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2022 | NOTES FROM THE UNDERGROUND | Early December Edition

Greetings from Central City and Black Hawk,

It’s winter weather in the Rockies, but work continues at the mill – both inside and out. This will not be the “winter of our discontent”; but rather, the winter in which we “get ‘er done”! (How’s that for quoting Shakespeare and Larry the Cable Guy in the same sentence). Here’s what we’ve been thinking about:


THE RICHEST SQUARE MILE ON EARTH

Reports from other mining companies continue to remind us of just how much potential our holdings possess. For example, we received a press release from an Australian mining company, Far East Gold. Describing a new gold project in Indonesia, the company’s president touted recent good news: “The Company’s Woyla project has returned assay results of up to 119 g/ton gold … well above the 34 g/t of gold that identifies as bonanza grade.”


Let’s dissect that very positive statement. First – apples to apples. Most of the world measures gold in grams. We speak about ounces per ton and those are Troy ounces. There are 31.103 grams in a Troy ounce. “According to the World Gold Council … better quality underground mines contain 8-10 g/t of gold.” Far East’s highest assay of 119 g/t translates to 3.8 ounces. That’s a terrific result. But consider this, our highest assay has been 12 ounces per ton. That’s 373.2 grams. That’s three times better than Far East’s big news and about thirty-seven times better than the upper range cited by the World Gold Council. And what we really love is reference to Bonanza Grade Gold at 34 grams, because we hit a bonanza times eleven (If you go to our website and check out our assay reports you’ll find bonanzas galore.) Although we don’t expect to be mining 12 ounces per ton on a regular basis– we do expect a real Bonanza.


The Richest Square Mile on Earth has a lot to give – and our goal is to get it!



ALMOST READY!

The coarse ore bin


READY!

The fine ore bin

 

Speaking of goals – we thought you’d be interested in our current vision statement. First things first will be finishing the mill, But. if you want to think about the future of our company, consider the following:


GS MINING POSITION PAPER - OUR VISION


This document outlines the basic vision for GS Mining Company, LLC to become a consistent and prolific gold producing company with unlimited growth potential and life-altering shareholder value.


Foundation

GS Mining Company is a privately held Limited Liability Company with a portfolio of past and potential gold producing properties in the Central City - Idaho Springs Mining District of the Front Range of Colorado, USA. The core asset of the Company is the Bates-Hunter mine and Golden Gilpin mill. This project is permitted and nearing production. The mine has been rehabilitated to the 500-foot level, over 600 tons of preliminary mill-feed has been stockpiled above ground (total initial feed stored underground to 10,000 tons) and the mill is in reconstruction with initial gold production planned for Q1-2023. The Company currently holds over 80 acres of mineral rights with numerous past-producing mines, over 70 acres of surface rights and two past producing mineral processing plants. Production from the Bates-Hunter mine and Golden Gilpin mill is expected to reach over 13,000 ounces of gold within one year of initiation and grow from there. This is the foundation for the company’s plans to become a significant gold producer.


Gold

The Company believes strongly in the current and future value of precious and base metals. Gold is currently within 10% of its record high dollar value and the economic forecast for gold is generally bullish. The Company intends to become a gold producer while the value of the commodity is strong and upward trending. The Company will also produce silver, lead, zinc, copper and other base metals as byproduct.


Mining Trends

New gold deposits are becoming rare and gold in categorized reserves has been in steady and dramatic decline since at least 1990 (S&P Global Market Intelligence). Risk aversion among financiers has driven the trend since the early 1970’s towards large low-grade surface mines with economies of scale and away from smaller higher-grade underground mines. With the pipeline of new projects diminishing and recent examples of large projects failing to reach production, it is likely that this trend must somewhat reverse. Without a significant population reduction event, humanity will continue to require new metals be brought to market. A prepared new entrant into that disruptive reversal space could create dramatic upside economic opportunity.


Growth Strategy

The Company controls the Clay County, a largely developed underground gold mine near the Bates- Hunter which is accessed by trackless decline and drained by the National Tunnel. This mine alone, coupled with the wholly owned Black Eagle mill is expected to potentially more than double the Company’s annual gold production.

GS Mining Company, LLC already controls a significant mineral rights package surrounding the core Bates-Hunter asset. There are over 12 named veins adjacent to the Bates vein, mineable with minimal additional infrastructure. All of these veins have seen some level of historic production from small, individual mines with virtually no consolidation of financial or infrastructure resources. A newly developed, modern shaft would be a preferred method of accessing these veins.


A newly constructed, larger mineral processing plant would be necessary to service the output of these veins. The Company has plans for both the mine infrastructure and mineral processing plant, as well as access to the necessary equipment to construct both. Execution of these plans for greatly increased capacity from existing mineral rights would be able to dramatically increase the Company’s annual gold production, potentially by an order of magnitude. In addition, a properly sized mineral processing facility would provide growth potential from additional properties not currently controlled and allow for processing of third-party sourced “ores”.


The Company has identified at least 10 additional potential mining projects within the Colorado Front Range that could be excellent acquisition targets. These new mines would feed the Company’s Black Eagle mill or the larger, new mill.


Beyond Colorado

GS Mining Company already has a seasoned and diverse employee skillset. Attracting talented and experienced mining professionals has not been difficult, given the excellent living conditions and lifestyle attractions of the Colorado Front Range mountains. Leveraging our core staff and their library of resources, the Company intends to expand beyond the Colorado Front Range into other mining- friendly and stable jurisdictions. The Company has identified additional targets for acquisition in North America and elsewhere.


Beyond Mining

The Company has a broad knowledge of business markets, commodities, and is opportunistic. Many possibilities open for a metal producing entity including vertical and lateral integration within the commodities business (metals recycling, laboratory analytics, partnerships & mergers, etc.). Also, there may be an exit point at which the Company becomes an acquisition target for larger metal producers looking to expand their reserve base and production capabilities.


Summary

From being a near-term gold producer, to becoming a potential junior, mid-tier or major gold and metals producer, the possibilities, and opportunities to leverage the Company’s existing physical and intellectual assets are unlimited. The Company’s core staff and its network of contractors, suppliers and service providers are rare and exceedingly valuable. The Company’s core assets, located in a historic and prolific, incredibly high-grade gold mining district provide the foundation for the platform that will launch the Company into steady, sustainable, and impressive growth. Economic opportunities for near term entry into gold production are rare. This Company continues to make history and is poised for stellar success.


That’s all for now. Stay tuned for further announcements as we get closer each day to flicking that switch and crushing those rocks.

Kommentare


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.

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