- The Chandalar District is home to seven past producing alluvial mines
- Provides non-dilutive funds to further advance lode targets
- 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. Based on drilling, Goldrich estimates the deposit contains approximately 10.5 million cubic yards at an average grade of 0.025 ounces of gold per cubic yard (approximately 250,000 ounces of gold*) which remains open for expansion.
Goldrich believes this asset provides the potential for significant alluvial (placer) production while the hard-rock targets are further 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 agreed to provide all financing to bring the Little Squaw mine to production in exchange for a 50% interest. NyacAu has completed construction of the mine site and production began in August 2013.
In September 2013 GNP received the necessary permits and government approvals to expand operations at Chandalar. The new permits allow for installation of multiple plants. Construction of a second plant is underway and expected to increase production to as much as 20,000 ounces of gold annually by 2015. The total area authorized by the new permit, including area for a new airstrip, is 350 acres.
Based on drilling of the Little Squaw deposit to date, Goldrich estimates the mine life will be approximately 15-20 years and believes this could be significantly extended with additional drilling. Mining operations at Chandalar utilize conventional gravity technologies for gold recovery. All plants employ a re-circulating, closed-loop water system to minimize water usage and protect the environment.
* This mineralized material is not a mineral reserve as defined in SEC Industry Guide 7.