12/09/2016
Historic French Corral Gold Mine
Nevada County, California
We are offering 20% net equity joint venture limited partnership position for $2 million working capital investment. The French Corral Mine is located just 20 minutes outside of Grass Valley/Nevada City California, in Nevada County, historically the highest gold producing county in California.
The 400 acre patented property was partially hydraulically mined through the late 1800’s until this mining method was banned. Production to that point was estimated at 200,000 ounces (California Division of Mines Bulletin 193). The mine was never finished and worked only sporadically since. A major channel of the Tertiary Yuba River runs the length of the property with the northern half mile (Phase 2 35 acres) being unworked virgin gravels. The channel averages 600 feet wide and up to 150 feet deep. Historically all mines in this area of the channel average .012 ounces per ton of recoverable gold (.008 oz per cu/yd) with the lower levels near bedrock being very rich. Large lake on property provides plenty of water.
We satisfied all current California permit requirements and installed a $1.5 million pilot plant. We then began limited Phase 1 production in late 2014 where the hydraulic miners left off. By September of 2015 we had produced over 250 ounces from upper gravels with intermittent plant running time and only one haul truck and excavator. Our recovery proved the same as historical averages in the district.
We estimate the Phase 2 reserves could be in excess of 30,000 ounces, and if the remaining gravels in Phase 1 and other unworked areas of the property are added, the total reserves are estimated at over 65,000 ounces.
Proceeds from this capital raise will be used to purchase reliable rolling stock, add a second recovery jig to the plant, add a tailings sand screw and amend the reclamation plan to satisfy permit requirements for the Phase 2 area.
Outright sale of mine would be considered for $8.5 million which would include the plant and the 400 acre patented land, perfect for subdivided ranches after reclamation.