Win-Eldrich needs $3.1 million for Nevada gold mine

The 335-claim Ashdown property is situated in northern Nevada, 50 miles northwest of Amax Gold’s Sleeper mine.

A feasibility study has recommended bringing the Ashdown deposit into production at a mining rate of 1,500 tons per day with annual production projected at 24,000 oz gold by heap leaching.

At the recent annual meeting, President Reuben Brant said the company is currently holding discussions with possible senior joint venture partners and that talks are also under way with potential sources of private funding for the proposed mine.

“We’ve had a few overtures from major mining companies inquiring if we want a joint venture partner,” said Brant.

He seemed to rule out the possibility of a public financing noting that “to raise money in this kind of market involves a lot of dilution for a small company.”

Shareholder approval was also given authorizing the directors to issue up to four million shares over the next year by way of private placements. Those shares could be issued for services rendered to the company, also.

Geologically, the gold at Ashdown occurs in a quartz vein system hosted by Cretaceous dioritic rocks. Net operating costs for the proposed mine are estimated at $267.98 per oz with leased equipment used for crushing and leaching. Proven and probable diluted (20%) reserves, based on 140 holes, stand at 1.12 million tons averaging 0.088 oz gold per ton.

Environmental applications have already been submitted but are not yet approved. About 6-9 months will be required to place the property into production, once financing has been arranged.

Brant said there is still potential for additional reserves to the north and east of the known deposit, but the company’s immediate objective is to raise the required capital to bring the property into production.

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