Canadian company buys Idaho-Maryland Mine for $2 million
January 27, 2017
Rise Resources Inc., a junior mining company focused on exploration and based in Vancouver, British Columbia, has purchased the Idaho-Maryland Mine east of Grass Valley from Emgold Mining Corp. for $2 million.
Rise bought approximately 93 acres of surface land and about 2,750 acres of mineral rights.
"We just purchased the property and got all the old documents," Rise Chief Executive Officer Ben Mossman said. "It's still pretty early. The mine, the deposit itself, was quite a major deposit when they were mining it until 1952. There's probably really good potential to build a mineral resource. That's our interest in the property right now.
"It's a significant mining deposit and we will look to confirm that. Once we're able to establish a mineral resource we would look to expand that further."
Mossman said the process will begin with geological and engineering work. A technical report must be created before Rise can move forward.
Emgold tried unsuccessfully in recent years to reopen the mine to capitalize on an estimated 472,000 ounces of gold. At one time Emgold's Grass Valley-based president David Watkinson estimated reopening the mine would create about 600 jobs, with half going to local residents.
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Environmental concerns played a significant role in Emgold's failure to permit the operation, concerns Mossman hasn't addressed.
"I haven't talked to Emgold so I'm not sure what their plans were."
Emgold, having tried to revive the mine since 2005, stopped listing it as a current project to its investors in January 2014.
The mine produced 2.4 million ounces of 15 grams-per-ton gold and was the second largest mine in the United States in 1941, producing up to 129,000 ounces of gold per year.
During World War II, the U.S. government forced it to shut down in 1942, deeming gold mining as non-essential. Instead, miners, equipment and supplies were reallocated to increase production of base metals necessary for the war effort.
To contact Staff Writer Stephen Roberson, email email@example.com or call 530-477-4236.
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