In line with the Company’s objective to be able to sell Gold Springs with +3million oz gold and a permitting process completed
☒ GEOLOGY POTENTIAL:
We have clearly demonstrated the growth potential of Gold Springs with our 6 resources wide open to expansion and 27 other high-potential gold targets already identified, all covering only 40% of the property. Most of the remaining 60% of the area will be investigated with our expanded 2022 geophysical program. Our existing resources have an average depth of only 150 meters, and we still have significant resistivity anomalies and veins to test beneath them and along strike.
☒ ECONOMIC POTENTIAL:
The resources all outcrop or are near the surface and could be extracted by open pit mining and a technically simple heap leach operation. In general, a low stripping ratio allows a low mining cost, coupled with heap leach low processing cost for gold extraction, resulting in favorable economics and a low AISC (All In Sustaining Costs).
We completed an EA (Environmental Assessments) on both the Nevada and Utah portions of our project, finding no sensitive species and no critical habitat. In 2022, we will complete all the baseline studies and install monitoring wells to be able to move the permitting process forward
We have completed cultural surveys on 90% of the 33 targets to prepare them for our drilling program. Significant sites within the mining footprint are being mitigated without issues. This work will continue through 2022 and 2023 to avoid any potential delays in moving the operations forward.
With our water rights (600 gallons per minute), we estimate to have enough water for a 200’000 oz annual gold production. County roads cross the property, providing good access to the future mine sites. We had a favorable response from the Iron County Utah, to widen the easement for this access. A rail line is located 10 miles from the future site and power can be routed along the rail and county easements avoiding the need to complete an EIS (Environmental Impact Statement). Initial discussions with the local power cooperative determined low rates and cost of supplying electricity to the sites.
We have carefully mapped out the plan for progressing the Gold Springs Project through the hurdles of applying for the necessary permit applications in both Utah and Nevada. This plan is supported with ongoing baseline environmental studies and surveys that cover the entire Project area. We have plans to file in 2023 a Plan of Operations for Mining and Processing with the BLM (Bureau of Land Management) to have a permit in hand as soon as possible.