Bonanza Goldfields and Osiris Gold Launch Red Mountain Gold Joint Venture in Colorado
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Red Mountain
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Red Mountain
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Bonanza Goldfields Corp. and Osiris Gold Corporation have entered into a definitive joint venture agreement forming Red Mountain Gold LLC. The joint venture owns 43 claims with 332,000 ounces of proven gold reserves and is currently negotiating to purchase additional mining claims in the area of interest.
“Bonanza Goldfields is pleased to announce this joint venture,” said David Janney, Bonanza’s CEO and president. “Bonanza has negotiations with institutional lenders willing to fund commercial production in exchange for payment in kind from our future yields of rare minerals. Based on this structure, it results in a positive impact on our capital structure as share issuance, dilution, and debt will not be a necessity for gaining the Red Mountain asset.”
“The initial phase of the Red Mountain project is to continue a core drilling program to prove up additional reserves, which have been indicated by past drilling. After fully funded, the planned summer drill program is expected to add substantially to the existing reserve. With local support, we can bring to the region high paying, high-tech, long term jobs, while keeping the area pristine. We will put to work state of the art, environmentally responsible practices and technology. As believers in the principals of having zero long term impact on the environment at Red Mountain, we hope to serve as an international example for eco-safe mining,” Janney concluded.
“The Red Mountain Property lies at an elevation of 10,500 to 13,500 feet in an area noted for gold production dating back to 1860. The property consists of patented mining claims. Mineralization occurs in oxidized zones of intense silica alteration and is open at depth. Based on old workings below the silica cap, high grade, sulfide bonanza type deposits could exist at depth, however, this potential has not been tested.
A geological resource of 16.6 million tons of mineralized material grading 0.024 oz/t of gold, and 0.711 oz/t of silver is calculated to exist on the property. A mineable reserve of 12.3 million tons grading 0.027 oz/t of gold, and 0.790 oz/t of silver exists based on open pit designs and production schedules prepared by Wright Engineering in 1986 (The geological technical work was updated in 2006 by SRK Consulting). The reserves meet U.S. Security and Exchange Commission criteria for proven (measured) and probable (indicated) categories,” a Behre Dolbear executive summary report (published in 1994) stated.
In the Red Mountain Gold LLC joint venture structure there is a 49 percent earn in equity potential for Bonanza Goldfields in exchange for bearing the costs of bringing the project into commercial production.
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