In 1942 with the US involved in a massive war with Japan and Germany the government made the decision to close all non-essential gold mines under the auspices of the War Production Board. It was called the Limitation Order #208. Hundreds of mines closed down. Many never reopened after the war ended. They all were in operation and making money when the government shut them down in the fall of 1942.
The Mary K Gold Mine in Idaho was one. A new barely listed company named Bond Resources Inc. (BJB:CSE) did a deal on the project calling for a total payment for the 450 square acre property of $10 million. The way they structured the deal was that Bond Resources pays the remaining owed $9.5 million out of profits depending on the grade of the material actually processed.
Bond took a 500-pound sample from the vein system at surface that showed a 0.79-ounce per ton gold grade. Another 23-kilo sample was taken also from surface that they ran a split through a fire assay. It came back with 44.32 g/t Au and 16.7 g/t Ag. It's a high-grade gold mine with reported production of 2,000 tons of 0.65 oz. per ton from 1908 until 1942 when the owner had a heart attack. There has been no drilling or modern exploration work done at the mine.
Historic reports suggest there was a high-grade gold shoot located 23 feet beneath the #4 level of between 11.02 and 59.12 ounces per ton gold but the owner died before he could mine it.
While there is great opportunity, there are warts. Because the shares just came free trading, there is no US symbol yet. Since the stock is so tightly held, you have to make an appointment three months in advance to buy shares in the open market.
While $10 million sounds like a lot of money to pay for a mine, it comes out of free cash flow, not in advance. The money the company raised recently will go to pay the down payment on the land and begin a drill program of 14 holes for 1,667 meters of core drilling. Drilling commenced in June and results should be released by August or so. The company is testing the glory hole recorded in the history and the results could be barn burning.
Because the company comes with no baggage it is free to move forward at lightning speed. Management is especially strong. The goal for production a year from now is 150 TPD. Work has commenced on rehabilitation of the main level.
I liked the story enough when I was told about the project to invest in the PP. If the shares came down a bit I would be prepared to invest more. I see this as an interesting speculation. Bond is an advertiser. Do your own due diligence.
BJB-C $0.37 (Jul 09, 2020)
78.6 million shares
Bond Resources website
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.[NLINSERT]
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