Elkhorn Goldfields has four known deposits: Golden Dream, East Butte, Gold Hill, and Carmody. Since acquiring the property in 2000, we have focused our analysis, design, planning, and permitting efforts on Golden Dream.
An internal feasibility study of Golden Dream conducted by our staff engineers indicates probable underground mineral reserves of 1.17M tons containing 258,000 oz. of gold and 8.5M lbs of copper. Following successful production start up at Golden Dream, we will expand our focus to other deposits in the immediate area with the objective of bringing additional deposits into additional production.
In November 2011, we posted the $591,474 Reclamation Bond and the Montana Department of Environmental Quality (“MDEQ”) approved the Golden Dream Operating Permit (#00173). Golden Dream is now fully permitted and bonded for mining operations between 500 and 1,000 tons a day.
As of April 2013, we have developed 650 feet of a 14’ X 14’ main underground access tunnel and 350 feet of a 12’ X 12’ underground ore access tunnel. In Q3 2012, we completed underground and surface water treatment and disposal infrastructure necessitated by our Operating Permit. The main underground access ramp will be used to transport mined ore to the surface. Ore will then be transported by road to the Mill Complex at Montana Tunnels for concentration; concentrated ores will be sold and shipped to a smelter.
Our initial production plan targets the main pyrrhotite zone. Beginning in Q3 2013, we plan to extend the Golden Dream primary access ramp to reach deeper ore zones. A “bore” raise will be completed from surface into the main access ramp as a secondary egress. We expect to achieve initial ore production by Q4 2013 and full production by Q2 2014. Concurrent with development, the Mill Complex at Montana Tunnels will be re-commissioned to allow for processing ore shipments. We anticipate production of 55,000 oz. of gold in Year One.
We believe that Golden Dream mine life could be extended beyond ten years at anticipated peak production levels. We have identified an additional 250K oz. on the current mine level and drill intercepts suggest ore grade mineralization to depths of 1,200 feet below the surface (the current Golden Dream Plan extends to a depth of approximately 850 feet below the surface).
$30M of prior exploration data will guide future mining programs across Elkhorn Goldfield. The Elkhorn property consists of a collection of patented and unpatented mineral claims totaling approximately 4,500 acres. Our team and the property’s previous owners have completed drilling on an array of sites across the Elkhorn Goldfield, including:
- East Butte: 55,000 oz. of probable gold.
- Gold Hill: 75,000 oz. of probable gold.
- Carmody: 45,000 oz. of probable gold.
- Additional Inferred Resources: 1,191,000 oz. of gold equivalents.