CASTLE SPRINGS MINE
Estimated Mineral Resource Calculation:
Gold: 2,224,000 oz
Silver: 48,000,000 oz
NOTE: The above figures are based solely on independent historical data from exploration programs completed by professional geologists and mining engineers. The above figures have previously been reported in Canadian News Reports and to the Vancouver Exchange. Prospective interested parties are cautioned to complete their own independent valuation of the Castle Springs property via due diligence analysis of all historical data, and independent testing. Recent testing by a US based reporting and registered mining company has verified the authenticity and accuracy of historical data to the extent possible without the benefit of new drilling (see available reports).
LOCATION: The Castle Springs property is located approximately 23 miles east of Wickenburg, Arizona. There is easy and unrestricted access to the property by taking Castle Springs Road off of State Highway 89 approximately 12 miles southwest of Wickenburg. This is a remote desert environment with little or no non-productive overburden or brush cover. The production season is year around. Water is available from wells to be drilled on the property into a known aquifer. One known commercial water well does exist from previous operations.
MINERAL RESOURCE: Castle Springs has been exhaustively tested by a wide range of independent professional geologists and large corporate mineral interests. Extensive documentation is available for review. Extensive testing and analysis has been completed by Phoenix Energy, Sawyer Consultants, Alan R. Grant, the State of Arizona and Western Sierra Mining Corp.
PRODUCTION ANALYSIS: The average ore tenor in Zone 1 is reported to be 0.35 ounces of gold per ton. Total Zone 1 tonnage calculations are indicated in the historical reports at 8,000,000 tons. The average ore tenor in Zone 2 is 0.103 ounces of gold per ton. Total Zone 2 tonnage calculations are 4,000,000 tons. The average ore tenor for silver across the claims is reported by State of Arizona documents to be 3 ounces of silver per ton. Total tonnage calculation estimates for silver reserves are 16,000,000 tons.
Historical data reports an average ore tenor for gold across the ore zone at a tenor of 0.185 ounces per ton or an approximate value of $241 per ton at $1,300 per ounce. Silver provides an additional 3 ounces per ton or $60 at $20 per ounce, for a total ore value per ton of $301. The estimated average recoverable ore value at 92% is $277 per ton. Average mining costs are estimated at $12, milling costs $20, smelting and refining costs $5, environmental and reclamation costs $5, and contingency and other costs $2. This leaves an average net profit of roughly $233 per ton.
At 100 tons per hour, the operation should yield a net profit $234,000 per 10 hour shift. A double shift operation should yield a net profit of $468,000 per day. Running the double shift 24 days per month should yield a net profit of $11,184,000 per month. Assuming about 11 months of actual operation, the annual net profit is projected to be $123,024,000.
PERMITTING: The permit jurisdiction is the US Bureau of Land Management. There are no anticipated impediments to BLM permitting. A previous environmental analysis was completed by the State of Arizona and concluded with a finding of “no significant impact.” The current permit process would include NEPA with the BLM, and applicable State permits.
Crushing, Milling and Smelting Operation: Crushing, milling and smelting should be done off site on a private property mill site; as this will vastly simplify the permitting process. In essence, the permit will be to disturb the surface, extract and haul ore.
A COMPREHENSIVE DATA PACKAGE IS AVAILABLE FOR REVIEW BY QUALIFIED BUYERS AND THEIR REPRESENTATIVES
TECHNICAL & GEOLOGY DOCUMENTS:
- 2012 Western Sierra Geology Report
- 2012 GoldTech Engineering Technical Report
- Summary of Prior Exploration and Development Work
- 1981 State of Arizona Environmental Assessment
- 1981 Phoenix International Energy Report
- 1981 Phoenix International Energy Bulletin
- 1981 Phoenix Electric News Bulletin
- 1981 Alan R. Grant Geology Report
- 1980 Sawyer Consultants Geology Report
If you are interested in the Castle Springs Mine property, click here to CONTACT US