Rise Gold Corp. [RISE-CSE; RYES-OTCQB] said it has applied for a permit that would allow it to reopen the Idaho-Maryland gold mine in Nevada County, northern California
The Idaho-Maryland gold mine produced 2.4 million ounces of gold at an average mill head grade of 17 g/t between 1866 and 1955. It ranked as the second largest lode gold producer in the United States before being forced to close under the war production order during World War II. The mine produced a substantial amount of gold in the years before the forced closure during the war. In the two years before closure, 1940 and 1941, mine production averaged 920 tons per day with a mill head grade of 12.0 g/t and 121,000 ounces of production annually.
The company said it has recently completed 20,600 metres of exploration core drilling at the mine site. It said numerous high-grade gold intercepts have been encountered, both near the existing mine workings and to depths significantly below historic mining areas.
On Friday, Rise Gold shares were trading at $0.07 in a 52-week range of 11.5 cents and $0.055. The company has a market cap of $15.43 million, based on 220.5 million shares outstanding.
The company said it believes its drilling program has been successful but cautions investors that no current mineral resources or reserves have been defined. Rise also said it has not completed a feasibility study to establish mineral reserves and therefore has not demonstrated that the mine is economically viable.
However, the company has submitted an application for a use permit. It proposes that underground mining will commence at an average throughput of 1,000 tonnes per day. The existing Brunswick Shaft, which extends to 3,400 feet below surface, would be used as the primary rock conveyance at the mine. A second shaft would be constructed by raising from underground to provide for the conveyance of personnel, materials and equipment.
Gold processing would be achieved by gravity and flotation to produce gravity and flotation gold concentrates.
The Idaho-Maryland property is 100%-owned by Rise Gold and is located on private land. As a result, the project is subject to the Nevada County Land Use and Development Code. Subsurface mining and above ground processing is an allowed use subject to County approval of a Use Permit.
The company will be required to obtain approval of a reclamation plan, variance, and rezoning from the County for any surface component of the underground mining operation before mining can commence.
On September 3, 2019, Rise said it had closed a US$1 million debt financing with Eridanus Capital LLC. Eridanus is an affiliate of Myrmikan Capital LLC, which operates in the gold and silver junior mining sector.
The loan principal may be used for engineering, permitting and working capital at the project and is secured against the assets of the company. The loan has a term of two years and interest will be accrued at an annual interest rate of 10% and paid along with the principal on the maturity date.