Carlwood Development Mineral Report - National Training Center

INTRODUCTION
Purpose
This report documents the findings of a validity examination of 261 association placer
mining claims located for gold, silver, platinum and palladium in southern Nevada. The authors
have determined that the question of serious irregularities in placer mining claim tenure, must be
resolved prior to expending the public resources necessary to confirm the presence or absence of
a valuable mineral deposit, as defined by the United States Mining Laws. The examination and
this report address the question as to whether or not the placer mining claims involved are
properly located and held.
The use of this report is limited to the action prompting the report and it is not intended
for any other purpose. It will not in any way serve as an appraisal of monetary value of the
placer mining claims involved.
History of the Case
On January 24,2003, Gordon Ellis, representative (at the time) of Cactus Gold and
Valley Gold Corporations, submitted an amendment to Cactus' approved Plan of Operations,
under 43 CFR 8 3809. Placer mining claims affected by the plan of operations are held by
Cactus Gold Corporation (CGC) and Valley Gold Corporation (VGC). The lands affected by the
plan amendment have been withdrawn from mineral entry. Subsection 3809.100(a) requires a
validity determination for plans of operation and notices where the lands are withdrawn. On
April 1, 2003, the BLM initiated the validity examination of 39 association placer mining claims,
and assigned BLM mineral examiners Mark Chatterton, Burrett Clay, and Matthew Shumaker to
the case.'
After an initial field review of the 39 placer mining claims involved in the validity
examination, the Mineral Examiners determined that only 33 of the association placer mining
claims would be affected by the amended mining plan. The Mineral Examiners therefore
reduced the list of placer mining claims involved in the examination to 33, and notified the
claimants of the change on May 1,2003.
The Mineral Examiners obtained and reviewed the placer mining claim recordation files
from the Bureau of Land Management (BLM) Nevada State Office for the 33 association placer
mining claims being examined. As part of the examination process, the Mineral Examiners
reviewed the contents of those files, including the Certificates of ~ocation.~ The evidence
indicated that dummy locatorsi had been used when the claims were located so that by lending
I
For purposes herein, this report will refer to mineral examiners Chatterton, Clay, and Shumaker as
"Mineral Examiners."
2
These are more commonly called "Notices of Location" or "Location Notices." The locators in this case
have styled the documents as "Certificates of Location." There is no relevant difference, however.
% "dummy locator" (fictitious locator) is an entity that lends its name for use in the location of a placer
mining claim so that a controlling party obtains more acreage than would normally be allowed under the General
Mining Law of 1872. The dummy locator then transfers its interest in the placer mining claim to the controlling
5