Historically a Huge Gold District, Rise to Begin Drilling. Results Soon
A Company you've never heard of, Rise Gold Corp. (CSE: RISE) (OTC: RYES) is preparing to commence drilling at its 100% owned Idaho-Maryland Mine (IM) in California, a property, although, mammoth, you've probably also never heard of.
As a matter of fact, no one has heard anything from the mine in over half a century. Coupled with a cool story, is the potential to make an investment that could turn into, as it once was, one of the largest gold mines in the United States.
If only those mine shafts could talk. They soon will give up their secrets and possibly a great deal of gold.
Nothing to strange about that, except that it is the first meaningful activity since 1955 on a then mega-mine that dates back more than 150 years. During that period, the area produced 2.4 million ounces of gold at a head grade of 17g/t. That alone should get investors' attention. But, gentle reader, there's lots more. Lots.
Rise is preparing to commence drilling on the #1 Vein, which was last mined from 1866 to 1901 and during those 35 years produced 935k ounces at 39 g/t. An extensive drilling program is scheduled for Fall 2017 and is discussed below.
Why should investors' care? Unlike most exploration plays, there is known gold there and could well be a huge amount. At one point this was the #2 largest gold mine in the US. There are links to the technical report here and at the end, but the investment intrigue makes just as compelling a reason for spec and junior mine buffs to invest.
Total Idaho-Maryland Mine Production from 1866-1955
Every Great Mine Should Have a Great Story
The storied history of this area is fascinating, readily available and goes on for a while. How Rise ended up here is the point. The key is that with modern drilling technology, gold can be explored in deeper and new areas. How much gold may be there is potentially astounding.
The final private owner of the IM mine, Errol Macboyle, to ensure he could acquire and consolidate the area against competition from Newmont, released few if any details about the potential. He even barred the USGS from inspecting the property, thus preventing details of the mine's geology and underground working from being published.
Through access to the mines private library, Rise now has documentation that includes a long history of successful past production.
- Produced 2.4Moz gold @ head grade of 0.50oz/ton (17gpt)
- Historic production head grades would rank I-M amongst today's highest-grade gold producers. Historic metallurgical gold recovery of 96%
- An entire private library of drawings and documents from the historic mine was preserved.
- The historic mining company continued making significant discoveries at the mine in the years before it was closed. This information has never previously been published.
Using the data RISE has identified numerous advanced exploration targets. Just one of which could be the subject of the business plan of most exploration companies.
The mine remained fallow and without meaningful activity until Rise fortuitously managed to purchase 100% of it for $2mill in 2017 along with all the documentation; a great deal of which hasn't been reviewed in more than 50 years. The Company owns 93 acres of surface land and 2,750 acres of mineral rights as well as all the mine and mineral rights. The only thing to do now is prove up how much MORE gold is there.
The mine produced 2.4 million ounces of 15 grams-per-ton gold and was the largest producing gold mine in the California and the top producing mine in Grass Valley in 1941, producing up to 129,000 ounces of gold per year.
The Grass Valley Gold District was the third largest gold producing gold district in the entire United States as at 1959. While other great gold districts continued to produced gold to this very day, Grass Valley has seen virtually no exploration or production since that time.
Best time to own this mine was in 1866. Second best may well be today
Very simply, it isn't a matter of if there is gold, but how much. The Company is preparing to commence exploration program in Fall 2017:
Here are the facts going into drilling:
- Two exploration drifts from 1942 show exploration target of #1 Vein to depth.
- Channel samples assay up to 14.0oz/ton (481gpt) over 3.8ft (1.2m).
- 89 channel samples average 1.26oz/ton (43gpt) with average width of 2.8' (0.8m) along vein length of 540ft (165m).
- #1 Vein produced 935,000 oz gold at a 1.12oz/ton (39gpt) head grade.
From the June 12th press release, Rise CEO, Benjamin Mossman, commented,
"After months of work reviewing the mine documents and the recent completion of our Technical Report, our confidence in the Idaho-Maryland Gold Project has only become stronger. It is truly remarkable that a project such as this could have laid idle for over 60 years without a single exploration hole being drilled underneath the historic mine workings. Our mission is to match the faith and discipline of the past explorers of Idaho-Maryland. With 60 years of technological advancement, our vision is that Rise will make the next major discovery at one of the United States' greatest past producing gold mines"
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