Chandalar Ready For Production in 2013
Spokane, WA - November 5, 2012 - Goldrich Mining Company (OTCBB: GRMC) ("Goldrich") is pleased to report Goldrich NyacAU Placer, LLC ("GNP"), a 50/50 joint-venture company owned by Goldrich and NyacAU, LLC. ("NyacAU") and operated by NyacAU, has successfully completed the work necessary to begin production at Goldrich's Alaskan Chandalar Property at the start of the 2013 field season. 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 installed in the future. Goldrich forecasts that cash production costs for 2013 will be less than $700 per ounce of gold.
Bill Schara, CEO of Goldrich commented that "The project is on schedule and we are only eight months away from the beginning of the 2013 production season. Reaching cash flow was one of our major strategic milestones to achieve for growing the company. We are very pleased with the progress made by GNP."
Work completed in the 2012 work season included stockpiling topsoil for future mining reclamation, stripping of overburden, building a closed recirculating water pond system to minimize water usage and protect the environment, and constructing an alluvial gold recovery plant. In addition to gold recovery, the plant has been designed to produce and stockpile sand and washed gravel for upgrading and construction of roads, airstrip and other assets on site.
For 2013, gold production is expected to take place approximately from mid-June through mid-September, subject to weather. The existing winter trail route will be prepared for use in February and March 2013 to bring in additional heavy equipment and supplies. Continued stripping of overburden and stockpiling of placer pay gravels is planned to begin in May 2013. All costs up to commercial production, which Goldrich forecasts to be approximately $5 million, are required to be funded by NyacAU and will be paid back from cash flow from gold production.