More than 2.3 million ounces previously produced
Vancouver, British Columbia--(Newsfile Corp. - December 5, 2017) - Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC Pink: PRSRF) (the "Company" or "Para") is pleased to announce that it has entered into agreements with multiple parties to secure access to additional mineral claims and historic mines adjacent to the Gold Road Mine and Mill in the Oatman Mining District in Northwestern Arizona. Many of these mines stopped production in 1942 due to the US war effort and were never restarted. They were producing from high-grade underground veins at that time.
The Oatman District is the largest primary gold producing district in Arizona. Total production including Gold Road is more than 2.0 million ounces of Gold (not Au equivalent). The vast majority of the production has come from two sub-parallel vein systems, the Gold Road system and the Tom Reed-United Eastern (Tr-Ue vein) system. In addition to these two systems there is a third vein system, the Pioneer- Midnight system, which is southwest of the Tr-Ue system for which production records are mostly unknown. The distance between these veins is less than 1 kilometer.
All mineralization in the district is in epithermal quartz, calcite, adularia veins containing cyanide leachable gold, and silver. The absence of environmentally sensitive constituents (RECRA metals) and acid-generating minerals significantly reduces permitting and reclamation issues. Mining has historically been contained within patented (fee simple land) and the majority of the exploration potential is on private land. Gold Road Mining Corp. owns a modern 500 tpd cyanide leach facility designed specifically to treat the Oatman-type mineralized material. The mill is permitted to receive mineralized material from any of the mines with similar mineralized material.
Milling Facility
The mill is a 500 tpd carbon in pulp mill that has historically achieved typical recovery of 93% to 95% on run of mine mineralized material. Minimal recommissioning costs are expected as the mill last ran in July of 2016. Permitting is complete for the 500 tpd mill to be increased to 1,000 tpd and tailings capacity for 1,750,000 tons (10 years @ 500tpd) has been constructed. An additional 1,800,000 tons of tailings capacity has been permitted but not constructed. Milling cost is approximately $25/ton at a grind of 90% passing 320 mesh.
The mill is within easy hauling distance of the entire Oatman district and the mill was designed to treat mineralized material from any mine in the district. Permitting allows mineralized material from the district to be treated with no modification of the Gold Road Mill permit. Acquisition of the major target areas followed by exploration and development will increase utilization and extend life of the Oatman project. Potential feed for the mill can come from three principal vein systems.
- Gold Road Vein
- Tom Reed — United Eastern (TrUe vein)
- Pioneer — Midnight Vein
If exploration is successful, the rate of production in ounces per year is expected to be increased rapidly.
A map showing prior production, targets and average grades mined in the district is below: