- Kingman Minerals announced preparation of drill program to verify assets contained within its Mohave Project
- The program will aim to produce NI 43-101-compliant report detailing area’s potential ore deposits, assay value
- The drilling will focus around area which was subject of prior non-NI 43-101-compliant study carried out in 1985 on behalf of Stellar Resources
- Report suggested that the area’s potential assets could total as much as 664,000 ounces of gold and 2,600,000 ounces of silver
Kingman Minerals (TSX.V: KGS), a Canada-listed gold miner with extensive claims in key mining jurisdictions spanning the North American continent, has announced that it is preparing a drill campaign aimed toward confirming the viable ore deposits within its Mohave Project (http://ibn.fm/b13vp). The company’s Mohave Project, located within the Music Mountains in Mohave County, Arizona is comprised of 20 lode claims which include the historic Rosebud Mine. However, with the area largely abandoned following a downturn in gold prices during the early 1990s, Kingman Minerals is now seeking to prepare a NI 43-101 compliant report to verify the potential ore deposits and assay values present on its site.
In 1985, a study carried out by L.A. Bayrock Ph.D P.Geo (“Bayrock”) on behalf of Stellar Resource Corp. drilled eight holes on the Southwick veins within the main Rosebud production shaft, extracting 69 core samples which were then analyzed to ascertain their gold and silver contents. While the estimates and assay values could not be relied upon given that they were published prior to NI 43-101 regulations coming into force, Stellar Resource’s report at the time suggested that the mine’s potential assets could amount to as much as 664,000 ounces of gold and 2,600,000 ounces of silver (http://ibn.fm/YbOP5).
Kingman Minerals is now planning a drill program in the same area of the mine site examined by Bayrock 35 years ago, in an attempt to verify the drilling data published at the time.
With gold prices having risen by over 350% since 1985, major gold miners have shifted their exploration focus towards the exploitation of historic mining sites at the expense of grassroots exploration. A recent study carried out by SNL Metals & Mining revealed that over the decade ending in 2015, the 20 largest gold producers in the world devoted over 54% of their total gold exploration budgets to developing and reviving existing mining sites (http://ibn.fm/hrKR2).
In a similar manner, and through its recently announced decision to enter into an option agreement to acquire a 100% interest in the Mohave Project development (http://ibn.fm/fwts0), Kingman Minerals has opted to use modern mining techniques, which can help miners safely and cost-effectively access ore deposits which were previously deemed inaccessible. The Rosebud mine in particular, which was discovered in the 1880s and mined primarily in the late 1920s and 30s, saw over 3,000 tons of ore removed prior to being shuttered (http://ibn.fm/4YTQL).
“With the Bank of America Corp. recently raising its 18-month gold-price target to $3,000 an ounce, Kingman could not be better positioned to capitalize upon the extremely favorable gold environment,” stated Kingman Minerals chairman and director Sandy MacDougall. “This area [Mohave County] indicates great potential, not only due to the high-grade gold past producers but the surrounding area as a whole. Kingman intends to verify the extensive historical data that exists, bring the resource estimates to NI 43-101 compliant standards and revitalize this area completely” (http://ibn.fm/jm7ir).
For more information, visit the company’s website at www.KingmanMinerals.com.
NOTE TO INVESTORS: The latest news and updates relating to KGS are available in the company’s newsroom at http://ibn.fm/KGS