Mineral Tenures (Mining Claims) - What are Mining Claims?
Activity staking, selling/leasing, and transferring of mining claims is rapidly growing in the Western US right now. My purpose here is to give an easy-to-understand breakdown of the legal aspects of a mineral tenure as well as the act of physically staking a mining claim.
I’ll preface this section with; I’m not a lawyer, take these statements for what they are worth.
WHAT IS A MINING CLAIM?
The history of mining claims starts with the General Mining Law of 1872. The Law of 1872 states, “Any individual U.S. citizen or corporation may explore federal public domain lands in search of valuable minerals. In the event that the prospector discovers an area that he or she believes contains valuable minerals subject to the law, he or she may stake a claim on that land.” Later amendments to this law saw the removal of “Leasable Minerals” (oil, gas, coal, phosphate, potassium, etc..) and “Common Variety Minerals” (sand, gravel, building materials, etc.).
The General Mining Law of 1872 only applies to “Lands belonging to the United States” meaning only public domain lands that are neither withdrawn (such as with national parks) nor reserved (such as reservations) are available for mineral entry. The Law only applies to 13 states where the Bureau of Land Management oversees public ground; these states are (alphabetically): Alaska, Alabama, Arizona, Arkansas, California, Colorado, Florida, Idaho, Mississippi, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming. The Law also only applies to citizens of the United States, although any corporation or entity that is organized under the laws of a US State is considered a citizen (even if foreign-owned).
Mining claims can fall under two categories, patented and unpatented. Until 1995, mining claims could go through the patent program, effectively converting the claim to private property. This moratorium on patents remains in effect today. All mining claims staked after 1995 are unpatented mining claims and do not convey surface ownership, only mineral rights.
Although unpatented mining claims do not carry the land ownership patented claims do, unpatented mining claims are treated like real property, as with land and buildings, and can be inherited, mortgaged, and/or sold; thus, owners are free to develop or sell them with no royalty to the US Government.
Unpatented mining claims fall under four categories:
Lode
Millsite
Placer
Tunnel
Lode Claims are the standard claim and are used to claim minerals that are contained in “lodes.“ Lodes are deposits of in-place rock that contain mineralization. Lode claims are only valid for “locatable minerals” or any mineral that is NOT a common variety mineral, leasable mineral, or salable mineral. Validity of a lode claim must also include the presence of a “discovery” or discovery post claim. Although a lode claim can take almost any shape, the maximum dimensions of a lode claim are 1,500’ by 600’ with an area of roughly 20 acres.
Lode claims include extralateral rights that give the owner the right to follow a vein outside the verticle sidelines of a lode claim. Extralateral rights are highly technical and have the following requirements: the deposit must be a lode or vein, the vein must apex (break or “top out”) within the claim boundaries, the vein “dips” but is not horizontal, the vein is continuous, and the vein can only be mined downwards within planes parallel to the end lines of the lode claim. For more details on extralateral rights, consult a legal professional.
Valid interest in a claim is satisfied so long as 1) The land claimed was open to location, 2) The location is done correctly, 3) There is a discovery of a valuable mineral deposit made, and 4) The claim is maintained through annual filings.
Locating monuments can be tedious.
Millsite Claims are claims located for activities associated with or in support of mining and mineral development. Located on a maximum of five acres, the land located for a millsite must be non-mineral in character. There are two types of millsites: dependent millsites that are used to support activities on a particular group of claims, and independent or custom millsites that are not dependent on a particular group of claims but that provide milling or reduction for nearby mines (contract milling and processing or processing of ores purchased by millsite owner). A few caveats to millsites include: 1) They can be located contiguous with a lode claim, but cannot be contiguous to the associated lode or vein, 2) A locator’s rights in a millsite are not vested until the land is used for mining and milling, and 3) The BLM requires that every two and one half acre portion of a millsite be used for mining or milling purposes. Commonly, these millsites will be placed where a planned processing facility will be located - such as a heap leach pad.
Placer Claims are located on all deposits that are not rock-in-place, an example being a deposit where gold is found in alluvium, loose gravels, pediment, or sands of a stream bed. Metals in placer deposits are usually transported from their origin and mechanically concentrated at a new point. Placer claims have a maximum size of 20 acres, however, two or more locators can form an association place. Association placers allow for claims up to 160 acres in size and must have a separate “bonafide” locator for every 20 acres. A bonafide locator must be someone with an independent interest in the claim and cannot be names of relatives or friends who are not actually involved (also known as “dummy locators”) otherwise the claim is invalid.
Tunnel Sites, although rare, are another valid form of claim in the U.S. and grant a possessory right to veins or lodes discovered for a distance of 3,000 feet along a tunnel. Tunnel Sites are usually accompanied by a lode claim at the surface to ensure proper ownership.
It should also be noted that every state has the right to determine laws specific to what to use for locating claims. In Nevada - according to NRS Chapter 517 - and as acknowledged by the Bureau of Land Management, the use of a four inch square (2” x 2”) claim post that is four feet (48”) long, set one foot (12”) in the ground is the standard. Nevada also prohibits the use of open ended PVC for claim monuments. In Arizona - according to ARS 27-204, the post must be four feet ABOVE the ground, meaning the posts will typically be 60” long, if it is to be set 12” in the ground.. If you have any questions about your state’s claim post or monumenting laws this document from the Bureau of Land Management is helpful. There are many variations to what constitutes a claim monument including cairns, and blazed trees, but the standard is kiln dried pine.
