Goldrich Mining Announces Commencement of 2017 Mining Season and Drill Program at Chandalar Mine
Spokane, Washington--(Newsfile Corp. - June 8, 2017) - Goldrich Mining Company (OTC Pink: GRMC) ("Goldrich" or the "Company) is pleased to announce Goldrich NyacAU Placer, LLC ("GNP") has commenced mining at the Chandalar gold project in Alaska. Mining of pay gravel is expected to continue through mid-September, subject to weather conditions.
The Chandalar mine is owned by Goldrich NyacAU Placer, LLC ("GNP"), a joint venture between Goldrich and NyacAU, to mine the various placer deposits that occur throughout Goldrich's 23,000-acre Chandalar gold project in Alaska. NyacAU acts as project manager.
2017 Production Forecast
GNP's revised forecast for 2017 production is approximately 13,500 ounces of fine gold at a cost of approximately US$700 per ounce. This compares to actual production of 3,857 and 8,227 ounces of fine gold in 2015 and 2016, respectively, and a 2016 cost of approximately US$960 per ounce. Final numbers for the 2017 forecast and the 2016 costs may change as Goldrich and NyacAU are currently in discussions concerning certain accounting items.
The revised 2017 forecast assumes 109 days of plant operation, 19 hours a day, with a processing rate of 308 bank cubic yards ("bcy") per hour. In 2016, the plant operated approximately 15 hours a day at a processing rate of 183 bcy per hour.
GNP has made modifications to the plant to increase efficiency since 2016. Total plant capacity after modifications is budgeted to increase approximately 119% to 400 bcy per hour.
Beginning in June, GNP plans to conduct a 122-hole sonic drill program. Drill hole footage is expected to total 7,700 feet with an average hole depth of 63 feet. The drill plan is designed to further define mineralized placer material between Line 8.6 to Line 12 as well as test for potential mineralized material from Lines 13 to 17.5. Each Line is approximately 500 feet apart and drill lines will be spaced roughly 250 feet apart.
Goldrich previously completed a reverse circulation drill program that delineated approximately 10.5 million cubic yards of mineralized material at an average grade of 0.025 ounces (0.78 grams) gold per cubic yard containing an estimated 250,000 ounces of gold(1). In 2016, GNP surveyed the area beyond Line 11 and received a permit to mine Lines 11 to 18 in addition to permits already received to mine from Line 1 to Line 11. GNP work indicates the gold mineralization extends further along strike beyond Line 11.
(1) This mineralized material is not a mineral reserve as defined in SEC Industry Guide 7.
About Goldrich Mining
Goldrich Mining (OTC Pink: GRMC) is a U.S. based resource company focused on developing the Chandalar gold district in Alaska, USA. The Company controls a land package spanning over 22,000 acres of highly prospective gold targets and historic mines. Goldrich is focused on building shareholder value by monetizing placer assets, generating non-dilutive funds, and working towards building a gold mine at Chandalar.
GNP is a 50/50 joint-venture formed between Goldrich and NyacAU, LLC ("NyacAU") to mine the various placer deposits that occur throughout the Company's 23,000 acre Chandalar land package ("Chandalar") in central Alaska. Goldrich retains ownership of its 50% interest in GNP but, after the sale of 12% of the cash flows Goldrich receives in the future from its interest in GNP to Chandalar Gold, LLC ("CGL"), a non-related entity, Goldrich will effectively receive approximately 44% and CGL will receive 6% (12% of Goldrich's 50% of GNP = 6%) of any cash distributions produced by GNP, subject to the terms of the GNP operating agreement (see press release dated June 23, 2015).
For additional information regarding Goldrich Mining Company or this news release, please contact President and CEO Mr. William Schara via telephone at (509) 768-4468 or visit www.goldrichmining.com.