Greetings from Central City,
I’m pleased to report that things continue to move forward on Phase I of the Golden Gilpin Mill. At the risk of sounding hyperbolic – but actually being factual – I can state that 2023 will be our golden year.
Lately, a number of you have been contacting me with questions that I believe are of general interest to the group. Here are a few of the questions of significant general interest with the Company’s responses.
Q. Is the Company’s current financial condition sufficient to get into production? A. In a word, yes. The Company has secured funding which will enable it to continue the drive to production without any interruption or slowdown in forward progress. That funding will cover the entire range of purchases and contractors running the gamut from the new bridge on one end to every widget, bolt and screw on the other – with everything in between. As you may remember from prior communications, the start-up will be in the range of 20 tons of material per day and we already have about 1,000 tons sitting above ground waiting to begin the journey from rock to gold. As that tonnage is used there are an additional 9,000 tons of loose material close to the surface underground which will be brought up and put into the system. The ultimate goal is to bring the mill to 75 tons a day by which time the miners will be back at deeper levels exploiting the richer veins.
Q. What’s the timing on production? A. We expect the mill to be operational before the end of February. Don’t forget – we are in the front range of the Rocky Mountains at an elevation of 8,500 feet and this time of year is blizzard season. But so far, it’s been a pretty dry year. We’ve had no weather issues, and we are right on schedule. We’ve added additional personnel who have joined our existing team, all with the sole mission to start production as soon as possible.
Q. Is the Company still considering a public offering ? A. The Company believes that it is in its best interests and the interests of its investors to go public and list on a US Exchange. We have set a target date of early 2025 for the listing. Of course, the precise date will be subject to advice from our underwriters as well as market conditions, but we are committed to working toward that target. From the Company’s perspective, once we get over our current focus of commencing production, we will begin the steps necessary to list, including having our statements and accounts audited, expanding our board of directors, enhancing our operations and revenue by not only reaching full production at the Golden Gilpin and Bates Hunter, but bringing the Black Eagle Mill and Clay County Mine online. We view the Black Eagle as a one and a half year project which we have already started. It should be in operation around the time we anticipate the public listing, which means that between the Black Eagle and the Golden Gilpin we will have a Company able to process 200 tons of rock with a schedule of 360 days a year. This should produce a very nice revenue stream on which to price a listing. Also, during the next two years we expect that we will continue to enhance our potential by adding to our underground portfolio through an opportunistic mineral leasing program. If any of you have additional questions, please feel free to send them by email and we will do our best to respond in a timely manner.
Best Wishes for 2023!