Goldrich Mining Provides Production Guidance Through 2019
Spokane, WA - March 18, 2015 - Goldrich Mining Company (OTCBB: GRMC) (“Goldrich” or the “Company”) is pleased to provide shareholders with estimated production forecasts, as provided by our joint-venture partner NyacAU, LLC (“NyacAU”), for the upcoming five mining seasons at Little Squaw mine.
Goldrich’s 50% owned subsidiary, Goldrich NyacAU Placer, LLC (“GNP”), is a joint venture between the Company and NyacAU to mine the various placer deposits that occur throughout Goldrich’s 23,000-acre Chandalar gold project in Alaska. NyacAU acts as project manager.
The 5-year summary of estimated gold production, financial projections and price sensitivity provided by NyacAU are as follows:
Financial Projections
Revenue | 2015 | 2016 | 2017 | 2018 | 2019 |
Gold Production (troy oz) | 16,500 | 23,100 | 30,200 | 32,000 | 32,000 |
Gold Price (avg. price/oz) | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
Total Revenue | $19,800,000 | $27,720,000 | $36,240,000 | $38,400,000 | $38,400,000 |
Production Costs | |||||
Cost per/oz. | $713 | $623 | $489 | $451 | $450 |
Total Cost of Sales | $11,778,000 | $14,398,000 | $14,780,000 | $14,441,000 | $14,400,000 |
Pre-Tax Net Profit | $8,022,000 | $13,322,000 | $21,460,000 | $23,959,000 | $24,000,000 |
Price Sensitivity Analysis
Gold Price/oz | 2015 | 2016 | 2017 | 2018 |
$1,100 | $6,370,000 | $11,011,000 | $18,437,000 | $20,759,000 |
$1,200 | $8,022,000 | $13,322,000 | $21,460,000 | $23,959,000 |
$1,300 | $9,674,000 | $15,634,000 | $24,483,000 | $27,160,000 |
$1,400 | $11,327,000 | $17,945,000 | $27,506,000 | $30,361,000 |
$1,500 | $12,979,000 | $20,257,000 | $30,528,000 | $33,561,000 |
Goldrich has not completed a recent independent study to confirm the information provided by NyacAU. To date approximately US$18 million has been invested by GNP to develop the mine with an additional US$5 million budgeted for 2015. All initial capital expenditures are being funded by NyacAU under terms of the joint-venture operating agreement.
Goldrich has completed approximately 15,000 feet of drilling to date on the upper half of the Little Squaw Creek placer project and outlined 10.5 million cubic yards of mineralized material with an average head grade of 0.025 ounces of gold per cubic yard. There is no mineral reserve as defined in SEC Industry Guide 7 in relation to the placer deposits being extracted by the joint venture.