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With demand for gold at an all-time high, Costa Rica has an opportunity to prosper. The gold mines near Las Juntas consistently see 15-20 grams per ton and have been successfully producing for over 100 years for a total exceeding 1.5 million ounces. However, the mercury-based refining method of the arrastas (local refiners) is crude, inefficient, and severely damaging to the environment. The environmentally-conscious government of Costa Rica has tried to halt mercury refining, but it was overturned by intense protests from the small miners. A new company has brought its expertise to Costa Rica to build a more efficient and environmentally-safe gold mill to help the local miners and to eliminate the mercury pollution.
Gold prices continue to rise due to global concerns about inflationary fiat currencies, coupled with the limited amount of physical gold in the market. In fact Barrick Gold, the largest gold mining company in the world, recently admitted that gold resources peaked in the year 2000: “Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore,” said Aaron Regent, president of the Canadian gold giant. “Ore grades have fallen from around 12 grams per ton in 1950, to nearer 3 grams in the US, Canada, and Australia. South Africa’s output has halved since peaking in 1970.”
Many large mining companies have come to Costa Rica at great expense in order to exploit these high-yield mines, but quickly retreat when they realize that the mines are only conducive to small-scale mining. The industry in Las Juntas is successfully driven by individual miners, and provides sustenance for over 10,000 locals. However, it is crucial for them to have an environmentally-friendly refining capacity, or levels of mercury poison will only increase as production ramps up.
The primitive refining method conducted by the local arrastas is nothing more than a vat of mercury with a hand-operated spindle that separates the gold from the soil and stone ore brought to them by the local miners. The mercury-soaked tailings (waste soil) are then tossed aside to be leeched into waterways. The process is also arduous and time consuming for the miners who must monitor the process, taking away from their time spent in the actual mines. Additionally, this method proves inefficient as only about 65% of the gold is able to be harvested.
The manager of the proposed eco-friendly mill, Mike Moreland, was born into the gold business and is a lifelong miller. He has designed a better way to service the local miners with a “zero non-toxic discharge plant.” Through a multi-process gravity mill, he states that up to 90% of the gold can be recovered. This method first tests the miner’s ore in a lab to determine the gold content in the load. This helps the miner by cutting down his wait time, so that he can spend more time mining and less time babysitting his ore. Next, the ore will be pulverized; and due to the high specific gravity of gold, the ore will undergo gravity concentration with final recovery using a small amount of cyanide. This cyanide will be neutralized in the process before tailings are disposed onsite.
The site for the mill is a seven-hectare (17.3 acres) permitted industrial site with all necessary buildings. Their group, which has over 30 years experience on four continents, is seeking investors for up to $600,000 to start the 35-ton-a-day mill. The investment funds will be secured with a first mortgage on the land at 10% interest, and some capital ownership in the enterprise may be offered. Ultra-conservative estimates of 20 tons a day at 80% recovery, with gold prices of $1100/ounce, puts gross annual profits north of $400,000. Operating at full capacity with high quality ore from the miners and higher gold prices will only increase these returns.
“This is a safe way to invest in wholesale gold. See, we are essentially gold buyers that don’t rely on a single mine or a single miner. We buy gold in all forms. When it comes to us in raw ore form, we only pay for lab-tested samples that meet our grade, and then we refine it for resale,” Moreland added. The mill buys raw ore for 50% of market value and unrefined gold at 80% of market value. They then sell to one buyer in Florida – Republic Metals – who purchases over 100 ounces at a time for 98.5% of market value.
As gold prices continue to accelerate, Moreland LTDA provides an opportunity to invest in wholesale gold with a company that provides a valuable service to the local community and environment. Costa Rica, as a famously stable and peaceful democracy, has fee simple property title (like America) which secures investors’ funds.
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