The state of SDRC's gold production 2023>2024
Western Frontier, SDRC's New Mining Contractor
As context for how they were able to achieve the following, SDRC's new mining contractor (WFEM) disclosed to SDRC's shareholders that crews worked 5,470 hours this mining season cumulatively. Multiple crews worked on the Lucky Ben claims on a "7-day on / 7-day off schedule working 12 to 14 hour shifts" so at all times there was at least one crew working 12 hour days at the mine all summer. This is also the first year SDRC has committed to a year-round operations. Despite the cold, mud and snow, crews will be operating in the mill building and in the mines all winter, and into the spring.
Lucky Ben Ore Collection
This mining season, after re-entering the lower portal (Lucky ben #2) that was started last year, the Western Frontier crews intersected the Lucky Giant vein (Sept 8th) and began stockpiling ore from that lower portal. This year they mined 63' / 320 tons for development, and 126' directly on the vein for 740 tons of ore from the Lucky Ben #2 tunnel.
The Newly Found and Staked Historical Stockpiles
In addition to the work done on the Lucky Ben portals, on October 1st, the mining contractors located and staked historic stockpiles. This is due to the geology team spending any time not in the portals on the surrounding land in their attempt to understand the district and Lucky Giant vein structure. They found a historic mill foundation next to the piles that was never built. These aren't leftovers, it's prime material. Another 760 tons of ore from this location were hauled to the mill building this season.
Test Milling
After accumulating 1500 tons of ore at the mill site, SDRC has begun its first winter working season as part of a year-round operations schedule. Test milling will be ongoing into q1 2024 in order to maximize yield. We have seen visually from this process the presence of natural wire gold, a rare occurance, and the already known nugget-effect consistent with what is known of this region. Initial calculations on first smelter run was 3.74 ounces per ton so its clear they have extremely high grade ore at the mill site now.
Assaying
As you may have already gathered, SDRC does not have plans in place to prove out any deposit in this valley via drilling. They will continue to mine on the vein to collect the high grade ore, who will be measured via a process of feed sampling. If they can reasonably call it "Consistent with their outlay" they will impute results for the rest of the valley based on what THEY have. So to speak, they are are in a state of vigorous expansion while simultaneously entering production. They will be feigning industry standards of proving out deposits so revenues and expansion can take place sooner and cheaper.
I know you guys will have problems with this, maximizing the risk to reward profile by pressing on into the unknown as boldly as they are, but investors nor the company care at this point. They are in pursuit of what works according to their unique circumstances, and avoiding methodologies that multiple companies have tried and failed doing in this area.
Gold Sales
Contracts for gold sales with the parties mentioned by Sean should be engaged signed q1 and revealed in q2 2024. This will only take place after they can extrapolate reasonably what they are able to produce for the length of such contracts. The test milling and further processes will continue until these results are met.
Citation: SDRC 2023 Shareholders' Meeting held on December 15th, 2023.
