Location: Grass Valley District, California, United States
Information Available:
Geology: Yes
Drilling:
Geochemistry: Yes
Reserves: Yes
Geophysics:
Other: Yes
Land Tenure:
Owned (100%)
66 claims
2,750 acres
Surface Rights Secured: Yes
Agreement Type Sought: Joint Venture
Property Summary:
EMGOLD MINING CORP. has made significant progress in bringing
the historic Idaho-Maryland gold mine back into production. Recent engineering studies
indicate that less than half of the known gold has been extracted from the deposit, and
that a resource of three million ounces remains at the minesite.
History & Past
Production The Idaho-Maryland gold mine was discovered in 1851, and was in nearly
continuous production from 1862 through 1956. Total recorded production from the mine was
2,383,000 ounces of gold from 5,546,000 tons of ore (0.43 oz/ton recovered grade.)
The mine closed in March 1956 due to escalating labor and material costs coupled with a
gold price fixed @ US$35/ounce. At the time of closure, mining operations were underway at
25 different faces on 6 different levels.
The most significant production stope in the Idaho-Maryland mine was the Idaho #1 ore
shoot, which was worked continuously from a depth of 100 feet to a vertical depth of over
2000 feet over a downrake distance of 5,500 feet. Between 1862 and 1894, the Idaho #1
shoot produced over 1,000,000 ounces from less than one million tons of ore, a production
record that has only been exceeded by one mine in the entire world (the Oroya oreshoot of
the famous Kalgoorlie Golden Mile in western Australia).
The Idaho-Maryland vein system is 9,000 feet long, up to 3,000 feet wide, and has been
partially mined from surface to a vertical depth of 3,280 feet. The Grass Valley
(California) District is noted for good quartz vein continuity (both horizontally and
vertically).
Access to the mine's 15 working levels is provided by the three-compartment, 3,460-foot
deep New Brunswick Shaft. Over 71 miles of underground tunnels and workings provide access
to much of the property. The Idaho-Maryland mine has been partially developed and mined
from 160 veins, while another 55 veins were partially-delineated (but had no production)
by drilling prior to 1956. The historical database includes the results of over 42 miles
(220,000 feet) of exploration and development drilling.
The Idaho-Maryland vein system lies within the wedge-shaped confines of three bounding
faults. A 3-D geologic model demonstrates the potential for continuity of the existing
vein system to a vertical depth of 5,000 feet. (The adjoining Empire mine produced
6,000,000 oz Au to a depth of 5,200 feet). The area between 3,280 and 5,000 feet is
considered highly prospective for the discovery of additional high-grade gold-quartz vein
deposits.
Geology Summary:
None Given
Geochemistry Summary:
None Given
Geophysics Summary:
None Given
Drilling Summary:
None Given
Reserves Summary
A 1994 study by James Askew Associates Inc. estimated that the
remaining combined in situ gold resources and potential gold mineralization of the
Idaho-Maryland mine are 9,117,500 ST @ 0.326 oz Au/ST (containing 2,968,400 oz Au). This
resource estimate excludes the potential for large, bulk tonnage targets identified by
EMGOLD in 1997.
Other:
Development Program (1998-1999) EMGOLD's plans for reviving
the Idaho-Maryland mine are to first de-water the mine, and then go underground to do
further exploration to prove up the total resource potential.
The entire development
program (including de-watering, shaft rehabilitation, headframe and hoist construction and
initial underground drilling of the known resource blocks between the 2000 and 3280 foot
levels) is expected to cost approximately US$11 million.
EMGOLD has applied for and been granted all permits necessary for re-opening the New
Brunswick shaft, de-watering the mine and completing a bankable feasibility.
Potential Gold Production of at least 140,000 oz/yr @ US$215/oz Au EMGOLD plans to
resume operations at the Idaho-Maryland mine at an Initial mining rate of 1,500 ST
ore/day, which will produce approximately 140,000 ounces of gold per year. With the
addition of a second shaft, it would be possible to significantly increase production. At
5,000 ST/day, the Idaho-Maryland mine would produce between 350,000 and 400,000 ounces of
gold per year (on par with Golden Giant and David Bell mines of the Hemlo District of
Ontario).
Recent studies indicate that the Idaho-Maryland mine could be profitably developed and
operated at a long-term gold price of US$300/oz based on an estimated operating cost
(excluding capital and royalties) of US$215 per ounce. The accessibility of higher-grade
ore zones (>0.50 oz Au/ST) in the initial years of operations will significantly
enhance both the mine's profitability and EMGOLD's earning per share.
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