Mining Reports | oregongoldmine

Summary of 1999 Report by James C. Haight, Registered Professional Geologist

Summary of 1999 Biological Evaluation for Wildlife Species by Richard J. Pedersen, PhD

Biological Evaluation for Wildlife Species, prepared by Dr. Richard J. Pedersen, PhD, December 1, 1999.

“The proposed mining project is not expected to pose any adverse negative impacts to any [PETS] species. Most species with habitat occurring within the project area should have no risk, or at most low risk, of adverse negative impacts. These risks are not expected to be adverse, however, and should not lead to a trend towards federal listing.”
“California wolverine Recommendation To Meet Habitat Objectives. Most of the project site and the surrounding area has been mined in the past but is still considered potential habitat. The proposed project should not have an adverse impact due to its size and the past mining activity in the area. Avoidance of the area while mining activity is present is likely. No specific mitigations related to this project are needed to protect habitat objectives for wolverine.”
“North American Lynx Recommendation To Meet Habitat Objectives. From a mining project analysis point of view, there are few, if any, activities associated with any of the project that would be expected to negatively affect habitat objectives for Canadian Lynx. Avoidance of the area would be expected during periods of mining activity. No specific mitigations are required in order to protect the habitat objectives for Canadian Lynx in association with this project.”

1995 Preliminary Report by John J. Oberbillig, Registered Professional Geologist.

1999 Hydrogeologist Report by Mark Yinger Associates, Hydrogeologists.

Preliminary Report on the Lower Grandview Mine, December 1995. Prepared by John J. Oberbillig, Registered Professional Geologist.

“The Lower Grandview Property consists of 20 located lode claims and one mill site claim located about 6 miles south of Unity, Oregon on the northeastern flank of Bullrun Mountain. The district has been famous as a high-grade underground gold producer. Values from 25 to 70 ounces per ton were not uncommon. Specimens of native sheet gold from Lower Grandview Mine are on display at the bank at Baker City, Oregon.
The Lower Grandview Mine definitely warrants a comprehensive underground rehabilitation program to develop and mine the known ore bodies. Production over the past 50 years has yielded excellent gold values and has been limited to a small, two-man operation. The full potential of the property is not known, however it is felt, that the geological tonnage outlined, would support a 50 ton per day underground mining operation. Assuming an average graded of 0.5 oz Gold per ton x 50 tons per day; 85% recovery = 21.25 oz Gold per day.”
“Topography and Climate - This mountainous region experiences dry summers and wet winters with most of the precipitation occurring as snow. Temperatures range from 80 degrees F., in the summer to below freezing in the winter. Snow accumulations are in the range of from 12 to 24 inches. The steep hillsides and partly covered by pine, fir, tamarack and mountain mahogany. Sage brush and bunch grasses dominate the power elevations along the foothills. Adequate domestic water is available for a nearby spring while the creeks would provide necessary mining and milling water requirements.”
“Local Geology and Mineralization - Later Tertiary to Middle Jurassic aged limy tiffs and wakes of the Rastus Formation and older ultra mafic rocks and schists have been intruded by Juro-Cretaceous diorite and quartz diorite rocks. At the Lower Grand View, near vertical shears and dikes strike through the are at N 60 E to N 80 E directions. Serpentinite is the predominate rock found in contact with the intrusive units and has been extensively sheared.
Ore zones in the Lower Grand View Mine appear to be associated with chalcopyrite in shear zones between the granodiorite and serpentine and in shear zones within the granodiorite. Argillic alteration was noted extensively both in the untramafic country rock and in the vein structures. It is believed that high-grade quartz stringers within the serpentine units also carry gold values.
Most of the gold appears to be in the free state liberated from oxidized ore exhibiting a very bright color. Sampling from veins containing higher concentrations of chalcopyrite returned assay values of +25 oz. gold per ton, indicating the primary ore of the Lower Grand View Property.”
“Estimated Ore Reserves: Geological ore reserves are estimated for the Lower Grandview Property by using the following information:
1. Gold values vary from 0.1 oz. to over 70.0 oz. gold. Analyzing several hundred samples taken on the Property, an average of 0.5 oz. per ton of gold will prevail. It is thought that this is conservative and probably average higher.
2. Veins have been traced for approximately 1,500 feet along the surface and vertically extend over 1,200 feet.
3. Vein width varies up to several feet wide with mineralized pay zones within the structure, however and average width of mineralization of 1.5 feet is used.
4. The strength and tenor of the veins and prolific production of the entire district substantiates this exploration-production program.
1.5 ft. wide x 1,000 ft. deep x 1,000 ft. long x 6 veins x 145 lb per cu. ft. / 2,000 lb. per ton = 652,500 T
Underground ore reserves are estimated at 652,000 tons.
It is assumed that other veins will be encountered during the mining operations which will add to the tonnage.
Approximately 80,000 tons of open pit ore is available on the top of the No. 1 Tunnel outcrop and in the vicinity of the No. 3 Adit."

Hydrogeologist Report, November 15, 1999, prepared by Mark Yinger Associates, Hydrogeologists.

“Water Quality - It is reasonable to anticipate that the mining activity will have no impact on surface water or groundwater quality. No riparian areas will be impacted by the mining activities.”
“Soil Erosion - No evidence of slumps, bedrock transitional slides or debris flows were observed. The slopes appear relatively stable.”
“Recommendations – Water Quality. The greatest potential threat to water quality would be the release of hazardous substance and subsequent migration to the water table. This could be prevented by not storing motor fuels and other hazardous substances at the mining site. As much as practical, vehicles and equipment should be fueled at a properly constructed and maintained facility in Unity.
The actual pit workings should be contour terraced at regular intervals to impede any potential surface runoff and promote infiltration. The objective would be to prevent significant surface water runoff from exiting the pit. Spoils piles adjacent to the pit should also be contoured in a manner that promotes drainage away from the pit. Due to lack of sulfide mineralization, acid seepage from the tailings and pit are not expected.”
“Recommendations – Soil Erosion The standing and fallen dead wood (forest fire kill) could be placed along outer edges of the spoils piles to hold soil in place. The spoils piles should be seeded annually with appropriate mix of grass seeds to reduce the potential for interrill erosion. Seeding the upper portion of cut banks of permanent roads would aid in reducing soil creep and interrill erosion.
The historical roads in the proposed mining area have not promoted significant erosion. Culverts are not needed in the proposed mining area. Where the access/haul road crosses the perennial Job Creek there is no well defined channel (no active down cutting). The spring fed creek’s flow appears to be constant year round. The creek’s basin above the road crossing is very small and therefore, there is no potential for significant storm freshets. A channel should be excavated for a short distance upslope of a new culvert to gather the rather diffuse flow.”

Summaries of Reports on the Mine. Complete Reports Available Upon Request

Field Work and Results – 1999, prepared by James C. Haight, Registered Professional Geologist

“Field work during 1999 was focused upon detailed topographic mapping, bulk sampling, and overall site reclamation.”
“John Day from Cornerstone surveying was brought on site and a detailed topographic map was produced. The map, suitable for open-pit mine-planning, at a horizontal scale of 1” = 40 feet and a contour interval of 10 feet, was completed on September 30th. An overlay showing all surface workings, past and present, accompany this map.”
“Truckload-sized bulk samples from the most promising area of the lower Grandview and the Lucky Boy mine sites were collected.”
“All samples were taken from the upper drill site near the southern most working of the lower Grandview mine and from sites adjacent to the mail road at the Lucky Boy. These two areas are near the northern and the southern extremities of the anticipated open-pit.”
“Preliminary results from hand-sampling done at all bulk sampling locations confirms that the gold exists as extremely fine particles, closely associated with limonite, talc and clays. The gold presents a large anomaly with the shear zone that divides the serpentinite to the west and the Gray Wacke to the east.
At present, field evidence indicates an anomaly that is about 35 feet wide at the upper drill site and is about 200 feet wide near the Lucky Boy.”
“Preliminary results from work done by Hazen Laboratories, Inc., Golden, Colorado, confirms that the gold is closely tied to the soft limonite, talc, clay material within the shear zone. There also appears to be more gold present than has heretofore been indicated by the Assey reports. One reason for this suspected to lie in the makeup of fluxes.”

1997 Field Work by James C. Haight, Registered Professional Geologist

Field Work and Results, 1997 prepared by James C. Haight, Registered Professional Geologist

“Sigma Mining Technologies Inc., has held the properties, known variously as the Lower and Upper Grandview, the Thomason, Schwayder, Showdown, and Lucky Boy under a lease-option agreement since 1994.”
“Lloyd Wall, reporting in 1989… offers a good account of operations prior to Hansen’s acquisition of the claims - ‘The claims and millsite were located in 1947 by Mr. A. Cheathem. He and various partners mined and milled for the past 41 years on a six-month/4-day work schedule. The production rates would average 8 to 10 tons per day with total production being less than 45,000 tons. The mine has produced sporadic gold values of exceptionally high value which are well known in the region. A sample of native sheet gold was removed off a hanging wall fault face in the lower adit. The sample is on display in the bank at Baker, Oregon. Various high grade samples are on display in the Oregon Geological Survey office at Baker. Gold production has been reported to average 0.500 oz/ton with pay streaks running 4.0 to 7.0 oz/ton (note: the author sampled areas running 34 to 71.0 oz/ton). Production produced 560 oz of gold during the last three years of production from the winze area in the upper tunnel to lower tunnel. The highest production rate was 128 oz gold in a one-day period per conversation with the mine foreman.’”
“Conclusion - Preliminary results from trenching on the veins southerly beyond this seasons work area… allow Ross’s calculations of possible tonnage… to be expanded from 1,500 feet to 2,000 feet along strike and down dip. The grade estimate of .5 remains unchanged.
The drilling, trenching, sampling, and mapping activities of this past summer were undertaken to identify where best to pursue economic concentrations of gold. While it is always encouraging to be presented with assay values in the ‘quarter ounce and above’ range much lower values should not, in themselves, be discounted. The important thing to recognize is the pattern that emerges from any systematic exploration. A pattern of assay values than becomes the “signature” of the deposit sought; and when that signature is seen to be related to significant geological features an exploration target exists.
Such a target has now been identified by the sum of Sigma’s work to date. The target is the “south zone”, along-strike southwesterly from the upper drill ramp above the Upper or “Pink” Adit.”
“Two very strong structures persist at the Lower Grandview Mine. These structures are known as the north and south zones, within which faults, dioritic dikes, and concentrations of gold exist. Two of these concentrations of gold were discovered and worked profitably by previous owners. These two areas, known as “Beer Keg” and the “Railroad Adit” (stope) are now mined out.
The strong structures can be regarded as essentially tabular features, exhibiting much greater lengths and depths than widths. Along these structures are scattered the sought-for concentrations of gold.
Ross, after visiting the property and examining the available data in 1995, correctly concluded that there exists an excellent exploration potential for the discovery of additional gold deposits along the structures. The drilling, mapping and trenching this field season confirms Ross’s observations and allows modest increases in his length and depth projections.
Ross’s estimates of the possible grade and tonnage likely to be extracted from a 1500’ x 1500’ x 1.5’ slice of material in a “zone” is, in my opinion, realistic.”

1995 Report by Charles M. Ross, Professional Economic Geologist

Report on the Lower Grandview Mine and Operations, Bullrun Mining District, prepared by Charles M. Ross, Professional Economic Geologist. February 2, 1995.

“Geology and Mineralogy” - “The veins or mineralized shears on the Lower Grandview property occur between the nearly vertical quartz diorite dikes and the host serpentenized peridotite, as mentioned above. The veins vary greatly in thickness, ranging from thin seams to thickness of 20 feet or more (Wall, 1989). This is very typical, and must be understood to fully comprehend the geometry of the pay zones in the vein system. Veins of this type are described as “pinch and swell”, meaning they will “pinch” down seams less than an inch or even a knife blade in thickness, and “swell” to thicknesses in the tens of feet… The zones where the veins thicken dramatically are usually also of substantially higher grade, therefore the term “pay zone” is applied to these high-grade plums of economically minable thicknesses.”
“In the Lower Grandview, this frequency has been speculated to be approximately 50 feet, meaning that the vein swells approximately every fifty feet into a “pay zone”.”
“Other dimensions of the pay zones are width, which can be up to twenty feet, and length, or depth which is a significant unknown in the Lower Grandview deposit.”
“The location of two pay zones partially mined during the past operations on the property have been located by Mr. Johnson through conversations with the past operators, and confirmed by sampling. In one instance, the pay zone known as the Beer Barrel Stope was first located on the surface, mined utilizing a small open pit, and subsequently driven into from underneath. In the second instance, the pay zone was evidently discovered by driving and adit perpendicular to a quartz diorite dike which outcropped on the surface, and intersecting the associated vein next to the dike, turning on the vein and drifting until a pay zone was encountered. Once this pay zone was found, an adit known as “Railroad Adit” was driven a short distance beneath it, and the ore was brought down, mucked into cars, and hauled out the adit.”
“Economic Evaluation/Potential” - “Drilling at the nearby Record Mine has indicated mineralization extends to depths of at least 1,500 feet, which is certainly within the norm for such deposits, including the Lower Grandview. Strike length of the mineralized zones can be inferred from existing workings on the property to be at least 1,500 feet. Estimating the third dimension is difficult because of the pinch and swell nature of the veins.”
“Conclusion and Recommendations” - “It is doubtful that any drilling, exploratory or development, was ever performed on the property prior to the reverse-circulation program conducted in the late 1980’s. “Exploration” consisted of drifting along the veins when they were pinched, and “development” consisted of stoping pay zones when they were encountered.”

1986 Report by Mark L. Ferns

Lower Grandview Mine (Au, Talc) 1986 Report, prepared by Mark L. Ferns

“Geology: The general geology and mineralization in the immediate mine are is well described in a Masters Thesis by Greg Caffrey, out of Washington State. The workings are on a shear zone in massive serpentine that parallels the contact between gray wackes of the Jurassic Weatherby formation and a mass of serpentinized harburgite. The shear zone is intruded by two altered dikes that presumably are related to the Late Eocene-Early Oligocene Grouse Creek Stock (Caffrey, 1982). The shear zone is about 80 feet in width and has a general strike of N65E and steep easterly dip.
Gold mineralization within the shear zone is concentrated in a 4-5 foot wide limonitic vein comprised of sheared talc, gouge, and silicified serpentinite that runs along the eastern margin. According to Cheatum, the best ore generally occurs where east striking talc seams intersect the vein. The gold is free and little quartz is seen. Chalcopyrite is also reported from the vein. According to Cheatum, most of the shear zone will pan gold and much of it will run 1/12 oz. of gold per ton. The gold is said to occur along limonitic fractures and joints in the serpentinite. The gold is relatively pure and will run about 850-880 fine.”
“According to Caffery (1982), nearly pure foliated talc, massive steatized mottled serpentinite, and massive colloform vein quartz occur associated with this dike in two prospect pits up the slope of Bullrun Mountain to the southwest along the strike of the mineralized shear.”

1948 Report by H.S. Wagner

Lucky Boy Mine/Showdown Mine Report, prepared by H.S. Wagner, August 1948

“Production under the original Leonhardy-Vinson operation is estimated by Leonhardy at about 6000 dollars. This is recovered by amalgamation of about 600 tons of ore milled in the mill on the near by Bull Run Mine. The grade of clean ore is believed to have been about 30 dollars, but the ore actually milled included a considerable amount of development rock; hence the low mill heads indicated by the foregoing figures. Recovery by the Bull Run mill was poor.”

U.S. Forest Service Permit - 1999

U.S. Forest Service Permit – February 22, 1999

“Mining at the Lower Grandview Mine Complex
1. Mining underground and other surface disturbance (small open pit mining at the portals where necessary) at the Lower Grandview Adit, Beer Keg Stope, Railroad Adit, Pink Portal. At the Quartz Vein Exposure, a portal may be constructed.
2. Trenching is approved along existing roads and at the above sites. In addition, a 100 foot trench is approved along the hillside near the Pink Portal.
3. Drilling along access roads and at all the above sites is approved.
4. Milling of ore from underground, from the existing mine dumps, and from small open pits with 25 – 50 TPD run on site is approved. Water from the spring is approved for use in milling. Processing of tailings from the old settling ponds is also approved.
Lucky Boy Exploration
1. Drilling and trenching along the main road and along the logging spur downslope of the Lucky Boy Adit is approved.
2. Reopening the Lucky Boy Adit is approved.”

1996 - 1999 Reclamation Work by James C. Haight, Professional Geologist

Reclamation Work – 1996 through 1999 by James C. Haight, Registered Professional Geologist

“Because all the parties associated with this project truly care about the environment, and since we had all the necessary heavy equipment already at the mine site, we went ahead and did total reclamation of the mill area. This meant filling the old mill site in with fill and removal of all steel leftover along with the removal of the log retaining walls. Also, re-contouring of the tailing pods and re-seeding were done. The old lab building, wash house and other mill buildings were demolished and a fire pit was constructed. The rubbish was burned, buried and the land re-seeded. The old cabin has been put on the Forest Service Historical Property list and has been posted as such. We still retain the right to the cabin but the liability belongs to the United States Forest Service. All the mine portals had garbage around them, from old steel tanks to all sorts of wooded structures with pipe and rail. This was cleaned up along with the mine portals being wither closed by filling them in or by boarding them up to prevent access.”

Chad M. Gordon, Attorney at Law / Broker

The Gordon Professional Group, Inc.

714 W. Olympic Blvd. Suite #400

Los Angeles, CA 90015

(562) 743 - 7137

chadgordonesq@gmail.com