Finance The Kahiltna Placer Project development options include own operate, lease, or sale. Funding options for GLC as owner operator include but are not limited to Preferred Stock Sale thru our Private Placement, JV, debt finance. or equipment finance.
Outlook Revenue from a sale would be 3.5M, Revenue from a lease would be 15% of the gross mineral recovery. The current NPV of the project is estimated at $15M over a 10 year LOM. Our current Early Bird special capital raise through our 506c Private Placement Offering is redeemable in 5 years for 150% over investment up to $1M. PPO shares purchased after the Early Bird Special will be redeemable in 5 years for 50% over investment plus dividends.
Claims – Grant Lake Corporation owns 1,000 acres of contiguous claims along the Kahiltna River approximately 31 miles from the intersection of Petersville Road and Oilwell Road in the Yentna Mining District. The claims are located about 100 miles north by northwest of Anchorage Alaska. Substantial gold discoveries, exploration, and small production has been completed close to and on the claims.
Exploration sampling and analysis has determined that consistent gold distribution throughout the claims at a grade that warrants development and production. Sampling and testing and pilot mill operations on the claims has proven gold reserves to be approximately 64,000 oz/au in 4,000,000 cy of pay gravels with an average recoverable rate of .016 oz/au/cy. Economically recoverable amounts of platinum and gem stones can be produced as a by product of placer gold operations.
Application for Permits to Mine in Alaska (APMA) has been submitted for the 2018 season. The conceptual cost estimate for total installed cost of development including plant, equipment and infrastructure is $6.5M. The first year conceptual cost estimate for production is $2M.
Process Equipment planned for the project include a 200cy/hr vibratory washplant with screen and conveyor separation into a primary centrifuge and then stockpiled. Concentrates are transported to a finishing module and processed through cleanup and finishing centrifuge and hydrocyclone.
Heavy Equipment planned for placer mining and infrastructure maintenance include 2 yard excavator, D7 dozer, 966 loader, and 140 grader. Portable living facilities, electrical power generators, water and sewer system, communications, storage and mechanics shelters will be provided.
Capital cost to develop this project is $7.8 including the first year production. Equipment replacement capital cost planned in year 5 is $650K. The total initial capital cost will be recovered in 5 years including 8% simple interest. Total revenues over the current planned 10 year project life is $76M. The Project Net Present Value is $17M calculated with an 8% discount rate. Annual average profit forecasts over 10 years is $2.4M annually.
The Kahiltna Placer Project Feasibility Report details the business case and justification for development and is available to interested investors and other stakeholders. Click Funding under Investor tab and fill out the form or call us direct at (907) 362-1710. The Feasibility Report includes certain assumptions about reserves, productions rates and costs that are subject to change.