DENVER, CO -- (Marketwired) -- 06/17/13 -- Eastern Resources, Inc. (OTCBB: ESRI), a Delaware corporation ("ESRI" or, the "Company"), announced today that the Board of Directors of the Company will post its current Corporate Presentation on its website www.easternresourcesinc.com, this week.
The Updated Corporate Presentation details the history and development of the Company's Golden Dream Mine, the Montana Tunnels Mine, and the Diamond Hill Mine. Through a reverse triangular merger completed on April 6, 2012, the Company acquired from Elkhorn Goldfields LLC ("EGLLC"), the two operating subsidiaries of EGLLC, Elkhorn Goldfields, Inc. ("EGI"), a Montana corporation and the owner of the Golden Dream Mine, and Montana Tunnels Mining Inc. ("MTMI"), a Delaware corporation and the owner of the Montana Tunnels Mine and Diamond Hill Mine(1).
Presented below is a brief review of the material information contained in the Corporate Presentation and not previously presented:
Summary of Opportunity Highlights: The Company owns three fully permitted mines in the Unites States; has an experienced management team; the existing permitted mines present favorable economics (~$498 per gold ounce at the Golden Dream Mine); at the Golden Dream Mine the Company expects 55,000 ounce(2) equivalents of steady-state gold production by Q4 2013 and approximately 150,000 ounce(2) equivalents of gold production annually at full production by Year 3; more than $300 Million of existing infrastructure; there are 2.5 million ounce equivalents of gold; and there is an additional exploration potential of 2.5 to 3.5 million ounces of gold(2).
Timeline: 1998 - EGI purchased the Elkhorn Project from Newmont Gold Corp.; July 2006 - EGI and Apollo Gold Corp. entered into a 50:50 joint venture to operate the Montana Tunnels Mine; July 21, 2008 - EGI was granted its Operating Permit -- subject to placement of a reclamation bond -- by the Montana Department of Environmental Quality ("MDEQ"); Oct. 27-Nov. 3, 2008 - MTMI received Favorable Records of Decision for the M-Pit expansion by the MDEQ and US Bureau of Land Management ("BLM"); February, 2010 - EGLLC acquired the remaining 50% of MTMI; November 30, 2011 - the MDEQ granted EGI a full operating permit; April 6, 2012 - ESRI acquired EGI and MTMI via reverse merger.
Current Development Plan Reserves:
•Elkhorn Goldfields: Golden Dream ("GD") Reserves(2) - 1.1 M tons; Initial GD Mine Life - 5 Years; GD Contained Metal - Gold 258,000 oz., Copper 8.5 M lbs.; Golden Dream Resource Extension - Additional 1.1 M Tons; Adds 250,000 to 300,000 oz. of gold production to GD; Extends GD mine life by 5+ years; Other known Resources - 1.4M oz; Additional exploration potential - 2-3M oz.
•Montana Tunnels Mine: Updated M-Pit Mine Reserves(3) - 40.2M tons; M-Pit Mine Life - 8.5+ Years; M-Pit Contained Metal - Gold 505,000 oz., Silver 8.7M oz., Lead 127M lbs., Zinc 362M lbs.; Additional Expansion 60M tons below M-pit; Mill and existing Infrastructure - $300M+ in replacement cost.
•Diamond Hill: ESRI's third fully permitted and bonded mine; Production to date (from 1998 to 2001) - 700,000 tons; produced 165,000 ounces of gold; Diamond Hill Reserves & Resources - Probable 13.7K oz.; Inferred(3) 34.4K oz.; 75 road miles to Montana Tunnels mill facility. Ore development program will target an additional 200K to 250K oz.
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