BELLINGHAM, WASHINGTON--(Marketwire - Mar 20, 2013) - U.S. Mine Makers Inc. (UMKR) The Company is pleased to announce that it has entered into an agreement to acquire ownership of 80% of 400 acres of placer mining claims in Sierra County, California, located near the northern end of the historic Motherlode district, which has two major gold-producing areas: the Alleghany and Downieville districts. The terms of the acquisition, which are being finalized this week and have been structured to reduce the risk to the Company as it goes through the permitting and exploration process.
This acquisition may possibly be only the first of several acquisitions in this area. In the opinion of management, these claims present significant potential, as the property is adjacent to California''s best-known placer drift mine, the Ruby mine. Gold from the acquired property was reported to vary from fine to very coarse and the deposit has been described as being similar in character to the famous Black Channel at the Ruby Mine (Ferguson and Gannett, 1932; Keewatin report 1991).
The total recorded gold production in the Alleghany and Downieville district from 1880 through 1959 was about 2,161,000 ounces, most of it from lode mines. If the estimated gold output before 1880 is considered, the total production would be about 3 million ounces.
The Ruby is considered by many to be one of the largest producing channel mines of modern times. It features a system of gold-bearing Tertiary channels that have already produced over 250,000 ounces of gold. The Ruby and other mines in the area have been brought back into production in the last year.
In prior years, a concern of many investors was the difficulty for mining companies in California in obtaining the necessary permits to carry out mining activities. That has changed significantly over the last 12 months as explained quite well in the following article. www.marketwatch.com/story/california-gold-rush-begins-again-2012-07-10?siteid=nwhfriend
Excerpt: Gold mining is in California''s DNA. During The Gold Rush (1848-1855) 300,000 people moved to the Golden State. When the boom ended, many of the prospectors stayed and formed the base of a diverse economy which blossomed for 150 years - but is now failing. California''s current unemployment rate is 11%. The state budget deficit is $16 billion. The City of Stockton has just declared bankruptcy. Desperate for jobs and tax revenue the government of California can look to the mining industry as a cash cow whose operations and labour pool cannot be out-sourced. Modern extraction and processing technologies are also making it easier for California gold producers to meet the state''s stringent environmental standards. California has granted 30 of the last 30 mining permits."
CURRENT SHARE STRUCTURE:
This press release may contain certain forward-looking statements that include elements of risk and uncertainty. Consequently, actual results may differ substantially from those anticipated in such statements. These risks and uncertainties are described in the quarterly and annual reports, and in the documents submitted to the securities administration.
- Politics & Government