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Reserve Summary
For more detailed information please go to the
project link for each property.
The company is in the process of defining
and producing gold reserves on existing leases, while acquiring
additional leases with established gold reserves. The corporate
strategy takes a long term result-orientated approach to
exploration and development of its reserves. As the company has
both domestic and international reserves, it has made a
conscious decision to bring the domestic reserves on production
first. The company has proven developed domestic reserves with
mining permits. The United States is one of the least hostile
and most government friendly places in the world to operate a
mine.
The company feels that there are no new gold
discoveries, but that new technology has been developed to find
new gold at old sites. That is the reason that the company has
been examining old gold sites, sites that have sufficient
reserves to be economical and are ready to come on production,
and sites with enough historical data to redefine the ore body.
The company will continue to look for
additional gold leases that meet its corporate criteria of being
able to go into production quickly.
Gold is immune to the rise and fall of industrial sectors and
commercial trends: gold is always an asset, never a liability
and maintains its value regardless of what happens in the
market.
With unprecedented demand sending gold prices higher, the
world’s savviest investors are scrambling for faster and more
innovative ways to make fortunes from gold. The sector that
profits more than any from the growth in precious metal
demand: Junior Mining Stocks. The best ones are those in
production or about to go into production. “Demand for gold will
rise as central banks become net buyers for the first time in 20
years,” Christopher Wyke, Schroder Investment Management Ltd.
Gold is a hedge against currency risk. Central banks are net
buyers instead of net sellers as part of this hedge.
The
reserves in the company have been defined as follows:
1.0
Proven Developed---enough development work and analysis has been
completed to define the amount of gold that is available to be
mined and the
parameters for mining have been designed and the
mine ready to begin production.
2.0
Proven
---enough development work has been completed to confirm that
there are
sufficient gold reserves to be mined economically. However, the
necessary development and analytical work has
not been completed to define mining parameters.
The company
also has probable reserves which are not used in any assessment.
With probable reserves it is apparent that there is gold present,
but significant development is necessary to define the
probability of successfully mining the gold.
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DOMESTIC |
Proven Developed |
Developed |
| 1.0 Montana |
105,000 |
175,000 |
| 2.0 Colorado |
190,000 |
200,000 |
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Total: |
295,000 |
375,000 |
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INTERNATIONAL |
330,000 |
800,000 |
| |
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Overall
Total: |
625,000 |
1,175,000 |
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Cost of an oz. of gold for economic assessment:
$1000 Extraction costs: average of $320 per
oz. |
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Note: The Reserve Summary is based on
historical geological and production data, random
sampling throughout the leases, independent analysis
of samples, and geological analysis by in-house
geological staff. The production plans are based on
in- house expertise. The reserve summary for
domestic reserves is not based on independent
engineering reports and, as such, caution should be
used in relying on the figures.
The Montana project also has a
significant sapphire reserve that has not had a
value assigned to it. The testing and published
historical test data have shown that there is 2500
carats per ton of rock mined in certain areas. These
sapphires range from .5 carats to 14 carats and of
excellent quality.
The value is currently being evaluated. Also in the
last several weeks while doing preliminary mining
studies, we have discovered that we have a
significant amount of rubies on the leases. The
rubies found have been accumulated and will be
independently assessed. One of the rubies is 8.5
carats.
The Montana Project is ready to go into full
production. We expect to start mining within weeks.
Production equipment is currently being moved onsite and being tested. The Colorado project is
expected to be on production in late fall or early
2011
It is anticipated that the company will mine 4500
ounces of gold in the first year of production from the
domestic operation. Production is expected to
increase to 11,000 ounces of gold in the second year.
No estimate of production of sapphires or rubies has
been done at this time. It is expected to be
significant. |
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