In March 2018, NJMC acquired the Four Square Property in the Murray Gold Belt of North Idaho.
The Four Square Property is comprised of 334 acres of mining claims, including 46 acres of patented mining claims, located three miles west of the Company’s Golden Chest Mine. NJMC has also acquired, by staking, 348 additional acres of unpatented mining claims south of the leased area, adjacent to the patented claims.
The Four Square Property has two primary features:
- The Crown Point Vein zone, which exhibits 40 to 100-foot widths along at least 3,000 feet of strike in surface outcrop (Shenon 1938) and will be evaluated and diamond drilled to test its potential to host an underground bulk-mineable deposit;
- The Four Square Mine, an historical producer of gold and tungsten from one of several parallel shoots, analogous in many ways to the Company’s Golden Chest property.
The Company’s primary focus at the Four Square Property is the Crown Point Vein, which occurs along a large north-south oriented shear zone and is nearly vertical in dip. Outcrop exposures show that the veins occur as a series of anastomosing quartz veins and quartz vein stock-work with incorporated lenses of country rock. The adjacent claims staked by NJMC are on strike with the southern extension of the Crown Point Vein.
A core drill program is planned for later this year. The program will include a series of angled holes intended to cross the near-vertically dipping Crown Point Vein at various distances and depths, allowing the Company to begin evaluating its potential to host an underground bulk-mineable deposit. If the results are in-line with historic expectations, Management believes significant mineable tonnage could be defined.
The Four Square Mine and Mill produced gold and tungsten concentrates throughout the 1930s. The historic mine plan was to drift down from the mill site to the Crown Point Vein, which was to be intercepted more than 3,000 feet to the east, about 1,250 feet below ground surface. The drift was expected to cross five to seven quartz veins before reaching its target. The first three of the expected veins were successfully intercepted, with gold and tungsten ore produced from the No. 2 (“Achievement”) Vein on three levels and processed at an on-site 100-ton per day mill. The drift was never extended to the Crown Point Vein.
NJMC will acquire the Four Square Lease for $800,000 payable to the lessors in cash and shares over three years, along with a 2-percent Net Smelter Returns (NSR) royalty, half of which can be repurchased by NJMC for $1-million.