3,000 acres. Fully permitted high-grade Gold Mines in Downieville, California. Found in one of the richest districts of the California Mother Load.
The Telegraph Mine is a fully permitted high-grade gold property located in Downieville, California in one of the richest districts of the California Mother Lode. The owner has secured a substantial land position of over 3000 acres which includes the 9 historical mines on the claims –Telegraph, Dutch, Spaletto, Klondike, Crystal Quartz, Monte Cristo, Sol Wood and Excelsior. These past producers have an excellent history and their full potential has never been realized.
Owner is offering 20% equity in the property for $2M.
Mine is available for Outright Purchase for $30 Million.
The mineral deposit consists of both underground Tertiary river channels and several large, high grade quartz veins. Drill data and other geological information on this prospect indicate a potential world class gold reserve and one of the highest grade deposits in all of the US.
Placer Gold Potential:
The claim block is located in the "Great Blue Lead" not far from the famous Ruby mine. Large nuggets are common with one 2.4 pound nugget from the mine currently on display at the Smithsonian Institute (photo). The previously mined sections of this channel averaged 15 ounces per foot of channel. One ore car of gravel removed in the early 1900's reportedly contained over 2100 ounces of gold nuggets. Approximately 5,500 feet of virgin main channel remains and reports indicate over $120M in probable placer gold in the main channel alone. Several additional untapped channels exist on the claims
Lode Gold Potential:
There are at least seven known high-grade veins on the claim block which is located directly on the prolific Melones Fault (see map) and on trend with some of the richest mines in California. Vein widths are up to 35’. These veins were identified by the early placer miners but they were never mined to any extent. Near-term production potential exists for 150,000+ ozs of high-grade gold in quartz veins within 100 vertical feet below the main Telegraph haulage tunnel level. According to several historical reports the ore grades typically average greater than 1 opt Au with bonanza zones of 50-100+ opt Au. One known ore shoot produced 50 tons of ore that averaged over 70 opt. The remaining unmined portion of this ore shoot has immediate potential for at least 69,000 ozs gold.
There are an abundance of historical geological reports from different eras of operations. The geological data from these reports has been complied unto a master AutoCAD database. In addition to the extensive historical data, there are two modern published reports on the property. Professional Geologist John Ostler published the “Report on the Assets, Gold Reserves and Economic Potential of the Telegraph Property” on May 11, 1990. And a Canadian National Instrument 43-101 Technical Report was written on the property by professional Engineer Velasquez Spring, and published on February 12, 2012 by the consulting geologist and engineers firm of Watts, Griffis and McQuat. All geological reports are available upon request.
In 1972 APCO Oil Company conducted a limited drill program at the mine. The available drill logs substantiate extensive mineralization across exceptional vein widths as shown in the table below.
These results indicate over 465,000 ounces (worth $650M) in a very small section of the ore body. One of the primary goals of the development plan is to complete a drill program to twin the existing holes to substantiate the old data to CA NI 43-101 standards. If this data can be proven, and additional exploratory holes drilled with similar results, the mine would be one of the richest in the world.
Over $2M has been spent during the past 3 years on developing the project to its current stage. The mine is currently idle pending funding. The company is seeking an additional $2M in financing or through a JV partner. Funds will be used to rehabilitate the underground workings, validate the historical geologic data, expand the land position, begin limited production mining, and for general and administrative needs. Investors will receive 20% percent equity for $2M. Additional equity up to 49% total can be purchased at $250K per point.
1.Confirming the existing geological data and further delineating the reserves to Canadian NI 43-101standards will strongly position the business for a lucrative buyout. For example: an Ecuadorian exploration prospect (Fruta Del Norte) with similar drill data was sold to Kinross Gold for $3 billion. Reserve estimates are based on the 1985 documents by Roger Ames, Registered Professional Geologist; Blackhawk Mines – Lookout, Santa Fe and Blackhawk Areas. See the accompanying Ames report.
2.The mine would be ideal to vend into a public company (the owner controls one) providing leverage and liquidity through pubco stock. Such a rich mine in operation would be a company maker.
3.Production levels will be ramped up using cash flow generated during the limited production period.Full scale production mining should prove to be very lucrative with a production cost per ounce significantly less than the industry average. A complete pro-forma for production scenarios is available upon request.