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Table of Contents |
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Visit this page to learn about the Zenda Property. Use the quick links to jump to each section: |
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Location
Overview
Royalties
History |
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| Location |
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The Zenda Project is located in Kern County, in southern California, approximately 30 miles southeast of the city of Bakersfield and 10 miles due north of the town of Tehachapi.
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| Overview |
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The Zenda project is a small tonnage (1,403,000 ton) potential heap leach operation with a grade of 0.042 oz Au/ton plus 0.575 oz Ag/ton. J-Pacific Gold proposes to mine the ore body at rate of 2,400 tons per day, 5 days per week. Without additional reserves, the mining would be completed in less than two years.
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," "inferred," and "resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure of our Form 20-F, File No. 0-50238, which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml.
The orebody is located on the top of a mountain and has a low stripping ratio (0.36:1). A significant portion of the waste would be used in the construction of an embankment dam that to contain the valley fill heap leach. Gold recovery would be in a conventional carbon stripping circuit.
Overburden at the deposit provides potential upside for the project as sampling by J-Pacific Gold has confirmed that it contains indicated gold grades ranging between 0.01 and 0.03 oz/ton. These grades are not economic on their own; however, recovery of this gold could improve the return on capital should gold prices rise substantially. (Potential revenues from this overburden are not contained in the feasibility study).
It may also be possible to add to the deposit with exploration drilling along strike and down dip, as the resource is open in all directions. Back to top |
| Royalties |
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Advanced royalty payments totalling $300,000 have been paid to Zenda Mine Corporation as a part of its 5% NSR royalty. In addition, there is a $200,000 finder's fee payable at $2.00 per ounce on the NSR.
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History |
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The Zenda project was originally conceived and explored by Shell Mining Company. Ownership in the project was transferred to Equinox Resources Ltd. of Vancouver, British Columbia in the mid 1980's. In 1989, Equinox commissioned a full engineering plan from Vector Engineering of Grass Valley, California for the construction of a valley fill leach pad and an appropriately sized embankment dam for containment. Concurrently, a mine plan was commissioned from Pincock Allen & Holt of Lakewood, Colorado.
With these reports and the metallurgical studies of McClelland Laboratories of Reno, Nevada, Equinox prepared a feasibility study and commissioned Pincock Allen & Holt to perform an audit on its study. Based on these studies the property was permitted and readied for production. However, Equinox made a decision not to commence production because of the prevailing low gold price.
Hecla Mining Co. acquired the property as part of its 1994 takeover of Equinox Resources Ltd. Subsequently, Hecla decided to sell the property as its relatively small resource (1.4 million tons at 0.042 oz Au/ton) did not fit into Hecla's production criteria.
Saga Exploration Co., a private Nevada corporation, gained control of the project in late 1995. Saga undertook a detailed review of the property work and completed an updated economic study in 1996. Early in 1997, Saga entered into a purchase agreement with J-Pacific Gold (then Claimstaker Resources) whereby ownership of Equinox was transferred to J-Pacific Gold. When the Zenda Mine commences operation, it is intended that Saga will be the project developer and operator of the mine.
Vector Engineering Inc. of Grass Valley, California, designed the proposed plant and facilities. The Zenda project is largely permitted, but awaits a higher gold price before commencing production. |
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