Based on the favorable findings of a preliminary investigation, Consolidated Del Norte Ventures (VSE) recently acquired an option to evaluate and own 100% of the Idaho-Maryland gold mine and accompanying 2,750-acre mining concession near Grass Valley, Calif. The former producer is reported to be the second largest underground gold mine in the state, having turned out about 2.5 million oz. of the yellow metal since its discovery in 1851. Past production was obtained from surface to a vertical depth of 3,280 ft. The adjoining Empire mine, California’s largest underground gold mine, produced about 6.5 million oz. gold and was mined to vertical depths exceeding 8,000 ft.
Del Norte retained Denver-based James Askew Associates to carry out a preliminary investigation to determine if the mine could still have reserves in place and/or unexplored tonnage potential. At the same time, Condor Earth Technologies was retained to assess possible environmental problems.
These initial investigations were both favorable. That led to the company negotiating a 10-year mining lease and option to purchase contract. The total purchase price of US$5.92 million is payable through staged tax and royalty payments and a production royalty ranging from a 4% to an 8% net smelter return.
A second-phase program has been recommended, consisting of a detailed review of mine and mill records, the development of a proposal for mine re-entry permitting, and the taking of shaft water quality samples. A third-phase program would follow, consisting of a preliminary reserve estimate and cost estimate for dewatering and shaft rehabilitation work.
The preliminary review of historical operating data has the company confident the mine has reserve potential, both in lower-grade stringer mineralization and in areas where numerous high-grade intercepts were noted. Previous drilling in one undeveloped area returned 30 ft. of 0.48 oz. gold, including 19 ft. of 0.62 oz. and 55 ft. of 0.18 oz. gold per ton.
The company is proposing to change its name to Idaho-Maryland Mining Corp.
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