Shamrock looking to production

An approval- in-principle has been reached between Shamrock Resources (VSE) and United States Antimony (NASDAQ) for the development of the Yellowjacket property in Lehmi Cty., Idaho. A proposed plan of operation is based on an initial rate of production of about 250 tons per day. United States Antimony will act as operator and provide the bulk of the necessary mining and milling equipment while Shamrock will earn its 40% interest by funding the remaining capital expenses as well as by providing initial working capital.

It is estimated that the total funding required will be in the order of US$600,000. Shamrock is negotiating with United States Antimony to obtain performance guarantees which would limit the funding to the estimate.

Payout from production will be on the basis of 70:30 to Shamrock. When it has recouped its investment, the company will revert back to its 40% interest.

Ulli Rath, president of Shamrock, noted that regulatory approval for the mine was expected shortly and that startup was scheduled for the end of July with full production expected by the beginning of September.

Mining will be by open pit method while milling will include gravity separation, followed by flotation and leaching.

Cash costs are estimated at less than US$240 per oz. for the mining reserve of 176,000 tons grading 0.15 oz. gold. Shamrock reports that it has identified an overall resource of 660,000 tons grading 0.11 oz. gold on which it plans infill drilling after startup.

A final production decision for Yellowjacket will be made after all regulatory approvals have been received, a definitive agreement has been signed and Shamrock has raised the necessary funds.

Rath indicated that the company hopes to raise about $2 million which will also allow for the funding of continued research and development at the 50.3% owned Research Capital which specializes in bioleaching technology. No definitive financing plans have been made although Shamrock has hired Research Capital as financial adviser.