There's Gold In Them Hills!
California Gold Mine.
Cherry Hill Mine.

The Cherry Hill Mine: Established in 1892, a formerly producing, small underground high-grade gold mine. One of the benefits of purchasing a past-producing mine is that the cost of moving into production is much lower than the cost of bringing a mine from the exploration phase to the production phase.

Location: When thinking of mines you tend to visualize a hard-to-reach, remote, backcountry hillsides that require vast amounts of money to ensure adequate infrastructure. That isn't the case with Cherry Hill. Because Cherry Hill is a formerly producing mine, all the infrastructure is already there. That means you have a leg up on some of the costs involved with getting the mine up and running. The mine is just a short ride from the town of Yreka, California, down a state-operated, paved road that turns into a well-maintained gravel road. It's easy to get to and has great access to the I-5, a major artery running north-south along the West Coast. It also means that when you do ramp up production, the heavy-duty trucks won't have much of an issue getting the ore from the mine to the mill.

Historical Geological Reports:1892 0.97 oz Au/ton with Ore running at
$20.00 Au/ton (Yreka Journal, 11/16/1892). In 1892 100 tons
milled by Selby avg. $61.00/ton (3oz Au equivalent/ton) (Yreka Journal 12/7/1892). On July 24th 1900 the mill run produced $5,300. (254.4 oz Au; 10.7 oz/day; 10 tons/day at 1 oz Au/ton Mining and Scientific Press 7/14/1900). 2003 Core Drilling produced 25' of 1.024 oz Au/ton - 30' of 4.758 oz Au/ton and 39.5 oz Ag/ton. Historical Resource Estimate by R. L Hill, CA Reg.Geologist #3386, Jan 5, 2009.
Primary Target -Queen Vein WQ #3 and WQ #4 levels at 8889 yrds³ = 20,000 short tons at 1 opt at $1200 worth $24,000,000.

Level 2 -WQ #4 to Camp Level at 9778 yrds³ = 22,000 short tons at 1 opt at $1,200 worth
$26,400,000. Camp Level to Long Tunnel Adit approx 300,000 oz...previous owner estimation.
42,000 tons blocked out - based on established mine plan. 43-101 independent Technical Report completed May 22nd, 2012. Between 2011 - 2013 approx $2.6 million spent on exploration and development mining (all figures verified by audit).

Core Assets:
Property-94.6 Acres
Mining equipment:
50T/ day Ball Mill, Mucker, 7-jackleg drills & diamond drill bits, Loci, 5- Ore bins, Rail track, Bull Dozer, Dump Truck, 2- Generators and Air Fans, Genset Engine, Saw Mill, Dodge Truck & Cargo Trailer, Ford Pickup & Plow, ATV

Low cost producer- estimated cost per oz Au at $400.
Metallurgy testing (Norris Labs of Montana) indicates 95% recoveries for
gold and 87% for silver. 80% of recoverable ore from gravity. Eight known adits on 7 unpatented lode claims situated on 94.6 Acres. Multiple assays completed with underground surveys. Defining a resource is a big expense for exploration companies, costing millions of dollars to complete. In purchasing a previously producing mine, You will have forgone the costly resource definition process because,

"This was all done, we know what's here, so just go mine it!"

AskingPrice $1,295,000
Will consider all reasonable offersor JV Opportunity

Posted Nov 24, 2015

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Disclaimer: MergerNetwork has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness.