2019 | Fourth Quarter Update

gsminingcompany Assay Reports, Bates Hunter Gold Mine, Golden Gilpin Mill, Quarterly Update

The GS Mining Company is pleased to announce that it has accomplished the following during the fourth quarter of 2019:

Bates Hunter Mine | Mine Infrastructure Update

The Bates-Hunter mine is currently dewatered to approximately 350 feet below surface, where we are maintaining the water level until we can update the shaft haulage safety features to accommodate personnel.  GS Mining Company is working with  OJ Industries of Salt Lake City on shaft conveyances, and Siemag Tecberg on hoist controls.  We anticipate receiving components in mid-Q1, 2020 and having the ability to haul personnel and larger material shipments by mid-year.
 
Activity in the Bates-Hunter mine has focused on the 240-foot level (depth from surface), where the crew has headed westward through the existing level and old stopes.  The working face is currently 300 feet from the Bates-Hunter shaft, approximately 60 feet from the West Hunter shaft, in the Bates-Hunter vein.  Mapping of this level is now current (perhaps the first maps ever created of this level).  The cross-cut to the north-west from the 240 level extends 195 feet towards the Buell shaft on the Vasa-Leavitt vein for which we control the mineral rights. Surveying indicates that there are approximately 85’ along the Bates vein which must be rehabilitated to meet with the West Hunter shaft. 
 
The construction of the ore bin was completed in Q4, allowing for the Bates-Hunter stope fill material to be hauled to surface, sacked and stockpiled.  To date, there are approximately 152 tons of material stockpiled at the mill for metallurgical testing and mill startup.
 
The West Hunter shaft has been rehabilitated to a depth of 150 feet from surface, leaving approximately 150 of rehabilitation remaining.  Reconnaissance within the West Hunter shaft and stopes did not identify an open pathway for secondary egress.  We have elected to re-sink the shaft through the debris within the shaft compartments.  The crew designed a special sinking bucket which has accelerated the digging within the shaft.  Material in the shaft is hauled up to a depth of 112 feet where it is placed in an open stope to the east of the shaft.  The crew is currently sinking through post-mining debris at the rate of several feet per day.  This work is being done with the anticipation of encountering a void within the shaft below the debris blockage.
 
This Quarter’s Mine Safety and Health Administration inspection was completed with one citation issued for a bad cord on an unused legacy tool.  No other compliance defects noted and no other citations issued. 

Bates Hunter Mine | Geology

Graham Peterson, the Company’s site geologist, has begun cursory sampling in the Bates vein at the 240 level which continues to provide encouraging examples of gold mineralization and material for mineral processing evaluation.  An additional sample was taken in the West Hunter shaft area to assist with visual identification of gold mineralization.
 
Table 1.0

Sample # Au opt Ag opt
240-003 4.06 4.97
240-004 1.80 1.32
WH135-001 0.720 1.72

View Full Assay Reports

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CORING MAGAZINE!

Congratulations to our onsite Geologist Graham Peterson for his article in the November 2019 issue of CORINGMagazine!

You can find his article on pages 42-46 
Click Here To Dig In

Golden Gilpin Mill | Mill Infrastructure Update

The Company successfully completed the structural repairs and improvements, including re-roofing of the main portion of the building and has closed the Phase 1 building permit. 
 
An application for the Special Review Use of the site within the current Environmental Character Preservation (ECP) zoning was submitted to the Town of Blackhawk.  At the height of the Colorado gold boom Blackhawk was known as the City of Mills.  When we are finished, we will be the only operating mill in this historic area.  In fact, our mill has received historic designation and as part of the town’s tourist attractions, we will be offering guided tours to small groups. 

Initial data gathering for metallurgical testing has begun in 2019.  We expect this work to continue in early 2020.  Mill equipment has begun the rehabilitation process, with the duplex jig, rake classifier and one bank of flotation cells all being repaired and brought up to current standards.

CAUTIONARY STATEMENT FOR PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This quarterly 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.