Specimen gold value, finding gold ore and what it may be worth.
Speaking of finding gold ore. I just got off a call with my gold mining and prospecting friend Rob, we were discussing finding gold ore specimens liker the one shown in this picture. A small part of it was mentioned on our Facebook page over on “Hunting for Gold” (Like the Facebook page yet?)
After greetings and a short talk about high-banking for gold we proceeded to talk about the value of the big rock Shown here. I’ll share a full pic of the 20 lb gold bearing rock in part 2.
The value of the big rock gold specimen has an interesting tale. There are two cuts on the big rock to sample for gold to rock concentration. One cut runs in a particular direction and it yielded 33% gold for the lowest golds yield in the rock concentration. This is the small rock sample from that cut. It yielded a 33% concentration or ratio of gold to rock material. The second cut was higher gold concentration and yielded 55% gold by weight. (It is very HEAVY)
That forms a range or upper vs. lower concentration bracket of the concentration of gold inside that rock.
Now understand this bigger rock weighs (20 pounds plus) so that means there’s more than 10 pounds of gold inside that rock. At a 50% average so 10 Troy pounds gives 120 ounces of gold in the rock and assuming it’s at $1500 an ounce. We get something around $180,000 for minimum value from that, by multiplying 120 ounces times $1500 an ounce. That’s just in the bare minimum spot bullion gold value from the crushed ore at a and a low price based on not necessarily having the highest purity gold. There is some price de-rating involved in this estimate too as gold prices are now about $1700 an ounce for pure 24kt bullion.
But as you’ll see this massive gold ore sample has far more market value than the gold inside it.
See what happens to gold prices with gold jewelery from finding gold ore in the form of native gold specimens in part 2.