Golden Chest Mine near Wallace, Idaho
Golden Chest Operations
The Company is currently operating from two locations at the Golden Chest Project – the open pit mine that it has developed and operated since late 2016 and the underground mine which recently commenced operations in November 2017.
The Company anticipates production of approximately 15,000 to 20,000 ounces over the next two years after it is in full production, with all in sustaining costs (AISC) of $931 per ounce. The Golden Chest Mine Plan has a 3,000 tonne per month (tpm) production target with all material to be processed at the New Jersey Mill.
The open pit is located in an area of Idaho Vein outcrop, about 200 meters directly above the recently built mine portal. The starter pit contains an estimated 13,000 tonnes of mineralized material at an average grade of 4.99 gpt gold, or approximately 2,100 ounces of recoverable gold, with potential for expansion. In the first six months of 2017, NJMC processed approximately 13,525 dry metric tonnes of ore at the mill, producing nearly 1,900 ounces of gold.
The mining plan is the result of optimization studies based on core drilling completed by Golden Chest LLC (NJMC and Marathon Gold) in 2011 and 2012. Tightly-spaced (25-meter grid) drilling in the outcrop area yielded multiple intercepts of high-grade, near-surface gold mineralization, highlighted by Hole GC 11-39 which assayed 7.62 gpt gold over 9.3 meters, beginning just 3.4 meters below the surface.
Management believes the Golden Chest property has district-scale production potential for the longer term, not only near the recently constructed mine but in areas of past exploration and historic production (as partially described in the above-referenced 43-101). The main Skookum Shoot orebody remains open down-dip and substantial exploration potential remains in other areas including up-dip and on-strike extensions such as the Paymaster zone. A compilation study recently integrated all available modern exploration data from the property and across the Murray area. This includes work by Cominco, Newmont, NJMC, Golden Chest LLC, and information provided by Juniper.
Global Resource Estimate Notes:
- The 0.4 g/t gold cut-off grade for the Global Resource has not been constrained by economic parameters.
- The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define the Inferred mineral Resources as Indicated or Measured mineral Resources. It is uncertain if further exploration will result in upgrading them to Indicated or Measured mineral Resource categories.
- The Mineral Resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. The effective date of this mineral Resource Estimate is January 16, 2013.
This Resource has been estimated in compliance with National Instrument 43-101 standards and a corresponding Technical Report will be posted on the Company’s website. The Micon staff responsible for this Resource Estimate are Messrs’ Charley Murahwi, M.Sc., P. Geo., FAusIMM and Alan J. San Martin, MAusIMM(CP). Both are Qualified Persons as defined in NI 43-101, and are independent of Marathon Gold Corporation and New Jersey Mining Company. Micon acknowledges that it has read this news release and confirms the accuracy of it.
The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms, such as “measured,” “indicated,” and “inferred resources,” that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are cautioned not to assume that any or all of measured, indicated or inferred resources are economically or legally mineable or that these resources will ever be converted into reserves. U.S. investors are urged to consider closely the disclosure in our Form 10-K and Form 10-Q.