ISABELLA PEARL DEVELOPMENT PROJECT
The Isabella Pearl Project is located in south central Nevada's Walker Lane Mineral Belt in Mineral County, Nevada. The land position totals 341 unpatented mining claims covering approximately 6,800 acres, of which 58 claims encompass the Isabella Pearl deposit and planned mine area.
The Isabella Pearl project contains third party Proven and Probable reserves estimated at 2,733,500 tonnes grading 2.18 grams per tonne, which equates to 191,400 gold ounces (report completed by Mine Development Associates, Reno, Nevada; see table below). Future production development anticipates two adjacent open pits with the Isabella pit averaging approximately 1 gram per tonne gold with mineral outcropping at the surface, and the Pearl pit averaging approximately 3.7 grams per tonne gold with a higher grade core averaging nearly 5 grams per tonne gold. The project estimates an average 5:1 strip ratio with metallurgical tests estimating gold recoveries for crushed oxide rock between 80 and 85 percent using conventional heap leaching. Small amounts of silver are expected in recoveries, which would be treated as by-product credits against gold production costs.
Significant mine permitting has already been completed at Isabella Pearl, which includes an Environmental Assessment draft, a Pre-Feasibility study, a Plan of Operations and a Water Pollution Control Permit. Water rights have been secured with points of diversion located adjacent to historic producing water wells.
The Company's is currently evaluating existing mine plans and engineering, with a goal to schedule the Isabella Pearl mine to potentially utilize early cash flow generated from the project to help fund ongoing development while keeping initial project CAPEX expenditures to a minimum. The Company is also attempting to modify and refine the Isabella Pearl project to reach a target of paying back the initial capital needed to establish production within the first year from mine cash flow.