SPOKANE, Wash., June 4, 2010 (GLOBE NEWSWIRE) -- Goldrich Mining Company (OTCBB:GRMC) (the "Company") announces preparations for commercial gold production, as well as a 20,000-foot diamond-core drill program, are underway at its Chandalar property in Alaska.
Subsequent to securing financing to acquire mining equipment in April (see GRMC news release dated April 1, 2010), the Company mobilized heavy earth moving equipment and a second gold recovery plant to its mine site, located about 200 miles north of Fairbanks. The operation is fully permitted and mining and commercial gold production are expected to start the third week in June. Currently, the mine infrastructure is being upgraded, some new camp facilities are being put in place, and gold recovery plant modifications are being made. Production will begin with the gold recovery plant that was constructed and tested last year. The second larger gold recovery plant is expected to be operational sometime in August.
The Company expects to produce 5,000 to 7,000 ounces of gold this year, with the first doré to be poured in early July. As the project matures over the next couple of summers, the production level is anticipated to reach 30,000 ounces of gold per year. The mine is being commissioned following successful test mining of some 30,000 cubic yards last season that recovered about 600 ounces of alluvial gold in a short two week run. Drilling has shown the alluvial gold deposit contains more than 10.5 million cubic yards of mineralized material that the Company believes is economic to mine given prevailing gold prices.
A fully permitted and aggressive drilling program, as announced by the Company on April 16, 2010, is also on schedule to start in late June. The drill and related supplies have already been delivered to the site. The drill program will evaluate the degree of gold mineralization occurring within a large hard-rock stratabound target estimated to be 5 miles long located on the mountain near the center of the Company's property. The Company believes the target is the source of the gold in the placers and the high-grade veins that surround the mountain.
Goldrich Mining Company is engaged in the business of the discovery and mining of gold deposits. This endeavor carries certain risks that are commensurate with the potential rewards of such efforts. These risks cannot be quantified and should not be taken lightly.
Forward-Looking Statements
This press release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Legislation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Goldrich Mining Company expects or anticipates will or may occur in the future, including such things as the Company's ability to sell forward gold sale contracts, the anticipated use of proceeds from the sale of such contracts, anticipated commercial production at the Company's Chandalar gold project and other such matters are forward-looking statements. Often, but not always, forward-looking statements state that certain actions, events or results ''will'' be taken, occur or be achieved. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Goldrich Mining Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things: the Company's ability to sell forward gold sale contracts in the current economic environment, volatility of natural resource prices, including gold prices; product demand; market competition; the Company's ability to continue with corporate spending priorities; the Company's ability to secure additional financing; the existence and extent of gold deposits at the Chandalar property; the Company's ability to start and maintain commercial production at the Company's Chandalar property; and other risks inherent in the Company's operations discussed in the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. The Company makes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws or regulatory policies.