BOSTON, Aug. 26, 2009 (GLOBE NEWSWIRE) -- Gold Coast Mining Corp. (Pink Sheets:GDSM) announced today the developmental program for the Sun Gold mine which will be divided into three primary efforts.
Phase 1 will initiate a small-scale production prototype mill and Au extraction circuit. The pre-production-sampling program will begin as well as the permitting for full-scale production.
Specific Tasks:
1. Purchase and assemble a small trailer mounted crushing unit with
generator capable of working a minimum of 1 ton per hr. 4" minus ore
2. File exploration permit and prepare Forestry Service for full
production mining permit
3. Prepare a full mining plan and file with final permit
4. File with the State of Arizona any required water use permits
5. Begin initial sampling program
The Company has secured capital commitments from several shareholders of up to $200,000 to fund the initiation and completion of Phase 1. The funding will be in the form of a loan to the Company. The costs of Phase 1 are estimated at $160,000.
Phase 2 will involve the completing of the mining plan and permitting. Additionally, the Company will purchase the processing plant while continuing to operate the prototype Au extraction circuit. Approximate costs of Phase 2 are estimated at $110,000.
Phase 3 will be the final construction of and operation of the full-scale production facility.
Western Sierra Mining, the Company's joint venture partner on Sun Gold, pointed out several keys that they believe will contribute to the successful advancement of the development plan.
1. The Blue Bell mine is patented land and therefore will require
only minor state permitting relating to water use issues. To the
extent possible, we will use the contained water existing in the
Blue Bell mine, which is estimated to be 33 million gallons.
2. The Sun Gold mine has been permitted in the past. The first
exploration permit should require little than filing notice to
re-instate the initial permit. Since we are not requesting to do
anything other than remove ore from the Sun Gold property, the issues
of the mining permitting for this effort should not be a major
problem. The property has been mined in the past. This process,
however, is not totally under our purview, the Forestry Service
having jurisdiction. We have a good working relationship with the
Forestry Service and preliminary discussions indicate the process
can go forward smoothly.
3. There is substantial historical geologic information on the Sun
Gold mine including drill reports, large scale trenching and
specific site sampling data. Of the 200,000 tons of estimated
reserves on the Sun Gold mine site, our 10-yard production plant
will only extract 1,600 tons per month or approximately 20,000
tons per year giving a projected life time of 10 years to the
project. During the initial years of production, we will want to
process the highest possible grade ore available. An additional
objective of Phase 1 will be to establish high-grade data to feed
the mine development plan to optimize the initial production
results. We will also perform screen analysis on material
generated from the prototype plant to determine free gold release
size of the crushed rock. You do not want to grind any finer than
you have to, but you need to grind fine enough to release the
free gold. The test is relatively simple and will be preformed in
our lab in Tucson.
4. There is clear evidence from the drill log information that
additional high-grade gold exists at depth at the Sun Gold mine.
The initial mining work will concentrate on the surface with only
minor attempts to expose the quarts veins to any depth. We
believe that portions of the vein structures are commercially
viable working underground. To the extent possible, we will
investigate that possibility at each step of the mine development
program.
5. Our initial production estimates are set conservatively at 80
tons per day with Au values of $800. The gross value of
production is then approximately $500,000 per month with net
operating income of approximately $350,000 per month. The plan
calls for full operation within 6 months from permit issue.
Jason Cooper, Interim CEO of Gold Coast Mining Corp., stated, "The development plan to move Sun Gold into production has been well laid out by Western Sierra. The step-by-step approach from sampling to full-scale production is very economically feasible and has the ability to provide steady cash flow for both companies for many years. With a commitment from some of our shareholders to fund Phase 1 for debt, we are anxious to expedite the progress of the development plan."
The Company also announced that it is completing its financials and Initial Disclosure Document for filing with Pink Sheets. Once these documents have been filed, the Company will have met the qualifications for "Current Information" listing status.
As previously announced, the Company has declared a dividend of 1 share of Max Media Group, Inc. (Pink Sheets:MXMI) for every 30 shares owned of Gold Coast Mining Corp. The record date for the Max Media dividend has been set for August 31, 2009. The Company is preparing all required filings and documents for the distribution of the dividend. Max Media is finalizing tasks relevant to its transition to a publicly traded company and plans to begin updating shareholders shortly.
About Gold Coast Mining Corp.
Gold Coast Mining Corp. seeks to provide financing, equipment and finance related services to the mining industry. It is the Company's plan to pursue these opportunities through acquisitions and joint ventures with other mining concerns. The Company currently has a joint venture with Western Sierra Mining Corp. (Pink Sheets:WSRA) for its Ore Cache and Sun Gold Mine Projects located in the Prescott, Arizona area. Gold Coast has agreed to provide capital to WSRA to fund initial expenses to put each of the mines into production. Such initial expenses will include the construction of a hard rock free gold recovery plant. Gold Coast is a 50% revenue sharing joint venture partner in both projects.
The Company currently has 444,887, 086 shares issued and outstanding.