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Project Finance The Case Lode 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. Grant Lake Corporation owns the Case Mine and has the option to develop and operate the mine. If the option is exercised we will execute the 2018-2021 reserve expansion.
Claims Grant Lake Corporation, an Alaskan Corporation, is 70 years old this year. The company is principally owned by Paul T. Torgerson and Ted K. Stinson , both residents of Anchorage, Alaska. Originally named Grant Lake Development Company, Inc., the company was founded in 1946 by Jack Merrington (1901-1998), After acquiring the Case Mine and four other lode and placer prospects around Grant Lake, Merrington sank a shaft from the surface at elevation 1650′ approximately 50′ in the Q2 vein. Creating a station at 1600′ he crosscut working west with the vein on the ceiling and floor of his tunnel, then stope mined 250-300 tons of very high-grade ore averaging greater than 2 opt au. Timbers, ore cars, rail and explosives were lowered and ore was raised to the surface using a “gallows” frame and winch. The ore was hauled down the mountain to the mill at elevation 800′ using a dozer and stone boat.
The Case Mine was discovered in at 2100′ on the south side of Lark Mountain in 1911 by J.F. Case and E.E. Whitney. In 1955, it was decided to drive an 150′ adit into the Q2 vein at elevation 1550′, then do a raise to the 1600′ station. Merrington, for the first time, raised equity capital to exploit the new mining plan. The 1550′ level portal was established on a flat vertical face next to a small water fall at the top of a steep narrow ravine which formed a natural V which was used to support the discharge chute from the mine portal down to the new stone boat loading area below at elevation 1500′. They had driven the new adit 20′ when they hit the Q5 vein. Merrington recorded 972 ounces of gold from 500 tons of ore, mined from the Q5-1550′ level vein from 1956-1960. The Q5 ore grade averaged 1.94 opt au. The mine was shut down after the 1960 season when an avalanche destroyed the ore mill.
In 1991 Grant Lake Development Company hired Chuck Hawley, president of Hawley Resource Group Inc., to perform the Case Prospect Geologic Evaluation and Recommendations. These recommendations included continued exploration, drilling and small-scale production from the
existing underground workings. Hawley’s recommendations were to rebuild the mill, then drift westward on the existing 1550’ level crosscut, stoping to the surface as the tunnel was extended. He also recommended completing the adit originally intended to intersect the Q2 vein 150’ below the surface, noting that the adit had been stopped at 90’ as success in the Q5 vein grew. The 1550’ level Q2 and Q5 stopes would have resulted in a 10-20 tpd seasonal mine for a number of years. Further exploration, assay sampling and surface investigations were performed by Paul Torgerson from 2000-2016. In 2013, he discovered the Q8 vein at elevation 1500’. He then plotted overall vein lengths on Q2, Q5 and Q8, that could potentially lead to a 150 tpd year-round mine, producing < $25M in annual net income from this historic lode gold mine. The company believed these findings warrant drilling the first 1,000’ of the three veins, followed by adits at several levels on our tunnel sites, and complete and comprehensive mine and mill development with mine startup at 50 tons/day scheduled for June 2021.
Exploration The U.S. Forest Service (Hoekzema and Sherman; 1983) estimated Q5’s ore grade at .78 ounces au/ ton (opt au). The company uses the U.S.F.S. ore grade for ore reserve projections. Q2 and Q5 veins are spaced 100’ apart. The company plans contract core drilling and exploration adits on a 3,000’ section of the two veins to the west of the 1550 portal to a depth of up to 300 feet. The drilling program is projected to block out up to 600,000 tons of ore at .78 opt au; up to 468,000 ounces of gold.
Permits for the mine have been approved by the Chugach National Forest Service under a 5 year Operating Plan Agreement. This was issued in 2107 and carries through 2023. This permit is for the 3 year small production and drilling program and further development and small production for 2 more years. Operating Agreement changes will be submitted as project development funding is procured.
Infrastructure Construction of a 180’ single lane bridge across Trail River, upgrades to the 3 mile haul road from the mine to Trail River Bridge, and site development projects will proceed following a parallel path with the exploration projects. Infrastructure development is driven by exploration milestones. Gantt Chart & Cash Flow Model Short-term Exit Strategy.
Mine Development The company has the option to commercialize the Case Mine. With an estimated 600,000 ton ore reserve ($585 Million), the company can finance mine commercialization and off-site mill construction. The equity investors would be reimburse at close of commercialization financing (end of year three). Construction and commercial startup would take up to 24 months (2020-2021).
CASE LODE MINE