- Chandalar District is home to seven past producing alluvial mines
- Provide alluvial production potential while lode targets are developed
- 2010 production at Little Squaw mine totaled 1,522 ounces of gold
- 10.5 million cubic yards @ 0.025 oz/yd3 (250,000 ounces)*
- Open for expansion
- Bulk mineable- economies of scale
In addition to its hard rock gold targets, Goldrich has drilled out the upper portion of one of seven alluvial deposits on its Chandalar property. The Company discovered a deposit containing approximately 10.5 million cubic yards at an average grade of 0.025 ounces gold per cubic yard (approximately 250,000 ounces of gold*) and which is open for expansion with further drilling.
Goldrich believes this asset gives the potential for significant alluvial (placer) production while the hard-rock targets are developed. Goldrich completed a test mine in 2009, producing approximately 600 ounces of gold, and commenced its first step in commercial production in 2010, producing approximately 1,500 ounces of gold. Goldrich did not operate the mine in 2011.
In 2012, Goldrich formed Goldrich NyacAU Placer LLC (GNP), a 50/50 joint venture, with NyacAU LLC to operate all Chandalar placer operations (see press release dated April 4, 2012). NyacAU is required to provide all financing to bring the mine into production. NyacAu completed the construction of the mine in 2012 and production is now ready to begin in 2013.
The production goal for 2013 is 8,500 ounces of fine gold and approximately 10,000 ounces per season thereafter. Total production could substantially increase if a second gold recovery plant is added.
Based on drilling of the placer to date and the anticipated production rate, Goldrich estimates the mine life will be approximately 25 years and believes this may also be significantly extended with additional drilling.
* This mineralized material is not a mineral reserve as defined in SEC Industry Guide 7.