NEWPORT BEACH, Calif., August 07, 2019 — Charles McLaughlin of BSA/BMC today announced the selection of Mine Development Associates (MDA-recently acquired by Respec) to produce a New 43 101 for a small portion of the Radcliffe Mine. This 43 101 will be based on new underground mine plans for Radcliffe, to replace previous (circa 1997) 43 101s based on a surface mining plan. The New 43 101 will be based on new mining and assay data generated by BSA during the last year, which will supplement the historic drilling (220+ drill holes and assays) and mining operations. According to Steve Ristorcelli of MDA, “BSA has really improved the feasibility of Radcliffe by planning an underground mine which substantially reduced front end capital expenditures. The close proximity of mining to the surface will speed the development of positive cash flows during the first year of operations.”
BSA is also providing updates on its previously announced new mine plan (Portal 4 at Radcliffe);
1) The mine plan has been completed (see attached mine plan), indicating total resources of 155,000 ounces of gold, .403 OPT. UG mining will be performed at Portal 4 with gold bearing ore transported downhill 1.5 miles to Clair Camp, part of the Radcliffe CUP. Mark Odell of Practical Mining, the mine engineer responsible for the new mine plan observed “This plan puts underground mining much closer to the high-grade ores in Phase 1 and Phase 2 as demonstrated by the 220 drill holes and associated assay results. The simplicity of this mine plan has also made it possible to obtain relatively fixed bids from underground mining contractors.”
2) An RFP prepared by Odell has been distributed to multiple underground mining contractors, with 4 bids received. BSA continues to evaluate the bids and expects to open negotiations on a contract by the end of August. The selected contractor is expected to employ 20 to 30 full time miners for on-site mining jobs. The selected contractor will also be supplying all of the required operating equipment for UG mining.
3) BSA has retained metallurgist Mark Jorgensen (Denver) and ALS Kamloops (Vancouver) to conduct metallurgical analysis of the Portal 4 ore. This process has been completed and has resulted in the preparation of a comparison of alternative processing procedures, a flow sheet, recommended equipment packages, and suggested alternatives available to Portal 4. BSA has decided on circuits including crushing and flotation. Testing has demonstrated an 85% recovery rate thru flotation. However, BSA is also evaluating new processes that can increase the recovery rate to 95%+. Parties with new processes for BSA to consider should contact BSA as indicated below. A gold concentrate will be sold to other mining companies. RFPs for the sale of concentrate are available from BSA at cjm@blackswanadvisors.net.
4) BSA is now soliciting bids for the operation of the on-site processing facility at Radcliffe, as allowed by the Inyo County approved Conditional Use Permit (CUP). Processing will commence shortly after UG mining is started in October 2019 Interested contractors should contact BSA as follows; (Charles McLaughlin, cjm@blackswanadvisors.net).
Processing waste (tailings) will be disposed of in a dry stack mechanism under design, or inside old mine workings on site.
5) BSA has retained American Geotechnical to prepare a water storage plan for Radcliffe, which facility will provide for 30,000 gallons of storage, plan to be completed by the end of August. Sufficient water is available from Trona, California, a 30-mile delivery trip.
6) Portal 4 is situated on approximately 50 acres of the entire 1,650 acres of the Radcliffe mine. The CUP provides 6 approved new portal locations. During mine development BSA will conduct additional exploration on its 1,650 acres and nearby additional properties which have already shown additional resource promise. The initial exploration will be done underground in Portal 4 chasing visible veins with known gold grades.
7) BSA is now interviewing for the following additional services to be provided in October with the opening of Portal 4. All interested candidates, contractors or consultants should contact BSA at cjm@blackswanadvisors.net, 949 351 3943. BSA expects a mine life of 2.5 to 3 years:
A) Project geologist, full time
B) On site assay lab technician with his own lab equipment
C) Under Ground drilling team (with their own equipment); mine development drilling and exploration drilling.
D) On Site project manager
McLaughlin indicated BSA is in negotiations for mine development financing and expects to announce terms in the near future but welcomes new financing opportunities for both Radcliffe and Keystone. BSA has also been considering RTO opportunities with public gold/silver mining companies.
BSA continues its evaluation of its 100% owned Keystone Mine located 15 miles south of Radcliffe. Once Radcliffe is in production Keystone will be moved into pre-production mode. Keystone is fully permitted under approved Plans of Operation with BLM, contains an estimated 1,000 acres under 48 unpatented lode mining claims, and contains an estimated 230,000 ounces of gold, .45 OPT.
McLaughlin concluded “We have moved Radcliffe quickly to mine development since our title acquisition in late September 2018. We are a cash-flow oriented organization and will do the same with Keystone. We have about 600,000 ounces of gold, .45 OPT (14 g/t) in the known perimeter of the 2 mines, and expect to add further resources during mine development thru underground drilling programs which have a much higher probability of success and much lower drilling cost due to the ability to see veins, conduct assays, and measure other vein dimensions. This will make for a much faster identification and quantification of new resources close to existing mining.”