Arizona Gold Mine
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Tina Vital | Managing Director
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(917) 432-8474
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OVERVIEW
Gladiator Gold Mines is seeking +/-$21 million (excluding $12.4 million from prior investments) to develop their 100%-owned gold mine in the Prescott National Forest in Arizona.
- Unique, high-grade US gold deposit (open pit and underground) – 17.1 gram per tonne (g/t) – with relatively low operating and capital costs and fast potential production located in a mining-friendly permitting jurisdiction
- 2,300-acres – 24 patent mining claims and 89 Bureau of Land Management claims; huge potential deposit – 93,937 ounces (oz) gold reserves (48% proven, 42% probable, 10% possible) with potential of up to 1.8 million oz gold equivalent resources from known exploration targets; long life potential (over 20 years at 300 tpd)
- Shovel-ready with small environmental footprint – mine in excellent shape; “zero discharge” operation with underground disposal of tailings – all waste backfilled; customers – various global gold refiners
- Infrastructure in-place – close to a major city (50 miles south of Prescott; 65 miles northwest of Phoenix in Yavapai County); full road access to mine; operable mill and underground mine; low power costs (on-site green energy and wind potential)
- Experienced North American mining management and engineering team – expertise in precious metals project development and marketing
COMPETITIVE LANDSCAPE
The Gladiator Gold Mine Project is one of the highest grade gold mining projects in the U.S. and Canada!
- By comparison, most gold mining projects in North America are low-grade with relatively high capital expenditures and long timelines to production
OPPORTUNITY
- Gold mining is a global industry with operations on every continent except Antarctica, and gold is extracted from mines of widely varying types and scale
- Mines and gold mining operations have become increasingly geographically diverse, far removed from the concentrated supply of about four decades ago when most of the the world’s gold came from South Africa – during WW II, many US gold mines were shut-down and have remained dormant for over 80 years; after WWII, the US concentrated efforts on large tonnage open pit mines
- Levels of mine production have grown significantly since 2008, although substantial new discoveries are increasingly rare
- gold mining and mine production does not respond quickly to prices
- project development timeline and mine lifecycle is long – often taking decades to move from discovery to production
GOLD SUPPLY
- Mine production accounts for the largest part of global gold supply – typically, 75% each year
- Global gold mine production is expected to reach 3,656 tonnes in 2024, up about 4% from 2023
- top five gold-producing countries accounted for over 40% of the world’s output (U.S. ranked fifth with over 5% of global production)
- However, annual demand requires more gold than is newly mined and the shortfall is made up from recycling
GOLD DEMAND
Global gold demand is strong and relatively inelastic.
- Jewelry manufacturing (68% of demand, as of 2022) – gold has for millennia been the metal of choice, even in the face of substitutes such as platinum, silver, and copper
- Electronics, medical, and other industries (14%) – gold has become a necessity in the high-tech industry; gold has many favorable elemental properties (malleability, ductility, non-corrosiveness, reflectivity, and conductibility) – no good substitutes in many applications
- Institutional investing (18%) – gold demand is strong and expanding with recession-afflicted investors looking to grow their savings by investing in non-perishable metals
SOLUTION/STRATEGY
- Gladiator Gold Project is still considered an “active mine” by the state of Arizona, which minimizes future permitting requirements for a production re-start
- Phase 1 – Exploration and Surface Mining (gold and silver production from oxide zone and mine rock)
- Exploration – up to 3×10,000 tonnes bulk samples of extraction; authorization from mines inspector
- Surface Mining – start-up 60-90 days from funding
- Phase 2 – Underground Mining and Mill Feed Exploration (gold and silver production)
- start-up 18-24 months in parallel with Phase 1; currently under ‘care and maintenance’ – permitting will simply require updating mine plan and conformity with current practices
GLADIATOR GOLD MINE PROJECT – HISTORY
- History of underground gold, silver, copper, zinc and lead production from seven former producing mines, with on-site mill (120 tpd, 70% equipped)
- under-reported – much of early production was not reported, as well as some from late periods relatively low capital expenditures and operating expenses
- relatively low capital expenditures and operating expenses
ORE RESERVES
Mineral reserves estimates from Nor-Quest, 2010 – excludes extensions to the vein mineralization and exploration targets.
LAND HOLDINGS (CLAIM) MAP
PHASE 1 – SURFACE MINING
- Unique, gold and silver production from oxide zone and mine rock
- 30-60 days to start-up from funding; patented land allows for rapid development; estimated 75% gravity gold recovery rate
- Low operating costs – estimated average production costs around US$365/oz for surface oxide mining tonnage between 50-120 tpd (3.4-13.7 g/t gold); potential recovery of 9,200 oz/year of gold
- Excavation and material stockpiling in process; numerous mine rock piles in camp
- Surface vein of 1.22-2.5 meters width sampled for 762 meters; oxide depths to 30 meters; open cut trench from depth of 3-12.5 meters
PHASE 1 – SURFACE MINING – PROCESS FLOWSHEET
PHASE 2 – UNDERGROUND MINING AND MILL FEED EXPLORATION
- 18-24 months to production from funding; tonnage throughput to increase from 120 tpd to 300 tpd (92% recovery); potential for 50,000 oz/year of gold production
- Over 192,300 tonnes of underground mineralized vein accessible from workings for three-year feed; developed, proved and probable ore grading (gold 14.98 g/t; silver 83.31 g/t) at a 20% dilution mining factor; 5,000 tonnes of broken rock (gold 10.63 g/t; silver 34.97 g/t) for mill startup in stopes
- Target mine life of 10 years plus three veins; known and mined mineralization depth up to 300 meters; parallel gold bearing veins support potential 1-5 million tonnes of ore available on-strike and down-dip; seven veins with development or exploration work at an estimated strike length of 8,400 meters
- Estimated average production costs of US$468/oz for underground mining tonnage 300 tpd
PHASE 2 – UNDERGROUND MINING – PROCESS FLOWSHEET
MANAGEMENT
Garry Blair Carson – Co-Founder, President & Chief Executive Officer
Over 38 years of mining project development and marketing experience. Since 2016, President & CEO of Gladiator Gold Mines Corp. Founded Gold Reef Mining LLC in 2013. Since 2011, President & CEO of Nor-Quest Arizona Inc. Advisor to various independents for mining project evaluation and development. Previously held management positions with SGS (Minerals Services Division); GBC Enterprises (property manager); Hertz Drilling (health, safety and environment); Nu-Dawn Resources Inc (exploration and communications); Lakefield Research (research & development for the development of various ore processes); Helen’s Epplet Mining (surveying, engineering); Ingham Exploration (field exploration). Technician Mining Engineering, Haileybury School of Mines. B.A. in Marketing, Malaspina College.
Michael Opara – Co-Founder
Entrepreneur for over 40 years with over 22 years of experience in mineral exploration and development. Since 2016, Co-Founder of Gladiator Gold Mines Corp. Explored and acquired various mineral properties (one of which is in Quebec and being developed into a significant ore body). Previously served as Chairman, CEO & President of Randsburg International Gold Corp (now known as Cresco Labs Inc). Vice Chair – Confederation of Resident and Ratepayers Associations (Toronto); Co-Chair – Bedford Park Association; Vice President – Oriole Park Association; Director at Large and on Executive – Local Federal Riding Association; Policy Chair and Delegate to National Party Convention. MBA, Schulich School of Business, York University. B.A. in Commerce (Distinction), University of Toronto.
Dorian L. Nicol – Exploration Consultant, Nicol Exploration
Over 47 years of management and engineering experience in mineral exploration, development and production. Exploration consultant to various mining projects worldwide. Previously served as Senior Vice President – Exploration for Chaarat Gold Holdings Ltd; President & CEO of Azarga Metals Corp; President & CEO of European Uranium Resources, Ltd; Executive Vice President – Exploration, Yukon-Nevada Gold Corp; President & CEO, Queenstake Resources Ltd; Exploration Manager – Latin America, Canyon Resources Corp; Project Manager, Behre Dolbear and Associates; Executive Vice President, United Pacific Gold Ltd; Vice President – Exploration, Cimarron Exploration Inc; Exploration Manager, Renisson Goldfields Consolidated; Senior Geologist, Exxon Minerals Co; and Geologist, Instituto Geologico de Espana. Registered Geologist (WY); Chartered Geologist (LGS); Certified Professional Geologist (AIPG). Fellow – Royal Historical Society; Australian Institute of Mining and Metallurgy; and Society of Economic Geologists. Registered Member – Society of Mining Engineers. M.A. in Geology, Indiana University. B.S. in Geology, Massachusetts Institute of Technology.
FOOTNOTES:
Overview
Competitive Landscape
Opportunity
Solution/Strategy
Gladiator Gold Mine Project – History
Ore Reserves
Land Holdings (Claim) Map
Phase 1 – Surface Mining
Phase 1 – Surface Mining – Process Flowsheet
Phase 2 – Underground Mining and Mill Feed Exploration
Phase 2 – Underground Mining – Process Flowsheet
(1) Gladiator Gold Mines – management estimates
(2) Gladiator Gold Mines – Presentation – March 2024
(3) Gladiator Gold Mines – Fact Sheet- October 2021
(4) Gladiator Gold Mines – Dorian L Nicol RG FAussIMM – Technical Report – October 2021
(5) Noranda Exploration Inc – WAR Eagle Gladiator Project AZ – Final Report – 820120
(6)Arizona Bureau of Mines – UoAZ – Arizona Metal Production – Series 19 Bulletin 140 – 360215
(7) USGS – Ore Deposits of the Jerome and Bradshaw Mountains Quadrangles Arizona – Bulletin 782 – 1926
(8) MDEC – Gladiator Mine – Report of Mine Inspection – signed WFM – 110903
(9) Nor-Quest Arizona Ltd – Gladiator WAR Eagle and Fairmont Deposits AZ – April 2011
(10) Jim Park – Mining Geologist – Gladiator Mine Ore Reserve Estimates – 100210
(11) Gold Mine – CapTable – v1 240531
Competitive Landscape
(12) Gi3I
Opportunity
(13) https://www.gold.org/goldhub/data/gold-prices (Fast Markets; ICE Benchmark Administration; Thomson Reuters; World Gold Council)
Gold Supply
Gold Demand
(14) https://www.gold.org/ (Metals Focus, Refinitiv GFMS, World Gold Council)
SPECIFIC RISKS
Financial models and other supporting information regarding historical data, hypothetical target returns, contextual analysis, and other pertinent matters will be made available to prospective investors upon request. There is no guarantee of success, and there is a potential for loss of your investment.
Risks related to early-stage company
- Limited financial history, limited assets, and cash flows
Risks related to liquidity
- Insufficient capital to acquire/develop gold assets
Risks related to the economy
- Decline in economic demand could negatively impact prices and demand, and prevent expected returns on investment
Risks related to geology
- Search for precious metals involves various risks including lower than expected concentration or production volumes
Risks related to operations
- Higher than expected mining costs, unexpected equipment / supply chain bottlenecks
Risks related to key persons
- Lightly staffed and expertise is concentrated in a few executives; expansion will require finding experienced executives, geologists, and engineers to fill open positions
Risks related to the regulation and politics
- Local, state and federal government permits must be in-place in order for mining and production
- New legislation and/or change in regulation could negatively impact operations and/or costs
Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment.Local, state and federal government permits must be in-place in order for mining and production