CENTRAL CITY, COLORADO – September 28,2020 –
GS Mining Company LLC, “Company” is pleased to announce that its wholly owned subsidiary Becker Bates Acquisition Company, LLC has entered into a fully executed lease for the mineral rights to the property known as the Becker Bates Mine (the “Becker”) located in Central City, Colorado. The Becker consists of approximately 6 acres above ground and its mineral rights are contiguous to the Bates Hunter Mine (the “Bates”) currently being operated by the Company’s wholly owned subsidiary, the BH Mining Company, LLC.
This announcement follows the notice of April 2020 in which the Company advised that it had reached an agreement in principle with the Becker’s owner. After extended negotiations all details were resolved to the Company’s satisfaction, and a lease was executed. The mineral rights lease has a term of thirty years and consideration is primarily production-based royalties. The Company has numerous cancellation options during the term and believes that the agreement is highly favorable.
Like the Bates, the Becker is a historic mine whose workings date back to the Colorado gold rush in the late nineteenth century. There is an existing shaft at the Becker which, according to historic records, connects to a tunnel coming from the Bates at the 500-foot level. This connection between the two mines could be of significant value to the Company as it represents a continuation of veins emanating from the Bates, including the Bates vein. The lease adds 839 feet to the 2,953 feet which are already on the Company’s property. Core drilling found that the Bates vein extends to depths of 1100 feet demonstrating mineralization throughout the property extending well below the current shaft depth of 750 feet. All of this augurs well for the Company’s immediate and long term success.
Although no current reports on the Becker are known to exist, the Company’s management has reviewed the 1934 Shotwell Report (appended to www.gsminingcompany.com). The report’s author refers to the Bates and the Becker as the “cream of the (mining) district” and, in discussing the connection between the two shafts notes, “wide and rich shoots at the junction of the two (with) plenty of ore left.” There has been no commercial mining at either site since this report was written and management believes that whatever was detected in 1934 is still there.
The Gregory vein, one of the richest gold bearing veins in the area, runs through both the Bates and the Becker. According to Shotwell, “This vein has always been considered one of the strongest and best veins …(and) the best place in the state to quickly and surely make a big mining success.” A report from Fred Jones, E.M. issued at about the same time described “three shoots of ore opened on the mine” with many multiple-ounce-per ton assays.
Management believes that the addition of the Becker mineral rights to the Company’s Bates, Clay and Carr Mines represents another significant step in the Company’s strategy of creating a valuable mining portfolio in the Central City/Blackhawk area. Once known as the richest square mile on earth, experts believe that there is more gold to be found than has been mined in the last 150 years. A plaque at the entrance to Central City states its historic designation as the “City of Mines”. Currently the Company is the only operator in town and the only viable acquirer of mineral rights within this golden mile. The company’s long-term strategy is to continue its underground mineral rights expansion wherever profitable potential presents itself.