Idaho Gold and Silver Mine For Sal

 The Calida Mine

 

Summary:
Proven, Probable, and Inferred Reserves: 1,705,780 Ounces of Gold, 60,972,582 Ounces of Silver AND 513,548,836 pounds of Copper or $7.32 Billion at Current Prices

Proven, Probable, and Inferred Reserves of $7.32 billion at $1,450 per ounce gold, $46 per ounce silver and $4 per pound copper. Contains 16 unpatented lode mining claims on BLM land. Extraordinary ore tenor of 0.188 ounces per ton gold, 6.72 ounces per ton silver and 56.6 pounds per ton copper. Potential to generate over $1 Million per day in net profit. Prior permitting shows no NEPA issues. Located approximately 24 miles south of Salmon, Idaho, and 5 miles west of Highway 28 in the Mormon Canyon area.

Calida has had extensive drill testing and fully complies with US SEC Industry Guide 7 requirements for insertion into a US public company. Additionally, for Canadian buyers, it qualifies to have a NI 43-101 report written designating an "inferred" reserve for insertion into existing Canadian public mining companies.

Location and Access:
The Calida property is located approximately 24 miles south of Salmon, Idaho and 5 miles west of Highway 28 within the Mormon Canyon area.

Description:
The property includes 16 unpatented lode mining claims containing 320 acres. The claim block is situated on lands administered by the Bureau of Land Management. Calida consists of numerous old producing mines both surface and underground, having produced from 7 separate shear zones containing important quantities of gold, silver, and copper.

The current average ore value is $411 per ton. It is estimated that production costs will be approximately $50/ton for mining (combined surface & underground), and $23/ton for milling, smelting, refining, and reclamation, resulting in a pre-tax net profit of $338/ton. An operation of 150 tons per hour is planned, resulting in a production rate of 3000 tons per day (two 10 hour shifts). At this rate the daily net profit will be approximately $ 1,014,000. A monthly net profit of $24.3 million is anticipated, equating to an annual net profit (11 months) of $267.7 million.

Crushing, milling and smelting should be done offsite on private property. Much of the gold and silver is expected to be free milling, meaning that it can be released by grinding and recovered by advanced centrifugal and ultra high frequency vibration concentration. The remainder will be separated out using a bromine or similar based flotation system. No cyanide is required. Copper requires a separate concentrating circuit.

The permit jurisdiction for the Calida claims is the BLM. Prior permitting shows that there are no NEPA issues. Private property milling will vastly simplify permitting. In essence, the permit will be to extract and haul ore. Adjacent private land is available to lease or purchase for a mill site. Based on filing a permit application with an offsite private property mill, the BLM has informaly commented that it might only take 11 months to secure permits. There are no known impediments to permitting.

Geology:
Genesis of the Calida ore deposits, simply put, is a series of intensely altered and mineralized shear zones hosting oxide and sulfide ore minerals. The shear zones range in size from 2’ to over 130’ in width and up to 14,000’ in length. The shear zones represent a hydrothermal plumbing system for the migration of ore-bearing minerals throughout the zones of crushing and shearing. Mineralization consists of native gold, and gold-bearing copper and silver minerals. Most predominate in the system as tested includes the minerals of chalcopyrite, pyrite, chrysacolla, malachite, azurite, limonite, goethite, and assorted minerals containing both gold and silver.

Ore Reserves:
Exploration drilling and trenching, combined with exposures in old workings, have provided the foundation for calculating an in-ground ore reserve. Three different periods of drilling have focused on developing a reserve base to justify the implementation of a comprehensive mining and milling program. The work programs have resulted in adequate data to define a proven ore reserve totaling 9,073,301 tons. An additional probable reserve has not been calculated but is estimated to be at least 4 million tons. The in-ground ore reserve contains an average ore tenor of 0.187 oz/ton Au, 6.72 oz/ton Ag, and 56.6 lbs/ton of Cu (2.83%).

Calida is a porphyry deposit, generally meaning that it was created through an upwelling of material from the earths core. Drill testing has only gone to 500 feet. There is speculation that the ore body may go down to 2,000 feet or more. If so, this would dramatically expand the ultimate mineable reserves.

Cash Flow:
Annual net profit US $80.256 Million at 200 tons per hour.

History:

Additional Information:
The following technical document and reports are available for review:

2004 Jenkins Technical Summary with 2007 Addendum
2004 Jenkins Ore Reserve Analysis
1983 Donald P. McCarthy Geology Report
1983 McCarthy - Hansen Drill Hole Location Map
1983 Rogers - Hansen Drill Hole Test Results - Assay Reports
1980 Stephen C. Hansen Geology Report
1980 Stephen C. Hansen Drill Test - Trenching - Assay Results
1979 - 1983 Rogers Hansen Drill Hole Test Results & Assay Reports
1980 - 1988 GRE Rogers Hansen Drill Test Cross Sectional Maps - Assay Reports
1980 Thomas E. Finch Geology Report
1980 Rogers Research Geology Report
Calida - Vein Shear Drill Hole Maps

Other information available for review:

BLM LR2000 Database Report Verifying Ownership
2009 Independent Appraisal Report
Area and Site Maps

Contact Peter - omnimetal@aol.com

Contact: Don or Peter
Telephone: (928) 713-7298 or (503) 807-1850
Email: djraremetals@msn.com
Website:

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