Using a grade of 0.58 oz. Au/ton over a maximum thickness of five feet based on historic records, it is estimated that the Bates vein alone represents an exploration target that could host approximately 1.1 million ounces of gold to a depth of 2,400 feet. The strike lengths of the Vasa Levitt, Gettysberg and the six other veins covered by the project claims could increase this potential by a factor of two to ten.
We are required to complete our due diligence by November 30, 2006, at which time, should the historical data prove viable, we may complete the purchase of the assets for a fixed price of $6,500,000 CAD using debt carried by the seller. The payments on this debt are contingent on production. The assets consist of the Bates-Hunter Gold Mine, the Golden Gilpin Mill, a water treatment plant, mining properties, claims, permits and all ancillary equipment.
The Bates-Hunter mine is located about 35 miles west of Denver, Colorado within the city limits of Central City while the mill lies about one mile by paved road to the north in Black Hawk. The Central City mining district lies on the east slope of the Front Range where elevations range from 8,000 feet in the east to 9,750 feet in the west. The Bates-Hunter mine property is generally zoned for mining or industrial use. Permit M-1990-41 covers the Bates-Hunter Gold Mine and the Golden Gilpin Mill and is in good standing.
The Bates-Hunter Shaft is equipped with a two compartment 85-foot-tall steel headframe and a single drum five-foot hoist capable of using a one-inch diameter rope to hoist two-ton skips from at least 1,000 feet depth.
A state-of-the-art water treatment plant has been constructed adjacent to the mine headframe. This is a significant asset given the mine site location and environmental concerns. Substantial water rights are attached to the mine and mill permits. There is ample water to meet both present and future project needs. The Water Discharge Permit #0043168 is in good standing until July 31, 2007.
We have begun the first phase of work at the Bates-Hunter. Site clean-up, final inspections and the like are being performed in order to get the water treatment plant on-line. The water treatment plant and the subsequent dewatering process has begun. Mapping and sampling all accessible historical workings will be completed along with the preliminary metallurgical test work. At the end of Phase One, the process should have confirmed some of the historical information regarding the Bates-Hunter property, defined some mineable mineralization, and provide a good idea regarding the geological continuity, grade and thickness of the mineralization and its metallurgical characteristics. It is estimated that Phase One will require approximately $500,000 and three months to complete. The results from the Phase One work program will determine whether to continue to the next phase.
In Phase Two a diamond drill station will need to be established on the 745-foot level about 150 feet away from the Bates vein to conduct underground diamond drilling. Diamond drilling will be targeted to explore both above and beneath the old workings and attempt to pinpoint the vein intersections. The drill holes should be drilled to lengths that will allow them to pass through the Bates vein and intersect the Vasa Levitt vein and explore it from its intersection with the Bates vein. It is estimated that Phase Two will require approximately $650,000 and four months to complete. Concurrent with these activities, investigations are planned to define the metallurgical characteristics of the mineralization and develop a suitable process flow sheet prior to sourcing a processing plant and mining equipment.
If the tonnages and grades encountered from the diamond drilling are high enough (say 100,000 tons in the one ounce per ton range) and we were able to raise the capital necessary to consummate the purchase of the assets, we would then commence with phase three: that of placing the project into early production at a small scale (in the range of 100 TPD). A review of the costs to rehabilitate and refit the permitted and owned Golden Gilpin Mill will be undertaken during Phases One and Two.
Bates-Hunter
Latest Assay Results - August 25, 2008
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Bates-HunterNI 43-101 Compliant Technical Report - July 28, 2008
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Bates-HunterBusiness Development Plan Updates - June 24, 2008
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Bates-HunterBusiness Development Plan Updates - December 5, 2007
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Bates-HunterBusiness Development Plan Updates - November 29, 2007
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Underground Assay Results |
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Bates-HunterDiamond Drill Hole BH07-07 Section Maps
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Bates-HunterGold Mine Section Maps
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