Solomon buys Lucky Shot mine

For US$200,000, a unit of Solomon Resources (VSE) recently acquired the Lucky Shot gold mine and related surface facilities which includes a modern 100-ton-per-day mill near Anchorage, Alaska.

Solomon President Lawrence Nagy said the company is aiming to bring the former producer back into production by May, 1992. To accomplish this, the company teamed up with Alaska Hardrock, which owns the nearby Independence mine, another former gold producer in Alaska’s historic Independence mining district.

The joint venture provides for the pooling of mining claims and surface assets owned by both companies, with Solomon being operator and holding a 51% interest. Alaska Hardrock, which holds a 49% interest, was retained as manager and mining contractor.

“It made good sense to combine the two projects,” Nagy said. It took considerable time and patience for Solomon to acquire the Lucky Shot mine project which was in receivership because of the financial difficulties of the vendor, a Texas-based company which built the mill in 1982 and operated it for about 18 months.

Before this, the Lucky Shot mine operated from 1917 to 1942 and produced over 300,000 oz. gold at an average grade of better than 1.0 oz. gold per ton. The acquisition includes the Lucky Shot mining claims and related surface facilities which include a bunkhouse-office-shop complex and the portable mill which includes crushing, grinding, gravity, flotation and leach circuits, as well as power and water.

When the mine was shut down, mining was taking place in the Coleman vein on the west side of the property. Solomon said a significant portion of this vein appears to remain undeveloped, and the company considers the exploration potential of the Lucky Shot mine to be excellent.

The partners plan to process an existing surface stockpile of 3,500 tons averaging 0.4 oz. gold per ton at the Independence mine property, and begin mining in previously developed headings within this historic producer.