RENO, NV / ACCESSWIRE / June 17, 2020 / Lode-Star Mining Inc. ("Lode-Star", the "Company" or "We") (OTCQB:LSMG) is pleased to update shareholders on progress to date on its property located in Goldfield, NV.
The Covid-19 virus has had minimal effect on the Company's execution of its milestones.
Item 1. - Manpower:
The Company now has a crew of 4 miners and 1 grade-control geologist working underground. The manpower component allows for mine development to advance in multiple headings.
Item 2. - Milling:
On January 27, 2020 - Lode-Star Mining Inc signed a Toll Milling Agreement with Scorpio Gold Corporation's affiliate, Goldwedge LLC. The Agreement allows for the processing of ore delivered from Lode-Star's Goldfield Bonanza Project to Scorpio's 400 ton per day Goldwedge milling facility located in Manhattan, Nevada. Under the terms of the Agreement, Lode-Star is to advance funds required for the design engineering, permitting and mill modifications for a new flotation circuit. To date the design engineering work has been completed and Scorpio filed for its Goldwedge mill modification permit with the Nevada Department of Environmental Protection (NDEP) on May 5, 2020. Lode Star Gold, INC, Lode-Star Mining Inc's largest shareholder has purchased the bulk of the flotation equipment to be placed within the Goldwedge milling system.
Mark Walmesley, Lode-Star's President and the CFO of Lode Star Gold said, "I am pleased with the progress and melding of the Scorpio team with ours. The filing of the mill modification application on May 5, 2020 starts the clock running with NDEP. We anticipate a favorable permitting outcome sometime in November which will allow us to proceed with the flotation circuit installation. Lode Star Gold has, so far, purchased 26 50cu.ft. MinPro Flotation Cells. Included are two banks of 10 cells designated as roughers and cleaners with the remaining bank of 6 cells as scavengers. These components are ready for delivery. Under construction presently is the system's drum filter and vacuum system. This section of items should be completed and deliverable by the end of June. All other items are more readily available and can be purchased closer to actual installation need."
The Company will continue its component acquisition and build out endeavours as prudently required.
Item 3. - Mine Development:
Since the beginning of the year Lode Star Gold staff have completed underground rehabilitation and progressed the Bonanza Project into mine development. The project currently has two headings in which the Company intends to conduct mining. Respectively, these are named the Red Hills Stope Zone and Decline Vein Zone. In February the Company commenced blasting inside these zones to assess the nature of rock breakage and refine blasting technique. Mark Walmesley said "It is essential we apply a very high discipline of ore grade control. To date we have executed 9 gold zone blasts. Each blast has been catalogued and compartmentalized for further metallurgical testing. Additional muck bays are being developed for storage. The plan is to develop the capacity for 1600 tons of underground storage for stockpiling of ore for delivery to Scorpio once mining commences. Samples for grade control have been analysed in Scorpio's Mineral Ridge Gold laboratory." Company Chief Geologist Tom Temkin stated. "Scorpio has assayed a variety of grade-control samples including channel samples, blast-hole samples and muck pile samples, with encouraging results." We continue to refine our blasting technique. Our first blast in February was similar to the old line in the movie Butch Cassidy and the Sundance Kid, "Think ya used enough dynamite there, Butch?" Our most recent blasts have been very well shaped. We are now understanding breakage patterns and rock shatter variability between ore and waste. Our April 30 blast in the Red Hills Stope zone yielded high grade assays from channel sampling including SC014A and SC014B, of 8.09 oz/ton Au and 1.75 oz/ton Au, respectfully, and a muck sample SM-11, that assayed 2.65oz/ton Au. Our May 14 sampling in the Red Hills Stope zone yielded another series of high grade assays in blast hole SB014 coming in at 3.559/(3.550 repeat assay) oz/ton Au and muck pile sample SM-013 coming in at 6.248/(6.240 repeat assay) oz/ton Au. We view these measurements as encouraging as we proceed towards being mineable."
The Company believes it will, in the very near future, file its mine plan with MSHA and commence creating its Secondary Escape-way (an MSHA requirement). The development plan for the Escape-way is to repurpose either the property's existing historical Church shaft or January Whiterock shaft and ultimately incorporate additional hoisting capability for ore. This should double the Company's daily extraction capability. The outcome of our drilling campaign, as outlined below, will allow us to decide which shaft to use.
Item 4. - Step Out Drilling and Exploration:
With the advancement of the previous items on cruise control, the Company is now focusing on both surface and, if proven necessary, underground drilling. We are in the planning stage and should have targeting completed by the end of June. The Company has engaged Titan Drilling out of Elko, NV to commence a modest drill program early July 2020. The plan will be to drill approximately twelve holes at a rate of two to three holes per month. This conservative drilling rate will give us time to assay each hole before we methodically drill the next. The objective is to understand the geometry of this gold bearing zone and indentify additional cross cutting features.
The immediate target area, as described in our most recent NI 43-101 dated January 15, 2020 (Authored by Mr. Robert M. Hatch) is the high-grade area referred to as the Church Vein Zone. This zone measures up to 40 feet in width and trends at least 600 feet north-northeasterly, immediately west of the Church shaft. Drilling by ICN in 2011 included 19 core holes with varying results. Some holes didn't hit the intended target and will be redrilled accordingly to better test the target. As drilling progressed into the vein area marginal gold was identified. Three holes, ICN-003, ICN-013 and ICN-014 (results below) hit solid high- grade intercepts needing further drilling to define. (Grams per Metric Tonne =34.2857)
- Hole ICN-003: included 9.5 ft (2.90 m) weighted averaged assays of 40.79 oz/ton (1398.6 g/t) gold.
- Hole ICN-013: included 4.5 ft (1.37 m) with 51.46 oz/ton (1764.2 g/t) gold.
- Hole ICN-014: included 3.5 ft (1.00 m) with 68.02 oz/ton (2332.0 g/t) gold.
Hole ICN-001 included 3.0 ft (0.90 m) with averaged assays of 6.29 oz/ton (215.7 g/t) gold and ICN-023 included 4.0 ft (1.22 m) with averaged assays of 1.44 oz/ton (49.35 g/t) gold
The figure below indicates the relationship between the overall ICN core drilling, high-grade gold intercepts, underground workings, the Church shaft, January/Whiterock shaft and our planned first two holes (approximately). Geologic modeling to date has identified what may prove to be a robust production area. This drilling phase will tell.
Item 5. - Capital:
The Company is exploring a US$5,000,000 raise by selling 20,000,000 of the Company's Common Stock at a price of US$0.25 in the form of private placements to High Net Worth Individuals and other Equity Funds located in Europe and North America. Details regarding this offering will become available upon announcement. For further information please reach out to Mr. Walmesley. (The aforementioned statement is not a solicitation for capital and is for information purposes only.)
About Lode-Star Mining Inc.
Lode-Star Mining Inc., traded on the OTC Markets' OTCQB marketplace under the symbol LSMG, is a U.S.-based junior-tier mining company focused on the exploration, development, and production of North American mineral assets.
LSMG 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. Please visit LSMG's OTC Markets Overview page for more information.
The technical information disclosed within this document has been reviewed and approved by Thomas Temkin, COO/Chief Geologist, and a director of Lode-Star Mining, Inc. Mr. Temkin, CPG-11129, is a qualified person as defined in NI 43-101.
About Lode Star Gold, INC
Lode Star Gold, INC is a private, family run, S Corp and is the largest share holder of Lode-Star Mining, Inc. All claim ownership, funding and work performed on the Goldfield Bonanza property has been executed by Lode Star Gold, INC since 1999. Lode Star Gold, INC's President is Lonnie Humphries and Mark Walmesley is the company's CFO.
Contacts for Lode-Star Mining, INC
Mark Walmesley
President
Lode-Star Mining Inc.
phone: (775) 234-5443
e-mail: [email protected]
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.