2019 | Q1 Update

Geological, Environmental, and Metallurgical Testing Underway!

Geologic, environmental and metallurgical testing is underway. Samples from the 112 and 163 foot levels have been assayed by a third party as well as crushed and ground at our field laboratory. Assay results below.

The laboratory processing resulted in recovery of the first gold we’ve taken from the Bates Hunter since work commenced. We were all quite excited when visible gold appeared on the laboratory gravity table because not only was this our first gold, but it was the first gold taken out of the mine since work stopped about a hundred years ago. We believe our journey has taken its first important step.

Golden Gilpin Mill Progress

Work on the Golden Gilpin Mill has progressed, with significant clean up, inspection of timber framing, and engineering/ planning for the structural augmentation of the building to meet current building and land use code in the City of Black Hawk. Geotechnical drilling adjacent to the mill is planned for Q2 where the tailings dewatering building may be located.

Bates Hunter Mine Dewatering Progress

Mine dewatering has reached 270 feet below the collar. Spring runoff from recent snow storms has temporarily slowed the advance rate, allowing the mining team to focus on the ladders, landings, utilities and the commencement of work in the West Hunter shaft.

West Bates Hunter Shaft Progress

The West Hunter shaft is 360 feet south-west of the Bates-Hunter shaft. It is being rehabilitated, with the installation of ladders and landings in anticipation of exploration in this part of the Bates vein. The Bates-Hunter mine will need a completed secondary escape-way prior to full-scale mining; and the West Hunter shaft provides an excellent solution as well as an opportunity for exploration as the two shafts are connected.

Comments

CAUTIONARY STATEMENT FOR PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This report may be deemed to contain “forward-looking” statements. We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and we are including this statement for the express purpose of availing ourselves of the protections of such safe harbor with respect to all of such forward-looking statements. Examples of forward-looking statements include, but are not limited to (i) projections of revenues, income or loss, earnings or loss per share, capital expenditures, growth prospects, dividends, capital structure and other financial items, (ii) statements of plans and objectives of ours or our management or Board of Directors, including the introduction of new products or services, or estimates or predictions of actions by customers, suppliers, competitors or regulating authorities, (iii) statements of future economic performance and (iv) statements of assumptions underlying other statements and statements about us or our business.

Our ability to predict projected results or to predict the effect of any legislation or other pending events on our operating results is inherently uncertain. Therefore, we wish to caution each reader of the report to carefully consider specific factors, including competition for products, services and technology; the uncertainty of developing or obtaining rights to new products, services or technologies that will be accepted by the market; the effects of government regulations and other factors discussed herein because such factors in some cases have affected; and in the future (together with other factors) could affect, our ability to achieve our projected results and may cause actual results to differ materially from those expressed herein.