Greetings and Happy New Year,
We hope you are having a wonderful start to your New Year! Here at the Bates Hunter Mine, 2020 has gotten off to a remarkable start; and we don't want to wait another three months for our regularly scheduled first quarter report to give you the details.
As you know from our previous reporting, the miners have worked down to the 240 foot level of the Bates Hunter shaft and are digging across to the West Hunter shaft to create a second egress.
As we have progressed we continue to take rock samples for purposes of determining their composition and the presence of gold. In January of 2019 we reported assay results to you from the 112 foot level that we found surprisingly promising. We had expected that by the time the mine closed over a hundred years ago gold at the higher levels had all been mined. But the results showed measurement of ounces of gold per ton ranging from 0.129 to 2.91, which confirmed a local historian's statement that the old timers left more gold behind than they ever took out.
Given that encouraging news from a year ago, results from this month's sampling are not just encouraging, but exciting. The full report is attached. To highlight - the range of ounces of gold per ton we tested is between 0.444 to 6.16, with an average of 3.33. Why, you may ask, are we excited? To put things in context, the richest gold deposit in an underground mine in North America is Gold Corps Ontario Mine which averages about 0.7 ounces per ton. The richest in the United States is Turquoise Ridge at 0.56 ounces per ton.
Are we popping champagne? Not yet.
Are we eyeing it? You bet!
We cannot take these newest results and declare that we've got the richest find in the world. There is a lot of work left to be done and a great deal of exploration and testing ahead of us. But the results are continuing confirmation that the historical records and engineering reports (see them on www.gsminingcompany.com) are spot on. It is highly likely that there is plenty of gold to be found - and we intend to find it.
A last note and a preview: As the miners continue to dig, tunnel and muck, they remove the rock and muck in "super sacks" which contain approximately a ton of material each. So far they've removed and stored on the surface about 150 sacks. They believe there are about another hundred sacks to go on the current work. Those sacks are our inventory. When the Mill is completed and put into operation, there will be about two hundred and fifty tons of material ready to process (with more being bagged every day) - so, stay tuned for coming announcements!
GS Mining Company, LLC
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Robert C. Herdina
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.