CYPRESS, TX / ACCESSWIRE / February 21, 2017 / Lode-Star Mining Inc. (OTCQB: LSMG) is pleased to announce the signing of a Letter of Intent with Scorpio Gold, Corporation (Scorpio) to provide custom milling of Lode-Star Mining, Inc.'s (Lode-Star) mineralized material. This toll milling agreement, when finalized and contingent on permitting, would allow for Lode-Star material from the Goldfield Bonanza property to be processed through Scorpio's Goldwedge property, located 75 miles north of Goldfield in Manhattan, Nevada.
The Goldwedge mill is a fully permitted, 400 tpd facility with an associated gravity recovery circuit. Scorpio has received approval under their permits to test and process ore from other facilities. Upon Lode-Star's completion of required permitting activities with the Nevada Division of Environmental Protection, Bureau of Mining Regulation and Reclamation (NDEP), a small bulk sample test will provide the baselines for metallurgical recoveries and mill throughput.
The coarse gold component of Lode-Star's material will be recovered by the gravity circuit. Further testing will be conducted on the tailings to determine the economics of shipping tailings to Scorpio's Mineral Ridge heap leach property for final recovery of cyanide leachable precious metals. Mineral Ridge has also indicated it can provide assaying services to Lode-Star.
The Custom Milling Agreement requires completion of a cost analysis and other operational details, which are expected to be concluded upon completion of the testing. The parties believe this pairing can be mutually economical and operationally beneficial for its operations. Under the terms of the agreement and including any test sampling, Lode-Star will have to receive the necessary NDEP authorizations for initial testing and subsequent mining.
Lode-Star President Mark Walmesley says, "Lode-Star has been working steadily with Scorpio on this milling solution for well over a year. The results of our metallurgy work through Kappes, Cassiday & Associates indicate positive compatibility with Scorpio's existing processes. Utilization of Scorpio's lab for assaying is a solid key that speeds up our overall production and milling timeline. We look forward to working with the Scorpio team and believe this is a great pairing between our operations."
Chris Zerga, President of Scorpio Gold Corporation, says, "We hope to develop a long term relationship with the Lode-Star team and we continue to look for synergies within our surrounding area."
About Lode-Star Mining Inc.
Lode-Star Mining Inc. (LSM), is a U.S. based junior-tier mining company focused on the exploration, development, and production of North American mineral assets.
LSM is the operator of the Goldfield Bonanza property, acquired under an option for development on December 11, 2014 from Lode-Star Gold, Inc., a private Nevada corporation. The property is located in the historic gold producing district of Goldfield, NV, which at one time was Nevada's largest gold producing district. Historic production within the district totaled better than 4 million ounces of gold.
About Scorpio Gold
Scorpio Gold holds a 70-per-cent interest in the producing Mineral Ridge gold-mining operation located in Esmeralda County, Nevada, with joint venture partner Elevon LLC (30 per cent).
Contacts for Lode-Star Mining Inc.
Pam Walters
Lode-Star Mining Inc. investor relations
phone : (281) 256-7101
e-mail : [email protected] website: www.lode-starmining.com
Forward-Looking Statements
This news release may contain forward-looking statements that involve known and unknown risks, uncertainties and other factors which may cause LSMG's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements reflect LSMG's current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. Except as required by law, LSMG assumes no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.
SOURCE: Lode-Star Mining Inc.