EGI Reserves and Resources:Deposit Classification Tons Gold Copper Gold Gold (opt) (%) Ounces Equivalent OuncesGolden Dream Mineable Reserve(1) 1,171,000 0.221 0.41% 258,000 287,000Gold Hill Not Probable 400,000 0.195 Assayed 75,000 75,000East Butte Not Probable 300,000 0.183 Assayed 55,000 55,000Carmody Not Probable 300,000 0.151 Assayed 45,000 45,000Subtotal 2,171,000 462,000Property Resources Inferred 1,191,000Property Total Proven, Ounces of Probable & 1,653,000 Gold Inferred(2) 1.Internal estimates, not SEC Guide 7 compliant proven & probable reserves. EGI has taken its geologic reserve of 1,183,484 tons grading 0.243 ounces of gold per ton and copper of 0.406% copper and applied an industry standard dilution and deletion percentage to achieve its Mineable Reserve. 2.Santa Fe Pacific determined Measured and Inferred gold ounces to be 1,653,000 within the four known Elkhorn Property deposits - Golden Dream, Gold Hill, East Butte and Carmody.
Montana Tunnels Mine Production History: Mine Startup - February 1986; Length of Operation - 24 Years; Total Ore Processed - 98 Million tons; Gold Recovered - 1.7 Million oz.; Silver Recovered - 30.8 Million oz.; Lead Recovered - 400 Million lbs.; Zinc Recovered - 1.1 Billion lbs. $4.85 billion at today's prices.
M-Pit Fully Permitted: July 2004 - MTMI applied for a Major Amendment for the M-Pit mine expansion. November 2008 - Following an Environmental Impact Statement process, MTMI received favorable Records of Decision from the MDEQ and the BLM. 2008 - 2009 - MTMI received authorization to construct compensatory wetlands for the M-Pit plan from the US Army Corps of Engineers. Wetland mitigation was completed. 2009 - Additional reclamation bond has been agreed to for the M-Pit mine expansion plan. Present posted bond amount is $18.7 million ($15.1 million cash and $3.6 million appraised real estate). An additional approximately $15.0 million bond posting is required to be funded in order fulfill the M-Pit bonding requirement of approximately $34 million. Today - All other permits and licenses required to operate the Montana Tunnels Mine are current subject to bonding.
M-Pit Mine Restart: The M-Pit expansion will "layback" or expand the perimeter of the current pit making it wider and allowing mining at the pit bottom. Gold extraction costs of ~$418 per gold and gold oz. equivalents are estimated. Upon financing, full-time hourly employees will be increased to approximately 160 to 190 individuals. The existing mining fleet at Montana Tunnels will be used and augmented with new equipment as it becomes available. Recommencement of the Mill Complex at Montana Tunnels is expected to be seamless; substantially all components of the concentrating facility are intact.
Exploration below the M-Pit An additional 60M tons of potential ore has been identified below the M-Pit. ESRI has developed a bulk underground mining approach that may allow for additional extraction with favorable economics. Additional pit expansion may be considered if future mineral prices justify the costs. Potential for gold "halo" based on the existing models.