Background
Treasure Gulch Gold Mine VHGI owns a Lease-Purchase Option Agreement for the Treasure Gulch Gold Mine in Prescott, Arizona. The mine is part of a much larger parcel of property which includes eight mining claims in the Bradshaw Mountains of Arizona.
Unverified historical due-diligence material estimates Proven and Probable Gold Reserves in excess of $35,000,000.00 using a valuation of $800.00 per ounce. The subject property is located south of Prescott, AZ within the Hassayampa District, and is composed of three claims. It is an old mine that produced gold ore from a narrow portion of the vein and from underground open stopes. The previously worked vein is 6' to 12' in width and the adjacent Zero extension, also a part of this property, is from 2' to 5' in width.
Recently VHGI Gold secured both an extension of the Lease Periode and a modification to the Treasure Gulch Gold Mine Lease Purchase Option. The Term of the Lease has been extended through February 15, 2013 for VHGI to conduct gold mining activities at the site, and we have also secured renewal options through 2023. Additionally, we have been granted a reduction in the strike price for the outright acquisition of the property through our Lease-Purchase Option. As there is an additional incentive to acquire the property within six months, we intend to explore financing options to complete this transaction subject to due diligence and feasibility studies.
Gold Potential /
Mining Development Plan VHGI is currently conducting due-diligence on the subject property and pending results hopes to announce details of a proposed mining development schedule, with the intent of maximizing initial outcomes while limiting the financial commitment. Details under consideration include a laboratory analysis of surface ore deposits, an evaluation of the underground mine workings and an evaluation of refining and processing options subject to the results of these tests and analysis which could lead to Full Scale Gold Production.
The plan calls for surface ore deposits to be sent to an analytical laboratory to determine the best possible gold extraction methodology, as well as a short-term structure sampling program to determine the value of the subterranean holdings as to the possible quantity and grade of Gold Bearing Ore that could be extracted. According to the proposal, the existing tunnels and surface cuts would suffice to provide the ore body. These options could potentially produce first gold in 30 to 60 days on a laboratory scale.
Production Options Based on the outcome of that effort, a small pre-production extraction plant could be used to test the economics and provide certification for a final mining plan. While smaller production efforts could possibly support a profit orientated enterprise, the real commercial value of the Treasure Gulch Mine could be found in the development of the ore reserves at depth and on strike. On the table is a potential joint venture for the development of a centralized mill site to process the ore from the Treasure Gulch Mine and other mines within the adjacent parcels which could form the basis to transition VHGI from an acquisition and exploration company to a revenue based gold and silver production company. Additionally, VHGI is currently reviewing other Gold Lease-Purchase options and other potential acquisitions.
Project location as indicated above.
VHGI Gold (a wholly owned subsidiary of VHGI) has recently initiated steps to leverage the company's operating history and corporate resources within the Gold Mining, Precious Metals and Energy Production Markets. Although Gold is selling at 25 year high prices and Oil & Gas continue to be trading at significant premiums, global economic events have created significant opportunities within these markets. Assets can be acquired at significant discounts, and VHGI intends to pursue these opportunities through Lease-Purchase opportunities, Property Acquisitions and Joint Ventures
Treasure Gulch Gold Mine VHGI owns a Lease-Purchase Option Agreement for the Treasure Gulch Gold Mine in Prescott, Arizona. The mine is part of a much larger parcel of property which includes eight mining claims in the Bradshaw Mountains of Arizona.
Unverified historical due-diligence material estimates Proven and Probable Gold Reserves in excess of $35,000,000.00 using a valuation of $800.00 per ounce. The subject property is located south of Prescott, AZ within the Hassayampa District, and is composed of three claims. It is an old mine that produced gold ore from a narrow portion of the vein and from underground open stopes. The previously worked vein is 6' to 12' in width and the adjacent Zero extension, also a part of this property, is from 2' to 5' in width.
Recently VHGI Gold secured both an extension of the Lease Periode and a modification to the Treasure Gulch Gold Mine Lease Purchase Option. The Term of the Lease has been extended through February 15, 2013 for VHGI to conduct gold mining activities at the site, and we have also secured renewal options through 2023. Additionally, we have been granted a reduction in the strike price for the outright acquisition of the property through our Lease-Purchase Option. As there is an additional incentive to acquire the property within six months, we intend to explore financing options to complete this transaction subject to due diligence and feasibility studies.
Gold Potential /
Mining Development Plan VHGI is currently conducting due-diligence on the subject property and pending results hopes to announce details of a proposed mining development schedule, with the intent of maximizing initial outcomes while limiting the financial commitment. Details under consideration include a laboratory analysis of surface ore deposits, an evaluation of the underground mine workings and an evaluation of refining and processing options subject to the results of these tests and analysis which could lead to Full Scale Gold Production.
The plan calls for surface ore deposits to be sent to an analytical laboratory to determine the best possible gold extraction methodology, as well as a short-term structure sampling program to determine the value of the subterranean holdings as to the possible quantity and grade of Gold Bearing Ore that could be extracted. According to the proposal, the existing tunnels and surface cuts would suffice to provide the ore body. These options could potentially produce first gold in 30 to 60 days on a laboratory scale.
Production Options Based on the outcome of that effort, a small pre-production extraction plant could be used to test the economics and provide certification for a final mining plan. While smaller production efforts could possibly support a profit orientated enterprise, the real commercial value of the Treasure Gulch Mine could be found in the development of the ore reserves at depth and on strike. On the table is a potential joint venture for the development of a centralized mill site to process the ore from the Treasure Gulch Mine and other mines within the adjacent parcels which could form the basis to transition VHGI from an acquisition and exploration company to a revenue based gold and silver production company. Additionally, VHGI is currently reviewing other Gold Lease-Purchase options and other potential acquisitions.