Spokane, WA - May 7, 2012 - Goldrich Mining Company (OTCBB: GRMC) ("Goldrich") is pleased to report Goldrich NyacAU Placer, LLC ("GNP"), has successfully completed mobilizing the mining equipment needed to begin mining operations this summer at Chandalar, Alaska. GNP is a 50/50 joint-venture company formed by Goldrich and NyacAU, LLC. ("NyacAU") and managed by NyacAU to mine Goldrich's various placer properties at Chandalar (see Goldrich press release on April 4, 2012).
The equipment was delivered over a 90-mile winter trail by GNP contractors. In addition to equipment, provisions for a 30-man camp were delivered, including a water system, kitchen/mess hall, and recreation facilities. The total investment in equipment mobilized to site, including equipment previously purchased by Goldrich, now exceeds $5 million. Subject to permitting, preparation for mining is expected to begin in June 2012. Production is anticipated to begin by June 2013, although it may begin as early as the summer of 2012. Eventual production of approximately 10,000 ounces of fine gold per season is anticipated, but this could be significantly increased if a second gold recovery plant is put into production. Goldrich has not defined a mineral reserve according to SEC Industry Guide 7 criteria. However, 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.
Bill Schara, CEO of the Company said, "We chose NyacAC as our partners because we believed they have the necessary mining experience, ability to execute, and foresight. They planned the winter trail even before the agreement was signed and did an excellent job in quickly mobilizing the equipment in time for this season."
Goldrich also reports that the definitive documents for its joint-venture agreement with NyacAU have been completed. As previously announced, under the terms of the agreement NyacAU will provide a funding package of loans and equity that, subject to the timing of production, are estimated to total approximately $8.5 million.