The company expects to mine 10,000 tons in order to produce a grade and tonnage estimate and rough stones for cutting. The cut stones will be used to determine quality, value and, ultimately, cashflow from the open-pit operation.
At a historic average of 13 carats per ton, the company expects to produce more than 100,000 carats of rough sapphires from a 4-mile-long dyke swarm, situated in the Judith Basin. The swarm consists of six parallel dykes, measuring up to 50 ft. thick. Five of the dykes are known to contain sapphires.
This summer the exposed a strike length of 250 ft. in the Middle Mine area. Sampling encountered 14.1 carats over 17 ft. on the west side of the exposure, and 33.9 carats over 22 ft. on the east side.
The cost for the small-scale operation has been pegged at US$78,000. Capacity should be 400 tons per 10-hour shift. Most of the pieces of the equipment are presently being refurbished, and mining is expected to begin shortly.
Pacific Cascade has spent US$290,000 to lease the Yogo property, which consists of 17 patented lode claims, 15 patented placer claims, 879 acres of deeded property and 42 acres of unpatented mining claims, from a private company. The lease is valid through April 2001, or earlier if the company exercises its option to purchase a 100% interest for US$10 million in cash or shares. Yogo is one of only a few bedrock sources of gem-quality sapphires in the U.S.
Pacific Cascade completed an initial public offering on the Canadian Venture Exchange earlier this summer, raising $1.09 million from the sale of 2 million units at 60 per unit. Each unit consists of one common share and one share purchase warrant.
Each warrant is exercisable into one common share at $1 until July 2001. At the same time, the company granted 4-year options to purchase 725,000 shares at a price of 60 per share to directors, officers and employees.
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