Golden Independence Mining Corp. (IGLD.CSE)

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Company description

Golden Independence Mining Corp. (CSE: IGLD)(OTC:GIDMF)(FRA:6NN) is a gold focused exploration and development company with assets in North America. The company’s primary project is the Independence project in Nevada, USA. This project is located in the Cortez Trend and within the Plan of Operations of the Phoenix Mine, owned by Nevada Gold Mines, the Newmont/Barrick JV. The company is currently spinning out its 100% owned Champ project in British Columbia, Canada.

The company is currently earning an initial 51% interest in the Independence project. In order to achieve this, the company must incur US$1.75M in work expenditures on the property before the end of 2021. The company can increase its total interest in the project another 24% (for a total interest of 75%) by spending US$10M over 3 years on the project.

The Independence project had a non NI 43-101 compliant historic resource statement completed on it in 2010. In the near surface oxide component of the project, it hosts a Historic Measured & Indicated Resource of 210koz (0.49g/t Au) of gold and an Inferred Resource of 66koz (0.38 g/t Au) of gold. The project also hosts an Inferred Resource of 796.2koz of gold (6.53 g/t Au) in the higher grade but deeper sulphides. Management aims at completing a maiden NI 43-101 compliant resource estimate in March/April 2021 with a focus on expanding the historic oxide resource. The company believes it can expand the oxide portion of the project to around 500koz of gold. This will be followed by a PEA on the oxide portion of the project in H2 2021. Further along the road they hope to grow the sulphide resource as well.

As the mineralization is typical for Nevada, the oxide portion of the Independence project is slated to be a near-term heap leach mine. Higher grade (but deeper) sulphides make this project a likely candidate to be a combination of heap leach and conventional mining. Preliminary metallurgical work indicates oxide recoveries of over 80% which is pretty good. A recently completed 25,000 foot RC drill program is generating significant results which will be included in the upcoming resource estimate, as will the results from 56 RC holes drilled by previous operators but not yet included in the 2010 resource statement.

Golden Independence has a current cash position of about C$1M, and will likely have to raise additional funds before the end of H1 2021. Most of this money will be used for exploration and an upcoming PEA. As the project is located within the fully permitted Plan of Operations for the Phoenix mine, the company is looking to fast track the oxide portion of the project to production to benefit the most from the current high gold price.

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