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Historic Ruby Trust Mine and Property in Ouray, CO

23 Patented.(160.56 ac), 35 UnPatanted(670.34).

Mine Details

Commodities: Gold, Silver
Price: 12,500,000.

Summary

The Ruby Trust Property consists of 23 Patented Mining Claims (160.56 acres), 35 Unpatented Mining Claims (670.34 acres) for a Total of 830.90 acres, located in the Sneffels Mining District of the Western San Juan Mountains of Colorado. Sneffels Creek runs through the property.

Primary Commodities: Gold(Au), Silver(Ag), Ruby Silver (1 of 16 mines in the USA is documented to have this mineral).

Critical Minerals found:
Platinum, Copper, Zinc, Fluorspar, Manganese, Cobalt, Rhodium, reports have shown.

**When you have a Historical Mine it is hard to summarize and should have a good solid base of information. Considerable potential exists on these claims that warrant a comprehensive exploration and development program conducted by experienced and qualified mining professionals. The Owners want buyer to be successful and willing to entertain legitimate offers.

Location and Access

Property located in Ouray, CO, USA at an elevation of approx. 10,000 ft. The property is 8 miles by road from the city of Ouray, CO and 4.5 miles NE of Telluride, CO.
Property is accessed by taking Ouray CR 361 (aka. Camp Bird Rd.) after reaching the infamous Camp Bird Mine the road will branch to the right turning into Ouray CR 26 (aka. Yankee Boy Basin Rd.) continues pass the historic Revenue-Virginius Mine and take left fork Ouray CR 26A (aka. Governor Basin Rd.) The Ruby Trust Base Camp is approx. 200 yard to the gate, but before crossing Sneffels Creek bridge.

Description

The Ruby Trust Property consists of:

23 Patented Mining Claims (160.56 acres)
* Full Legal Title with Title Insurance.

35 Unpatented Mining Claims (670.34 acres)
* Claims in good standing with the BLM

All Permits are in place and active
-DRMS Mined Land and Reclamation Permit (3 acres).
-NPDES Water Discharge Permit.
-NPDES Storm Water Permit.
* Water Discharge permit is currently undergoing minor changes due to increased water
discharge after recent 2012 drilling activities. Potential Water Rights from drilling is
Non-Tributary (80 gpm), which could be a additional income source.

The property is crossed by approximately 16 veins. The Ruby Trust vein, the Circassian vein and the Bessie Bascom are the only structures to have significant mining activity.

There is over 7000 ft of strike length on the Ruby Trust vein and 6500 ft of strike length on the Circassian vein. Less than 10% of these two veins has been seen underground. The veins do show dip and strike changes, so both vertical and horizontal mineralized rock shoots should be present.
Surface vein outcrops have not been explored. A 2012 diamond drilling program exposed two new veins never seen before. The exploration potential for this property is enormous.

Current calculated Reserves by multiple Certified Geologists.
-Total Broken Reserves. 4360
-Total Proven Reserves. 79,654
-Total Probable Reserves. 203,562. TOTAL Reserves 287,576.

Production @ 21,600 tons per year the Life of the mine
-Broken and Proven. 84,014 / 21,600 = 3.9 years
-Broken, Proven & Probable. 287,576 / 21,600. = 13.3 years

The Average grade of the mine is expected to be 0.50 oz / ton Gold and 10. Oz / ton Silver.

* It is important to note that each time a new area of the mine is explored or evaluated, more mineable reserves are found. With a large area of property as virgin ground these reserves will certainly rise. Current expectations would be for a 20-30 year life of the mine.

Geology

The Ruby Trust property is located in the NW corner of the San Juan volcanic field. The San Juan volcanic field is an extensive pile on intermediate to Felsic rocks that erupted from several large Caldera complexes beginning around 35 million years ago.
The Ruby Trust Mine is located in an area called the Uncompahgre Caldera with the formation of scattered andesitic strato-volcanoes. This activity produced inter-layered lava flow, breccias and volcanic sediments, which coalesced around the cones of these volcanoes. Approximately 23 million years ago, the character of the volcanic activity changed in the San Juan’s with the eruption of lesser flows and tuffs of basalt-rhyolite rock which formed up to 5 million years ago. Additionally, siliceous igneous intrusions were emplaced throughout the San Juan’s.
Vein deposits in the San Juan Mountains have produced significant quantities of Gold, Silver and Base metals since 1874. Some notable mines in the vicinity Camp Bird Mine and Revenue-Virginius Mine.

History

The first recorded activity on the site was in 1870, records of patenting of claims were surveyed and patented in those years.

1870 - 1902
The principal workings were the Minnie B, Trust Ruby and the Circassian veins. These veins produced approximately 4000 ounces of Gold and 80,000 ounces of silver. The ore was processed at the Yankee Boy, Ruby Trust twenty stamp mill.
The Minnie B tunnel and shaft were driven on the Ruby Trust vein. The upper levels (near surface) of the Ruby Trust vein were a silver rich sulphide vein with minor gold ( approx. 20 oz of silver were produced for each oz of gold). As mining proceed to depth the secondary enriched silver zone was replaced by primary mineral silver gold zone.
The Circassian vein production occurred (1886-1892). Some 20,000 tons of .50 to 1.00 oz / ton gold and 80 oz / ton silver were mined from a shoot, at places 30 ft wide.
Mining activity was discontinued in 1902 due to the fact that the mill was destroyed by an avalanche and was not rebuilt.
NOTE: Recent drilling and sampling of the Ruby Trust west track level revealed a 5-10 oz/ton silver grade and .50 oz/ton gold with 3-5% combined base metals of lead, copper and zinc.

1925 - 1948
The next period of mining activity the Ruby Trust claims were leased out during this interval and the mining was done by individual leasers. Total tonnage removed and milled was 1700 tons. From this ore, 390 ounces of gold and 2500 ounces of silver successfully extracted. A avalanche took out the Minnie B stamp mill in 1948 and the mine was abandoned.
From 1948 to the early 1980’s, no mining occurred on the Ruby Trust.

1978 - 1985
During this time the property was sold to current owner. The decline access was developed in 1980. Early 1980’s, approximately 5200 tons of ore were mined. To mill the ore an above ground processing plant was erected in 1984/1985. This mill was destroyed shortly after construction. All ore processing ceased after the destruction.

2007 - 2010
In 2007 the Ruby Trust mine was sold to an investment group (green to the mining industry). During 2009 a small stope was mined on the decline level (100 ft below mill level). This stope produced 685 tons of .50 oz/ton gold and 10 oz/ton silver. This ore was milled through a 50 ton/day mill on location at the Ruby Trust. Approximately 200 tons were milled. The mill was set up with a jaw crusher, cone crusher and ball mill. 2.44 tons of concentrates were collected and processed.
These concentrates were shipped to Metals Research Corp. in Kimberly, Idaho. The head assays for this shipment showed 74.2 oz of Gold and 95 oz of silver were present in these concentrations. Because of grinding problems at the Ruby Trust mill, over 60% of the gold and 80% of the silver in this 200 tons was sent to tailings. These tailing are still underground at the Ruby Trust and can be recovered. The important point is, if calculated back, the head grade would be .93 oz/ton gold and 2.38 oz/ton silver.
Because of onsite milling problems, 400 tons of ore were shipped to Kenross Gold Mill in Kettle Falls, Washington in 2010. The final results of the milling showed a head grade of .338 oz/ton with 88% recovery, silver was not recovered at this mill. 107.741 gold ounces paid according to settlement sheet.
Due to contract default and disputes among partners, property was taken back by previous owner. (Previous owner held note on the purchase).

2012
A drilling program in 2012 (full report available, as well as cores) to unexplored areas to the east of the existing workings, in the vicinity of the projections to the Bessie Bascom, encountered several veins with significant mineralization. Multi-ounce gold assays were reported. These values interested an individual to purchase the Ruby Trust property.

2016 -2018
The Ruby Trust property was purchased by an investor from Texas. ( green to the mining industry). The 2012 drilling program prompted to drive a 1000 ft crosscut drift to intersect the primary vein found in report. The vein has been intersected and is accessible by the crosscut and contains considerable mineralization. Due to limited survey control the highest grade intersections may be 60 ft above the cross cut intersection. This is an area that warrants exploration drilling from cross cut to evaluate defined vein targets.
Due to contract default the property was taken back by (Previous owner held note on the purchase).

Additional Information

A Dropbox Folder of Data is available. A Mutual NDA will need to be executed.

Documents and Maps

A Market Value Appraisal was conducted in 2012 by Ellis International Services, Inc.
minevaluation.com
- The appraisal was updated 2023 by lead appraiser. Comparison approach with Economic
Analysis.

Geological Reports
1894 - Geological Report found in the Colorado School of Mines Library.
1958 - Henry Cook, Consulting Engineer Report includes excerpts of history book articles
dating back to the late 1800’s.
1984 - Kircher Engineering Feasibility Report
1985 - R.H Godbe, Consulting Geologists

2011 thru 2014 - Charles Ponchak, Consulting Geologist. Numerous Reports to include 2012
Drilling Program, Proposed Business Plan, Mining Plan and Maps.

Plus numerous other data, feasibility studies, drilling logs and Assays.

EQUIPMENT- Major equipment on site

-Ball Mill - Rated at 96 tons/ day ( realistically 50 tons/day, has been idle since 2010)
-5 section Conveyor
-Falcon Concentrator
-Caterpillar Generator
-Two Stage Shaker table
-Rolling Stock - Skid Steer

Map



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