Here is where Fernley Golds 640 acres come from. BUTCHER BOY (formerly Lower Olinghouse) http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?ID=285440&SessionID=qSpnHHHAD_Z5EA7 Description and Location: The Butcher Boy Mine is located along the eastern flanks of the Pah Rah range, in Washoe County Nevada, approximately 35 miles (56km) east of Reno in the Olinghouse mining district. Access is by county maintained gravel road.
The property covers approximately 1,200 acres (3,000Ha) of which 560 acres (1,400Ha) are leased from SFP Minerals Corporation ("SFP") for an initial period of 10 years and 640 acres (1,600Ha) of unpatented associate placer claims are leased from John V. Mongolo ("Mongolo") for a period of 20 years.
The SFP lease requires royalty payments of ten percent of production gross value or ten percent in kind by weight, of the substances removed, with an annual deductible advance royalty payment of $10 per acre. The minimum annual royalty is $6,000 and ARC is current in its payments. The Mongolo lease requires a semi-annual lease payment of $10,000 or a royalty on production equal to ten percent of gross receipts, and $0.25 per cubic yard ($0.33m3) for any sand, gravel or rock produced and sold from the property. ARC is current in all payments under the Mongolo lease.
The Butcher Boy Mine was permitted in late 1989 and had limited production through January 1991. A total of 414,120 bank cubic yards (316,000m3) of ore were processed and 4,255 ounces (132kg) of gold were recovered.
Present Status & Planned Program: The mining area has been fully reclaimed following cessation of mining operations. This activity included the cleanup and disposal by approved means of minor mercury contamination in the ground under the former processing facility. ARC has agreed to pay the State of Nevada a fine of $19,500.
ARC intends to sell or otherwise terminate its leasehold interests in the property.
The following table summarizes certain production and other operating information relating to the Butcher Boy operation:
YEAR ENDED DECEMBER 31, ------------------------------- 1995 1994 1993 ------- ------- ------- Ore mined -- tons.................................................. -- -- 318,577 Gold produced -- ounces............................................ -- -- 1,526
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