$NBRI..An old report says 300 MILLION(at todays prices) at NBRI's newly aquired Ruby Mine-and nodody has moved the GOLD! >>>>>>PLACER GOLD POTENTIAL AND INITIAL TEST MINING WITHIN
THE RUBY CLAIMS GROUP
November 27, 1991
Production figures from the Tertiary channels of the Alleghany-Downieville mining district average in excess of 100,000 ounces of gold per mile of channel developed. This figure is derived from historical data on past operations at the Ruby mine, the adjacent Bald Mountain mine, the Bald Mountain Extension mine and the City of Six/Golden Bear mine (figure 1). In total, approximately 4.3 miles of channel development produced 440,475 ounces of gold, or 102,436 ounces per mile. The overall grade is calculated to have been 0.2 ounces per ton, based on the known extent of the mined out areas and an average thickness of 6 feet.
Recent studies by Keewatin Engineering indicate that less than half of the existing channel systems have been mined to date on the Ruby property. Surface and underground geological mapping and reinterpretation of the historical data by Keewatin geologists indicate that the property contains 4.7 miles of undeveloped channel. Of this total, 2.0 miles is accessible for development from the existing underground workings at the Ruby mine; both from the main access tunnel and from the Lawry shaft (Figure 1). This includes undeveloped portions of the Black Channel, the Pilot Channel and the Deep Rock Creek Channel, which together host a potential resource of 200,000 ounces of gold.
Although it it not possible to assign reserve categories to any of the undeveloped channels at present, preliminary sampling along the accessible sections indicates gold grades of up to 0.204 ounces per ton in the White Channel and 0.695 ounces per ton in the Black Channel. These figures, together with the historical data, indicate that a mill head grade of 0.2 ounces per ton gold is a realistic objective.
The remaining 2.7 miles of unexplored channel comprises sections of the Cincinnati Channel, the Wisconsin Channel and the Hawkeye Channel (Figure 1). Little information is available on these channels and therefore the gold resource must remain purely hypothetical.
The placer channels within the Ruby property host a potential resource of 200,000 ounces of gold. At the present market value ($350.00 per ounce of gold), this is equivalent to $70,000,000 worth of gold. The less explored Cincinnati, Hawkeye and Wisconsin channels have the potential to more than double this value. It is felt that a carefully run, selective mining operation could yield a profit of $100.00 per ounce of gold mined, for a potential profit of $20,000,000. It must be emphasized that this figure refers only to the placer gold potential of the Carson-Ruby claims groups [note: all part of the Ruby Mine]; it does not include the lode gold potential of these properties.
It is presently anticipated that the placer washing plant beside the Ruby mine portal will be fully installed and operational by December 5, 1991. This plant has a capacity of 1,000 yards per day and will initially be operated at a volume of 100 yards per day. Material treated will consist of development muck from the Black Channel and the Deep Rock Creek Channel.
Arthur C. Freeze, B.Sc., Project Manager
Ronald F. Nichols, P.Eng., Vice President
for Keewatin Engineering Inc.
November 27, 1991