Up until 2013 the primary resource of Emgold Mining
Corp. (EMR:TSX.V) was the Idaho Maryland Gold Mine in northern California near
Grass Valley. Emgold had a $40 million market cap in 2008 based on the mine
with its historic 1.32 million ounce resource at 11.3 g/t gold. Emgold
management stumbled. The shares dropped from a rollback adjusted $3.58 per
share to $0.03 today, a 99% decline.
The Idaho Maryland mine, or IM mine for short, produced as much as 129,000
ounces of gold per year until World War II forced the closure in 1942. It was
mined on and off on a shoestring basis from after the war until being
optioned by Emgold in 1995. Emgold spent a lot of money on management and a
little money on the project before they blew up.
From its discovery in 1851 until the last mining in 1956, the mine
produced 2.38 million ounces of gold at a grade of .43 opt. The IM mine was reputed to be the second largest and most
productive gold mine in California outclassed only by the nearby Empire Mine
that began the long history of Newmont Mining.
Rise
Resources Inc. (UPP:CSE; RYES:OTCBB) announced
the purchase of the entire project including 93 surface acres and 2750 acres
of mineral rights for a flat $2 million USD including all core and technical
data. The purchase is a straightforward deal that includes no royalty to
anyone.
In California permitting an open pit mine is nearly impossible. Permitting
an underground mine is quite possible. As of today's price for the shares,
Rise has a market cap of $10 million CAD or about $7.5 million USD. That's
about $5.68 an ounce in the ground USD and damned cheap.
The market for Rise shares went up today by $0.04 or 15% only because it's
a C Exchange listing and nobody reads press releases anyway. When people
figure out the deal it will go up more.
Gold under $6 an ounce in the ground in the U.S. with a pro-business
president is the closest to legal stealing since Jon Corzine got into the
commodities business. You aren't going to be able to buy gold at that price
in an existing mine in the U.S. for very long.
Essentially, Rise paid $2 million for something the market used to value
at $40 million when gold was a lot cheaper. We are in a bull market, and in a
bull market gold shares go up with gold.
Rise is an advertiser, I am biased and I participated in the last private
placement. Do your own due diligence.
Rise Resources Inc.
UPP-C $0.30 (Jan 25, 2017)
RYES OTCBB 33.2 million shares
Rise Resources website
Bob and Barb Moriarty brought 321gold.com
to the Internet almost 16 years ago. They later added 321energy.com to
cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both
sites feature articles, editorial opinions, pricing figures and updates on
current events affecting both sectors. Previously, Moriarty was a Marine F-4B
and O-1 pilot with more than 832 missions in Vietnam. He holds 14
international aviation records.
Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own
shares of the following companies mentioned in this article: Rise Gold. Rise
Gold is an advertiser on 321 Gold. I determined which companies would be
included in this article based on my research and understanding of the
sector.
2) The following companies mentioned in the article are sponsors of
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