- 13 -
gold vein discovery. Mr. Cruson estimated the total budget for
the next phase of drilling would be about $250,000.
Petitioner recovered approximately 4 ounces of gold from the
Quartette Mine, and the project was abandoned in 1996.
F. Petitioner’s Sale of Decorative Rock
After petitioner abandoned his efforts to develop the
Quartette Mine, petitioner expanded his business to include the
sale of decorative rock in an effort to generate revenue. In
1994 and 1995, petitioner “tried to break into the wholesale
market” and realized it was almost impossible. Thereafter,
petitioner opened a “rock yard” for the retail sale of rock and
gravel from his claims. Petitioner purchased an advertisement in
the telephone directory yellow pages. At the time of trial,
petitioner had been selling decorative rock for 4 years.18
During those years, petitioner’s gross income from the sale of
18When petitioner’s plan of operations was approved, the
BLM, acting in error, granted petitioner permission to dispose of
sand and gravel from what petitioner claimed would be “tailings”
from his placer operations. Subsequently, inspectors from the
BLM observed stockpiles of what appeared to be decorative rock,
and BLM Law Enforcement reported that petitioner was selling
decorative rock in the Las Vegas market. On Feb. 8, 1999, the
Las Vegas Field Office of the BLM sent a decision to petitioner
directing him to halt the sale of “tailings” and “non-locatable”
minerals. On or about Apr. 30, 1999, petitioner filed an appeal
from the BLM decision. Petitioner hired a mining law attorney to
represent him with respect to the BLM’s decision and a geologist
to determine whether petitioner is mining “locatable” minerals.
At the time of trial, the matter was still on appeal, and
petitioner was still selling decorative rock.
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011