Carolina Capital Corp. [CQC-TSXV] has closed the acquisition of a 100% interest, subject to underlying royalties, in the Madison Gold and Copper Mine in southwestern Montana from Coronado Resources Ltd. [CRD-TSXV]. Carolina has received TSX Venture Exchange approval for Carolina to change its name to Broadway Gold Mining Ltd. The company is now trading under the new symbol “BRD.”
The Madison Mine is located in the historic Silver Star Mining District, 38 km southeast of Butte, the location of the world renowned Butte copper mine. The Madison Mine consists of 6 Federal Patented Lode Claims, 34 Federal Unpatented Lode Claims and 1 Federal Unpatented Placer Claim totaling over 450 acres, in addition to a 192-acre ranch, together with permits, rights, interests, mining equipment, buildings and fixtures and an exploration database that includes 101 drill holes, multi-element and gold assays from rock-chip sampling and bulk sampling, and detailed geologic mapping.
The mining project also hosts the historic Broadway Gold Mine where production from the 1880s to the 1950s yielded an estimated 450,000 tons averaging 0.32 opt gold from 6,000 feet of underground workings to a vertical depth of 750 feet. This mine remains unexplored.
Coronado financial statements document total direct expenditures of over CDN $9,900,000 and US $2,000,000 on the Madison Gold Mine Project since 2005.
Gold and copper shipments 2008 to 2012
Coronado completed drill programs and bulk sampling between 2005 and 2012 stockpiling oxide gold and massive sulphide gold and copper mineralization for subsequent mill shipment. A crushing plant, certified weigh scale and sufficient power exist on the current property. Coronado shipped its first oxide gold, averaging 0.694 oz gold/ton, to Barrick Gold’s Golden Sunlight Mine at nearby Whitehall, Montana in 2008. The first sulphide gold, averaging 0.71 oz gold/ton, was shipped to Kinross Gold’s Republic Mine in Republic, Washington in 2009. Based on data from 12 shipments, the gold recovery had an overall average of 83%.
Historically, about 20,000 tons was shipped as bulk samples during underground development and trial mining. Coronado did not calculate a mineral resource or reserve estimate.
Coronado surface and underground drilling confirmed the existence of the high-grade gold and copper zones prior to bulk testing. Highlighted intercepts include:
|Drill Hole||Intercept||Copper %||Intercept|
The drill intercepts were summarized by Carolina from the Coronado drill hole database. These historic drill intersection highlights are down hole lengths not true width lengths.
The Coronado workings remain open and all permits from the bulk sampling programs remain in good standing. The Madison Mine’s Small Miners Exclusion Statement (SMES) allows for maximum surface disturbance of 5 acres, but with no upper limit on the amount of bulk sampling per year.
Permits are in place from the Montana Department of Environmental Quality (DEQ) which include water discharge permit MTX000205 to dewater the Madison Mine workings and storm water discharge permit MTR300246 to properly collect runoff from the surface mine workings. These permits are going through a process of transfer to the company, and in some cases need re-application by the company.
The property presents an opportunity, as the area has never been fully exploited or explored, and Broadway Gold Mining has identified a series of existing gold and copper zones that remain open for expansion.
There are two underexplored areas that the company plans to exploit. The first is a number of copper and gold drill intersections to the west of the recent Coronado workings that have yet to be followed up or expanded. The second is the porphyry copper potential of the property indicated by several copper intercepts within the quartz monzonite of the Radar Creek pluton.
The company acquired a 100% right, title and interest in the 192 acre ranch, all patented and unpatented claims, buildings, mining equipment and fixtures in the Madison Mine, as follows:
|Cash Payments||Common Shares|
|First Anniversary||–||500,000 shares|
|Second Anniversary||–||500,000 shares|
Concurrently with completion of the transaction, the company has completed a non-brokered private placement of 16,500,000 units at a price of $0.06 per unit for gross proceeds of $990,000. Each unit consists of one share and one warrant good to buy one share for three years for $0.10 per warrant share.
Proceeds of the private placement will be used to pay the balance of costs to complete the acquisition of the Madison Mine and to finance the company’s exploration and development program at the mine.