Eastern Resources, Inc. (Ticker: ESRI) is a regional mining company that operates, develops, and explores North American-based mining properties with significant proven reserves of precious metals and base metals. Our core area of current operations is within the State of Montana.
Our mission is to safely, efficiently, and profitably mine mineral ores for the benefit of our shareholders, employees, and community partners while maintaining harmony with our natural surroundings. Our management and directors have extensive experience building and operating mines, and deep knowledge of Montana’s regulatory environment.
We began assembling our portfolio with the acquisition of Elkhorn Goldfields in 2000. In 2006, we acquired 50% JV interest in Montana Tunnels; the remaining 50% was purchased in early 2010. Our acquisitions occurred when gold was trading at historically low prices.
We believe that Elkhorn Goldfields and Montana Tunnels both have exploration potential outside of their currently defined resources (estimated 2.5M to 3.5M oz.). As further resources are proven, the amount of production and mine life are expected to increase. We also plan to acquire and develop nearby projects that have been identified through management’s local knowledge.
In terms of the combined size, grade, exploration potential, production profile, and jurisdiction, we believe our holdings are among the most attractive properties in the U.S. today.
We are focusing our initial development efforts of the Golden Dream at the Elkhorn Goldfields, an underground mine with probable mineral reserves of 258,000 oz. of gold and 8.5M lbs. of copper. Golden Dream is fully permitted and bonded for mining operations between 500 and 1,000 tons a day.
Following commencement of production at Golden Dream, we plan to expand our focus to include other deposits in the immediate area. Our team and the property’s previous owners have completed drilling at an array of sites, including East Butte (55,000 oz. of probable gold), Gold Hill (75,000 oz. of probable gold), and Carmody (45,000 oz. of probable gold). Additional inferred resources at the property total 1,191,000 oz. of gold equivalents. Approximately $30M of prior exploration data will guide future mining programs.
In tandem with operations at the Elkhorn Goldfields, we plan to re-commence production at the Montana Tunnel’s property. In the early 1980s, with the price of silver trading at $50 per ounce, many historic silver camps were re-examined using modern techniques; it was during this period that the Montana Tunnels was discovered. In the following 24 years, over $4.85B worth of minerals (at current prices) was extracted from Montana Tunnels.
The newly permitted M-Pit will be an expansion of the existing Pit which has been the source of mining operations since inception. We anticipate access to an additional 40.2M tons of ore with proven and probable reserves of 505,920 oz. of gold, 8.7M oz. of silver, 127M lbs. of lead, and 362M lbs. of zinc. Extracting the remaining deposit will allow for profitable mining and milling operations for approximately eight to nine years with the current market value of minerals exceeding $1.4B.
The Mill Complex and infrastructure at Montana Tunnels has excess capacity to process ore discovered at current projects, or deposits acquired nearby, making it a key strategic asset (with $300M+ estimated replacement value). The Mill Complex includes two flotation plants capable of processing 15,000-tons and 1,000 tons of ore per day.