Discovery Day Mine
One of California's premier underground high-grade mining properties is available for purchase. If you want gold in California, the Discovery Day Gold Mine Property is great. 950 acres.
One of California's premier underground high-grade mining properties is available for purchase. The Discovery Day Gold Property consists of 48 unpatented BLM mining claims covering over 950 acres of land and encompassing the entire prolific Knownothing mining district. The Discovery Day Gold Property is one of only a few permitted, production-ready properties with an on-site mill available in California. The Property is located near Forks of Salmon CA., approximately 75 miles west of Yreka. The claim block contains 5 historically producing mines – the Discovery Day, Gilta, Hansen, Knownothing and Jeannette. As a group, this collection of mines has produced over 60,000 ounces of gold, and were considered some of the most valuable in the state.
For Sale: $20 Million
The Discovery Day Gold Property is a permitted production-ready hard rock gold mining operation with the 5 underground mines, extensive infrastructure, operational mill, support facilities, explosives magazines, and all underground and surface equipment necessary for operations. Also located on the Property is a 20 person man camp, miner's dry, generator and air compressor buildings, two management offices, workshop, and an employee lounge and kitchen equipped with satellite TV, telephone and internet. In addition to the 5 mines, a fully operational 100 ton per day mill is located on the Property. The mill consists of a 12 ton per hour crushing circuit with a 6"x12" jaw crusher, 12" cone crusher, 6'x22" conical ball mill, classifying screen, duplex jig, Deister triple deck table and a Wilfry finishing table. There are two tailings ponds and a lined water supply pond. The mill facility includes a fully equipped assay lab and smelting room.
The Discovery Day mine was in production as recently as the spring of 2010, when a tragic accident claimed the life of the mining supervisor. Operations at the mine were suspended pending the accident investigation and the public company funding the project abandoned the JV due to liability concerns. The owners have since addressed all of the issues stemming from the accident and are currently preparing the mine to re-commence operations under new ownership. The mine will be turned over to the new owner in a turnkey condition.
The mine is currently owned by a private company, which has set up an organizational structure which protects the assets and allows for transfer of the operating permits. A new owner will only need to establish its own operating company. An entire permitting and start-up summary is available upon request.
There are at least 5 known high grade quartz veins located on the property. These structures range in width from a few inches to over 15 feet and contain high grade ore shoots. Historical data indicates "bonanza" ore shoots with lengths of 80 to 150 feet and up to 450 feet in height. Ore grades from past operations are reported to range from 3/4 ounce per ton up to 37 ounces per ton. One historical mill report (copy available upon request) from 1996 recorded 43 tons of ore milled that averaged 37.4 ounces per ton. The most recent mining efforts in 2010 were focused on two production headings and one development heading in the Discovery Day Mine. Increased ore production is anticipated from the re-opening of the other mines on the property. A CA NI 43-101 technical report was written for the property in 2009 and is available upon request.
The mine is fully operational with equipment in working condition and infrastructure in place. Approximately $75K will be needed for legal fees, closing costs, insurance deposits and other administrative items to transfer title. An additional $75K in operating capital will be required for initial start-up (until the first gold sales) to re-commence operations at a 30-75 tpd level.
Reduced Sales Price:
The property has recently been marketed for sale with several offers being presented in the $15MM to $20MM price range. None of the prospective buyers have been able to come up with the money necessary to close the deal. The owners of the mine have other mining properties and a publicaly traded company that require immediate operating capital, so they have decided to entertain any reasonable offer for a sale of the mine under certain conditions. They are willing to finance the sale with a substantial cash down payment of at least $1.5MM. The final price and terms are negotiable. Proof of funds are required, along with a non-refundable deposit submitted after due diligence is completed. The deal must close by Jan 31, 2015 or the owners will secure their needed funding from other sources.
Return On Investment:
The ROI will be determined by production levels and operational efficiency of the new owner. Full scale production mining should prove to be very lucrative with a production cost significantly less than the industry average. A complete pro-forma for production scenarios is available upon request.