Golden Overview
Arctic Oil & Gas and its JV partners intend to finance and develop two or more large-scale placer mines starting on the various granted State leases, with gold production in commencing in 2009.
Denali Placer Gold Mine Expansion: The mine has a 1 million yards per year mining-processing plant already on site. The Company plans to upgrade the existing mine production equipment to a 60,000 ounces per year mining operation commencing in 2009, with estimated Gold production costs of $300/ounce. Tenements are fully permitted Claims with 500,000 ounce drill indicated placer resources.
Norton Sound Alaska Oceanic Placer Gold Mine: The company is finalizing plans to construct new large-scale suction-cutter gold dredges to produce 250,000 ounces in the next summer season. Norton Sound offshore placer gold grades are approximately 0.50 grams/M3 ($13.40/M3 at $835/oz; estimated from over 3,000 drill samples), which should result in Gold production costs of less than $200/ounce. The tenements are OCS 720 square mile Leases Application and 2,000 acre Granted State Waters Leases, with 1.5-10 million ounce placer Gold resource potential.
Ocean Going Gold Dredges:
The Company is receiving strong institutional investor interest in its planned Non-dilutive, private LLC offering for institutional investors to fund these two mines and others under consideration. The interest stems in large part from the increasing shortage of physical gold bullion supplies to satisfy both rapidly increasing central and regional bank reserves needs, as well as increasing bullion demands from large institutional groups and individual fleeing paper assets.
