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Garnex Gold Corporation is a newly-organized mining and exploration company whose primary focus is the further exploration, development and initiation of production in the Garnet Mining District, which is located in Western Montana near Missoula.
In addition to the Garnet project, Garnex will be engaged in examination, investigation, and acquisition of additional precious metal properties that our management team believes may contain valuable precious metal deposits and possibly commercially-mineable minerals. Garnex’s exploration activities will be focused within the U.S., primarily the states of Montana, Idaho, Oregon, Nevada, and Arizona.
At the intersection of fractional ownership of digital assets, blockchain technology and gold mining, Garnex Gold Corp enters the space as the disruptive force in the traditional royalty and metal royalty models. Garnex has a dual token model with a utility token (GLD), that is a transactional currency in the Garnex ecosystem, and an asset-backed token (AU) supported to the price of gold.
GARNEX intends to conduct exploration for gold, silver and base metal deposits and mineral targets. Our strategy is to explore for gold, silver and base metal deposits, forming joint ventures with other companies who will potentially earn their interest in the property by contributing cash. The revival of operations in old districts can be easily justified on the basis of increased prices of precious metals in the last decade and advances in the technologies of exploration and mining. Garnex purchased the Garnet Mine project for $4 million, which consists of 4,300 acres of land consisting of 23 patented mining claims and 188 unpatented claims. Total area is in excess of 6.6 square miles, located in Western Montana near the city of Missoula.
Several important corporate priorities set by GARNEX’S management are expressed by the choice of these abandoned mines, exploration projects, and prospects. There are certain priorities that may contribute to the strategic advantages of GARNEX’S operations, as well as advantages, efficiencies, economy, and cost savings. These priorities are:
1.The properties should indicate strong values for gold or silver for the purpose of leveraging future returns from the current prices of these metals; additional metal values also known to be present in several of these properties would represent added value.
2.Emphasize work in select mining districts in order to leverage operational experiences, similar geology and knowledge base peculiar within a district.
3.Assemble operations within hauling distance of operating custom mills, in view of establishing future toll milling agreements.
4.Operate in areas within a reasonable commuting distance of GARNEX’S base of operations.
The Montana Garnet Mine project was valued by Behre Dolbear in March of 2013 at $25,000,000 and purchased by Garnex Gold for $4,000,000 and a nominal royalty. A copy of their 120-page analysis is available upon request. www.dolbear.com Prior to 1941, the property had 7 producing gold mines. The producing mines were shut down pursuant to War Production Board Limitation Order L-208 because gold was not a strategic metal for the World War II effort.
That makes the Garnet Mining District, in which GARNEX’S Garnet Mine is located, the third most productive gold mining district in the state of Montana.
In addition to the funds to be expended by Garnex for further exploration and underground development to gain access to proven reserves, there was in excess of $12,000,000 expended since 1988 by two previous operators before the property was purchased by Garnex Gold.
There have been more than 62,000 feet of drilling conducted to date. Pegasus Gold drilled 49,350 ft. from 1989 to 1990. Additional drilling in from 2008 to 2010 totaled 13,200 ft. in 2008, 21,840 ft. in 2009 and 34,858 ft. in 2010.
A mineable reserve consisting of 86,000 tons with an average grade of 0.40 opt is available to initiate production and contains an estimated 34,000 oz. of gold.
Garnex will undertake additional confirmation core drilling to document an additional estimated 200,000 oz. of inferred gold that has been indicated by prior drilling programs. This confirmation drilling will be focused on the Nancy Hanks vein system.
It is management’s opinion that based on previous drilling and other exploration methods, it is highly possible that the property could contain up to a 1,000,000 oz. of gold, with credits in silver and copper. The four historically-productive vein systems are open on each end and at depth. As of this date there has been no historical mining conducted below the 500 ft. oxide zone. There has only been one drill hole below 500 ft., which intersected the Nancy Hanks vein at 925 ft. and reported a favorable mining width and an average of .25 opt of gold.
Projected probable ore is in excess of 1,000,000 oz. of gold and there has been no exploration or development work undertaken below 500’. Similar mining operations in comparable rock types in the Coeur d’ Alene mining district are down over 9,000 ft. As of this date, there has been 14 different gold-bearing mineralized zones defined by previous drilling. All prior drilling, trenching and geophysical surveys have been integrated into Vulcan 3-D mine-modeling software for the express purpose of helping define additional future core-drilling targets. There are four primary gold-bearing structures or vein systems defined on the property:
1.the Nancy Hanks vein system
2.the Willie vein system
3.the Lead King vein system
4.the Tostman vein system
