Dec 5 2014
Intertech Solutions Inc. is very pleased to announce today that the Company has completed contracts for ITEC to receive production revenue under a "gold streaming agreement" from the Hunter Creek Gold Project, located in Alaska. This gold project naturally fits into the Company's growing portfolio of gold production assets.
Under the terms of the "gold streaming agreement", with a timeline and duration of ten years or to continue for the economic life of the mine, ITEC will provide up to $5 Million USD in order to modernize and increase the mine capacity. ITEC will receive 75% of net revenue until payback of the original investment and then 25% of all net revenue until the resource is fully depleted. Revenue projections are derived from management's conservative assumptions of processing 1,200 tons per day with an average grade of 4 grams per ton while operating at a minimum of 100 days per year at $1,150 per ounce gold, less operating costs. Based on these estimates, ITEC conservatively expects the Hunter Creek Project to net $16.4 Million annually from this single gold streaming contract alone, prior to the implementation of planned project production expansion.
The current plant has the capacity to process 1,200 tons per day. The operating season in Alaska is between May and September and ITEC can mine a minimum of 100 days. ITEC expects that the project will produce over 15,000 ounces of gold annually. The current mine capacity of 1,200 tons per day has been assessed and it is the opinion of management that the potential throughput of the plant can be doubled with this influx of capital expenditure.
The Hunter Creek Project is an operating placer gold operation comprised of over 13,600 acres of mining claims. The mine is located 75 miles northwest of Fairbanks, Alaska, within the Rampart Mining District – one of Alaska's most prolific gold producing areas and lies within the world famous "Tintina Gold District". The pay gravels are Quaternary to late Tertiary aged deposits that regionally are up to 100 feet thick. Within the project area, 20 foot pay zones have been identified and will be prepared for exploitation immediately after the spring thaw in 2015.
Company President Robert McIntosh states "The addition of the Hunter Creek Alaska project to our portfolio of assets will more than double our projected cash flow and revenue stream once production commences in Alaska in spring of 2015. Although the season is relatively short in Alaska compared to the yearlong operating season at the WPE Arizona project, the large tonnage potential and sheer project size is impressive. Once all the geological data and engineering is processed and reviewed, we will announce further details on this new gold deposit."