Santiago Featured

Santiago Gold Mine

$33,000,000.00

The Santiago Mine is in Colorado’s East Argentine Mining District. It has become known as the Mother Lode of the district because of the uniform tenor of ore with gold increasing at depth. The Santiago ore body is productive for over a mile, and is traceable for 15 miles. Conservative estimates put the reserves as $366,000,000 of recoverable ore.

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Patented Mining Land – Santiago Gold and Silver Mine

19 March 2014


Famous Santiago Gold and Silver Mines No. L1755 – Mt. McClellan, Colorado

  • 160 Acres
  • Patented, BLM, bonded properties
  • Located in Colorado’s East Argentine Mining District
  • Mineable Assets: $1,800,000,000

The owners are willing to sell the property for $33,000,000, or do a joint venture from $1,900,000 to $6,000,000. An investment of $7,900,000 may return $79,000,000, or ten times at 43% net-profit share. When the investor has received a net return of $79,000,000, he will receive a 15% net-profit share for the mine life.

This is a Gold and Silver mine just 9 miles outside of Georgetown, in the heart of the Colorado Rockies. This is a combination of both patented land and mining claims. The mine has produced 20,000+ ounces of gold based on incomplete historical records. In the Santiago Ore shoot alone there is an estimated 2016000 ounces of gold and 4,320,000 ounces of silver, with proven: 60,000 tons of reserves. Estimated total reserves are at: 240,000 tons. The mine also produces copper 3.31% and lead 6.06%. The gold averages .84 oz./ton gold; 20.7 oz./ton silver. The mine is currently inactive.

Permits NOI and 110-2; jumbos, haulage, milling equipment are included with the purchase. The total acreage is 160 acres (120 acres plus 40 acres pending filing for CNC members). In lieu of NI43-101, because of extensive records of tunnel-stope maps, shipping, milling and smelters of Santiago properties and seven other adjacent, proven-mine properties along with hundreds of assays, historical records from personal files, Colorado School of Mines, Bureau of Mines, Bureau of Land Management, historical files of Clear Creek County, geological records from a geological engineer, Mosch; beneficiation study of proven reserves; engineering reports from McFadden, and many others, gives Santiago Mining Company a fair head start for completion of an NI43-101 study to be completed in year three, as mentioned in the Executive Summary. Through review of company archives by a qualified geological engineer, it will be clear regarding Company mining concepts for Santiago Mines on Mt. McCLellan.

Option #1

$1.9 million to begin Mining Secured with a $2,850,000 payback. Investment of $1.9 million, fully protected to be used for the following: Site and above ground development, including early recovery of the estimated 60,000 tons of verifiable, already mined ore and below ground drifting on ore in pursuit of opening Santiago ore bodies. This first phase of construction and development will take on full mining season. At season’s end, the investor will inspect development work and decide on participating in the Joint Venture.

Option #2

$Investment of $6 million to include participation in a Joint Venture with equity and net profit sharing for the life of the mine (estimated to be 62.5 years). An average 6 month mining season will return the Joint Venture Partner the average of $11.5 million net revenue per year starting at the end of the ramp up period or $345 million in the first half of the estimated years of mine operation. If Option #2 is not exercised, the investment capital of $1,9 million will be secured with prove, processed, already mined reserves and other equities on newly mined ores until the investor receives a return of $2,850,000. This will terminate Option #1, and the investor will have no further involvement in the Santiago Mines.


Brief Property Description



The Santiago Mine is in Colorado’s East Argentine Mining District that straddles the Continental Divide and is known for its high grade gold and silver ores. The Santiago properties are located on three major fracture zones within the high confines of a glacial cirque and the interior of Mount McClellan. (see mt. photo)

The Santiago ore body is on the Southern portion of the Santiago-Commonwealth-Centennial-Rosalie vein, productive for over a mile, and is traceable for 15 miles. The Santiago has been opened for a distance of 1400 feet and a depth of 700 feet on a vein width of 2 feet – 10 feet with an average width of 3.5 – 4 feet.

It has become known as the Mother Lode of the district because of the uniform tenor of ore with gold increasing at depth until the Government closing of the mine via Law 208 during WWII.

Last reported values in 1941 from Leadville, Colorado smelting records were 17.32 oz. gold, 33.5 oz. silver, and 45% lead per ton! There were 11 Santiago original claims, #3, #5, and #6 are very large, paralleling veins showing ore on the surface, never explored.

Conservative, professional, geological engineering estimates of the Santiago ore shoot only are $366,000,000 of recoverable ores. Historical Colorado archives are available for serious investor review.

The Santiago Blue3 is in the second zone showing its face on the sheer eastern flank of Mt. McClellan (see photo). It is the continuation of the Independence vein, the first silver strike in Colorado. In 1906 Independence values reported were 17,000 oz. silver and 259 oz. gold, and this was known by miners as “smuggling” grade. All mining at this time was done by hand. The entire quartz lode ran $600 – $700 per ton at $19/oz. gold and $0.47/oz. silver!

In 1911, the Santiago II Group consisted of 4 known veins. A 160 foot prospect drift was driven on the additional #II vein some 400 feet above the basin floor. The Santiago II Tunnel was driven 1100 feet from the basin floor in an attempt to cut the Santiago II that outcropped as a 3 foot sheeted zone. Only the #3 and #4 veins were cut. The #3 vein was $50 per ton with gold predominant and the #4 vein assayed 5.28 oz./ton gold and 180 oz. silver. Stoping was scheduled in 1913 until the mining era ended for the Santiago II and the Group of the #3 fracture zone. The II dump assayed in 2009 at 40 oz. silver and .574 oz. gold. The Santiago II is the southern continuation of the Wheeling vein, opened for 1000 feet with a 5 foot width, containing 70% smelting grade and 30% shipping grade ore. 1891 reports show assays of gold at .33 oz. and silver at 246 oz. per ton. The Santiago Blue and II Group are estimated from historical documents by owners @ $600,000,000 in recoverable smelting grade ores.

In 1913, massive caving of talus in the Santiago II drift and the stripping of the East Argentine railroad tracks in 1918 for the WWI effort prevented the economical transport of ores from the district. However, the Santiago Mother Lode continued production until 1927 with horse and wagon and some intermittent production through 1941 with final closure during WWII. Smelter receipts available for 1939 – 1941 showing average mill recover grade @ .81 Au.


 

Diagram of the workings and ore bodies


1.0 Executive Summary

Location and Climate

The Santiago Mine is a historic producer of silver, gold, lead, and copper that was mined from the late 1800s to as recently as 1941. It is located about 60 miles west of Denver and 9 miles by road south of Georgetown, Colorado in the Rocky Mountains. Denver, Georgetown, and surrounding communities offer plentiful access to labor, contractors, and supplies.

The mine is located on the flank of Mt. McClellan, with existing historic portals ranging from 12,000 to 12,600 feet. The climate is that of high alpine, with cold snowy winters (annual snowfall ranging from 100 to 400 inches annually) and cool dry summers. Snowmelt allowing access to the property typically occurs in mid-late April and snow closure typically ranges from October to December. A typical year would allow for six working months at the site unless significant snow plowing was undertaken.

Appendix 02 includes a property map, BLM LR2000 output for unpatented claims, tax records for patented claims, and an ownership table for surrounding claims.

1.2 Geology

The Santiago Mine is located in the Colorado Mineral Belt and is part of the Montezuma Shear Zone, which runs roughly from Keystone at southwest, to Silverplume and Georgetown to the northeast.

The deposits are characterized as mesothermal veins occupying faults and fissures, striking mostly northeast. The deposits are hosted in the Pre-Cambrian Silverplume Granite and Idaho Springs formation gneiss. Veins formed at moderate depth, pressure, and temperature. The majority of the productive veins strike North 15® to 35® East and dip steeply northwest. Lead-zinc-silver veins consist mainly of galena, sphalerite, pyrite, and quartz, but also contain notable amounts of chalcopyrite, barite, and fluorite. Please refer to the report in Appendix 6 for a complete description of the geology of the district.

1.2.1 Sampling

Sampling has been carried out at various stages in the early 1980’s and late 2000’s. Samples have been grab samples ranging from single samples to 5-pound bags, to 5-gallon buckets full used for metallurgical testing. Appendix 03 includes a summary of the assays collected, a map showing assay locations, and the individual assay reports.

Grab samples were taken, marked at the location and on the samples, and sent to the lab. The Colorado Assaying Company was used for assaying in the late 1980’s and Hazen Research was used more recently. Fire assay was used for gold and silver and AA for other minerals. Duplicates and check assays have not been performed historically, but duplicate samples have been cut for many samples and are available for testing.

1.2.2 Metallurgy

Metallurgical test work of samples of dump material was undertaken in 2012. A full report is available in Appendix 13. Samples ranged from 0.33 to 1.96 opt gold, 4.7 to 62.7 opt silver, 14.4% to 17.4% lead, 0.94% to 3.61% copper, and 2.23% to 2.12% zinc. Recoveries were 88% for gold, 82% for silver, 95% for lead, and 84% for copper. The concentrate was 66% of the original sample weight and no zinc recovery was reported, so additional work is required to optimize the process.

1.3 Logistics

Access is via Interstate 70, Guanella Pass Road from Georgetown (mostly paved), and approximately six miles of single-lane dirt road that is intermittently very rough.

Power is currently planned to be via diesel generator for the first phase of the project (exploration and initial development). Electrical power is available via the Cabin Creek Substation along the Guanella Pass Road. Power poles exist along much of the single lane road that could be used to string power line to the site. A trade-off study will be undertaken to determine the economics and potential for running a power line to the site and obtaining line electrical power.

Water exists below No. 5 in level in the Santiago Mine, which may be able to be used for mining and activities underground as long as it is re-circulated, but could not be used for surface uses (offices, dry, etc.). The Clear Creek watershed is currently over-allocated with respect to water rights. One abandoned right was found in the basin for the Waldorf Pipeline, which at one time served the town of Waldorf, below the Santiago Mine. The status and availability of this right is unknown and water for personnel use for washing will need to be obtained. The most likely pathway for this is via a commercial-exempt well which may be permitted through the State Engineer. Discharge of wash water from dry and office use would most likely be through a leach field on site.

Manpower, contractors, and supplies are readily available in Georgetown, Denver, and surrounding communities.

Ore is currently planned to be shipped raw (no on-site milling or tailings) to a custom mill. Budgeting has included a mill in Virginia City, MT with an associated smelter in Bellevue, WA. Further studies will be conducted into additional milling options.

1.3 Permitting

Two “Notice of Intent” applications have been filed and basically approved with the exception of posting of reclamation bonds. Additional permitting will be needed as the project advances.

  • NOI P-2009-005 was for up to two surface exploration drill holes and rehabilitation of some existing drifts. The NOI was approved with the exception of posting of a $14,009 bond. The NOI would need to be refiled and bond posted to perform this work.
  • NOI P-2012-012 was for testing of surface dumps and a road extension. Discussion and exchange were ongoing with the Colorado Division of Mines through 2012. This NOI will need to be re-written and resubmitted, and a bond posted, to support an underground exploration plan.
  • Before extraction of ore for production, a Colorado Division of Reclamation 110(2) Reclamation permit will be required.
  • Other permits that will likely be needed include:
    • Stormwater Permit
    • Discharge Permit
    • Construction Air Permit (may or may not need an Operating Air Permit [APEN])
    • BATF Explosives Permit
    • Water well Permit
    • Clear Creek County building permit(s)

1.4 Project Plan

The Santiago vein hosts a known structure that likely holds additional resources. In addition, the Santiago Blue Vein, the Vesper vein, Santiago #8 and #9 veins, and other potential veins lie within or near the property held by the Santiago Mining Company. The plan is to drill 1-2 exploration holes in the first year from surface to confirm depth to bedrock, geotechnical properties, and location of veins. This will help target an exploration drift. This exploration drift will be started in Year 1. The drift is intended to follow the Santiago Blue vein, then turn and intercept the Santiago Mine near the back (south) end near the 4½ or 5 Level. The total length of the drift is approximately 2,600 feet, and it would ultimately serve as a haulage path from producing areas to surface. Two exploration drift options, the proposed portal locations, and estimated vein locations are shown on Figure 1-2

1.5 Potential Economics

Two economic cases were run. The resources used in the economic evaluation were assumed to average 0.94 opt Gold, 20.7 opt Silver, 7.6% Lead and 4.1% Copper (average historical values from the Santiago Mine, using assumed recoveries). Note that any resources referred to here-in are either historical or hypothetical and do not meet the criteria for NI43-101 or any national code at this point in time.

The first case assumed that 75,000 tons of resource was minable (and approximates the 1985 probably resource estimated by Mosch). This case assumed that only the first five levels of the Santiago were mined (this resource lies above a potential water level that may or may not need to be dealt with if mining below the 5th level). The mineable tons were determined by measuring the remaining length of the vein south of existing workings either to the surface or to claim boundaries, then assuming 50% recovery of the assumed vein length. A 4.5-foot mining width was taken with a 3.5-foot assumed vein width. Table 1-2 shows the estimated resource potential above 5th level in the Santiago that was calculated using this evaluation.

The case results in the following economics:

  • Pretax IRR of 23%
  • NPV 5% of $10.1 million
  • Payback of 5 years (from Year 1, start of the project)

The second case assumed that 200,000 tons of resource was minable (and approximates the probable plus possible 1985 resource estimated by Mosch). Given that (1) vein widths have been reported to average 3-4 feet with widths of up to 10 feet, (2) the Santiago was reported by Mosch to show probable resources well below 5th level, and (3) the significant potential for additional veins, there is likelihood of expanding resources to fulfill a 10+ year mine life, if not more. This case results in the following economics:

  • Pretax IRR of 36%
  • NPV 5% of $41.5 million
  • Payback of 5 years (from Year 1, start of project)

First year activities consist of permitting and confirming the resource. Specifically they include:

  • Surface geologic mapping.
  • Surface surveying including an aerial flyover to use in mine and infrastructure design.
  • Reestablish Notices of intent, and posting of bond.
  • Additional mine permitting.
  • Acquisition of key surrounding claims (outright property acquisition or rights to mine). (Note – property purchase is not currently included in the project budget).
  • Surface drilling of 1-2 exploration holes.

The assumption behind the economics for both these cases were conservative due to the uncertainty of the resource. The following assumptions were included that added to the conservatism and will need to be addressed as the project moves forward:

    • 20% contingency was applied to both the CAPEX and OPEX costs.
    • Processing of surface dumps was not included in the financial model. A potential resource exists on surface which could be reclaimed and processing, providing early cash flow to fund operations.
    • Mining methods were not optimized (as the orebody has not been drilled and modeled) so an expensive method was utilized and significant dilution was applied to resource tons and grade (reducing extracted gold grade to less than 0.6 opt and extracted silver grade to less than 13.5 opt).
      • An in-ore ramp option with controlled long-hole blasting could be considered which would minimize dilution and reduce exposure to open stopes.
        • The second case was briefly evaluated using this option by assuming an additional $1 million in capital for longhole drill(s) and reducing planned dilution from 22% to 10%. Operating costs were not adjusted at all.
        • IRR was increased from 6% to 47%.
        • NPC5% increased from $19 million to $67 million.
        • Payback was decreased from 5 years to 4.5 years.
        • This ore body is highly sensitive to dilution, and the design and mining method will need to be optimized.
        • Other lower-cost options such as shrinkage stoping should also be evaluated.
      • Diesel generation was assumed in the cost structure, which adds to operating costs.
        • A trade-off study will be performed once a resource is determined to determine the economics behind the capital necessary to install and connect a power line from the Cabin Creek Substation to the mine site.
      • No mill was considered on site in these cases due to the mountainous, alpine location. Contract milling costs $200 per ton of ore, and the associated refine/smelter adds a flat 10% take off from top line revenue. Shipping of raw ore to the custom mill was quoted at $65-80 per ton.
        • A more thorough metallurgical study will need to be performed on ore from vein material, rather than dump material that was previously tested, to determine the best mill to use in terms of process, metal recover, and metal payout.
        • A study of other mills that can handle the ore type(s) will need to be performed, along with their TC/RC terms and byproduct arrangements to optimize for milling and shipping costs as well as overall payout for metal.
        • In addition, and underground mill such as the Python system from Gekkos should be studied to reduce the volume that needs to be shipped. This may include only a partial circuit such as a gravity circuit to reduce the capital necessary but get some volume reduction benefit.
          • This option would provide for backfill material, which may be preferable with some mining methods to be studied.
      • Purchase equipment, establish a portal, and begin mining of an underground exploration drift to establish an underground drilling location from which to target veins in multiple directions.
      • Perform phase 1 of an underground drilling program.

A five year budget is presented in Table 1-1. First stope in production is estimated in year three with ramp-up to full production by year 5. Key assumptions in the development of the budget include:

  • In-situ average grades: 0.84 opt Gold, 20.7 opt Silver, 6% Lead, 3% Copper.
  • Mill recoveries: 88% Gold, 82% Silver, 95% Lead, 84% Copper (from Hazen – Appendix 13).
  • Metal prices: $1, 350/oz. Gold, $22/oz. Silver, $0.85/pound Lead, $2.50/pound Copper.
  • Blind pen stoping assumed as mining method for this budget.
  • 3.5 foot average vein width.
  • Exploration drift: 10’X10’ – in ore, 50% planned dilution of vein.
  • Mining cuts: 4.5’ X 8’ – 33% planned dilution.
  • For capital development, assumed 50% of vein was recoverable or above cut-off grade.
  • 20% contingency was included in both OPEX and CAPEX costs.
  • NSR of 3% was included.
  • 10% metal takeoff was included as a smelter charge (this was a quoted value by a refiner/smelter).

Hauling ore out of the mine



Head Ore Samplings


Mine tailings


Down into the mine


5th level rehabilitation, original timber


Another view of the tunnel


5th level rehabilitation, original timber set in permafrost


Another view of the tunnel


Another view of the tunnel


Photos of the site in Spring and Winter


View of the property in spring


View of the property in winter


 


Assay reports on the Santiago Mine:


Beneficiation Study of the Santiago Mine Stockpile Ore, Santiago Mine, Colorado Hazen Project

In March 2012, the Santiago Mining Company requested that Hazen Research, Inc. conduct a beneficiation study of the Santiago Mine stockpile ore composite. The work consisted of gravity separation and flotation to make a bulk sulfide, gold, and silver concentrate of acceptable grade and recovery.

A combined concentrate from table testing and flotation of the fine fraction assayed 55 g/t Au, 1,500 g/t Ag, 3% Cu, and 22% Pb and recovered 88% of the gold, 82% of the silver, 84% of the copper, and 95% of the lead in 66% of the weight.

SAMPLE PREPARATION

A 5 gal bucket of ore, up to 10 in. in diameter, was received on March 3, 2012. A second bucket of ore, up to 10 in. in diameter, was received on March 27, 2012. Sample descriptions are provided in Table 1.

Table 1. Sample Identification

HRI Client ID Sample Weight, kg
53098-1 Santiago Mine Stockpile Ore, 3/3/12 4.7
53098-2 Santiago Mine Stockpile Ore, 3/27/12 6.6
53098-3 Stockpile Ore Composite 7.5

Each sample was stage-crushed to minus 1.7 mm, blended, and a head sample was made. One quarter of each sample was archived, and the remainder (approximately 3/4 split) was composited, blended, and split into 1 kg test charges for the beneficiation work.

The head assay results are shown in Table 2, and a semiquantitative x-ray fluorescence (XRF) analysis of the composite sample is shown in Table 3.

Table 2. Head Assays

Sample ID Assay
HRI Client ID Au, g/t Ag, g/t Cu, % Pb, % Zn, % Si, %
35098-1 Santiago Mine Stockpile Ore, 3/3/12 10.3 147 0.94 14.4 < /td> na 17.1
53098-2 Santiago Mine Stockpile Ore, 3/27/12 61.1 1,960 3.61 17.4 3.12 na
53098-3 Stockpile Ore Composite 45.9 1,247 2.44 15.8 2.23 na

na = not analyzed

 

Table 3. XRF Analysis on Stockpile Ore Composite

Constituent Stockpile Ore Composite

Oxide, wt %

Na20 <0.5
MgO <0.5
Al203 1.6
Si02 44
P205 <0.2
S 19
CI <0.1
K20 0.5
CaO 0.9
Ti02 <0.1
Mn02 0.8
Fe 15
BaO <0.1
Element, ppm
V <100
Cr <200
Co <200
Ni <300
W <100
Cu 27,000
Zn 25,000
As <600
Sn <900
Pb 150,000
Mo <100
Sr <200
U <200
Th <600
Nb <100
Zr <300
Rb <100
Y <200

Note: Analysis performed at The Mineral Lab, Inc.

MINERALOGY

X-RAY DIFFRACTION

A quantitative x-ray diffraction (XRD) analysis was conducted on the composite sample by The Mineral Lab, Inc. (Golden, Colorado). The results are shown in Table 4.

Table 4. XRD Results for Stockpile Ore Composite

Mineral Name Chemical Formula Analysis, wt%
Galena PbS 17
Pyrite FeS2 26
Chalcopyrite CuFe52 8
Sphalerite ZnS <5
Quartz Si02 41
Plagioclase Feldspar (NaiCa)Al(SiA1) 308 <5?
Litharge Pb0 <1?
Unidentified ? <5

Note: Analysis performed at The Mineral Lab, Inc.

According to the XRD results, 17% of the sample consist of galena, 8% chalcopyrite, and less than 5% sphalerite. Pyrite accounts for 26% of the sample.

MICROSCOPIC EXAMINATION OF STOCKPILE ORE COMPOSITE

A polished section of the Stockpile Ore Composite sample (53098-3) was prepared for microscopic examination.

The sample consists of major galena, pyrite, and chalcopyrite, subordinate sphalerite and siliceous gangue, minor tetrahedrite—tennantite, other sulfosalts, probably tellurides, carbonates including possibly cerussite, and traces of covellite.

The galena consists mainly of coarse, liberated euhedral to subhedral cleavage fragments with sizes varying between micron-sized particles up to about 3 mm, averaging 0.5-1 mm. Some of the galena shows alteration, probably to anglesite, along the cleavage planes.

The pyrite occurs mostly as coarse, liberated subhedral crystals or irregular particles with sizes varying between a few microns and up to 3 mm, averaging 0.5-1 mm.

The chalcopyrite occurs abundantly as coarse, liberated particles, sometimes showing alteration to covellite. The size of the chalcopyrite varies between a few microns up to about 1.5 mm, with an average between 400 and 700 pm.

The galena, pyrite, and chalcopyrite occur less frequently, forming intergrowths with each other, the sphalerite, and the gangue.

The sphalerite occurs mostly intergrown with the other sulfides and the gangue. Sometimes the sphalerite shows signs of corrosion around the edges. The particle size of the sphalerite varies between a few microns up to 1 mm, averaging 300-500 pm.

Figures 1-8 are photomicrographs of the sample.

GRAVITY SEPARATION

PROCEDURES AND RESULTS

A 3 kg split of the composite sample was stage-crushed to minus 850 gm and screened at 600, 300, 150, and 75 gm. Each size fraction, except the minus 75 gm fraction, was tabled using an eighth-sized Wilfley shaking table. The table products (concentrate and tails) were assayed for gold, silver, copper, lead, zinc, arsenic, and antimony. The results of Test 3540-63 are shown in Table 5.

The minus 75 gm fraction was subjected to bulk sulfide flotation using a sodium isobutyl xanthate (SIBX) (Flomin C-3430) as a collector, and a methyl isobutyl carbinol (MIBC) (Flomin F-500) as a frother. The flotation was done in a 1 L cell at 1,200 rpm and at a pulp density of 31% solids. Three rougher stages were done. The flotation results are shown in Table 6.

Initial fire assay results of the gravity and flotation concentrates were lower than the head assays, therefore, all three head samples and all of the concentrates were re-assayed.

Table 5. Table Test 3540-63

Test No: Project: Objective: Conditions: Sample: Grind:

3540-65 11515 Bulk sulfide flotation using a sodium isobutyl xanthate (C-3430) as a collector and a methyl isobutyl carbinol (F-500) as a frother. 1,200 rpm in a 1 L cell Test 3540-63 Minus 75 pm Weight: 500 g aliquot (taken from 603 g in size fraction) (31% solids) Rougher 1 none

Table 6. Laboratory Flotation Test Report

Date: 4/25/12

Technician:

C. Schultz, D. Anger

Stage Reagent, kg/t of Feed Time, min pH , 3430 F-500 Grind Cond Float Start End Observations and Remarks Condition 1 0.036 2 6.3 Nothing floated Rougher 1 2 Condition 2 2 6.8 Rougher 2 0.021 3 Condition 3 2 6.8 Rougher 3 Total 0.036 0.021 6 5 ,

The flotation rougher concentrate assayed 444 g/t Au, 2,500 g/t Ag, 4.5% Cu, and 30% Ph and recovered almost 99% of the gold, 95% of the silver, 98% of the copper, and 95% of the lead in the minus 75 pm fraction, which amounted to 63% of the weight.

The calculated total concentrate from the concentrates from tabling the various size fractions and flotation of the minus 75 pm fraction is summarized in Table 7.

Table 7. Summary of Gravity and Flotation Calculated Total Concentrate

Analysis
Concentrate Product, pm Weight % of Total Feed Au, g/t Ag, g/t Cu, % Pb, % Zn, %
850 x 600 9.7 52.1 1,184 2.57 15.8 2.37
600 x 300 20.3 54.5 1,183 3.12 19.0 2.85
300 x 150 12.6 71.5 1,366 3.19 24.2 3.09
150 x 75 10.5 50.3 1,378 2.67 22.6 3.06
Minus 75 12.7 43.6 2,508 4.49 30.3 4.17
Calculated Total 65.8 54.6 1,505 3.25 22.3 3.11

WASTEWATER ANALYSIS

All water from gravity separation and flotation was collected and analyzed for lead, nickel, chromium, molybdenum, arsenic, and pH to confirm that it meets or lowers the hazardous waste and sewer discharge regulatory limits. The results of the wastewater analysis are shown in Table 8.

All analyses are below the sewer regulatory limit.

Table 8. Results of Wastewater Analysis

Parameter Sewer Discharge Regulatory Limit, mg/L Hazardous Waste Limit, mg/L Analysis, mg/L
Lead 2.2 5.0 0.93
Nickel 5.6 <0.04
Chromium 3.6 5.0 <0.04
Molybdenum 0.71 <0.05
Arsenic 0.33 5.0 <0.005
pH >6 12.5 5.78

RECOMMENDATIONS

The initial results should be confirmed by additional work. Further work should be done to upgrade the bulk sulfide concentrate by reducing the weight of the concentrate. We recommend tabling with one or more cleaning stages, or possibly whole-ore flotation with cleaning. Larger-scale gravity separation and/or flotation work should be done on a more representative sample. A flotation study could also be done to investigate copper—lead—zinc separation of a bulk concentrate to potentially increase the value by separating the element streams.

Regards,

Christopher P. Schultz Project Engineer CPS/wcf xc: Roland Schmidt, Hazen Research, Inc.



East Argentine Mining District History:


New life came with the discovery of major silver deposits in the Argentine and East Argentine Districts along McClellan Mountain (near the later townsite of Waldorf) in 1864. The size and purity of the veins encouraged the mine developers who previously thought that processing would be too costly. Along with this new excitement came the growth of a new town, Elizabeth Town (sometimes referred to as Elizabeth City), located in the southern end of the Georgetown townsite, near the start of the road networks leading to the silver strikes. As the silver boom gained momentum, the valley came back to life. By 1867, the townspeople in both Georgetown and Elizabeth Town began to consider incorporation.

In the fall of 1867 citizens of the area began meeting to discuss the formation of a town. On January 28, 1868 the Territorial Legislature passed a law incorporating the Town of Georgetown.


THE WALDORF RAILROAD MINING TOWN

The Vidler mill at Waldorf proper. In both photos the road around to the Santiago mine and its power line across the hill are prominent.

Waldorf is unique because, single-handed, it was caused and named by a mining magnate who built his own little railroad-the Argentine Central – to create the town.

One mill and a camp called Argentine (from the Latin word for silver, argentum) were fairly high in Leavenworth Gulch on the way to Argentine Pass. Their location was beside the stagecoach road from Georgetown to Montezuma. But now a large boarding house, several residences, a store and a depot clustered about the Waldorf and Vidler tunnels and their mills. Thus the new camp of Waldorf was born. Everything went well at first for the town and railroad even despite the ban on Sunday tourists. The little railroad made a great impression, and Wilcox was as proud as a racehorse stable owner as he added little Shay engines to his rolling stock. Early in 1907 a British syndicate offered $3,000,000 for his holdings around Waldorf including the railroad. Wilcox refused despite the enormous profit involved” (Bancroft pp. 21-22)

In 1912 it was reported – “The Santiago mine in East Argentine district promises to be one of the heaviest shippers in Clear Creek County this year. An important strike was recently made in sinking a shaft from the fourth level, being a streak of heavy lead ore eight to twelve inches wide, carload lots returning $104 net per ton. The company, it is stated, will construct an aerial tramway next summer. The length to the eight miles, by which the cost of ore delivery can be reduced from $4 to $0.50 per ton” (Mining Science p. 302).

References:

Bancroft, C. (1967). Unique ghost towns and mountain spots. Boulder, Colo: Johnson Pub. Co.

Mining Science (1912). The Mining American, Industrial Reporter Co.

 

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This claim and property come with the full backing of Gold Rush Expeditions and our legal resources. We take mining rights seriously. Hopefully you will never have any problems with the Forest Service or BLM employees, but if you ever do you can rest assured that we will fight to protect your mining rights. We have a lawyer on retainer and offer free no-cost legal representation. We are here for you long after you buy a claim from us.

As usual, we recommend that you file a Notice of Intent with the BLM or local Forest Service office before working your claim. This doesn’t cost anything as long as you are operating under casual use. We would like to see that everything goes according to your plans. Some activities may require permitting with the local Forest Service or BLM offices. We have created a page on our website with helpful information on writing a Notice of Intent and, also if you are unsure about what activities are permitted under casual use, we’ve got some helpful links at the bottom of that page.


“The most important piece of your mining claim is that actual mining claim documentation and location. While other fly by night operations may have the best of intentions, they often get it wrong. This results in you, as a customer, not getting what you paid for. GRE has been documenting, writing and transferring mining claims for over 10 years. We know what we are doing. From our in-house notaries to our master land surveyors, we get the job done right, and we back it up in writing. GRE Guarantees that this mining claim has been written correctly and accurately. It has been physically staked on all corners with GPS embedded images for clear verification. GRE will provide documentary evidence of all paperwork and location staking for the claimant.

GRE works hard to make sure that everything we do is perfect, but occasionally we may make a mistake. So while it is understood by the Customer and GRE, that all attempts have been made to verify accuracy and location in relation to this claim, we want to go one step farther. In the case of inaccuracies or other issues that may impact your claim, GRE will amend or modify and record any documents and physical monuments as deemed necessary at no cost to the buyer.

GRE guarantees this mining claim to be exactly as described and pictured. Please view all images and read complete claim description. We spend a lot of time and effort to document all aspects of each mining claim.

This Guarantee is not any sort of guarantee of mineral content, reserves or future earnings. Assay reports, Reserves, and mineral values are provided as they have been recorded by United States Geological Surveys, and state and local mining reports. Historical records and production are provided for information only. GRE strongly advises all potential claim owners to educate themselves about mining claims. Please be fully aware of what is conveyed with this mineral claim. If you have questions about mining, mining law, processing or even other properties, please contact us; our offices are open from 9am to 5pm MST, Monday through Friday. We are here to help the small miner work and support the development of mining in this new era of Mining in America.


It’s hard to make an accurate assessment of mines and mining claims today. The history, the books and the documents change over time. Universities and Agencies seem to write and release documentation designed to deter the average miner.

We examine each mine, and determine its actual potential. This is based on documented and verifiable history, as well as field observations and mapping of the sites. This helps us thoroughly and accurately describe our claims, as well as help you make informed decisions regarding the purchasing of a mining claim. In addition, the geological and historical information provided gives claim owners the tools to know where to look. After all, the gold, precious metals and minerals are out there, and there is a lot of it, you just have to know where to look. If you need more information, please feel free to contact our office and set an appointment to discuss your desired property.


Sales Information


What is being sold:

You are purchasing (a) lode mining claim(s) and/or (a) placer mining claim(s), owned and located by GRE, Inc. This purchase is for all interest in the claim(s). The claim(s) have been examined and documented by professional mineral field surveyors. They have verified the information and potential mineral content of the site. The claim(s) are as represented and documented above. Each lode claim measures 1500ft by 600ft. or 20.66 acres, unless otherwise noted. Each Placer claim measures 1320′ x 660′ or 20 acres unless otherwise noted. The claim(s) and the mine(s) has/ have been verified and recorded with the National Bureau of Mines. For more information on this, please contact the National Bureau of Mines on their website. This mining claim gives the owner full control of the minerals and ownership of all lodes, minerals and gems on the claim for as long as the purchaser maintains ownership. Ownership is retained by annual maintenance assessments of $155 per claim, plus a small recording fee both payable to the BLM. These fees are per claim, per year.

Annual Assessment Fees have been paid for this claim for the 2017 year. No additional BLM fees until Aug. 2017.

Binding and Legal notes:

  • The claim(s) has been staked according to state law to include all of the mines and land as pictured. GRE has placed all stakes on all corners as required by law.
  • The claim(s) has been described professionally and according to the National Bureau of Mines standards of Mineral and Mining Claim surveys. They have been measured, staked and validated by professional Mineral and Mining Claim Surveyors.
  • Ownership of this lode claim(s) gives the registered owner full control and ownership of all locatable lodes and minerals that may be located on the claim and or underground as accessed by the tunnels.
  • The sale of this claim(s) does not constitute any speculative investment or security. GRE is not selling any stocks, shares, securities or any sort of speculative investment.
  • The sale of this claim and the information contained therein does not imply or guarantee values, assay reports, or future earnings. GRE, Inc. makes no guarantees, neither written nor implied of any past, present or future value or mineral content.
  • The sale of this claim does not account for any land or access issues that may arise. In the case of any access issues GRE can guide the claim owner with our legal counsel and years of experience in accessing mining claim sites.

GRE, Inc. recommends that all buyers make all efforts to inform themselves on the interests and legalities of mining claims prior to any purchase of mining claims.  GRE is available via phone or email during normal business hours. Our offices are open from 9am to 5pm Monday through Friday.The GRE team is educated, knowledgeable and competent to answer any questions you may have. Please don’t hesitate to contact us. 385-218-2138 or goldrush@goldrushexpeditions.com


Payment:

A non-refundable deposit of $500.00 is due within 24 hours of the auction end. This is to secure your interest in the site while the remaining balance is in transit. Full payment (or Signed contract with down payment) is required within 7 days of auction end without exception.

Deposits can be made with Credit/Debit cards, however remaining balance payments must be paid by cash, check, or other verified funds. This is due to the nature of the claims being Real Property. Monthly payments can be made with Credit/Debit Cards

Failure to meet payment requirements will result in claim(s) being re-listed or offered to other buyers. Deposits are not refundable and will not be returned. Purchasing a claim from GOLD RUSH EXPEDITIONS, INC. indicates consent to the GOLD RUSH EXPEDITIONS, INC. Purchase Agreement. Please review this document carefully when it is received, this document is a vital element of the sale. It documents how the claim will be transferred and to whom it will be transferred. The purchase agreement states our commitments to you and your understanding of what is being sold and transferred. For your convenience, we offer digital signature options to expedite the process.

GOLD RUSH EXPEDITIONS, INC. accepts all forms of valid, legal payment, including Cash, Check and verified (stamped) gold or silver bullion (at spot price). We do not accept PayPal.

Gold Rush Expeditions, Inc. will send all correspondence to the email you have provided, please verify that your address is correct, we are not responsible for misdirected or unreceived email. Payment and signed Purchase Agreement Finance Contract are due in full within 7 days.


Annual Assessments:

Annual assessments are required for each mining claim. There are various fees and forms involved with these annual assessments and failure to comply or submit them correctly can result in the forfeiture of your mining claim.
We recommend that purchasers familiarize themselves with this process.

Gold Rush Expeditions, Inc. also offers an Annual Assessment filing service, wherein we guarantee your filing and acceptance. Safeguarding your claim against loss and forfeiture.


Financing:

In most cases we can offer financing of sites upon approved credit history. Gold Rush financing requires roughly 24 hours to verify and approve. Financing requires downpayment of at least 25% of the total purchase price or $2500.00, whichever is more. Gold Rush financing is only available on purchases of over $5,000.00 with approved credit. We approve 99% of our applicants. Please call our office to apply. Please be sure that you are pre-approved before making bids or committing to purchase.

Gold Rush financing is offered at a rate of 9% APR (annual percentage rate). Documentation fees can be added to finance arrangement. While under contract, Buyer will have full access to the claim under casual use guidelines. Further operations requiring Plan of Operations are not allowed while the site is under contract. Upon final payment, as designated by contract, the Quit Claim deed will be immediately filed and sent to owner. More details on Gold Rush financing available upon request.


Terms & Conditions of the Sale:

This sale is for UNPATENTED, Federal mining claim(s). Mining claims require a yearly maintenance fee of $155 per year, per claim, (or a small miner’s waiver to reduce fees) to retain ownership.

The maintenance fees for the claim have been taken care of for the 2016-2017 year. No additional monies will be due to the BLM until September 1st of 2017, to retain ownership for the 2017-2018 year.

GRE can file maintenance fees and documents for claim owners upon request for additional years.

The documentation fee covers all notarizing, mailings and filings required with County and State Recorders, and filing and verification with appropriate State BLM office.


Buyer will receive the following with their completed transaction:

  • Quit Claim deed showing transfer of ownership of the claim. This document will stamped, recorded and verified with the County and BLM offices. No other paperwork required
  • Welcome Packet with all of the rules and regulations as they relate to the State and BLM where the claim is located.
  • A CD of all documented images of the claim including a GRE survey and mapping of the site.
  • 24k map with claim marked & GPS coordinates
  • 100k map with claim boundaries clearly shown
  • Official National Bureau of Mines Documentation.
  • GRE Sticker
  • Other GRE Promotional Materials

Documentation:

There is a documentation fee of $349 for each Mining claim. In the case of multiple claims in a single sale, any other associated claims are charged at $249 each.

Please note that all information and documentation will only be sent to the email address you have on file with GOLD RUSH EXPEDITIONS, INC. Your documentation will also only be shipped to the address on file with GOLD RUSH EXPEDITIONS, INC. Please verify this information. We do this for your security as well as ours.
All documentation, Payment and Purchase Agreement documents must be completed to begin the transfer of the Quit Claim. Quit claim can be transferred to any person or business once identity has been established. Documentation fees cover all of the filing of paperwork in the proper counties and state and with the BLM. The purchaser will receive a Quit Claim deed transferring all interests in the claim.

Note: Our new documentation process is nearly 100% digital. All of your legal and purchase information is verified and signed online. Documentation time is usually less than 1 week.


Legal Notes:

*This claim is not for any Speleothems, Stalactites or Stalagmites. This claim is not for any cave formations of any sort. *This claim is not for ownership of a cave or any sort of cave related items. It is for control of locatable minerals and the ability to secure the land on which your minerals are located. *This claim is for Mining Claims. Mining Claims are administered by the BLM. They are not administered, nor are they under any control by the US Securities and Exchange Commission. *This sale does not constitute any sale of stocks or other security interests that represent a current investment ownership interest in an entity. Nor does this sale represent any effort by individuals to raise money or find investors for Businesses. A mining claim is not ownership of the land. It is full control of locatable minerals. The BLM defines located minerals as: * Locatable minerals include both metallic minerals (gold, silver, lead, copper, zinc, nickel, etc.) and nonmetallic minerals (fluorspar, calcite, mica, certain limestone and gypsum, tantalum, heavy minerals in placer form, and gemstones). (Edited from: http://www.blm.gov/pgdata/etc/medialib/blm/wo/MINERALS__REALTY
__AND_RESOURCE_PROTECTION_/energy.Par.26680.File.dat/MiningClaims.pdf) The General Mining Law of 1872, as amended, opened the public lands of the United States to mineral acquisition by the location and maintenance of mining claims. Mineral deposits subject to acquisition in this manner are generally referred to as “locatable minerals.” A lode claim is defined as: “Jefferson-Montana Copper Mines Co., 41 L.D. 321(1912), established the full test for a lode claim: “To constitute a valid discovery upon a lode claim, three elements are necessary: 1. There must be a vein or lode of quartz or other rock-in-place, 2. The quartz or other rock-in-place must carry gold or some other valuable mineral deposit, 3. The two preceding elements, when taken together, must be such that as to warrant a prudent man in the expenditure of his time and money in the effort to develop a valuable mine.” Additionally, Federal statute does not describe what constitutes a valuable mineral deposit; therefore the government has adopted the “prudent man rule.” This rule determines value based on whether or not a person will consider investing time and money to develop a potentially viable mineral deposit. This rule was first stated by the DOI in 1894, in the adjudication of Castle v. Womble, 19 L.D. 455 (1894), the holding of which states: “…where minerals have been found and the evidence is of such a character that a person of ordinary prudence would be justified in the further expenditure of his labor and means, with a reasonable prospect of success in developing a valuable mine, the requirements of the statute have been met.” Note, this is site is not subject to the Cave Protection act of 1988, as Federal Law states: 16 USC Sec. 3378&01/08/2008 Sec. 3378. Miscellaneous provisions -STATUTE- (d) Existing rights Nothing in this chapter shall be deemed to affect the full operation of the mining and mineral leasing laws of the United States, or otherwise affect valid existing rights. -SOURCE-(Pub. L. 100-691, Sec. 9, Nov. 18, 1988, 102 Stat. 4550.) REFERENCES IN TEXT The mining laws and mineral leasing laws of the United States, referred to in sub sec. (d), are classified generally to Title 30, Mineral Lands and Mining. The information above is cited from the official Department of the Interior Bureau of Land Management page.


Return Policy:

Due to the nature of this sale, returns are not applicable. In the case of any issues, we will work with the buyer to be sure that the buyer is satisfied with their purchase as per the GRE Guarantee. GRE does not make partial refunds or cash refunds. All refunds or adjustments will be given in the form of credits or merchandise of at least equal value.


About GRE:

Since 1999, Gold Rush Expeditions, Inc. (GRE, Inc.) has been locating and documenting valuable mining claim sites. We research, locate and document historic and significant mines throughout the Western United States. We sell mining claims, that’s it. We have a dedicated and knowledgeable survey team, and an entire office staffed with hard working employees who make all of this possible. We invite you to learn more about the people behind GRE. We also have a full legal team dedicated to monitoring and protecting our interests and yours!

GRE is an actual “brick and mortar” business with an office that you can stop into. We do operate within normal business hours of 9am to 5pm MST. We can be reached in the office at 385-218-2138. You can feel free to stop in and see what we are working on. Our office has an extensive mining library and an impressive collection of mining artifacts and memorabilia. Mining claims can be tricky from state to state. GRE, Inc. has provided more mining claims than anyone else, to happy, satisfied customers. We will be here long after the sale to help out with most anything you need. We sell many claims to repeat buyers; this says a lot about what we are doing.

GRE, Inc. researches over 600 sites per month. Out of those sites we usually only claim 20-30 mines. The sites we offer are the best of the best. We don’t claim the first hole in the ground that we see. We research and document these sites. We claim these mines because we believe them to have a good value. GRE has pioneered offering mining claims to the public at a reasonable rate, taking care of all the paperwork for you. We go the extra distance to make sure that everything is right and if it’s not, we will make it right.

In addition to your claim you will also have access to GRE, Inc.’s legal counsel. They are familiar with what we do and very efficient at resolving any issues that may arise. GRE, Inc. will often cover the costs of the legal counsel, dependent on the issues that need resolving.

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