willow creek gold mine
In the spring of 2017, Western Troy was approached by Mt. Elbert Mining Company (MEMC) to determine if Western Troy would be interested in acquiring a lease on MEMC's Willow Creek Gold Mine. During the summer of 2017, Western Troy conducted extensive due diligence that led to negotiations with MEMC. These negotiations finally led to a letter agreement in September of 2017 between Western Troy and MEMC and a final lease agreement in December of 2017. Western Troy formed a wholly-owned subsidiary, Western Troy Mining Company, to advance the project.
The Willow Creek Gold Mine property consists of 120 acres of private land and approximately 3,000 acres of contiguous unpatented mining claims. The gold occurs in glacial moraine material over a wide area of the claims. Gold-dredging operations were conducted downstream from the property in the 1920s and 1940s. Past drilling and evaluation programs have provided encouraging results, but past operators with limited experience in the mining industry have had difficulty in gold recovery. There is a gravity gold-recovery plant on-site, and there are exploration and operating permits in place. A Geological Report (43-101) describing past work was generated in the fall of 2017.
A US$500,000 drilling evaluation program was completed in September and October of 2017. The program included approximately 1,000 meters of drilling that will better define the resource. Holes were drilled to an average depth of approximately 50 meters where past drilling had only gone to a depth of about 10 meters. The past drilling and evaluation programs, while performed by mining industry professionals, do not meet the current standards for resource calculations. The 2017 drilling and evaluation program will provide information on the size distribution and mineralogy of the gravels and the associated gold content, and this information will be used to undertake a preliminary economic assessment.