We wrote about Kilgore Minerals this past winter, as it owns U.S. uranium facilities. While studying the company, it became clear that the company's uranium would take the rear position of the company's gold mine south of Idaho. We have reviewed Robert Bishop's comments in his self-published report on Gold Mining Stock. Mr. Bishop is widely regarded as a wise young goldsmith, and his analysis is complete. There is no doubt that the Bishop has great respect for Kilgore Minerals chief Norman Burmeister.
More importantly, the highly successful Pinetree Capital (Toronto: PNP) has made a huge investment in Kilgore. Consequently, Chief Executive and CFO, Sheldon Inwentash and Larry Goldberg, both Pinetree Capital and the highly acclaimed Mega Uranium (TSX: MGA), have personally invested in Kilgore Minerals. The latest Forbes magazine article has swiped from both Mega Uranium and Pinetree Capital. In fact, it was the head butt. Pinetree Capital has returned to trading above C $ 17 / share, since last year when it was trading at less than $ 3 / share. So Forbes article was not a Pinetree Capital event. And their assets at Kilgore Minerals, which reportedly accounted for 10 to 20 percent of the company, were transferred without notice.
Location History
Kilda Idaho's Kilgore gold mine has been tested since 1930, when gold discovery was made by Blue Ledge Co. About 50 claims were filed in 1982 and leased to a subsidiary of Kennecott in the mid-1980s. Seven holes were drilled. In 1990, the Placer Dome discovered and excavated 39 holes, more than 21,000 feet [21,000 m] excavated. Pegasus joint venture dug 23 more holes, approximately 10,000 feet, in 1994. Echo Bay earned the most interest in the area, in 1996, after spending $ 3.5 million digging 122 holes over 82,000 feet. In 1997, with declining gold prices and problems in the mining sector brought on by Indonesia’s fraudulent Bre Bre X X Minerals, Echo Bay abandoned its exploration ambitions in Kilgore - and closed all its exploration projects. In 1998, Latitude Minerals conducted a modest survey of just over 4,000 feet [4,000 m].
Near the bottom of the gold bear market, Kilgore Gold (a wholly owned subsidiary of Kilgore Minerals) acquired 100% ownership of the property. A new first round of testing has identified new gold targets. In 2004, Kilgore Gold increased the company's hold to 3,000 hectares. Is this place stuffed like Swiss cheese or does Norman Burmeister know what he's doing? It has approximately 200 diamond holes, comprising more than 126,000 feet.
In a previous interview with Burmeister, he told us, “I am very happy with this project. It was the highest point on the Echo Bay list. ”Large corporations have spent over $ 8 million to develop a modest, and economically viable service. At least three different businesses have established service ratings in the Kilgore gold mine. In 1996, the Placer Dome reported 14.1 million tons, incurring 0.04 ounces / ton and a cut-off distance of 0.015, a deposit of 561,000 gold ounces. A year later, Echo Bay released a segment rate report showing 18.7 million tons, at a rate of 0.029, valued at 534,959 ounces of gold.
However, the only service level approved by Canadian regulators (Kilgore trades on the Toronto Venture Exchange) is the Van Brunt / Rayner Technical Report, filed in October 2002, and complies with National Instrument 43-101 (NI 43-101). The report showed approximately 7 million tons traded at 0.031, with a fixed distance of 0.01, for a proven service of 218,000 ounces of gold. The report showed a proven service, adding another 269,000 ounces of gold. This is close enough to the size of Placer Dome and Echo Bay, but it is unlikely to find a mine unless Kilgore gets more gold.
During the 2004 excavation process, Norm Burmeister found a sniffle of what could make this an exciting discovery for a large gold company. "We want a program to cater for the highest level of people," Burmeister said. In a preliminary mining project, Burmeister acquired and promoted 0.465 ounces per tonne of gold over 10 feet in the 170-meter wide mineral processing area of 0.04 ounces per tonne. On Tuesday, Kilgore Gold made its announcement that it would begin the race to determine if there was any gold in the area.
In an email to us, Norm Burmeister wrote, "The high point, called the" Elsa Zone ", was at a depth of 410 meters. It is important to note that the hole was drilled in an unprecedented area 4,450 feet from the source. ” The Elsa Zone is within the target area of the Dog Bone Ridge. Burmeister also pointed out, “There are no known works in the area, and no gold mining is known locally, thus making Elsa Zone a real‘ blind thing ’. prospects for a much larger area targeted by Dog Bone Ridge.
Reason
The purpose of the 2006 excavation plan, Burmeister told us, is to discover "the true power of the Dog Bone Ridge target area." Niel Prenn, a trained engineer with Mine Development Associates of Reno, Nevada, has completed the Echo Bay project evaluation scope for 1996. He wrote, "This project appears to be an attractive economy if the 'mineral resources' could be doubled at $ 375 / ounce of gold." Prenn saw the Kilgore project as another "with a large epithermal gold deposit." This confirms a previous geographical report by Stanton W. Caddey, who wrote in an October 2003 report, “The potential for exploration in the Kilgore area is twice as high as gold.
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