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2023| NOTES FROM THE UNDERGROUND | DECEMBER EDITION

Greetings from Central City/ Black Hawk.


As I write this article gold is trading above $2000 an ounce.  On Sunday night it reached an all-time high.  Will it keep going up?  Well, as the noted philosopher Yogi Bera once said, “It’s tough to make predictions.  Especially about the future.”  But the trend is certainly in the right direction.  I’ve pasted below an article from CNBC, that strikes a very positive note for all of us.


With positive news on the pricing front, I can also provide a positive update on our drive to revenue.  We’ve passed an important milestone as we’ve processed about 100 tons of stope fill.  This amount has allowed us to learn about our mill (don’t forget it was out of operation for decades) and to fine tune the grinding, filtering, settling, and all other aspects of the system so that we can get the maximum recovery of both free gold in gravity concentrate and gold in our flotation concentrate while at the same time creating tailings with as little gold as possible.  Our experience to date has been key to approaching commercialization of our products.


To that end, I’m happy to report that we’ve entered into an arrangement with Ocean Partners for the purchase and sale of our flotation concentrate.  Ocean Partners is one of the world’s pre-eminent metal traders and this is a major accomplishment for our organization.  Check them out https://oceanpartners.com/about/overview/


Our milling team is hard at work making and bagging concentrate.  We expect to have sufficient inventory to make a meaningful commercial sale before the end of the year.


As you may remember from previous Notes, our mill feed is stope fill, which we consider to be low grade.  Although most of the world’s gold mines would be thrilled to have tonnage that tested at .37 ounces per ton, we’ve got bigger goldfish to fry once we dewater the Bates Hunter shaft.  It’s unfortunate that mother nature threw us a curveball after the last time we reached the bottom, but, undaunted, and with significant expenditures on equipment and manpower, we are pumping our way back down toward the bottom.  With increased efficiencies we’ve been able to exceed 150,000 gallons a day and we are on the move.  All of our testing, as well as historical records, indicate that as we get deeper the OPT increases.  The bottom of the shaft will do wonders for our bottom line.


And finally – although we are laser focused on milling and mining, we remain opportunistic concerning our neighborhood. If you’ve been to the Bates Hunter, you may remember that the adjacent lot just down the hill on the way to Black Hawk has an old, dilapidated mill building on it.  It’s about an acre of land and we were able to grab it on a tax title auction for about $4,000.  During the last year we’ve picked up additional acres of surface land up the hill from the mine and all dirt cheap.  Our goal is to do our best to have no  abutters to the Bates Hunter as well as to assemble land for future growth, and, as we remain the only mining game in town, we expect that these inexpensive pickups will continue.  Here’s a shot of the new addition:




Best wishes to all – and stay tuned for further announcements.


GS Mining Company


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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