Colorado Gold Mine Operating Under Assumption that Cash For Gold to Further Increase

The AFP reported this week about the Cash Mine in Boulder, a small gold mine in Colorado that had seen encouraging profits with the rise in price of the precious metal, but is now waiting out its future, hoping that the gold prices

The Cash Mine Located in the Rocky Mountains, 35 miles northwest of Denver where the Colorado gold rush initially began in the 1800s. The mine is the only active underground mine in Colorado. The mine reopened last year for the first time in four decades as a result of the high gold prices that were encouraging.

At its high, the mine was producing 580 tons of gold ore a month, with a net profit of $16,000 per month. The mine uses little modern equipment – but, mostly that from the 1950s and 1960s.

However, because of the credit crisis and the fact that the mine is a small business, the outlook for the business has been dimmer than it was last year at this time. The mine has laid off twenty-four of its thirty workers as the mine works to break even due to the expense of mining operations. The mine has stated, that right now they are planning to “pull back and await better financial conditions to ramp up to full production”. The mine hopes that investors looking to physically hold gold bullion will again spur the international gold market prices.

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