OCCIDENTAL / PASADENA , CALIFORNIA

Occidental / Pasadena Historical Property Highlights
Cargo Muchacho District, Imperial County, CA
Strategic Location:     http://tinyurl.com/yeh52n3

This property is 19 miles from the Mesquite Mine owned and operated by NewGold. They have been in operation for several years- prior to that, Newmont operated it and extracted 3 million ounces of gold from the mid-1980's through 2002. It is an operational, fully permitted low-grade open pit mine with cyanide heap-leach processing on site, and a life of mine estimated at 10 years. They currently produce roughly 160K ounces annually.

Historic Data
9 Patented Claims (meaning outright ownership)…. Plus potentially 3 unpatented claims (status is unclear). This means as much as 180 acres patented with another 60 unpatented.
 
This is a historic producing mining district- the value of the district production is near the $7 million range (and that is when gold was between $21 and $34 per ounce).
              
                  
Today that would be $350,000,000.00 in past gold production

Expert reports from the 1920's and 1940's give encouraging indications, and mention that the ore is free-milling (making it easier and more cost effective to process).
 
At least 3 of the 9 claims have previous workings on them- for the most part, shallow shafts and tunnels (maybe 150-250 deep), and a total of several thousand feet of underground workings (estimated at 2500 feet of drifting, shafts and tunnels). Much of these working are in ore, and little timbering is required.
 
The geology of this claim group is very similar to that of the other claims in the immediate vicinity, some of which were substantial producers. The various claims contain multiple vein structures, generally narrow (2-10 feet in width) and well defined, averaging .25-.5 opt gold.
 
Between the Pasadena claim and the Tip Top claim, it is estimated that there is roughly 100,000 tons in sight, with a roughly estimated average grade of about 1/3 ounce per ton gold. The Occidental claim itself has a fair amount more, though exact numbers are not clear, but it is thought that at least half of that 100K tons is over an average of .4 opt.
These are easy mines to get to- access is quite simple, and they are not far from the Arizona border, which opens up good opportunities for off-sight chemical processing. They are also within 4 miles of a main Union Pacific Railroad line, which opens other cost-effective ore transport options. The workings are not deep (250-300 feet max), but the other bigger past-producer mines in the area followed the vein down over 1000 feet.
 
In 1925, Mr. A D Koppea examined several of the claims. He concludes his report with the following statement:
 
"This is one of the best prospects I've examined- a first class free milling proposition. The material is there and the neighbors all around have produced many millions."
 
He also stated:       "Very pronounced signs of good silver values are visible and this ore should be tested for silver."
 
The report from conducted by Mr. Morgan Lesher (Mining Engineer) in 1940, just a couple years before development work was shut down by the War Production Board Order L-208, was positive as well. It considered two claims in the group- the Tip Top and the Pasadena (the 1925 report included details on the Tip Top and Occidental).
 
Mr. Lesher says the following: "I can without reservation recommend this property for immediate development, and I consider its main asset, at present, to be the known fact that all of the mining work will be in ore, and that there is now available for extraction a considerable quantity of ore such as has been shipped during the present period of operation."
 
He was referring to work that had been done at that time, as well as assays conducted on a bulk sample/production from these claims- these assays showed an average grade of .4 opt gold and 1.41 opt silver, with good recovery through several methods of extraction.
 
Regarding the work, he states: " A production of about 1000 tons of ore averaging $15.00 gold per ton {at this time, gold was $34 per ounce} , was made by the present operator over a period of ten months, working an average of less than three men daily, all the work being done by hand." He includes settlement sheets from this work, as well as assays (from which I pulled the above numbers).

Mining friendly jurisdiction- Imperial County works with many mining operations- primarily sand and gravel, but precious metals as well. They are open to cyanide processing on site, and seem reasonable to work with.