Discovery Day Gold Property #L1525
Yreka, CA
 
5 mines on 950 acres
At least 5 known hi-grade veins
Mill Reports ore up to 37 OPT !
Permitted and Production Ready
All Equipment Needed Included
Fully operational 100 tpd mill
20 man camp and all utilities
 
FOR SALE @ $20 million Cash

 

Need funding to re-start operations
CA 43 -101 Technical Report available
 Public Company Opportunity

The Discovery Day Gold Property a Production Ready California High-grade Gold Mining District

Property Description -One of California's premier underground high-grade mining properties is available for purchase or joint venture. The Discovery Day Gold Property consists of 48 unpatented BLM mining claims covering over 950 acres of land and encompassing the entire prolific Knownothing mining district. The Property is located near Forks of Salmon CA., approximately 75 miles west of Yreka. The claim block contains 5 historically producing mines – the Discovery Day, Gilta, Hansen, Knownothing and Jeannette. As a group this collection of mines has produced over 60,000 ounces of gold, and were considered some of the most valuable in the state.

The Discovery Day Gold Property is a permitted production-ready hard rock gold mining operation with the 5 underground mines, extensive infrastructure, operational mill, support facilities, explosives magazines, and all underground and surface equipment necessary for operations. Also located on the Property is a 20 person man camp, miner's dry, generator and air compressor buildings, two management offices, workshop, and an employee lounge and kitchen equipped with satellite TV, telephone and internet. In addition to the 5 mines, a fully operational 100 ton per day mill is located on the Property. The mill consists of a 12 ton per hour crushing circuit with a 6"x12" jaw crusher, 12" cone crusher, 6'x22" conical ball mill, classifying screen, duplex jig, Deister triple deck table and a Wilfry finishing table. There are two tailings ponds and a lined water supply pond. The mill facility also includes a fully equipped assay lab and smelting room.

 

Operational Status -The Discovery Day mine was in production as recently as the spring of 2010, when a tragic accident claimed the life of the mining supervisor. Operations at the mine were suspended pending the accident investigation and the public company funding the project abandoned the JV due to liability concerns. The owners have since addressed all of the pending issues stemming from the accident and are preparing the mine to re-commence operations. An entire permitting and start-up summary is available upon request.

Geology -There are at least 5 known high grade quartz veins located on the property. These structures pinch and swell in width ranging from a few inches to over 15 feet and contain high grade ore shoots. Historical data indicates "bonanza" ore shoots with lengths of 80 to 150 feet and up to 450 feet in height. Gold grades from past operations are reported to range from 2.7 ounces per ton up to 37 ounces per ton. One historical mill report (copy available upon request) from 1996 recorded 43 tons of ore milled that averaged 37.4 ounces per ton .The most recent mining efforts in 2010 were focused on two production headings and one development heading in the Discovery Day Mine. Increased ore production is anticipated from the re-opening of the other mines on the property. A Canadian Instrument 43-101 technical report was written for the property in 2009 and is available to qualified inquires.

Organizational Structure - The mine is currently owned by a private company which has entered into an agreement with a public corporation to ultimately fund the project through a joint venture. The private owners are seeking capital to clear some debts and settlement obligations on the mine prior to consummating the agreement with the pubic company. An equity position in the private company will provide an investor the opportunity to participate in any future gold production revenues as well receiving a prorated amount of shares of the public corporation's stock to be paid under the agreement. This arrangement provides an investor an attractive combination of liquidity and the potential leverage of the publicly traded stock, in combination with equity ownership in the mine and any bullion produced.

Capital Requirements -Approximately $1.5M is needed to position the mine for a clean vend-in into the pubic company and to re-commence operations at a 30-75 tpd level. A use of funds breakdown is available to qualified enquiries. This money will purchase 10% equity in the private company and once the vend-in is completes the investor will receive approximately 6M shares in the public company. The property is being offered for sale at $20M.

The Discovery Day Gold Property is one of only a few permitted, production-ready properties with an on-site mill available in California.

The principals are not interested in any "hypothecations", earn-ins or stock. We have positioned this for the serious qualified investors willing to work within the framework of our structure or purchase the property outright.

CONTACT

Additional information on this opportunity can be obtained by contacting the companies legal counsel, Rutledge Law Center Ltd @

dawn@rutledgelawcenter.com

(775) 885 - 7005

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Hi-Grade Vein in upper adit

Crushing Circuit

Hi-Grade Vein in lower level

Crushing Ore

Cons on the table

Camp and 20 man Living Quarters

Camp Building