The purchase of the Idaho Maryland Gold Mine in northern California by Rise Resources caught the attention of 321 Gold’s Bob Moriarty.
Up until 2013 the primary resource of Emgold Mining Corp. (EMR:TSX.V) was the Idaho Maryland Gold Mine in northern California near Grass Valley. Emgold had a $40 million market cap in 2008 based on the mine with its historic 1.32 million ounce resource at 11.3 g/t gold. Emgold management stumbled. The shares dropped from a rollback adjusted $3.58 per share to $0.03 today, a 99% decline.
The Idaho Maryland mine, or IM mine for short, produced as much as 129,000 ounces of gold per year until World War II forced the closure in 1942. It was mined on and off on a shoestring basis from after the war until being optioned by Emgold in 1995. Emgold spent a lot of money on management and a little money on the project before they blew up.
From its discovery in 1851 until the last mining in 1956, the mine produced 2.38 million ounces of gold at a grade of .43 opt. The IM mine was reputed to be the second largest and most productive gold mine in California outclassed only by the nearby Empire Mine that began the long history of Newmont Mining.
Rise Resources Inc. (UPP:CSE; RYES:OTCBB)
announced the purchase of the entire project including 93 surface acres and 2750 acres of mineral rights for a flat $2 million USD including all core and technical data. The purchase is a straightforward deal that includes no royalty to anyone.
In California permitting an open pit mine is nearly impossible. Permitting an underground mine is quite possible. As of today’s price for the shares, Rise has a market cap of $10 million CAD or about $7.5 million USD. That’s about $5.68 …read more