Preston Corp is providing clarification to the August 10, 2016 press release regarding the Company's Royalty Purchase Agreement with the previously announced Arizona mine.
The project is the West Port Gold Mine located near Quartzsite, Arizona. To date the project has progressed more than half way through the permitting process with both the Mine Plan and Environmental Assessment approved. The reclamation bond has now been paid to the Bureau of Land Management (BLM). The production and recovery plant are in the final stages of construction at the plant manufacturer's facility and are scheduled to be delivered to Arizona within the next 60 days. The covering of the fiber optic crossing on the access road leading to the mine is now complete and ready to accept the processing plant upon delivery.
The West Port Mine is forecast to process at least 200,000 tons with a minimum value of $35 per ton gold bearing material per year resulting in the production 6,000 troy ounces of gold yielding over $7,000,000 per year, with a mine life of up to 10 years. In conjunction with mining operations an extensive exploration of the adjoining claims will be ongoing.
Under the terms of the royalty agreement with West Port, Preston has agreed to purchase a royalty interest in the mine for $5,000,000. As previously announced, the West Port Mine is a low cost, high grade placer deposit meeting all of Preston's requirements for financing and acquisition. Preston anticipates recording revenue from this royalty in Q1 of 2017.
Company President Andrew Stack states "the West Port Mine project is exact profile of investment Preston anticipates making as we grow our business. We are dedicated to investing in low cost, permitted gold projects that meet our target ROI. We will endeavor to continue to update our stakeholders as to the timing and progress of the ramp up towards initial gold sales at the West Port Mine."