Gold has been treasured since the
beginning of time for its beauty. Most of the gold that is mined
today is used in jewelry manufacturing. In addition, because of
its superior electrical conductivity, resistance to corrosion
and other desirable physical and chemical properties, gold has
emerged in the late 20th century as an essential industrial metal.
Gold performs critical functions in computers, communications
equipment, spacecraft, jet aircraft engines, and a host of other
products. Although gold is important for industrial and jewelry
applications, it also retains a unique status among commodity
metals because of its long-term value. Until recent times, gold
was considered a monetary metal. Most of the gold bullion produced
each year went into the vaults of government treasuries or central
banks.
For the past seven years the Gold
Market has been in bull territory. Gold itself is seen by many
financial professionals as a safe-haven investment during turbulent
times or as a hedge against inflation. The inflation-adjusted
price of gold has remained relatively stable over the past century,
but short-term events are conspiring to drive the price of gold
higher. Currently, the perfect storm is forming that will help
drive gold prices past the $1,000 per ounce threshold, according
to some analysts. Geopolitical events such as the Iraq War, the
War on Terror, and tensions with Iran have contributed to fears
of a major regional war in the Middle East which could disrupt
the flow of oil. On the global economic front, runaway spending
by the US Federal Government continues unabated due to heavy spending
on the Iraq War. The rising trade imbalance also weighs heavily
on the mind of investors. After narrowing in June, the trade deficit
is expected to widen as record oil prices have pushed the cost
of imports higher. Current turmoil in the housing market continues
to worry investors who fear a spillover effect that could push
the economy into a recession. A growing trade imbalance, a shattered
housing market, geopolitical instability around the world and
other domestic and international issues fuel fears regarding the
strength of the US economy. In turbulent times, gold becomes a
safe haven for many investors.
Gold Market
Gold demand is expected to grow
exponentially due to world population growth and rising demand
from emerging markets such as India and China. When population
is factored into the equation, there was an 18% decline in gold
reserves per person in 2006. Historically, there was little demand
for gold in Asian countries, with the exception of a few dictatorial
regimes that squandered their nation’s wealth.(Source: World
Gold Council). Now, with economies such as China, Thailand, Indonesia,
and the Philippines modernizing and the wealth of their citizens
increasing, gold demand is substantially expanding. In these countries,
the populace has traditionally relied on gold as a way to store
their wealth and as a safer alternative to wildly fluctuating
currencies. As emerging economies continue to grow, more of the
world’s population will be able to buy gold bullion, thereby
increasing both demand and price.
Over the course of history, approximately
152,000 metric tons of gold has been mined, with another 129,000
metric tons still remaining. At year-end 2005, the US Treasury
held 8,140 metric tons of gold, representing 25% of all financial
bank gold bullion holdings. The recent advent of exchange-traded
funds has increased the demand for bullion, with mine production
rising to 2,500 metric tons in 2006 from 2,470 metric tons in
the previous year. The world’s leading gold producers are
South Africa, along with other African nations, the US and Australia,
according to the 2007 US Geological Survey.
Growth Drivers
of Gold Bull Market
According to many gold sector investment
analysts, the current bull market in precious metals is due in
large part to monetary inflation (money supply and credit growth)
and the subsequent ongoing debasement of numerous foreign currencies.
Ongoing geopolitical instability has contributed to general unease
and been one of the causes for gold and silver gains relative
to the US dollar, the Japanese Yen, the Euro, and the British
Pound. The move into tangible assets such as gold is seen as a
safe-haven during times of economic uncertainty. According to
BCA Research, when adjusted for inflation, gold is still trading
more than 65% below its all-time high reached during the last
gold bull market in the 1970s.
Investment opportunities in the
gold bull market are still high due to the market’s small
size. Microsoft alone has a greater market capitalization than
the entire gold industry. As new capital flows into the industry,
prices of precious metals are expected to surge, There is considerable
appreciation potential associated with many of the small cap gold
mining stocks. In many cases, these are the companies exploring
and developing new gold reserves. Many analysts argue that investors
should put their money in shares of junior exploration companies
and intermediate level producers that are un-hedged to obtain
maximum leverage in the ongoing bull market.
Still a Road to
Climb
Gold is a fast-paced, volatile
market. Currently gold prices are at $738.90 (slightly of its
27-year high hit just days ago) after the dollar weakened drastically
against major currencies such as the Euro. Oil prices spiking
past $80 and the apparent bombing of a Syrian target by the Israeli
Air Force firmed up the position that Middle East tensions will
not be on the road to recovery anytime in the near-term. This
tension solidifies the safe-haven buying attitude of investors
as they seek to hedge their bets against geopolitical tensions.
Anything may happen but the fact remains that gold continues to
attract the interest of investors as a safe haven from uncertainty.
Global trends impacting the gold market now lead us to conclude
that rising demand for gold over the next five to 10 years could
drive up gold prices dramatically.
Safe Haven
Investors have often turned to
gold in times of war to protect their wealth from currency fluctuations.
Even the strength of the US dollar is considered suspect these
days. Gold is a also a good hedge against inflation. Gold’s
value as a wealth preserver and inflation hedge adds credence
to the argument that gold prices could rise to $1,000 per ounce
and higher.
The transfer of additional US warships
to the Persian Gulf and escalating tensions with Iran are contributing
to market fears and causing a growing number of investors to be
attracted to gold as a safe haven in current times.
Gold prices recently hit a 27-year
high of $747.10 (Currently hovering at $738.90), with investors
setting their sights on the $800 level, as rising crude oil prices
and unceasing tensions between Iran and the US raised the metal’s
appeal as a safe haven and a hedge against inflation. Traders
had been watching to see whether gold prices could consolidate
above $700 — a support level seen as firm by many analysts.
This level has been met and gold prices should continue their
trend upwards
The US dollar is likely to weaken
against most currencies over the next few years, as foreign central
banks, from Sweden to the Arab Emirates to Russia, move to diversify
their holdings away from dollars. China is aggressively moving
to diversify its financial holdings and recently established a
formal structure for making alternate investments using $1 trillion
in US dollar reserves.
Diversification
Will Help Gold
Countries around the world moving
to diversify their global investments should benefit gold prices
in general, assuming the diversification happens gradually and
doesn’t occur in a manner that destabilizes world markets.
A sustained decline in the US dollar and increased central bank
diversification of assets should naturally boost gold prices over
the medium-and-long term. Asian central banks with large foreign
reserves are particularly under-invested in gold and could be
a major driver of higher gold prices in coming years.
Summary
Although it’s likely that
gold prices will trend higher, the timing of when prices could
rise above $1,000 per ounce is difficult to predict. A growing
world population, the increasing wealth and purchasing power of
consumers in emerging countries with fast-growing economies, and
the diversification of the world’s banks away from the US
dollar are all factors which increase demand for gold bullion
and support higher gold prices. China will be a major player in
these events. The majority of gold is produced by a small number
of major mining companies right now, but there is room for additional
competitors in the gold mining and exploration market. We believe
that the small cap gold mining and exploration companies should
also benefit from rising demand and gold prices.
Two Great Reasons
investors should own gold:
1) Gold has outperformed the S&P
500 for the past six years in a row. We expect that to continue
in 2007 and 2008.
2) With the US national debt spiraling
out of control, gold has an upside potential that has not been
seen since the 1980's.
The most often cited reason to
buy gold right now is a continued outlook for further US dollar
declines. This is reinforced by the fact that the dollar index
is at its 15-year lows, with the Euro posting record closes against
the dollar in recent days. Equally important, the volatile world
geopolitical situation raises concerns about the stability of
the stock market. Traditionally, geopolitical uncertainty, war
and sluggish world economic growth have been good for gold mining
companies.
Higher mining costs are also contributing
to rising gold prices. Gold demand continues to grow faster than
the global mined supply. Western Central Bank selling of gold
reserves is more than offset by Eastern Central Bank purchases
of bullion. Gold purchases are rising rapidly in emerging economies
such as India and China. These countries are predicted to become
two of the largest gold consuming markets. Strong demand continues
from the Middle East. The outlook for higher gold prices is strong
in 2007!
GOLD STOCKS TO
WATCH
SIERRA
GOLD CORP (OTC: SGCP)
Detailed
Quote: http://www.otcpicks.com/quotes/SGCP.php
Sierra Gold Corporation (OTC: SGCP)
is engaged in the exploration and development of gold and diamond
properties in West Africa. Sierra Gold Corporation owns the mining rights
of Northern Star Resources Ltd, a Sierra Leone incorporated gold and diamond
mining company. The rights include a secured 40 sq/km prime mining concession
located on the North Pampana River which is one of Sierra Leone's richest
known alluvial gold mining rivers.
Sierra Gold recently announced that gem quality diamonds
have been confirmed on the Pampana North Property as a result of recent
test samples from the company's ongoing bulk sampling program. The company
needs to do more extensive testing to determine the potential value of
the diamonds.
Sierra Gold also recently announced a hard rock formation
was uncovered as a result of the ongoing bulk sampling program on the
Pampana North property in which the initial observation indicates the
presence of gold. In an April 2006 report, geologist Hendrik Velduyzen
stated that there was a 400 meter long gold bearing quartz vein system.
Velduyzen observed certain geological indicators that could support the
existence of a gold vein deposit. This vein is parallel to the Yirisen
gold vein deposit reported in the literature from historical work done.
The Yirisen gold vein system located in the Sula mountains is the largest
known gold deposit in Sierra Leone.
Sierra Gold's geological team will return to the Pampana
North property at the end of January to investigate and further explore
the hard rock formation. The team will plan a program to more clearly
define and develop the property, which will include a drill program in
conjunction with trenching.
The value of the gold reserves is estimated at $588,404,000
and with 79,031,973 shares outstanding, the gold reserves have a per share
value of $7.42 before calculating the costs of extraction. The value of
the gold reserves does not include any diamond potential.
SGCP News
Sept 4 -
Sierra Gold Corporation Announces Recent Gold Assay Results From New Area
Sierra Gold Corporation (OTC:SGCP) has
just received gold assay results from SGS Laboratories in Toronto, Canada.
The company collected samples in June of 2007 from a newly discovered
river flat area of the Pampana North. The gold grade averaged over 12
grams per ton, which is a higher gold grade than the gold grades found
in both Madhi and Manke's reports.
Geologist Alieu Madhi's report on the potential gold
values for the Pampana North property was based on .93 grams per ton.
He estimated the gold reserves to be just over 936,000 ounces. Madhi's
report is based on extensive bulk sampling work completed by the National
Diamond Mining Corporation work done by U.S. mining engineer, Mike Manke.
Sierra Gold's recent assays are over 12 times higher than those found
in Madhi's report. Mr. Manke's report classified the Pampana North concession
as a larger grade placer deposit as defined by the U.S. Bureau of Mines.
Sierra Gold's geological team will require further investigation
and exploration to define the gold value and develop the property.
Increased demand, world political instability, and the
weakness of the U.S. dollar are major contributing factors to the rise
in gold prices.
AMMEX
GOLD MINING CORP (OTCBB: AMXG)
Detailed
Quote: http://www.otcpicks.com/quotes/AMXG.php
AmMex Gold Mining Corp. is a precious
metals exploration and development company. It is management's objective
for AmMex Gold to become a gold and precious metals producer by developing
projects in Mexico and Nevada, and by acquiring other advanced-stage projects
and/or producing mines in proven precious metal districts throughout the
world.
August 30 -
AmMex Gold Mining Corp. to Assay Historic Drill Samples From Their Castle
Copper/Molybeum Project for Precious Metals
AmMex Gold Mining Corp. (OTCBB: AMXG)(FWB:
R5E)(WKN: A0KE72) is pleased to announce that they have located preserved
samples of historic drill core from the Castle Copper/Molybdenum project.
The drill core is located at the Arizona Geological Survey in Tucson,
where AmMex has obtained permission to submit samples for precious metals
assaying. Samples will be obtained from some of the following drill holes,
listing historic copper and molybdenum values that were reported in the
enriched copper sulphide blanket within a large primary copper-molybdenum
system;
UC-1 reported 65 feet of 1.57% copper and
0.057% molybdenum
SM-39 reported 50 feet of 1.18% copper and 0.063% molybdenum
SM-32 reported 130 feet of 0.72% copper and 0.062% molybdenum
SM-20 reported 150 feet of 1.49% copper and 0.063% molybdenum
The enriched copper blanket was historically estimated
at 40 to 50 million tons within a larger scale inferred resource, estimated
at 700 million tons grading 0.26% copper and 0.056% molybdenum or 400
million tons grading 0.334% copper and 0.068% molybdenum.
Most copper mines in Arizona produce precious metals
(gold, silver, platinum group) as a by-product. For example, Asarco's
Mission mine produced 540,043 ounces of silver in 2003 and their Ray mine
produced 179,146 ounces of silver in 2006.
Bill Reed, Exploration Manager, said, "When most
of the drilling was done at the Castle property in the 1960s, the drill
core was never assayed for precious metals because prices were too low.
The Watts Griffis report of 1992 indicates there is precious metals in
the copper/molybdenum system but no values were reported. Assaying the
old drill core will give us a good indication of the precious metals potential
of the mineralized system at the Castle Copper. These precious metals
produced as a by-product could add considerably to the potential economics
of the project."
AmMex will submit the samples to ALS Chemex lab in Vancouver
and expects to report results in 4 to 6 weeks.
ARGENTEX
MINING (OTCBB: AGXM)
Detailed
Quote: http://www.otcpicks.com/quotes/AGXM.php
Argentex Mining Corporation is a junior
mining exploration company with significant holdings in the Patagonia
region of Argentina. The company holds an option to acquire 100% mineral
rights to the Pinguino property and owns 100% mineral rights to more than
30 properties with over 377,490 acres (152,766 hectares) of prospective
land located in the Santa Cruz and Rio Negro provinces of Argentina.
Sept. 11 -
Argentex applies for listing on TSX Venture Exchange
Argentex Mining Corporation (OTCBB: AGXM)
is pleased to announce that it has filed preliminary documents as part
of its effort to obtain a listing for its common shares on Canada's TSX
Venture Exchange (TSX-V). If approved, Argentex anticipates that the new
listing will provide the company with increased exposure to worldwide
capital markets.
Argentex must meet the initial listing and other requirements
of the TSX - V as well as the requirements of Canadian regulatory authorities.
There can be no assurance that the company's application will be accepted
by the TSX Venture Exchange.
In conjunction with its application to the TSX-V, Argentex
is in the process of relocating its corporate domicile from the State
of Nevada to the State of Delaware. A majority of shareholders, holding
approximately 51.82% of Argentex's outstanding shares, approved the relocation
from Nevada to Delaware, by written consent, effective September 6, 2007.
For additional details, please refer to the company's information statement
on Schedule 14C, a preliminary copy of which was filed with the SEC on
September 10, 2007.
ATLAS MINING
(OTCBB: ALMI)
Atlas Mining Company is a diversified natural resource
company with a focus on the development of the Dragon Mine halloysite
clay deposit in Juab County, Utah. The unique purity and quality of the
Dragon Mine’s halloysite clay has spawned considerable research
in the nanotechnology fields and has created exciting new applications
for this product. Atlas also operates the Atlas Fausett Contracting Division,
an underground mining and drilling contracting business and holds various
other interests in timber, copper and gold properties.
August 13 -
Atlas Mining Company Appoints John S. Gaensbauer as Its Executive Vice
President, Corporate Development and Strategy and Barbara Suveg as Its
Chief Financial Officer
The Board of Directors of Atlas Mining Company (OTCBB:ALMI),
is pleased to announce the appointment of John S. Gaensbauer as the Company’s
new Executive Vice President, Corporate Development and Strategy and Barbara
Suveg as the Company’s new Chief Financial Officer.
Robert L. Dumont, the Company’s President and
Chief Executive Officer, said, “I am extremely pleased to have John
join Atlas and that Barbara has agreed to become the Company’s CFO.
I worked with John at my previous employer, Idaho General Mines. His unique
combination of transactional and marketing skills and legal background
will serve Atlas very well as we move to rapidly drive our two main divisions,
NanoClay & Technologies, Inc. (NanoClay) and Atlas Fausett Contracting
(Atlas Fausett), to their next stage of growth and development. Barbara
has been promoted to Chief Financial Officer in recognition of her skills
and experience with the Company. In addition to overseeing our accounting
and public reporting functions, Barbara will be tasked with the rapid
implementation of several new corporate governance initiatives, which
I believe are essential to retaining and enhancing the confidence of our
shareholders, clients and customers. With John and Barbara we have made
an important first step in building the professional management team to
aggressively optimize and pursue our strategy for delivering increased
shareholder value from our Atlas Fausett and NanoClay assets. We very
much look forward to communicating and executing on that strategy over
the coming weeks and months.”
Prior to joining Atlas, Mr. Gaensbauer provided strategic
finance, corporate marketing and investor relations consulting services
to mining and mineral development companies through his company, BOC Advisors
LLC. Until January 2007, Mr. Gaensbauer was an executive at Newmont Mining
Corporation, where he most recently served as Group Executive, Investor
Relations. Prior to heading Newmont’s investor relations group,
Mr. Gaensbauer served as in-house counsel to Newmont, managing the legal
affairs and transactions for Newmont’s West African, Central Asian
and European operations. Mr. Gaensbauer also served as U.S. in-house counsel
for Newmont’s Treasury Group and Newmont Capital, Newmont’s
in-house merchant banking unit. In that capacity, Mr. Gaensbauer played
key roles in various multi-million dollar sales, acquisitions, and financing
transactions. Mr. Gaensbauer was also the co-negotiator and principle
author of Newmont’s long-term fiscal stability agreement with the
Government of the Republic of Ghana, which was unanimously approved by
Ghana’s Parliament on December 18, 2003. Prior to joining Newmont,
Mr. Gaensbauer practiced corporate and transactional law in the Business
and Finance Group of Ballard Spahr Andrews & Ingersoll, LLP. Mr. Gaensbauer
holds a Bachelor of Arts degree from Cornell University, a Juris Doctorate
from the University of Denver, College of Law, where he graduated Order
of St. Ives, and a Masters in Finance from the University of Denver, Daniels
College of Business.
Ms. Suveg joined Atlas in 2006 as its corporate accountant.
Prior to her tenure with the Company, Ms. Suveg provided accounting and
tax services to individual and corporate clients, primarily in the mining,
construction and contracting industries. Ms. Suveg has also worked in
public accounting as an auditor of reporting companies, corporate income
tax preparation and consulting, and financial statement compilation and
review. In private industry, Ms. Suveg was the controller for Cooks, Inc.,
a post frame construction contractor located in north Idaho. In addition,
she has worked with several small businesses with internal accounting
and record keeping, documentation and implementation of policies and procedures,
and assisted business owners with obtaining financing to expand business
functions. Ms. Suveg teaches at North Idaho College as adjunct faculty
in accounting. Ms. Suveg holds a Bachelor of Science degree from Lewis-Clark
State College, a Masters in Accounting from the University of Phoenix,
and holds a Certified Public Accountant license in the state of Idaho.
AURUS CORP (OTC: AURC)
AURUS CORP. is a publicly traded mining holding company
with several precious metal properties with over 5 million ounces in gold
reserves, trading under the ticker symbol AURC on the US Pink sheets market.
AURUS seeks to continue to acquire proven gold and other precious metal
reserves in Russia and other emerging countries and operates its mines
through joint ventures and/or partnerships.
Sept 12 -
Aurus Chooses Transfer Online, Inc. as Stock Transfer Agent
AURUS Corp. (OTC: AURC) advises its shareholders that
its former transfer agent, Select America Transfer Company, is under investigation
by the Ontario Securities Commission for certain irregularities within
the framework of the work it did for a number of its clients. Aurus Corp.
is not included in the list of companies under investigation. Nevertheless,
this situation hindered Aurus to properly fulfill its obligation towards
its shareholders especially due to the fact that Select America Transfer
Co. has ceased its operations. Consequently, Aurus was not able to issue
the dividends destined for its shareholders on February 15, 2007.
AURUS Corp. announced its decision to choose Transfer
Online Inc. as stock transfer agent and registrar for its common stock.
Transfer Online is an SEC regulated stock transfer agent based in Portland,
Oregon specializing in Pink Sheets as well as Bulletin Board companies.
Transfer Online Inc. is a Deposit Trust and Clearing Corporation (DTCC)
participant which will allow AURUS Corp. to issue and transfer stock in
certificate form as well as in an electronic form through DWAC.
AURUS Corp. has decided to change from Select
America Transfer Company to Transfer Online Inc. in order to facilitate
the management of the capital shares of the company and permit as well
as speedup the payment of the dividends in shares that was declared in
February 2007. ''As soon as our account will be setup to execute DWAC
shares issuance, AURUS Corp. will proceed with the payment of the dividend
in shares as promised to the shareholders,'' said Fedor Dovgan, chief
executive officer of AURUS Corp. This shall be accomplished within a thirty-day
period. Mr. Dovgan adds that the Company is in good standing with all
taxes having been settled and paid. Furthermore, reports will now be forthcoming
regarding the activities over the past summer months.
CAPITAL GOLD CORP (OTCBB; CGLD)
Capital Gold Corporation (CGLD:CGC) is a gold production
and exploration company. Through its Mexican subsidiaries and affiliates,
it owns 100% of the El Chanate gold property in Sonora, Mexico.
Sept 4 -
Capital Gold Announces a Major Increase in Gold Reserves at the El Chanate
Mine, Sonora, Mexico
Capital Gold Corporation (TSX: CGC; OTC Bulletin Board:
CGLD) is pleased to announce a major increase in the proven and probable
gold reserves at its El Chanate Gold Mine in northwestern Sonora, Mexico.
In announcing the results of the 8,300 meter reverse
circulation drilling campaign that was initiated in February, Capital
Gold Chairman Gifford Dieterle said, 'We are absolutely thrilled with
the new numbers. The El Chanate gold reserve is now 832,000 ounces, an
increase of 70 percent from the previously stated reserve of 489,000 ounces.
Similarly, the recoverable gold ounces have increased by 67 percent from
332,000 to 556,000 ounces.'
'We are now a different company,' Dieterle added. 'This
reserve increase will enable us to extend the life of the El Chanate mine
from seven to eleven years under the revised mine plan. This will accelerate
our ability to grow the company.' Additionally, the company believes that
the deposit is still open to the east and at depth.
The proven and probable reserve tonnage has increased
by 97 percent from 19.9 million to 39.5 million metric tonnes with a gold
grade of 0.66 grams per tonne. The open pit stripping ratio is 0.6:1 (0.6
tonnes of waste to one tonne of ore). The mineral reserve is based on
an updated resource block model and an updated mine plan and mine production
schedule developed by Independent Mining Consultants, Inc. (IMC) of Tucson,
AZ. The updated pit design for the revised plan is based on a plant recovery
of gold that varies by rock types, but is expected to average 66.8%. A
gold price of US$550 (SEC three year average as of July 31, 2007) per
ounce was used to re-estimate the reserves compared with a gold price
of $450 per ounce used in the previous reserve estimate. The stated proven
and probable mineral reserves have been prepared in accordance with Canada's
National Instrument 43-101 Standards of Disclosure for Mineral Projects
and are equivalent to proven and probable reserves as defined by the United
States Securities and Exchange Commission (SEC) Industry Guide 7. The
qualified person, as defined by National Instrument 43-101, for this mineral
reserve/mineral resource update is Michael G. Hester, FAusIMM of IMC.
The total amount of mineralized material contained at
El Chanate, net of the proven and probable mineral reserves, is now approximately
40.1 million tonnes, grading 0.66 grams/tonne. This estimate was prepared
by IMC in accordance with SEC Industry Guide 7 based on a gold price of
$650 per ounce and a 0.3 g/t gold cutoff grade and assumes open-pit mining
and heap leaching of the ore.
Gold production at El Chanate is currently near the
feasibility study rate of 4,000 ounces per month. John Brownlie, COO said,
'I am very proud of my team at El Chanate. To achieve the feasibility
study production rates after only a month in operation, is a testament
to their skill and dedication to the project. We will slowly start to
ramp up daily processing rates from 7,500 tonnes per day (tpd) to 10,000
tpd. This should boost our gold production toward 5,000 ounces per month
and 60,000 ounces per year.' Brownlie adds: 'With this reserve increase,
we will now be analyzing what steps we need to undertake to effectively
increase production rates and improve gold recoveries by conducting further
metallurgical test work at our laboratory facilities at the mine.' He
also added that 'Initially, the increased plant throughput would not require
any capital expenditures since an additional ore crushing and stacking
capacity had been factored into the original design.'
CUSAC GOLD MINES (OTCBB: CUSIF)
Cusac is a gold producer and exploration company in
British Columbia, Canada. Cusac owns the Cassiar Gold Property, which
hosts three gold assets: The Taurus Deposit, Table Mountain gold mine
and the Taurus II project. Over the last 40 years, Cusac has amalgamated
these three gold assets in the Cassiar Gold Camp. Cusac's management team
has extensive mining and exploration experience.
Sept 11 -
Cusac Drills 35.9 Meters of 1.74 Grams Gold at Taurus
David H. Brett, President, Cusac Gold Mines Ltd. (TSX:
CQC)(OTCBB: CUSIF)(FRANKFURT: DCB) (hereinafter "Cusac"), reports
that assay results from 05TC-05, 08, 09 and 10 at the Taurus Deposit continue
to confirm broad zones of near-surface low-grade gold mineralization with
higher grade zones. Hole 07TC-05 intersected 35.9 meters grading 1.74
grams per ton within a larger interval of 0.8 grams per tonne gold over
140 meters. Hole 07TC-09 returned 4.5 meters of 13.5 grams per tonne gold
and another intercept of 6.0 meters grading 4.2 grams. The foregoing grades
are not capped. Please see detailed results in the table below for the
uncapped and capped grades. Located near Cassiar in northern British Columbia,
the Taurus Deposit is an advanced exploration project with over 380 drill
holes that hosts a 43-101 compliant inferred resource of 1.04 million
ounces of gold.
In addition to diamond drilling, Cusac's ongoing exploration
program at the Taurus Deposit includes relogging of important drill core
and sampling of unsampled core in holes drilled prior to 1995. Management
believes that some of the unsampled intervals may contain economic low-grade
gold values and provide the basis for an increase in the total gold resource
calculation at the Taurus Deposit. Over 1,300 core samples from previously
unsampled historic drill intervals have been taken and results are pending.
Seven of the 10 holes drilled this year at Taurus were
large diameter (HQ) cores designed to obtain samples of sufficient size
for metallurgical analysis. Historic metallurgical testing carried out
at Taurus by Cyprus Canada and others have shown encouraging recovery
rates for gravity floatation and direct cyanidation processes. The new
tests will be designed to obtain more definitive results that can be relied
upon for a 43-101 compliant preliminary feasibility study that the Company
plans to initiate in 2008. Additional drilling at Taurus is expected to
commence in October of 2007.
FIRST GOLD CORP (OTCBB: FGOC)
Firstgold Corp. originally was incorporated under
the laws of Nevada. In 1996 it entered the public market by it's acquisition
and "reverse take over" of the publically trade company Warehouse
Auto Centers. The surving corporate structure and assests were that of
Firstgold Corp's, whereas the surviving legal entity was WAC. Firstgold
Corp. was originally named "Newgold, Inc."
The name was officially changed from "Newgold,
Inc". to "Firstgold Corp." on November 15, 2006. This was
done to avoid investor confusion with our planned listing on the Toronto
Stock Exchange where a company New Gold is listed. (New Gold is a copper
gold exploration play in British Columbia)
Firstgold Corp.'s principal mining property is the Relief
Canyon Mine. Relief Canyon is an open-pit, heap leaching operation
located approximately 110 miles northeast of Reno, Nevada.
The mine is readily accessible by improved roads. Water
for mining and processing of operations is provided by two wells located
on the property in close proximity to the mine and processing facilities.
Power is provided by a local rural electric association and phone lines
are present at the mine site. Relief Canyon is located in the Humboldt
Range, a mining district of Nevada.
Located on the property are, a building containing five
carbon tanks and a boiler for carbon strip solution, four detoxified leach
pads, a preg pond for gold bearing solution, a barren pond for solution
from which gold had been removed, water rights, and various permits.
Aug 29 -
Firstgold Corp. Engages SRK Resources to Conduct Technical Report of Relief
Canyon
Firstgold Corp. (OTCBB: FGOC) is pleased to announce
that it has engaged SRK Consulting (U.S.) to prepare an independent National
Instrument 43-101 ("NI 43-101") Technical Report in respect
of the company's Relief Canyon Gold Mine ("Relief Canyon").
This report is scheduled for completion in November 2007.
Firstgold Corp. has completed 57 drill holes on the
existing heap leach pads located at its Relief Canyon project and 28 drill
holes of its planned 120 hole Relief Canyon pit program. Scott Dockter,
Firstgold Corp.'s President and CEO, commented, "We are very pleased
with the results of this drill program and anticipate being able to release
these results to the public in the near future. Having SRK scheduled to
update our technical report and verify our findings is a positive step
as we move toward our ultimate goal of becoming a true producer."
According to SEC Guide 7, a US company cannot release
preliminary estimates on reserves or resources until it has been modeled
in a reserve category. In that Firstgold Corp. is exclusively a US company,
Firstgold Corp. will not be able to release resource estimates based upon
the drill data, until it either brings its reserve estimates into a reserve
category, or it becomes listed on a foreign exchange where it is required
to do so.
Mr. Dockter further commented, "We look forward
to either SRK completes this report, or until our listing is completed
with a Canadian Exchange, so that we can get this information approved
for public distribution. We appreciate the patience of our shareholders,
and are certain the wait will not be disappointing."
GEMINI EXPLORATIONS (OTCBB: GXPI)
Gemini explorations newly acquired La Planada property
is located in the municipality of Sotomayor, department of the Nariño,
in southwestern Colombia. Access to the property is approximately 80 km
from Pasto the capital city of the Nariño department by open road.
The project covers 45 hectares and it has an exploitation (mining) license
(#17486) for a period of 10 years, and is renewable for an additional
10 years. This license is effective from November 28, 2001. An environment
management plan was issued by the Colombian government in November 21,
2001. In addition the owners are required to present a production report
every three months.
Sept 13 -
Gemini Explorations Inc. Update on the Los Chorros Gold Mine Project
Gemini Explorations Inc. ("Gemini") (OTCBB:
GXPI) is pleased to announce that it has provided the first payment of
US$10,000 for the acquisition of the Los Chorros Gold Mine, a producing
gold property in the El Bagre-Zargoza mining district, department of Antioquia,
Colombia. Gemini has acquired an 80 percent majority controlling interest
in the property for the sum of US$100,000 and the issuance of 2,500,000
restricted shares of GXPI. The cash portion will be paid in three separate
payments of which US$10,000 is to be provided within 10 days of the Effective
Date, US$40,000 is to be provided within 60 days of the Effective Date
and the balance of US$50,000 is to be provided within 90 days of the Effective
Date. The 2,500,000 restricted shares will be issued within the first
60 day period. Gemini has first right of refusal to acquire the remaining
20 % interest in the mine within 18 months of the Effective Date.
Gemini further reports that additional sampling results
processed at the labs of INSPECTORATE AMERICA CORPORATION (Inspectorate),
Nevada, USA will be released for the Los Chorros Gold project within 10
days.
With gold prices trading at over $700 per ounce, the
Los Chorros Mine presents an excellent opportunity for Gemini to take
advantage of the near record high gold bullion prices and provides an
internal source of cash flow to fund its ongoing development and exploitation
of its wholly owned La Planada Gold Project, a potential multi-million
ounce gold deposit in southern Colombia.
Historically one of the largest gold producing countries
in the world, Colombia's vast mineral potential has remained virtually
unexplored using modern exploration and mining techniques. The Department
(Province/State) of Antioquia alone produces over 1,000,000 ounces of
gold per year currently, and most of it is produced from antiquated production
equipment and facilities. Driven by a new era of political and economic
stability and an investment-friendly mining code, Colombia has emerged
as one of the resource sector's most attractive new mining frontiers.
GOLD RESOURCE CORP (OTCBB: GORO)
Gold Resource Corporation is a mining company focused
on production and pursuing development of gold and silver projects that
feature low operating costs and produce high returns on capital. The Company
has 100% interest in four potential high-grade gold and silver properties
in Mexico's southern state of Oaxaca.
Sept 6 -
Gold Resource Corporation Drills Most Extensive High-Grade Mineralization
to Date Including 7.5 Meters of 1.05 Oz/Tonne Gold Equivalent at Its El
Aguila Project in Oaxaca, Mexico
Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT:
GIH) is pleased to announce drilling its most extensive high-grade mineralization
to date including 7.5 meters of 32.66 grams/tonne (1.05 oz/tonne) gold
equivalent within one of three zones totaling 35 meters of 16.17 grams/tonne
(0.52 oz/tonne) gold equivalent at its newly discovered La Arista area,
which is part of GRC's El Aguila Project in the southern state of Oaxaca,
Mexico. The El Aguila Project is targeted for production mid-2008 subject
to timely obtaining all required permits and regulatory approvals, necessary
funding and equipment delivery schedules.
Gold Resource Corporation's president, William W. Reid,
stated, "Hole number 7080 has opened up more extensive mineralization
than we have seen previously. Three zones within this hole total 35 meters
averaging 16.17 g/tonne gold equivalent (0.52 oz/tonne AuEq) within which
is 7.5 meters of 32.66 g/tonne gold equivalent (1.05 oz/tonne AuEq). This
hole is drilled 110 meters to the east of Hole number 7063, which was
announced August 8th, that had intercepts totaling 22.5 meters of 9.33
g/tonne gold equivalent (0.30 oz/tonne AuEq), including 2.5 meters of
3.46 g/tonne gold (0.11 oz/tonne Au)and 1803 g/tonne silver (57.97 oz/tonne
Au)."
La Arista represents GRC's first concerted effort to
explore the El Aguila Project's important N70W San Jose structural corridor
on which are located the El Aguila Project's two existing deposits, the
high-grade El Aguila open pit deposit and the high-grade El Aire vein
deposit which are located on strike 2 kilometers apart. La Arista is located
within this structural corridor immediately north and east of the El Aire
vein. The majority of the San Jose corridor remains untested.
Mr. Reid continued, "La Arista's mineralization
contains some of the widest gold intercepts we have encountered to date
as well as the highest silver and base metal mineralization. With gold
intercepts of 8.01 g/tonne or 0.26 oz/tonne over 7.5 meters indications
are good this new zone could add significant gold resources. Equally as
important, the silver, lead and zinc mineralization hold substantial economic
value so that these metals, used as credits, will help lower effective
costs to produce an ounce of gold. Initial metallurgical tests previously
run for the mineralization of the La Arista area indicate recoveries into
concentrates of 95% gold, 98% silver, 98% lead and 90% zinc. La Arista
has also encountered possible economic copper values. The copper has not
been included in the gold equivalent values here but if the values become
economic the copper's recovery could add value to La Arista's polymetallic
ore."
Mr. Reid continued, "Gold Resource, like many in
the industry, subscribe to the use of gold equivalent or AuEq as a means
to present the aggregate value of polymetallic ore. Gold equivalent valuation
quantifies the base metal percentages and precious metal ounces of polymetallic
ore into one value. This calculation converts the metals quantity into
its dollar value and converts that dollar value back into an equivalent
gold value. Gold equivalent is a 'user friendly' valuation calculation
that places the emphasis on the total dollar value for polymetallic ore.
La Arista's polymetallic ore can best be quantified by a gold equivalent
value. We are fortunate to have substantial and recoverable amounts of
silver, lead and zinc alongside our high-grade gold."
"We are pleased with these developments at La Arista.
Drilling will continue to focus on this new La Arista area as well as
GRC's El Aguila open pit and the El Aire Vein. All the mineralization
in these three areas is along the important San Jose structural corridor.
This bolsters our belief that the El Aguila Project is potentially a very
large, robust and high-grade epithermal system. We are also very pleased,
as stated in the previous press release dated August 29th, with our new
discovery at our El Rey property. El Rey returned 9 meters of 19.37 g/tonne
or 0.62 oz/tonne gold including 1 meter of 66.40 g/tonne or 2.13 oz/tonne
gold. If El Rey becomes a mine it would support GRC's plan to have multiple
mines feeding one strategically located mill. We continue to add ounces
and move forward on all fronts as an emerging gold producer," concluded
Mr. Reid.
GOLDEN EAGLE INTERNATIONAL (OTCBB:
MYNG)
Golden Eagle International, Inc. is a gold and copper
exploration and mining company headquartered in Salt Lake City, Utah and
with offices also in Santa Cruz, Bolivia. The Company is concentrating
its efforts on expanding its pilot operations into production operations
on its gold project on the C
Zone within its 136,500 acres (213 square miles) in eastern Bolivia's
Precambrian Shield. In addition, the Company is continuing the development
of its Buen Futuro A Zone gold and copper project.
Sept 14 -
Golden Eagle Relocates Mill Site to Alleviate Environmental Concerns &
Accommodate Higher Projected Production at C Zone Gold Project
Golden Eagle
International, Inc. (OTCBB: MYNG) announced recently that due
to environmental concerns that have arisen regarding the Ibaimini marshland
near the tailings impoundments for the C Zone, the Company is relocating
its mill
site 700 meters (2,300 feet) to the southwest of the location
of its present modified pilot mill.
Golden Eagle's technical team has reviewed data suggesting
that the C Zone's production could grow more rapidly than anticipated
in a short period. In addition, the Company's contract miner has indicated
that once C Zone operations have reached a projected 1,000 tpd, it can
immediately begin moving toward the goal of 2,000 tpd. This potential
scenario would require an expanded tailings impoundment and caused the
technical team to review environmental concerns about the impacts to the
nearby marshland. The decision was made to move the mill in order to ensure
that Golden Eagle follows the very highest environmental standards.
The Company estimates, but cannot assure, that its mill
build-out on the new site will be delayed by a minimum of approximately
60 to 90 days to allow for site improvements and infrastructure construction,
as well as additional permitting. The relocation and infrastructure work
has been initiated.
"While this move sets back our expected timeline
on the initiation of gold production at our C Zone project, we will now
have a better mill site, closer and more accessible to the mine, in which
to grow that production rapidly and without the environmental concerns
that may have hampered our progress before," stated Golden Eagle's
CEO, Terry Turner. "Our goal will be to quickly make up for lost
time at this new, more advantageous mill site. Our mill is designed for
rapid expansion and we intend to increase our production as fast as circumstances
will allow. All information available to us on this property indicates
that there are substantial resources that can be commercially mined, although
we must obtain the necessary permitting to commence full-scale operations.
We believe that we have adequately provided for the financing of these
operations."
RAVEN GOLD CORP (OTCBB: RVNG)
Raven Gold Corp. is an international gold mining company,
with exploration and development projects. Raven's mandate is to initiate
an aggressive acquisition policy, focusing on under-explored to advanced
stage exploration gold deposits in North and South American Countries.
Raven is focused on becoming a low cost gold producer.
Sept 7 -
Raven Gold Corp. - Schedules La Currita Site Visit
Raven Gold Corp. (OTCBB: RVNG) (the 'Company'), is pleased
to announce that a site visit is scheduled for later this month at La
Currita, Mexico.
Company officials are scheduled to visit La Currita,
Mexico for a mine optimization trip. The purpose of the visit is to review
the plant, identify potential bottlenecks and production opportunities.
Officials will also develop a plan to leverage existing assets at the
La Currita mine site.
The Company would also like to inform its shareholders
that a current National Instrument 43-101 report on the La Currita property
is being completed and will be filed with the appropriate regulatory bodies
when it is finished.
David Petersen P. Eng. has acted as the qualified person
as identified by National Instrument 43-101, and reviewed and verified
the technical content of this release.
SILVERADO GOLD MINES (OTCBB: SLGLF)
SILVERADO has committed over 3 decades of work
to the exploration, development and test mining of gold properties throughout
North America. In the mid-1980’s, the Company decided to focus all
its efforts in Alaska. Since then it has sold $20 Million USD of gold
and sdsilver bars and gold nuggets derived from test mining on a small
but representative part of its extensive property holdings, wherein 354,686
troy ounces of gold resources have been delineated by mining and drilling.
At today’s price (August 7, 2007) of $US 671.40, the gross value
of this resource is $US 238,136,180. The Company has also developed excellent
relationships with Alaska’s government agencies and political leaders.
SILVERADO has been working six years
with the head of its Green Fuel Division, Dr. Warrack Willson, who is
an industry leader in the development of low-rank coal-water fuels (LRCWF).
This fuel is made from hydrothermally treated low-rank coals (LRCs), sub-bituminous,
lignitic, and brown coals. It is a low cost, non-toxic, non-hazardous
and environmentally friendly substitute for petroleum derived fuels mainly
in industrial and utility boilers, gasifiers, and other advanced combustors.
Initial process economics indicate that LRCWF can be produced from any
American LRC for under $15 per barrel, on an oil equivalent energy basis.
Sept. 6 -
Nolan Creek Lode Gold Exploration Picks Up
Silverado Gold Mines announced today that it has begun
exploration drilling on its Nolan property using the company's recently
purchased diamond drill rig. The drilling focuses on an area North of
Smith Creek: http://www.silverado.com/maps/060907overview.pdf,
where company backhoe trenching previously identified three zones that
contain gold-antimony bearing quartz vein systems (see press releases
from July 16, 2007, January 29, 2007, January 22, 2007, July 16, 2007
and August 08, 2007). Drilling has begun on Zone 1: Figure 1: http://www.silverado.com/maps/060907fig1.pdf,
where a continuous chip sample from Trench H, collected from a 16.4ft
(5m) interval by Silverado geologists, yielded 5.22 troy ounces per ton
gold and 8.74% antimony (see press release August 08, 2007). The core
drilling program is designed to check for down-dip continuity of the gold-antimony
bearing quartz vein systems in the three zones identified so far, which
are part of the Solomon Shear system, and will help company geologists
to obtain a better understanding of the nature of the mineralized systems.
In June and July 2007, Silverado Gold Mines conducted
backhoe trenching on its Nolan Creek property, totaling 328m (1076.12ft),
to further investigate the gold-antimony bearing quartz vein systems (see
press release July 16, 2007 and August 08, 2007). Part of this first trenching
program was the excavation of Trench I, which is located 60m (197ft) northeast
of Trench H: Figure 1: http://www.silverado.com/maps/060907fig1.pdf
- and extending over 192.5m (631.6ft). This trench exposes the three zones
that contain the gold-antimony bearing quartz vein systems. A total of
86 combined select chip and continuous chip rock samples were collected
during the trenching program and submitted to ALS Chemex in Fairbanks
for analysis. Significant gold values were found in Trench I with results
as high as 0.23 troy ounces gold per ton (7.84 g/t Au). The antimony values
reached as high as 48.07% (see Table 1). These high antimony values are
consistent with the previous work in this vicinity where sampling showed
antimony assays as high as 46% (see press release January 29, 2007). 16
samples shown as greater than 1% are still being quantitatively assayed
for total antimony.
WITS BASIN MINERALS (OTCBB: WITM)
Wits Basin has acquired the rights to purchase the
Bates-Hunter Gold Mine and the Golden Gilpin Mill in Central City, Colorado.
Discovery of gold at the Bates-Hunter Mine in 1859 kicked off the Colorado
gold rush and established Denver as a major American city. The mine, which
has been dormant since 1936, is located in a mining district that historically
has produced more than 4 million ounces of gold. Twenty-five percent of
the gold mined came from the area immediately surrounding the Bates- Hunter
mine. Wits Basin's property controls the nine principal veins underlying
the mine. The veins historically produced about 750,000 ounces mined to
an average depth of 600 feet. When the mine was closed, the mineshaft
reached 800 feet. Drilling in the 1990s confirmed grades of .48 ounces
over 10-foot widths with veins running from a couple of feet to 20 feet
wide. Workings down to the 800-foot level confirm that the gold veins
continue to depth. Similarly mineralized properties in the region have
been mined to 2,400 feet in depth.
Wits Basin's exceptionally strong management team includes professionals
with over 150 combined years of business, mining and technical experience.
CEO Vance White also serves as president of Hawk Precious Minerals. From
1993 to 1995 he was president of AfriOre Limited, the company's partner
in its South African project. He also served as president of Mid North
Engineering Services and the Dickenson Mines Group. President and Director
Stephen King is also CEO of SDK Investments, a financial advisory firm
based in Atlanta, Georgia. He has extensive corporate finance and real
estate experience. CFO and Director Mark Dacko previously served as controller
and secretary of several publicly traded companies, including Active IQ
and Popmail.com. Director Norman Lowenthal is a South African businessman,
vice chairman of the Taylor Companies, a Washington, D.C.-based private
bank, and chairman of the Hong Kong-based Mandarin Financial Services.
He is past-chairman of the Johannesburg Stock Exchange and is currently
a member of the exchange's Securities Regulation Panel.
If even one vein at the Bates-Hunter continues to a depth of 2000+ feet,
the mine could host more than a million ounces of gold. Similar strike
lengths on the other Bates-Hunter veins would multiply that resource by
up to a factor of 10. "We are dealing with very rich grades - from
the half-ounce to the six, seven and eight ounce range. We feel we can
generate a resource pretty quickly," says White. And since permitting
is already in place, White expects to get the mine into production fairly
quickly with actual revenues flowing into company coffers within the next
two years. "The permits represent a distinct economic and operating
advantage for Wits Basin," says White, adding that even if the Bates
does not become a large mine, "production of 200 tons a day can be
very profitable." All of these factors open the very real possibility
that Bates could provide Wits Basin with much more than operating cash
flow. Then there is the apparent geologic confirmation that Witwatersrand
rocks may be present on the company's FSC property. "With our Colorado
project nearing production and the success of our exploration in South
Africa," says White, "we believe that Wits Basin offers investors
very little downside risk and all kinds of upside potential."
August 20 -
Wits Basin Provides Update on Bates-Hunter Mine Project
Wits Basin Precious Minerals Inc. (OTCBB:WITM) is pleased
to provide this update on the Bates-Hunter Mine project located in the
Central City Mining District in Colorado.
The Company is currently conducting a surface exploration
diamond drill program in an attempt to intersect potential high-grade
gold ore bodies at depth below previous mine workings in the Bates-Hunter
Mine. Historically, this mining district has produced more than 4,000,000
ounces of gold with 25% of the gold coming from the area immediately surrounding
the Bates-Hunter project. In addition to the drill program, dewatering
and mine rehabilitation work is underway. Such on-going efforts focus
on the further development of this potentially valuable resource.
Drilling Program
The Company is engaged in an active exploration diamond
drill program in an attempt to locate potential extensions at depth of
high-grade gold ore bodies mined at higher levels in the mine. On August
15, 2007, diamond drill hole BH07-07 was at a depth of 1,521 feet. The
objective of drill hole BH07-07 is to reach the Stope Plunge Target zone,
a projected extension of the Bates Vein ore shoot that had previously
been mined to a depth of 745 feet from the surface in the Bates-Hunter
Mine workings. Figure 1 (http://www.witsnews.com/BH07-07Figure1.jpg) depicts
a longitudinal section of the Bates Vein showing the historic workings
in the Bates-Hunter Mine. The yellow band represents what is believed
to be the extension of the ore shoot to depth and includes the projected
piercing point of drill hole BH07-07.
The Company anticipates that it will be able to intersect
the Stope Plunge Target at a down-hole depth of approximately 1,650 to
1,920 feet. Figure 2 (http://www.witsnews.com/BH07-07Figure2.jpg) represents
a cross-section along the plane of drill hole BH07-07. It illustrates
that the actual depth of the target will depend on the dip of the Bates
Vein. A dip is described as the angle of inclination or slope measured
from the horizontal plane downward. At the surface, the vein is near vertical,
but the attitude of the Bates-Hunter shaft indicates that the vein may
dip to the southeast at depth. Drill hole BH07-07 potentially intersects
a vertical vein at approximately 1,920 feet as well as a vein that dips
80 degrees to the southeast at approximately 1,650 feet. The yellow areas
on Figure 2 show the anticipated locations of the Stope Plunge Target
at these vein dips. It can be seen that the drill hole is expected to
pass through both of these areas and, therefore, both of the possible
projected targets should be tested. An animated video of the current state
of diamond drill hole BH07-07 can be found here (http://www.witsnews.com/BH07-0708-17-20078sm.avi)
or on the Company’s website at www.witsbasin.com.
On-site drilling conditions have been challenging throughout
the course of the program. Drill hole BH07-07 has encountered underground
workings and several voids that have affected drill-fluid circulation.
The hole has also required the placement of numerous wedges to keep it
on target. Wits Basin is working in close consultation with its drilling
contractor, G&O Diamond Drilling Contractors of Hay Lakes, Alberta,
Canada to ensure careful progress toward completion of the hole. Barring
any unforeseen complications, the Company anticipates that it could reach
its drill target in September or October. Additional geological details
of intercepts, along with the accompanying assay results, will be provided
as they become available.
Safety, Dewatering and Mine Rehabilitation
Safety continues to be a top priority at the Bates-Hunter
project. All 12 Bates-Hunter crew members recently completed the state-sponsored
mine safety program and have received their passing certificates. Hydrostatic
pressure and water flows and levels are being carefully monitored and
controlled.
The dewatering of the Bates-Hunter shaft is a continuous
process. While water levels have been as low as 350 feet, levels have
fluctuated due to recent heavy water run-offs that outpaced pumping ability
to maintain equilibrium. Equipment repairs during this time have also
slowed the water evacuation process causing the water levels to be as
high as 260 feet. The Company has determined that there is a need to construct
a multi-step water-pumping system with several stations to move larger
volumes of water from lower levels upward. The Company is also in the
process of adding a larger pump with additional filtering to help ensure
the steady dewatering progress. Once this new pump and its attendant parts
have been installed, it is anticipated that all the necessary equipment
will be in place to properly dewater the entire shaft.
The next dewatering targets are Level 424 and Level
468 (see Figure 1). When reached, the Company will evaluate whether these
levels are suitable for locating an underground diamond drill station.
Underground drilling from within the Bates-Hunter workings would test
the mineralization potential of adjacent ground both northwest and southeast
of the Bates Vein.
Rehabilitation of the shaft progresses as dewatering
occurs. This includes removing debris, replacing and adding timbers for
support, adding refuge chambers, stringing lights and wiring, installing
ladders, and fireproofing timbers. The Company is working closely with
the federal Mine Safety and Health Administration (MSHA) to ensure safe
progress of the shaft rehabilitation.
Land Acquisition
The Company is in the process of negotiating for mineral
and surface rights with nearby property owners for additional tracts in
the Bates-Hunter project area. These acquisitions, which hold three other
historically gold-producing mines, could add an additional 15 parcels
totaling approximately 16 acres adjacent to the Bates-Hunter claims.
Water Treatment Plant
In 2004, the Bates-Hunter water treatment plant was
identified as the selected remedy for the U.S. Environmental Protection
Agency’s (EPA) Clear Creek/Central City Superfund Site, Operable
Unit 4 (ftp://ftp.epa.gov/r8/RODS/ClearCreekOU4ROD.pdf). The EPA and the
Company have been in negotiations to reach an agreement to use the Bates-Hunter
water treatment facility to treat and process excess water in the remediation
of the tailings from other mines in the area. The remediation would be
paid from the Superfund account, thus benefiting the Company with incremental
revenue should an agreement be reached. The Company will provide details
of any agreement as soon as it is final. |
