Victoria Mine
Description
GWV has recently announced a $1,500,000 private placement (see news release dated May 7 2008) to provide interim financing for the company to conduct further drilling at the Dolly Varden property and to finance additional drilling at the Victoria Mine in conjunction with the NI43-101 report currently being prepared to assess the resource value at Victoria.
In addition to a 10% interest in all underground and future exploited ore at Victoria, GWV has an agreement with Kokanee Placer for a 50% split of profits from the sale of stockpiled ore left on surface at the previously active Victoria Mine site by Anaconda Mining Co. in the late 1970’s and Day Mining in 1981 when operations at the Victoria Mine were ceased.
Anaconda Mining determined that the underground ore reserves, at the time of initial production, amounted to approx. 2.425 million tons at a grade of 2.42% copper and 0.59 oz. per ton silver, using a cut off grade of just under 2% Cu. A total of about 700,000 tons of ore from its open pit and an additional 206,000 tons underground were extracted at a millhead grade of 2.03% copper when operations ceased.
Anaconda calculated a remaining resource of approximately 1.4 million tons at a grade of 2.39% copper and 0.35 oz. per ton silver between the 7110 level to the 6786 level using the Anaconda cut off grade of just under 2%.
A further estimate of 2.4 million tons was made on mineralization down to the 6200 level reportedly at the same grade as the mined ore found between the 7110 and 6786 levels.
A minimum estimated resource of 3.8 Million tons using a cut off grade of just under 2% Cu. remains at the Victoria Mine. The indicated remaining mineral resource is a calculated resource based on estimates made by the Anaconda Mining Company.
These estimates formed the basis of their mining operations and what they and Day Mining, who operated the mine briefly in 1981, extracted. Anaconda ceased production at the 7110 elevation, in August of 1977 because of low copper prices.
GWV plans to re-open the mine and proceed rapidly to production within a year. The company hopes to be generating a positive cash flow from the Victoria mining operations by the second half of 2008.
ALTHOUGH ANACONDA MINING COMPANY CARRIED OUT COMMERCIAL MINING OPERATIONS AT THE VICTORIA MINE, NO VERIFICATION OF THIS RESOURCE HAS BEEN DONE TO THE AUTHOR’S KNOWLEDGE SINCE 1981. IT IS BASED ON ANACONDA MINING COMPANY RECORDS AND THE AUTHOR’S CALCULATIONS. IT IS NOT 43-101 COMPLIANT AND THEREFORE SHOULD NOT BE RELIED UPON. CONSOLIDATED GOLD WIN VENTURES IS CURRENTLY TAKING THE NECESSARY STEPS REQUIRED TO BRING THE RESOURCE ESTIMATES CONTAINED HEREIN INTO COMPLIANCE WITH CURRENT REGULATORY STANDARDS.
