Bates Hunter Mine | Mine Infrastructure Update
The Bates-Hunter mine is currently dewatered to approximately 350 feet below surface, where we continue to maintain the water level. Having received the major components for the shaft upgrades (new crosshead, personnel-cage, sinking bucket, motor, new controls, etc.), the shaft improvements are underway. To date, new shaft guides have been installed to a depth of 148 feet from surface. This is likely the deepest that a crosshead guided conveyance has ever descended this shaft. Additional work completed includes the installation of electrical cable sufficient to lower the mine pump to the bottom of the existing workings at ~750 feet and supporting infrastructure to accommodate the hoisting of persons. Final hoist modifications to allow personnel hoisting will occur in Q3, 2020.
Activity in the Bates-Hunter mine on the 240-foot level (depth from surface) has completed the rehabilitation to the West Hunter shaft. A refuge chamber has been completed in the north west crosscut and the level remains ready to utilize for secondary egress (upon completion of the W. Hunter shaft rehab) and will be the base for core drilling adjacent, company controlled mineral rights.
To date, there are approximately 302 tons of material removed from the 240 level has been stockpiled at the mill for metallurgical testing and mill startup. The testing of this material is underway, with initial grind size testing, gravity recovery testing and flotation testing demonstrating the presence of visible gold.
The West Hunter shaft has been rehabilitated to a depth of 240 feet from surface, leaving approximately 40 of rehabilitation remaining. Material in the shaft is hauled up to a depth of approximately 70 feet where it is placed in an open stope to the east of the shaft. We anticipate completing this work at the end of Q2.
The first quarter’s Mine Safety and Health Administration inspection was completed with no citations. Quarter two’s inspection produced one citation issued for a back-up alarm issue on the skidsteer. No other compliance defects noted and no other citations issued.
Bates Hunter Mine | 240 Level
- 200’+ rehab/ground support to +360’
- Advanced rail to intersection with crosscut
- Rehabilitated x-cut, installed utilities and refuge chamber
- Final housekeeping before W. Hunter break-through
Bates Hunter Mine | Bates Shaft
- Water maintained at ~350’
- Ladders installed to waterline
- New crosshead, cage & bucket from OJI (5/14)
- 204’ New guides installed (148’below collar – 6/8)
Bates Hunter Mine | West Hunter
- Dump system for muck haul to stope
- Excavation began at 159’, currently ~240’. Need about 276’
- Filled lower dump station, moved upward to 3rd landing
- Installed 10th landing
Bates Hunter Mine | Surface Facilities
- New dirty dry, new shop
- Loaded sacks. 302 ton (6/8)
- 53M Gal to date – To night shift to accommodate Black Hawk
- Replaced filter press main hydraulic ram
- Rebuild reagent pumps
- Cleaned main transfer pump
- Hoist upgrades
- Motor & controls received from Siemag-Tecberg
- 3 – millwright site visits
Bates Hunter Mine | Geology
- 13th Gold Assay Memo
- Bagged material sampling – results
- Replace Graham
Golden Gilpin Mill | Mill Infrastructure Update
An application for the Special Review Use of the site within the current Environmental Character Preservation (ECP) zoning was submitted in Q4, 2019. The City of Black Hawk approved this Special Review Use, the first such application and approval in the City’s history. This approval confirms that the use of the site as a mineral processing mill is allowed. The company will now submit applications for site development that includes grading and revegetation of historic tailings, building permit applications for the Phase 2 work on the coarse and fine ore bins, as well as installation of sanitary facilities and a new tailings dewatering building.
The company purchased and installed a small screw classifier to pair with the laboratory ball mill. Work has begun to evaluate the grind size, gravity concentration in jigs and prepare for laboratory flotation testing. The first few ounces of gold produced from the Bates-Hunter mine (from laboratory work) were sold in May, 2020. Additional laboratory equipment has been installed in the newly renovated mill offices and one of the historic concentrate bins. The company now has the capacity to perform all sieve size analysis, laboratory flotation testing and tailings generation for the environmental analysis needed for completion of permit modifications for underground backfilling. This work will also guide the initial mill startup with the full size equipment.
- Begin Flotation cell disassembly
- Cell center section lowers to be replaced with new castings
- Received timber order
- Disassemble ball mill feed scoop
- Remove ball mill charge
- Phase 1 inspection
- Begin lot line adjustment
- Completed office
- Begin bridge evaluation
- SRU Permit date is June 10
- Lighting and electrical for laboratory mill
- Issue PO for classifier tub & new feed scoop
- Purchase spiral classifier for lab
- Complete lab mill reinstallation/close grinding circuit
- Install new drying oven
- Install new rotap/sieve testing
- Install lab cell for reagent testing (chems on hand/Clariant)
- Complete siding on office dormer
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.