The America Mine property has a defined gold and silver deposit located on four patented claims in San Bernardino County, California. The central resource area is located on the patented claims surrounded by thirty-seven Federal unpatented lode claims and millsite claims. The property is located 160 miles east of Los Angeles, California on the northeast flank of the Bullion Mountains, ten miles south of Amboy and 25 miles north-northeast of Twentynine Palms. The Marine Corp Air Ground Combat Center at Twentynine Palms bounds the property to the south and partially on the east and west.
Geology: Gold mineralization occurs within a shallowly dipping (-20 to - 45 degrees north-northwest) thrust of detachment fault zone called the America Mine Shear ("AMS"). The upper plate consists of metadiorite and metagabbros to metasyenite rocks that intrude schistose metasediments and mafic metavolcanics that exhibit occasional flow banding. Lower plate rocks consist predominantly of gneissic granite and banded augen gneiss. The AMS is intruded by a dacite sill/dike system always found footwall to mineralization and a younger porphyritic dacite sill/dike system that appears to have displaced and upgraded the mineralization. Gold is proximally associated with elevated levels of lead, zinc, and copper within a quartz sericite alteration halo. Higher grade gold is closely associated with increased quartz veining. Late post intrusive and post mineralization north-south trending lateral fault zones cross cut the AMS and can exhibit horizontal displacement of 50 to 100 feet.
Development history: Gold was discovered at the America Mine site in 1905 by Marcus Pluth who staked the original America and America 1-7 lode claims. Four of the original lode claims were patented in 1925. During the 1920’s and 1930’s a number of lessors and small companies worked the property and completed minor caterpillar trenching and tunnel work. A 50 ton amalgamation mill was erected on the property in the late 1930’s but no production was reported. Construction of the foundation for a 60 ton cyanide mill was completed in 1939 but the mill was never completed. Ownership of the property has resided with the America Mine Limited Partnership (AMP, now the America Mine II Limited Partnership, or AMP II) since 1973. Between 1979 and 1984 AMP, under the direction of Chester Millar and supervised by mining engineer Edward E. Campbell, successfully operated an open pit heap leach mine and produced 16,190 ounces of gold, as well as approximately 4000 ounces of silver from 343,000 tons of ore, grading an average of 0.059 opt gold. The four leach pads were completely rinsed after production and, in 1985, extensive sampling during cleanup and abatement showed no residual cyanide. After mining ceased Mr. Campbell drilled 22 exploration holes and outlined an estimated resource of 120,000 tons, grading 0.140 opt gold at an estimated strip of 8-10:1. In 1988 Fischer Watt Gold Co., Inc. ("Fischer Watt") leased the property from AMP. After completing a mapping and surface sampling program Fischer Watt ventured the property to America Copper and Nickel ("ACNC"), a subsidiary of the International Nickel Company ("INCO"). ACNC, drilled an additional 27 holes totaling 11,425 feet. ACNC’s drilling was widely spaced and did not result in an additional resource calculation. The venture was dissolved and ACNC deeded their rights back to Fischer Watt. In 1989 Fischer Watt ventured the property to BMG Inc., a subsidiary of BMR Gold Corp, with BMG Inc. designated operator. Under the direction of Joe Wilkens, BMG Inc. drilled 152 reverse circulation holes and 5 HQ diamond drill holes for a total of 51,665 feet. Mr. Wilkens estimated a preliminary geologic resource of 3,965,000 tons grading 0.087 opt gold for an estimated resource of 345,000 ounces of gold. In late 1990 BMG Inc. ventured the property with Palms Mining Inc., a wholly owned subsidiary of NERCO Minerals. Palms Mining was designated the operator and under the direction of Paul Hartley and Emery Roy, drilled 158 holes totaling 62,048 feet. Mr. Roy calculated a global resource of 7,513,915 tons grading 0.061 opt gold for 458,300 ounces gold at a 0.014 opt gold cut off grade. Upon the sale of NERCO Inc. to Kennecott Corp. and subsequent sale and dissolution of NERCO Minerals, Palms Mining was transferred to Kinross Gold Corp. Under the sales agreement with Kennecott, Kinross was obligated to complete the reclamation required under Palm’s operating and exploration permit. Kinross completed the reclamation in 1996, withdrew from the venture, and deeded their rights and interests back to BMG Inc. Under the direction of Mr. Roy and David Gaard, consultants for BMG Inc., and Steven Ristorcelli of Mine Development Associates (MDA), Reno, Nevada, additional modeling work was completed in 1996 and further refined in 1997. MDA’s model and Indicated resource of 7,445,000 tons averaging 0.045 opt gold at a 0.015 opt gold cutoff grade for 335,000 ounces gold. In addition, there are Inferred resources of 42,000 ounces of gold at the same average grade. Due to market conditions BMG Inc. deeded their rights and interests back to AMP II in late 1998. Shortly thereafter Fischer Watt also deeded their interests back to the AMP II Partnership.
Present condition: At present AMP II Partnership holds a 100% undivided fee interest in a mining property with estimated Indicated and Inferred gold resource of 8,380,000 tons at an average grade of 0.045 at a lower cut off grade of 0.015 for a total resource of 377,100 ounces of gold. Modeling shows a significant portion of this resource is amenable to open-pit mining. Mineral modeling further shows the deposit is likely amenable to lower-cost underground mining below and west of a potential pit.
The America Mine is available for sale by the The America Mine II Limited Partnership. Interested parties are invited to contact the partnership’s representative to discuss arrangements to review America Mine Data and discuss terms of sale.