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I picked a million at 2 today. This should be an exciting month.
I believe it will move when POW mill is approved.
I think it's Grand Junction.
Great news thanks 567. !
Yea probably on the street you live on !
Thats a fact for every company mining for gold .There might be gold or there might not be gold.
Well just for you I will have some fish and chips .
That was the best news Dean ! Maybe next year you can take a nice vacation to Colorado and have some turkey .
Volume X, No. 45, Nov. 17, 2011
The Independent Weekly Line on Durango and Beyond
News
day in the life
Home » Archives » 2010 » May-13-2010 » Resurrecting mining in Silverton
Resurrecting mining in Silverton
San Juan County signs off on Pride of the West Mill
The San Juan Mountains surrounding Silverton may once again be seeing a mining boom. With gold at $1,200 an ounce, modern-day prospectors are looking to make a buck off the area’s mineral deposits. Last week, San Juan County gave its blessing to the reopening of the Pride of the West Mill, in Howardsville. If approved, the mill could process up to 700 tons of ore per day./Photo by Stephen Eginoire
by Missy Votel
With gold prices skyrocketing, interest in mining around Silverton is once again heating up. However, doubts remain as to whether a local ore processing operation can strike it rich before going bust.
Last week, San Juan County commissioners unanimously endorsed Colorado Goldfields’ plans to reopen the Pride of the West Mill in Howardsville, a few miles north of Silverton. In a letter dated April 28 to the Colorado Division of Reclamation, Mining and Safety, San Juan County chairman Ernie Kuhlman expressed support for approval of the mill’s permit, stating, “Having the Pride of the West Mill properly permitted and operating will be very beneficial to the local and state economy … (and) encourage additional mining in the area.”
The Lakewood-based Colorado Goldfields bought the 120-acre property in 2007 from Tusco. The Pride of the West, which has operated intermittently since a major renovation in the 1980s, would have a capacity to refine up to 700 tons of ore per day, according to Goldfields. The mill would be the only ore-processing plant in Southwest Colorado and the Four Corners region.
Although no mining would be done directly on site, Colorado Goldfields says it has interest from dozens of small mines in the region looking for processing. According to the company, there are more than 1,000 mines within a 50-mile radius of the mill. “There are several permitted mines around the area that don’t have anywhere to go with their ore,” said Goldfields Director of Operations John Ferguson. “We’ve been talking to them for some time and there are some mines in San Juan County we will be doing processing for.”
Colorado Goldfields is also involved in mineral exploration of its own throughout the region, Ferguson said. Last November, it signed a lease with option to buy on the Brooklyn Mine. When fully functional, Pride of the West could employ 15 to 20 people, with dozens more working in nearby mines, according to Ferguson.
San Juan County commissioner Peter McKay said county officials and residents are in favor of reopening the mill, provided it is in keeping with proper environmental protection and safety measures.
“I think everyone is open to the possibility of mining coming back, but it would have to be done in an environmentally correct and sensitive way,” said McKay. “It will be much cheaper to have ore processed here than having it shipped.”
The most recent major mine in operation in Silverton was the Sunnyside, which closed in 1991.
Colorado Goldfields submitted a 500-plus application to the DRMS in February for a 60-day review. A final verdict could be delivered as soon as May 20. “It could be finalized next week, but we may be another 30 days out,” said Ferguson.
Among the state’s primary requirements was a new, double liner for the mill’s tailings pond; a tailings pond leak-detection system; a new, impermeable pad for the raw ore; and upgrades to mill buildings to contain all fluids in the event of a tank failure. Ferguson said the property, which came with water rights, will use a gravity concentration method of extraction. Although the mill also has a cyanide leach plant, he said Goldfields does not anticipate using it. “Heap leach cyanide is not in our vocabulary,” he said. “We’ll probably do a little with the high-grade concentrate, but for the most part, it doesn’t work on our type of ore.”
Upgrades are expected to cost about $700,000, and Ferguson said the goal is to start work on activities that do not require state approval, such as clean up and mechanical fixes, this summer. “We can’t do milling until we get construction approval, then we’ll have to do the construction and pass inspection of our environmental protection facilities.”
The tailings pond alone will require several weeks of work, he said.
However, the permitting process could be a moot point if Colorado Goldfields fails to secure capital for the project. In a Jan. 11 filling with the Securities and Exchange Commission, the company said it was looking to raise additional capital in the near term. “We were formed in 2004 and have primarily had limited activity,” the filing stated. “Since we have received no revenue from the production of gold or other metals, we have not generated cash flow from operations.” Since going into business, the company has yet to make a profit, with the majority of income coming from stockholders, personal loans and equity financing. Last November, Colorado Goldfields’ auditor expressed doubt that the company could continue “as a going concern,” i.e. continue to operate into the foreseeable future. Furthermore, the company is mired in a lawsuit with former president Todd Hennis over ownership of the Mogul and Gold King mines, and a promissory note in excess of $700,000 for Pride of the West is due June 29.
San Juan County commissioner McKay admitted that the company will need to be in good financial shape before proceeding. “Right now, everything is on hold. We sent the letter and are waiting on the permitting process.”
Ferguson said Colorado’s stringent environmental regulations, combined with the bad economy and shortage of staff at the DRMS, have slowed down the approval process. However, he is hopeful once regulatory compliance is complete, cash will start flowing. “I’m confident that once we have approval, financing will follow.”
According to the company’s website, a “U.S.-based investor group” is intending to begin mining north of Ouray this summer and visited the mill site in late April. The investor group is currently in negotiations with Goldfields about putting $500,000 and $700,000 for facilities improvements, tailings ponds, electrical upgrades and new drainage that will “greatly accelerate” the project.
Colorado Goldfields stock was trading at a little more than one-tenth of a cent this week while gold was going for $1,200 and ounce.
“If ever there was a time to start mining gold, this would be the time,” said McKay. “Nobody’s feeling there’s a downside.”
Thanks MT have a great Thanksgiving .
Home Page »News »Local News » Second mudslide delays train service Second mudslide delays train service
D&SNG expects to resume service to Silverton today
By Shane Benjamin Herald Staff Writer
Article Last Updated: Monday, August 29, 2011 10:28pm
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For the second time this month, a mudslide on Monday interrupted train service between Durango and Silverton.
About 425 passengers were either bused back to Durango or took a late train out of Silverton, said Andrea Seid, spokeswoman for the Durango & Silverton Narrow Gauge Railroad.
“There was quite a bit of rain up there,” Seid said. “There was some water and debris over the tracks.”
Monday’s slide was reported about 1:30 p.m. about 10 miles south of Silverton, in the same location as an Aug. 2 slide that covered the tracks for five days. That slide was estimated to be 300 feet long and about 15 feet deep.
Monday’s slide was significantly smaller, and crews expected to have it cleared the same day, Seid said.
“It’s very minor compared to what we experienced a few weeks ago,” she said.
The D&SNG is running two trains to Silverton, both of which were in Silverton when the slide was reported. They returned to Durango Monday night, Seid said.
She estimated about 200 passengers would be bused back to Durango and the remaining 225 would be on the late trains.
The railroad expects to resume full service to Silverton today.
“Safety is always first,” Seid said. “We always take every precaution and wouldn’t send any trains down if there was any feeling that it wasn’t safe.”
shane@durangoherald.com
I don't see this economy getting any better with the immoral activities of our government.
I did remember that slide but not about the contracter leaving .The most beautiful area in the country.
Where at the mill? Any damage ?
post #32025
Sorry about that I was living in the past. CGFIA is the future.
The core samles that they took did have good amounts of gold in them.
What a superstar Bird was. The rumor we heard about the Garden was that the floor had some dead spots,and the Celtics would pressure the opposing team right to those spots on the floor .The ball just stopped bouncing and the Celtics were off running for two more points and another championship.When we set up our cameras the day before we would shoot around and sure enough there was those dead spots in the floor.
I live in NJ ,I did the Celtic games with NBC when Bird was still on the team. What a great place to do a game.
I have been through Logan many times coming from Celtic games at the old Garden.That tunnel was a pain in the butt.
What airport 567 ?
Yes correct w.w. the results look good .I recently started reading the older pr's and found this article.
Correct Cg if I'm reading this article right ,the 43 samples are already valued by Mr. Larson .
A report by Robert Larson of Monadnock Mineral Services reveals that one of the properties generating ore for Colorado Goldfields to mill consists of approximately 800 acres of patented mining claims, from which significant gold has been produced. Surface and underground mapping and sampling was conducted along with approximately 43 core drill holes.
Analysis estimated potential gold resources of 344,000 tons of 0.41 ounce per ton gold as “near-term” targets, and 780,000 tons of 0.40 ounce per ton gold as ´intermediate-term´ targets. ´Near-term´ targets are defined as those adjacent to, or within several hundred feet of existing mine workings, whereas ´intermediate-term´ targets were up to 4,000 feet to the east of the existing workings.
One of the drill holes in the ´near-term´ targets encountered 70.7 feet of 0.127 ounce per ton gold, with one interval of 3.8 feet of 1.262 ounce per ton gold. One of the drill holes in the ´intermediate-term´ targets encountered 7.2 feet of 0.368 ounce per ton gold.
Larson went on to say, "This is an ideal venture for a small to medium-sized mining company to begin development and initiate test-mining with custom-milling within the existing mine workings. These properties have the potential of producing 400,000 ounces of gold from near and intermediate-term.
Thanks pt ! I hope we see results soon.
PT, where did they send their samples?
Yes it will be real nice when things are up and running .
Ficose ,I finally read the Aug. Pr on the cleanup of areas around the mill, your right there was more to do then I thought and it should be done soon.
Thank you ficose .I did not know it was done or close to done I guess theres not enough man power to get it done in a week.
Raising some money ?
They could do that work in a week or less.And thanks for the response db
Yes I know but if Guyer has the mill ready to go why does he need permision from anyone .
Why is the mill not active ?
Permit for Pride of the West is still active
So the mill is active .Do you have a fax number ?
I put the post back up .
Colorado Division of Minerals & Geology Report Sorted By Operator 11/18/2011
You requested a report sorted by Operator / Permit Number and based on:
County: San Juan
Operator: Colorado Goldfields, Inc.
Permit Number: All Permit Numbers
Mine Name: All Mine Names
Permit Status: AC
Commodity: AU
Operator
Site Name
Permit No.
Permit Type
Permit Issued
Permit Status Contact
Address Line 1
Address Line 2
City State Zip Code County
Permit Acreage
Mine Type
Annual Fee
QT/QT/QT Section Township Range Prime Meridian Telephone Commodities Mined (USGS Codes) Required Surety
Colorado Goldfields, Inc.
Pride of the West
M1984049
112d-2
/NW/SW
6/28/1985
AC
1
41N
7W
AG
San Juan
96.46
UG
$1,150.00
$281,819.00
567TD IT SAYS PERMIT STATUS AC
YES DO YOU HAVE PRIATE MESSAGE