Fortitude Gold (OTCQB:FTCO) Corp has announced its maiden Mineral Resource estimate for its Golden Mile property in Mineral County in Nevada, which outlined strong potential growth.
The gold producer’s Initial Assessment Technical Report Summary (TRS) on Golden Mile, conforming to the newly adopted Securities and Exchange Commission's SK-1300 format, estimates in-situ ounces consisting of 78,500 Indicated gold ounces and 84,500 Inferred gold ounces. The mineralization at Golden Mile remains open along strike and at depth, noted the company.
In a statement, Fortitude Gold (OTCQB:FTCO) Vice President of Exploration Barry Devlin said: "We are excited to announce our maiden resource for the Golden Mile property. We feel this initial resource has strong potential to expand and grow as we have additional infill targets within the patented claims, as well as step-out and step-down targets along both strike and depth at Golden Mile.”
READ: Fortitude Gold has five high-grade gold properties in Nevada, with strong production already coming from its Isabella Pearl mine
“Our most recent infill drill program was successful in pulling many gold ounces from a previous Inferred category into the upgraded Indicated category. It is likely with additional infill drilling many gold ounces currently in the Initial Assessment Report's Inferred category may be converted and upgraded as well in future Mineral Resource Estimates. It is exciting to have defined a potential open pit heap leach project in excess of one gram per tonne gold that remains open on strike and depth for likely expansion,” he added.
The US-based gold producer and explorer with operations in Nevada highlighted that the maiden resource was supported by 17,440 meters of drilling in 150 holes. The initial mineral resource is located on patented claims, said the company.
“Condemnation drilling underway to confirm locations for heap leach pad, process facilities and waste storage facilities,” it added.
"We are very pleased and excited with this initial Golden Mile Mineral Resource bringing us another large step closer to announcing a Golden Mile production decision," said Fortitude Gold CEO and President Jason Reid. "Our team has accomplished a great deal since acquiring the property nearly eighteen months ago. We have now delineated an initial Mineral Resource from which to add to and build upon with further drilling.”
Reid noted that over the last year the gold producer has completed most of the environmental base line background studies required for inclusion in the permitting process.
“We have recently completed metallurgical test work indicating an open pit heap leach operation is possible. We have identified and designed mine facility locations and are drilling condemnation holes to finalize project layout, and initial open pit designs and material processing are being optimized,” added Reid. “We will now be working towards estimated project capital requirements and economic assessments looking to cross the threshold of making a near term production decision and start the permitting process to build our second mine."
Reid said the company does not plan to drill out the entire Golden Mile resource before making a production decision.
“The currently identified gold ounces in this Initial Mineral Resource, coupled with expansion potential from mineralization that remains open on strike and depth, could add upwards of an additional four or more years to our 40,000 ounce per year gold production profile," noted Reid.
"We have always focused on a synergistic approach to our mining unit in Nevada, and we believe we will see the benefits of this approach with the potential development of Golden Mile. By comparison, one of the more expensive and time-consuming aspects in permitting and constructing our operating Isabella Pearl mine was the ADR process facility, where gold loaded carbon is stripped and gold doré bars are produced. We do not anticipate permitting or constructing another ADR plant at Golden Mile.”
According to the Fortitude Gold boss, the plan is to “build a process plant” that takes gold to the carbon phase and then truck the loaded carbon to the Isabella Pearl project's permitted and operating ADR plant for final doré production.
“This approach could substantially decrease project capital cost, permit time and construction timeframe in building our second mine,” added Reid. “We also look to achieve our second mine build using our cash treasury and keeping our capital structure intact from which to continue to distribute substantial cash dividends to shareholders."
Fortitude Gold has five high-grade gold properties in Nevada’s Walker Lane Mineral Belt, with its flagship Isabella Pearl mine in current production. All five properties — Isabella Pearl, Golden Mile, Mina Gold, East Camp Douglas, and County Line — are in a 30-mile radius of one another within Nevada’s prolific Walker Lane Mineral Belt.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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