Golden Chest History 2018-02-20T15:07:27+00:00

Golden Chest Mine Portal

Golden Chest Mine History

NJMC first leased the property in 2003, then explored, drilled, and conducted small-scale mining in subsequent years. In 2010, NJMC terminated its operating leases to form Golden Chest LLC (a joint venture with Marathon Gold Corporation), which then purchased the property for $3.75-million and continued exploration and development. Through joint ventures and partnerships, in excess of $13 million dollars has been invested in the project.

In 2010, NJMC contributed certain mining claims, all geological data, and certain mining equipment to form Golden Chest LLC with Marathon, which contributed $4-million cash. In 2011 and 2012, Golden Chest LLC completed the most aggressive exploration programs in the property’s history, including 144 core drill holes (totaling 18,300 meters). Underground work included rehabilitation of the No. 3 Level, an exploration crosscut on the Intermediate Level, and construction of an exploration drift on the Popcorn Vein.  

NJMC completed an updated NI 43-101 Technical Report in October 2017. The updated technical report includes a Resource Estimate of 4.63-million tonnes grading 1.71 gpt gold (totaling 254,000 ounces of gold) in the Measured and Indicated categories and 3.86-million tonnes grading 1.80 gpt gold (totaling 223,000 ounces of gold) in the Inferred category.

In September 2013, the Skookum Shoot portion of the Golden Chest Mine was leased to Juniper Resources LLC, a Small Mines Development related company.  Juniper, through its affiliate companies, developed a state-of-the-art gold mine that began producing ore in late 2014. In September 2015, after spending approximately $7 to $9 million, Juniper ceased operations and terminated its lease, forfeiting the remaining mineralized material and mine infrastructure.

NJMC processed Golden Chest ore at its New Jersey Mill during the Juniper Lease, earning cash from milling fees and its share of a 2% net smelter return (NSR) royalty on gold production. Juniper mined 40,840 dry metric tonnes of ore at an average grade of 6.70 grams per tonne (gpt) gold, resulting in the production of approximately 8,000 ounces of gold.

In October 2015, NJMC signed an Option to Purchase Agreement with Marathon, giving it the right to acquire a 100% interest in the project. NJMC exercised the Option in December 2015, purchasing Marathon’s interest in Golden Chest LLC for $180,000 and a 2% NSR royalty on production from the property and an adjacent Area of Interest.