Saturday, January 21, 2012

Temp

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TWO DISTRICTS APPROX 200 MILES APART IN NEVADA USA.


A. Northern third of the historic Comstock Lode in Virginia City NV

B. Union Mining District on a rim of a prehistoric submarine caldera, one valley and one mountain range to the northwest of Round Mountain that was for years the world's largest open pit gold mine, still producing 300,000 - 400,000 oz gold per year. Data suggests the Nevada Ione Gold Mine is in the same trend.

New discoveries in 4 historic mines of the northern Comstock in Virginia City, Nevada.
1) 2,185,000 ounces-gold estimated from Sutro Mine from 23 million tons of ore

2) 2,000,000 ounces-gold & 50,000,000 ounces-silver low estimate
5,000,000 ounces-gold & 150,000,000 ounces-silver high estimate
from 11-15 million tons of Big Bonanza II Mine Blue Clay at surface and high grade veins 2,000 feet deep,
600 feet north of Dan de Quille's Big Bonanza.

3) and 4) in flyer downloadable by clinking file names below that are links to Google's automated routines.

Consolidated Virginia Mining Company have been mining choice high grade gold and silver veins since the 1980s.
The same company that existed in the historic era of Virginia City Comstock 1874-1913.

To increase productivity 250%, the private company is offering equal profit sharing to private partners.

Click to open:



Historic DOWNIEVILLE DISTRICT Mine in NORTHERN SIERRA CALIFORNIA

Gold District of California

A Downieville District, Gold Mine in California USA

Now a Group due to consolidation of FOUR historically active mines.
Downieville is a lode and placer gold-mining district in west-central Sierra County in the general vicinity of the town of Downieville. It includes the Fir Cap Mountain, Craycroft, China Flat, and Slug Canyon areas and part of the Pliocene Ridge area. The Goodyear's Bar-Alleghany belt lies immediately to the west, the Sierra City district to the cast, and the American Hill district to the south.

Regional History
Many rich strikes were made. At nearby Tin Cup Diggings, three men filled a tin cup with gold each day before quitting. A 25-pound nugget was found in the river upstream from the town in 1850. More than 5000 persons lived here in 1851. After the surface placers were exhausted, the river was mined, and hydraulic and drift mining became important. Mining continued almost steadily until World War II, and intermittent prospecting and skin diving for gold continues.

Production of this mine group is slated to start May 2012, since there is no new disturbance of the earth, only rehab of existing conditions.
Milling: ore will be trucked to Nevada ($10,000 worth of ore per daily truck expense of $800), thereby avoiding the time for on-site mill permit.

Phase Two has $120 million worth of ore blocked out (estimate based upon $1200/oz gold). $100,000 buys out the claim owner, with no relative assigns other than his wife.

The applicable jurisdictions want the mine in production. Other similar mines in the region have already been approved for all permits relative to mining.

The Claim Leasee has the following plan for phased development of the Downieville, CA claims.

The gold project presently under lease agreement has oxidized free milling gold that only requires a gravity wash system to extract.

The property is presently in the permitting phase and expects to be able to commence exploitation mid-May 2012. Prior to that the exploration permit allows 10 ton per day to plan of operations for both extraction and milling.

After one year will increase this production. According to the Geological report by the well known Milton Heaney, there is a section just 50 feet from the portal of the Drift vein that contains 250 to 660 tons of said 1 oz/t ore. Mining Contractor has verified this block of ore and company assays confirm that quality. The portal is all that will have to be rebuilt in order to immediately, safely and securely access this block of ore. Within this tunnel there is also substantial 1/2 oz/t ore that, at the time of Heaneys' study, was not considered viable with gold at $375, but most certainly is at today's prices.

There is another, reported far more substantial, 6 blocks of quality ore in a separate tunnel that we have been unable to verify due to capsizing. Company has the old miners reports and maps. To access this area, Operations proposes bypassing the majority of the tunnel system by driving a decline and arriving at the location of the 6 blocks. Plan is to drive the decline into the vein system and thereby extracting gold bearing ore in the vein.

Additionally there is a large shear zone where the geologist estimated the potential for an open pit mining operation with, at today's prices, an approximate $100,000,000 worth of readily accessible gold bearing ore at between 6 and 8 grams per ton. Although the company has not explored this section of the mines claims, the mine owner claims that presently there are three tunnels that lead into this 35 foot wide ore body and that it is his position that much better grade ore must be in this ore body in order for the old miners to concern themselves with extracting this ore when gold was so $20/ton in 1926, and 1 oz/t was the usual cut-off grade.

There are tailing dump piles at the Group claim that have yet to be studied, although the geologist did. But again, what is valuable today with gold above $1500/oz is a lot different than when Heaney studied them when gold was $375/oz.

Company has a 40t/day ball mill as well as conveyors and crushing jaws that are on the California site. Later company will buy a custom set-up for the free milling gold.

165 acres of prime 'pocket' gold country, few miles southeast of historic Downieville, California, north of Lake Tahoe, north of U.S. Interstate Hwy 80, historically famous during the latter California Gold Rush in the latter 1800s, near and refer to publications about the historically famous Sixteen-To-One Mine (16:1).

Three Phases have been identified to exploit known mineralization ranging from easiest deposit (Phase One) which is small compared to larger and additional tunnels on two separate claims, which will be be more work to open. (Phases 2 and 3).

Financial requirements to reopen Phase One of Mine site, California.
Spring 2011, sufficient investments have been transacted to continue progress on schedule.

$ 50,000 - COMPLETION OF PERMITTING
$1000 has been funded. Consultant has begun initial research and cost analysis into processing the permits.

$ 2,500 - California Water Control Board Permit. (Estimate)
Actual charge TBD when filing submittal.

$10,000 - Site Preparation and Mining Equipment Installation
Clean-up of rock slide at portal - estimate one week by three person crew.

Prepare existing, on-site operations equipment and two buildings for Production.

Mobilization - Relocate Mining Equipment from prior operations elsewhere in 2 states, California and Nevada, and a mobile core drill from the State of Sonora, Mexico.


$ 5,000 - Rehabilitate portal of the Drift tunnel on one claim.

Mining prior to closing in 1970 did not complete exploitation of the drift, but rather drift was begun to intersect vein extending from the claim. Vein was intersected at 54 feet, and drift was extended an additional 50 feet along vein structure. Vein is exposed and extends along surface an additional 300 feet. Trenching to uncover vein structure could show this vein extends further.

Historically respected California Geologist Milton Heaney compiled assays of the main body of mineralization in the drift.

Heaney's Geological Report estimates possible to probable value of calculated gold mineralization he encountered to be $350,000 - $1,000,000 inside the drift. This is calculated at today's gold values. Heaneys' analysis of the visible vein structure concluded that a gold grade of above 1 oz/ton (OPT) should hold for the length of the vein structure in the Drift for a thickness 25 feet above and 25 feet below the tunnel (50 feet plus height of adit). His report further states the values correspond to values in the claim of the Group, and should continue along the 300 foot extension beyond the existing drift, as well as to depth. With further testing and sampling, this should increase the known values of Phase I significantly.

$10,000 - Exploration

Further investigate and test multiple historic tunnels and ore bodies in the Claim Group.

Claim 1 (P Drift)

Claim 2 (Adit 2)

Claim 3 and Annex Claim at southwest with three tunnels - Heaney estimated $100,000,000 (100M) dollars of gold bearing ore at today's adjusted values.


$25,000 - First Phase Exploitation of ore, once the permits are in place.

Initial extraction: 10 tons per day.

Infrastructure upgrades: 30 tons per day.

Since host rock for gold is an easy to liberate oxide, estimate $50,000 worth of gold in about one week of mining and milling.

$35,000 - Incorporation, Infrastructure Set-up and materials, fuel, salaries, accommodations, travel, vehicles

Project Director has associates slated to invest $15,000 and $35,000.

Eugene, current Project Director, stated in regards to the #3 claims:
It is too complicated now to explain all the particulars of how we plan on working this claim, but the mine owner, whose grandfather over one hundred years ago opened the #2 Mine in 1898, says that the values of this section of the Mine are actually much higher than what the report conservatively estimates, because the geologist, Milton Heaney only studied the surface of the 35 foot wide, broad vein structure, but never entered the 3 tunnels which exploited this massive ore body.

The old miners never exploited gold bearing ore with a content below 1 oz/ton.
Not at this mine, or almost anywhere else when lode gold mining. One oz/ton was their "cut-off" point of profitability. The geologist took his samples while he followed and traced the surface area of the ore body, but not inside the tunnels where the old-timers mined because he was studying this broad shear zone for the feasibility of an open pit mine, not for subterranean mining.

So we would like to secure the portals and re-enter this area of the claims for further investigation, including assaying of the interior of the tunnels. This section of the Mine would be exploited as either Phase 2 or 3, depending upon the results of our exploration assays.

Our mining operations manager recommends that Phase Two mining occur during the 1-2 year Phase One.

Phase Two: No. 1 tunnel on the No.2 claim can be quickly opened and exploited, and because it literally sits below the existing staging area, it would be easier to permit, and it would involve no added infrastructure. Historic maps claim it has greater resource than Phase One, but its' opening would also still have a larger expense. Our rationale is to start mining with a low budget for Phase One. Profits from Phase One are to be used to mine Phase Two.


Maps and old reports of the No. 1 tunnel mine show that there are 6 blocks of ore which the original miners discovered and prepared for mining. However non-essential gold mines were closed by the Second World War so that manpower and equipment could be put to use for the war effort. Mine claim owner believes this area of the mine has not been exploited because the portal and another large area of the tunnel caved in since closure. His grandfather owned and operated the mine at that time. The reports claim the ore contains free gold with pin-head to one inch nuggets. But, because we are not certain it was never mined in the interim, we propose to first exploit those areas of the mine we know contain valuable mineralization, and leave this section for exploration once we have the financial resources to open a decline tunnel to the blocked out area, bypassing the caved-in areas. Our staged operational plan would be to follow the vein structure down to a stoped area adjacent to the 6 blocks of ore. While descending along the vein, we could thereby be raising potential revenue from the less valuable ore known to exist at surface, while simultaneously proceeding to the deeper and richer parts of the vein structure below.

Permitting for Milling after Phase One:

Presently, there are no known obstacles to permitting the documented existing Mill-site for ore processing. However, if difficulties are to be associated with that aspect of permitting, Mine Co would then propose to truck Phase One ore to mine friendly Nevada for milling. It is expected by the permit processor that permitting for both can be accomplished in a 1 year time span (ending May 2012), as long as funding is available for that process and it proceeds early this summer. On site, mill permitting process could otherwise occur during Phase One mining. The mill permitting process would then be approved during Phase Two.

Phase One - Phase Two Transition

$75,000 would be needed to set up the milling operation on the historic mill site. Presently the company has a 40 ton/day ball mill that goes with the mine, along with a set of jaw-crushers and two partially complete conveyors. Mine Co would have to buy a grisly screen as well as construct some ore bins. Also, concrete would need to be poured to anchor the ball mill. Mine Co would need to purchase a motor and belts to power the ball mill. Mine Co would also need a wash system and generator. There are other miscellaneous parts that would be required.

Seven geological reports totaling approximately 100 pages of PDFs can be sent upon request.

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Thursday, August 18, 2011

Mining Property Opportunties

The Downiville, California Eagle Bird Gold Mine

The Eagle Bird gold project, which we presently have under agreement, is oxidized free milling gold that only requires a gravity wash system to extract.

We are presently in the permitting phase with the Eagle Bird, expect to be able to commence exploitation mid September at the earliest. Our "exploration" permit allows 10 ton per day, plan of operations for both extraction and milling.

After one year we will be able to increase this production. According to the Geological report by Milton Heaney, there is a section just 50 feet from the portal of the Powder Drift vein that contains 250 to 660 tons of said 1 oz/t ore. Our consultant, Frank Lalonde has verified this block of ore and our assays confirm its quality. The portal is all that will have to be rebuilt in order to immediately, safely and securely access this block of ore. Within this tunnel there is also substantial 1/2 oz/t ore that, at the time of Heaneys' study, was not considered viable with gold at $375, but most certainly is at today's prices.

There is another, reported far more substantial, 6 blocks of quality ore in a separate tunnel that we have been unable to verify due to capsizing. We have the old miners reports and maps. To access this area, Frank proposes bypassing the majority of the tunnel system by driving a decline and arriving at the location of the 6 blocks. He would do this by driving the decline into the vein system and thereby extracting gold bearing ore as he proceeded.

Additionally there is a large shear zone where the geologist estimated the potential for an open pit mining operation with, at today's prices, an approximate $100,000,000 worth of readily accessible gold bearing ore at between 6 and 8 grams per ton. Although we have not explored this section of the mines claims, the mine owner claims that presently there are three tunnels that lead into this 35 foot wide ore body and that it is his position that much better grade ore must be in this ore body in order for the old miners to concern themselves with extracting this ore when gold was so cheap at that time, and 1 oz/t was the usual break off point.

Although there are tailings and other dump piles at the Eagle Bird Group claim, we have yet to study them, although the geologist did. But again, what is valuable today with gold above $1500/oz is a lot different than when Heaney studied them with gold at $375. Once on site we intend to investigate these further.

We also have a 40t/day ball mill as well as conveyors and crushing jaws that go with our California site. Later we intend to purchase a smaller, custom set-up for the free milling gold..

We are moving forward with California, but have to wait for snowfall before our permits are granted in California. In the interim however, we can do additional exploration as well as shoring of the portal for the ore we plan on first exploiting from the Powder Drift tunnel.

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TWO DISTRICTS APPROX 200 MILES APART IN NEVADA USA.


A. Northern third of the historic Comstock Lode in Virginia City NV

B. Union Mining District on a rim of a prehistoric submarine caldera, one valley and one mountain range to the northwest of Round Mountain that was for years the world's largest open pit gold mine, still producing 300,000 - 400,000 oz gold per year. Data suggests the Nevada Ione Gold Mine is in the same trend.

New discoveries in 4 historic mines of the northern Comstock in Virginia City, Nevada.
1) 2,185,000 ounces-gold estimated from Sutro Mine from 23 million tons of ore

2) 2,000,000 ounces-gold & 50,000,000 ounces-silver low estimate
5,000,000 ounces-gold & 150,000,000 ounces-silver high estimate
from 11-15 million tons of Big Bonanza II Mine Blue Clay at surface and high grade veins 2,000 feet deep,
600 feet north of Dan de Quille's Big Bonanza.

3) and 4) in flyer downloadable by clinking file names below that are links to Google's automated routines.

Consolidated Virginia Mining Company have been mining choice high grade gold and silver veins since the 1980s.
The same company that existed in the historic era of Virginia City Comstock 1874-1913.

To increase productivity 250%, the private company is offering equal profit sharing to private partners.

Click to open:


Uphill Lode Source of Historical Placer Mining Available for Exploration JV

in one of the seven historical gold mining districts of Nevada with significant placer production has yet to be exploited by modern major mining companies. In modern times, five of those districts developed large lode-gold producing mines. This property is in one of the two districts that have not.

Most of the historic mines were on the northwest flank of the ridge in property and, although some of the veins reportedly were very high grade, production apparently was sporadic and had small success because the veins were thin and erratic. That historical description of vein wrok is countered by recent personal reports of some veins being more than ten feet wide and carrying gold values of more than 5.0 ounce per ton (OPT-Au).

Placer mining downhill from the property is active today. Data indicates the likelihood that the uphill property is a motherlode source for the mining district in central eastern Nevada USA.

Historical mining including underground works boomed 1880-1900 in the district. Significant nuggets were mined. Reviewing production reports from that era needs to understand that different parties reported different amounts concerning the same mining operation. Actual extraction and reported amounts did vary due to viewpoints for taxation, reports to investors and high-grading of various sorts. Historical records state placer production totaled greater than 100,000 ounces of gold, whereas other production records estimated 250,000 ounces of gold.

Early production was probably not recorded and accurate production records were rarely kept, since mining operations were small and independently owned by individuals rather than by large mining companies. Many miners simply remained secretive about their production. The records indicate that lode production was only about ten percent of that mined from the placer deposits.

The earliest lode mines were largely confined to high-grade veins in the Mountain Quartzite, but some of the later mines apparently extracted some ore from replacement beds in limestone and shale. Most of the underground mines, especially those at the north end of the Ridge, have caved in. Mine maps and other records are not available. Lode-gold mining operations continued at irregular intervals into the 1940’s when the mines were closed by World War II.

Over the years, unique circumstances have kept the property from being evaluated with modern techniques. It appears to have been overlooked by the major mining companies because the property did not fit the traditionally recognized deposits in Nevada.

A senior Nevada mining engineer recently stated to me that the gold property of the ownership merits attention. He knows half of the mines in western USA.

Some high-grade veins were mined on this unpatented lode mining claim group. A bedrock source, the motherlode, for the large placer deposits down in the valley has yet to be identified. Therefore the primary objective of the Resource Company controlling the property is to proceed with exploration work to determine if economical gold reserves exist in their ground. The Development Plan is detailed in 21 pages of company literature.

The Utah based Resource Company did Joint Venture with an Exploration Company in the 1990s. Preliminary exploration in 1995 did gather some modern data, however the relationship failed when the exploration company filed for bankruptcy in the late 1990’s.

The highest part of the claim group is 8,811 feet above sea level at the top of a ridge. The elevation of the valley is 6,000 feet. Higher in the district is a peak at 10,000 feet. Temperature highs during the summer often reach 90ºF and lows during the winter are consistently below freezing. Annual precipitation is about 12 inches, mostly as snow during the winter months. The field season usually extends from May into November, but mining operations could be conducted year round.

Rocks exposed in the area are from the Precambrian to Tertiary ages (figure 3 of the company literature in the Stratigraphy section).


Structure

Although much of the regional structure has been attributed to a mountain forming intrusion, more recent structures are the likely result of Basin and Range tectonics that produced a series of generally north-south, high-angle normal faults. The ridge in the property is the probable result of this Basin and Range faulting, with faults having been mapped on both east and west flanks of the ridge. As tectonic forces uplifted the central mass of the Range, the Ridge may have slumped toward the valley by virtue of being on the edge of the uplift. Evident on the lower west flank of the ridge are numerous smaller slump blocks probably created by gravity sliding contemporaneous with or subsequent to the faulting of the ridge mass. There is also evidence that suggests the possible existence of a younger (Tertiary) pluton under the area, possibly emplaced after the Basin and Range faulting occurred.

Normal faults trending generally north-south and with apparent large displacements flank the Ridge. The ridge is also cut by several faults trending east-northeasterly, especially in the northern part of the ridge. faults may have caused some of the intense shattering of the quartzite and shale.


Mineralization, Alteration

The most obvious type of bedrock mineralization on the property is that of gold in thin (from a few inches to a few feet thick), steeply dipping quartz fissure veins primarily in the mountain quartzite. Most of these gold veins occur in the northern half of Ridge and they were mined in a historic mine on the east flank and at other mines on the northwest flank of the ridge.

Alteration is not extensive in the district, and consists primarily of silicification in a main bed. There is also some bleaching and iron staining in parts of the Limestone. The Mountain Quartzite and Shale show evidence of low-grade metamorphism at places.

Mining Claims

The Resource Company owns thirty-four (34) unpatented lode mining claims in the Mining District: The mining claims cover most of certain Ridge, a topographic spur on the west flank of a Range. List of claim names with numbers, and a detailed large-scale claim map are available upon request.

Modern History

In the early 1970’s, a prominent mineral geologist undertook geological investigations of the Ridge area.

Geologic mapping, sampling, trenching and ground magnetic surveys occurred in the mid-1970s.

Later in the 1970s an exploration company funded limited a field program of continued mapping, expansion of earlier geochemical surveys, and some geophysical surveys to confirm the geochemical anomalies of the claim holder who was prohibited from continuing work due to failing health. The current owner, now in his sixties was much younger then, was working with the claim owner of the 1970s.

Later the son of the 1970s claim holder took over forming another exploration company that started a few small geochemical and geophysical surveys in the late 1980s, along with additional road construction. Minimal sporadic activities continued through the early 1990s to fulfill the government’s requirements for annual assessment work to keep the claims valid.

The field work by the family identified several targets for additional study and drilling. Principal high-grade targets were identified in three zones during the 1970-1990s are summarized in Figure 7 of company literature.

Figure 10. Exaggerated magnification of the shattered Mountain Quartzite, illustrating coarse gold occurring in fractures rather than in complex mineralogical assemblages. This type of gold occurrence explains the gold placer deposits in the gulch better than other theories.

In the 1990’s, a junior mining company with several producing properties in Nevada signed a joint-venture agreement and started an exploration program to evaluate the property. This exploration program included extensive soil sampling surveys and the drilling of numerous reverse-circulation holes. The surveys and drilling identified new targets. The junior was planning additional drilling and exploration surveys for the property when the company suddenly filed for bankruptcy protection. This ended the joint-venture agreement and the claim holding resource company was also forced to shut down as gold prices fell and funding disappeared.

In the mid-1990s another party entered and mapped some of the old mines. This provided the ownership with valuable subsurface information with which to develop a three-dimensional geologic model for the area. Additional new information revealed that some of the mines were not depleted, as has been believed for years, but that some of the mines were just being developed and new veins being tapped when mining was shut down by World War II. As stated previously, unique circumstances have kept the area from being developed since the end of the war. It is unknown how much high-grade ore remains in the mines, but this must be determined by additional mapping, sampling and drilling.

It becomes obvious that the potential for a significant ore body is great and that the target is certainly worthy of a serious and comprehensive evaluation effort. There is no question that gold occurs in the property. The question to answer is “How much?”

Should a significant ore body be defined, the feasibility of developing a large mine is aided by several other factors including the existence of nearby mines, the convenience of high-voltage power transmission lines that cross the northern end of the Ridge, the availability of water and water rights in the Valley, the close proximity to U.S. Highways for access and transportation, and the lack of serious environmental concerns and restrictions in this area that has been mined for more than 120 years.

Although the work of the junior miner and claimholder focused on the potential for a large, bulk-mineable deposit, the potential for other high-grade vein deposits cannot be ignored. A neighbor mine still has unmined high-grade veins containing visible gold that warrant further evaluation. Additional high-grade veins have been identified nearby that warrant drilling.

PROPOSED PROGRAM

The structural and mineralization complexity of the District requires the use of modern evaluation techniques in order to locate and define the prospective ore-bearing zones. The Resource Company desires to conduct a phased and integrated evaluation program to identify, define, and delineate ore bodies. The proposed program is delineated in company literature that shall be distributed to you as a PDF in email if this project is of interest to you.




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