between 10-16 months for projects of this size and requires a number of contractors with specific professional skills, such as biologists, archeologist, civil and environmental engineers, etc. Advanced Geologic will contribute their professional skills to write the permit and manage the application and approval process. We anticipate that it will cost about $60,000 for a successful approval.

Once the permit is secured, mining can begin. It is anticipated that between 500-700 cubic yards of material will be processed each day and the project life would be about two years. The capital equipment expenses are estimated at $600,000 and would become part of the Company’s secured property. The foreseen heavy equipment list would include a dozer, excavator, two backhoes, two loaders and a flatbed transporter. The processing equipment would include a new trommel, duel sluice boxes, two jigs and a shaker table. Miscellaneous equipment would include pumps and hoses, electrical generator, onsite office trailer and equipment storage container, plus other odds and ends. Other costs may include drilling water wells. An estimate for baseline start-up operating costs is factored in as well. See the Table below.



Buy In






Reclamation Bond* $40,000

Operating Costs*







Once the project is up and running efficiently and we have proved responsibility and accountability with the regulators, then a larger mine plan can be submitted whereby 2,000 – 4,000 cubic yards are processed each day. We estimate there are 40,000,000 cubic yards of minable material on the You Bet property. At 3,000 cubic yards per day with 292 work-days per year translates to 876,000 cubic yards annually with a potential gold recover of 14,600 ounces and gross revenue of $24,820,000 ay $1,700/oz

If you are interested, please contact Charles Watson at (530) 258-4228 or for more information. The sooner we start the permitting process, the sooner we can get the gold.

For more detailed information, we can have you sign a NCND and begin discussions.

Increased Opportunity

The Brady family has other adjacent properties that can be folded into the joint venture project. We suggest purchasing the Missouri Canyon, Smith & Powell/Chicken Point, and Washington properties. This would substantially increase the ore reserves of the project. These are private properties and available for purchase collectively or individually.

Below is a table showing the estimated mineable quanity of yards contained on the properties and the estimated ounces of gold based upon the conservative 0.0164 ounces-per-yard ore grade determined above.




Dollar Value

You Bet




Missouri Canyon 60,000,000 984,000 $1,672,800,000
Washington 15,000,000 246,000 $418,200,000
Smith & Powell / Chicken Point 10,000,000 164,000 $278,800,000

The plan would be to set up four separate mines under one corporate umbrella. You can add one more nearby mine into the plan if you act quickly, the Blue Lead Gold Mine (formerly the Red Dog Mine). It has about 8,000,000 yds3 or 131,000 ounces and has a Mine and Reclamation Plan that is 95% completed. You could be up and running with that mine in about 8 months.