Spokane, WA - January 7, 2015 - Goldrich Mining Company (OTCBB: GRMC) (“Goldrich” or the “Company”) is pleased to provide a review of development and pre-production activities for the 2014 season at its Chandalar gold project in Alaska.
To date Goldrich NyacAu Placer, LLC ("GNP"), which is a 50/50 joint-venture between the Company and NyacAU, LLC ("NyacAU"), has invested over $17 million in equipment and infrastructure to prepare for commercial-scale gold mining on the Little Squaw placer deposit. Additionally, the Company is conducting hard-rock exploration on the 100% controlled lode gold targets that occur across the property.
"We are quite pleased with the continued progress made this year at Chandalar," commented Goldrich President and CEO Mr. William Schara. "In 2014, GNP focused exclusively on infrastructure build out of the new plant and will now be able to begin production in 2015."
Added Mr. Schara: "I am also pleased with the progress being made on our hard-rock targets. Our on-going exploration continues to show the district-scale gold potential of Chandalar."
Investment into Chandalar by GNP during 2014 totaled approximately $3.6 million. All costs up to commercial production are required to be funded by NyacAU and will be paid back from cash flow from gold production.
A new mining permit obtained in 2013 expanded the mine site area, including the area for a new airstrip, from approximately 10 to 350 acres. This provided an increased area for stockpiling topsoil, a larger settling pond system with greater capacity to ensure water quality and availability, and room to allow concurrent mine reclamation as the project advances. The new site will facilitate maximum and efficient production under the expanded mine plan.
Major accomplishments during 2014 included completion of the plant relocation to a lower and broader part of the valley, construction of new water ponds, and build out of the new expanded plant. GNP successfully mobilized and installed a new grizzly feeder on site as well as support frames for additional gravel screens and gold recovery tables, which will be mounted next spring. Full capacity of the feeder is expected to be approximately 600 bank cubic yards per hour and will be realized as additional gravel screens and gold recovery tables are added in stages through 2016. Because of the substantial increase in plant capacity, GNP will transport seven additional forty-ton rock trucks over the winter trail to the mine site, bringing the fleet total to thirteen trucks in all. The winter trail is scheduled to begin in February.
The total mine preparation expenditures to complete the mine are comparable to total costs, adjusted for inflation, as estimated in our 2009 preliminary assessment study for a similar mine plane. Plant and mine construction for the first stage of production are scheduled for completion in June 2015.
Goldrich also completed a hard-rock exploration program during the summer consisting of an airborne radiometric and magnetic survey. The survey was conducted by Precision Geosurveys to test an intrusion-related model for emplacement of lode quartz-gold occurrences.
Results of the airborne study demonstrate a broad northwest-trending belt of elevated potassium values with a centrally located, kilometer-scale feature where thorium values are elevated relative to potassium. The potassium/thorium feature anomaly is closely associated with magnetic anomalies to form a circular kilometer-scale feature in the highlands above and adjacent to the Goldrich-NYAC Placer operation consistent with an intrusive body at depth and is central to the northeast-trend of lode quartz-gold occurrences.
According to Dr. Mike Rasmussen, geologist and director of Goldrich, "The results give a strong argument that a mineralized, intrusive source of Chandalar lode showings is indicated. These data form the basis for the next stage of targeted drilling at Chandalar."
During the year 2014, Goldrich completed financings totaling approximately $1.9 million consisting of an equity financing for $200,000 in January 2014 (see press release dated January 27, 2014), a three-year loan of $300,000 in January 2014 (see press release dated January 30, 2014), and other equity financings in June and July totaling approximately $1.4 million (see press release dated July 23, 2014). Although the current capital markets and general economic conditions in the United States may be obstacles to raising financing, management believes the Company will be able to continue to secure sufficient financing to advance its operations and exploration activities.