Each one in plain English, with the numbers worked through for a shareholder.
17 June 2021resource reserve update▲ GoodMajor
The Initial Assessment ordered in July 2020 was released: at a $1,650 gold price it shows an after-tax value (5% discount) of $64 million, a 139% internal rate of return, $72 million total after-tax cash flow, all-in sustaining costs of $799/oz, a 1.3-year payback and a 7-year initial mine life. It gives the first Measured and Indicated placer resource of 138,000 raw oz (120,000 fine) plus 19,000 raw oz Inferred, at Little Squaw Creek; capital cost is estimated at $25.6 million. These are preliminary study figures, not reserves, and the filing does not say how the capital would be funded.
Goldrich said it hired Global Resources Engineering of Denver to prepare a mining plan and Initial Assessment for the Chandalar Mine. Under the SEC's new mining disclosure rules, this would let the company report inferred, indicated and measured resources for the first time; whether to also commission a Preliminary Feasibility Study (needed to disclose reserves) will depend on the Initial Assessment's findings. Chandalar has no reserves today, so this is a first step toward a formal resource figure, not a result.
The company (now named GoldRich Mining Company) ended its leases on the Broken Hills West property in Nevada and the Pedra de Fogo property in Brazil, returning them to their owners on May 30 and June 3, 2008 with no retained interests or liabilities. The filing says this was to conserve resources and because exploration results did not justify the upcoming lease obligations. It will keep exploring Chandalar and is drilling on a leased property at Marisol, Mexico, with assay results expected soon.
On April 30, 2008 the company received an independent scoping study on the alluvial gold deposit it found in the Little Squaw Creek area of its wholly owned Chandalar property. The study estimates 243,621 ounces of gold in total, of which at least 216,602 ounces are recoverable (measured and indicated), at a cash cost of about $500 per ounce. This follows the 2007 trenching and drilling work at Chandalar. The company says the figures do not meet the SEC's standard for a mineral resource (Industry Guide 7) but that it believes they meet Canada's NI 43-101 standard, and it says no reserves exist until further drilling, a feasibility study and permitting are done.
On December 20, 2007 the company reported trenching assay results from its wholly owned Chandalar, Alaska property, with gold in multiple structures. The best prospect was Mikado, where gold was traced over 2,500 feet with an average trench intercept of 24 feet at 0.023 oz/ton. The 2007 program has set several diamond drilling targets for 2008. The company says continued exploration 'could' lead to a commercial deposit; this is exploration, not a resource estimate.
