The Monitor-Richmond-Copper Age Mines have been developed within a complex system of mineralized veins and intrusives within the favorable Precambrian Belt Super group Wallace and St. Regis Formations. This development includes a 700 foot shaft and 5 drifts running east and west along the vein at 100 feet intervals. Over 700 feet of drifting was accomplished on 4 levels where the vein ranged from 10 feet to 15 feet. The crosscut to the vein on the 700 level did not intersect the hanging wall of the vein and this indicates a potentially greater vein width than reported in the upper levels. This widening of the vein is typical of the other vein systems in the Coeur d’Alene district.
Ore mined and milled from the various levels between 1881 and 1910 produced 1,500 tons of concentrate containing 15% copper and 0.247 oz/ton gold and sold to the Tacoma Smelter. Recent geochemical analysis surveys on the Monitor Mine property found elevated levels of cobalt and nickel. The Monitor vein has only been preliminarily tested by the early mining efforts. The vein outcrop can be traced for approximately 2,000 feet on the surface. Drifts at 100 foot intervals to 400 feet level of the 700 foot shaft produced ore from only 110 feet to 300 feet along the drifts. In 1920’s a 5,000 foot crosscut was driven to intersect the Monitor vein at the 1700 foot level. Based upon the ore produced prior to 1910, the areas mined to produce that ore, doubling at depth at the 1920 crosscut elevation and when compared to the geological features of other mines in the Coeur d’Alene District there exists a possibility of commercial mineralization. The Monitor vein is along the Placer Creek Fault, a regional structure that contains the Coeur, Galena and Caladay mines. These mines are currently operating approximately four miles west of the Monitor along the same regional structure.
MONITOR-RICHMOND & COPPER AGE - Idaho
History and Previous Exploration/Development Efforts
The Monitor-Richmond-Copper Age Mines are adjacent properties and are all past producers of copper with minor amounts of gold and silver. This 26 unpatented lode mining claims are located along the eastern edge of the Coeur d’Alene Mining District which has produced over 1.1 billion ounces of silver, 8.5 million tons of zinc and substantial amounts of lead, copper and gold. (Brian G. White, Mining Engineering July-Dec. Vol. 50, August 1998) The Monitor was discovered in 1891 and mined until a fire 1910 destroyed the above ground facilities of all three mines. The Monitor claims lay dormant until 1940 when they were purchased by Day Mines in a tax sale. Hecla Mining Company acquired Day Mines in the 1980’s and traded the patented claims for federal land around their Lucky Friday Mine. The claim patents were then vacated and the area reverted to public domain. Subsequently the present owner Northern Adventures LLC located 26 unpatented mining claims and leased them to NAI, who subsequently assigned its interest to AMCOR.
Agreement with Archean Star Resources, Inc.
On February 5, 2013, AMCOR entered into a formal agreement with Archean Star Resources, Inc., (“ASR”) a Canadian mineral exploration company. Prior to entering into a formal agreement, the original lease granted by NALLC, as the owner of the 26 Monitor-Richmond-Golden Age claims, to NAI, was modified and the royalty schedule amended. The new amended royalty schedule is split on a 50-50 bases between NALLC and AMCOR. The new royalty schedule is predicated on a Net Smelter Return (“NSR”) whereby any ore mined with a gross value below $500.00 per ton will be paid 2% NSR and any ore mined with a gross value of $500.01 per ton will be paid a 3% NSR. As a condition of agreeing to amend the original agreement, NALLC and AMCOR agreed to split $25,000 cash payment called for under the agreement. In addition, NALLC and AMCOR will also split shares of common stock to be issued by ASR on a fifty-fifty basis. The ASR shares are to be issued over a three year period. One million shares were issued concurrent with the signing of the agreement and an additional one million shares will be issued on the second and third anniversaries of the agreement.
Under the agreement ASR can earn up to 80% interest in the property lease by expending $2,100,000 over a three year period, with a minimum expenditure of $700,000 in year one of the Agreement. At such time as Archean earns an 80% interest in and to the Lease, the AMCOR’s Interest shall be a Carried Interest until such time as a Bankable Feasibility Study has been produced (“BFS”) or a Decision to Mine (“DTM”), has been made, at which time a Joint Venture shall automatically be formed between the AMCOR and Archean, whereby AMCOR shall hold 20% of the JV Interest and the Archean shall hold 80% of the JV Interest, in and to the Lease, and all expenditures from the date of the formation of the JV shall be apportioned between the parties as to their percentage of ownership interest.