It’s been a few months now that Stockhouse Editorial has been alerting our metals & mining investor audience about a new Cariboo region gold explorer that’s thinking outside the box when it comes developing their unique business model.
Green River Gold Corp. (CCR) (
CSE.CCR,
Forum) is a dual threat gold opportunity.
The Company holds a 100 percent interest in the 8,900 hectare Fontaine Lode Gold project which is contiguous to Osisko Gold Royalties’ Cariboo Project which was acquired when Osisko took over Barkerville Gold Mines for $335 million in the Fall of 2019. Shortly before that, CCR closed the purchase of the Fontaine Lode Gold project. CCR is currently raising money to further explore the project. The company intends to be drilling the project before the end of this calendar year.
CCR also has a unique model that provides opportunities to placer mining operations.
For the sake of argument, let’s call it placer mining…on steroids.
The Company has a plan of attack for the Summer of 2020 that they believe will offer unprecedented opportunities for shareholders, would-be investors, and those looking for steady employment in this economically depressed time of the COVID-19 pandemic. Heck, if you want to try your hand at placer mining (it’s easier than you might think) the Company even offers a one-stop shop for all mining equipment & supplies!
Now, as mining exploration gears for what appears to be one of the busiest in British Columbia in years, CCR is at the epicentre of the action. After all, their offices and storefront shop are located smackdab in the heart of historic gold mining country in Quesnel, BC…
”at the corner of Gold Mining and Gold Mining!”
In the News
Green River Gold continues to grow and has recently
purchased permitted placer rights on the Swift River, about 74 hectares worth, approximately 40 kilometres east of Quesnel. The placer rights straddle the Swift River and have mining permits on each side of the river. This addition brings the Company's total to six permitted, rent-ready placer mining projects on its placer properties which cover over 20 square kilometres.
Green River Gold Corp. has also signed a Letter of Intent with respect to renting a four-hectare portion of the Swift River claim on one side of the river in the 2020 mining season to an independent third-party tenant (operator). A monthly rent will be paid to the Company in exchange for the exclusive right to mine the four hectares. The cash rent will be negotiated prior to entering into of the Rental Agreement based on 10 percent of the expected gold production for the season. The other side of the river has had a small-scale mechanical placer mining operation active every mining season for the past several years. It is a turn-key opportunity for a placer miner who would like to rent it for the season for a cash rent.
And with the attractiveness of mining when gold is trading at a near all-time high (now over CDN$2,389.00 per ounce, at press time), permitted placer mining in the great outdoors of beautiful BC doesn’t sound like a half-bad summer job!
(Current map of the Company's mining claims. Click image to enlarge)
CCR also recently announced that it has entered into a rental agreement to rent out a placer mining claim on the Little Swift River. As part of the unique business plan, the tenant (operator) is an independent third party that will pay a monthly cash rent to the Company in exchange for the exclusive right to mine the claim on the Little Swift River, a win-win for both the operator and Green River Gold.
A Personal Message to Investors from Perry Little, President & CEO of Green River Gold Corp.
“Years ago, during a long career as a stockbroker, I recognized the difficulty that placer miners experienced in trying to raise capital. It always seemed that there was a huge unlocked potential in that segment of the gold industry. In a time of high and rising gold prices, placer mining is one of the few areas of the industry able to take advantage of those prices to generate actual cash flow within a few months. After leaving the financial industry, I set out to find a financing model that would work for placer miners.
Always a gold bug, I have spent a large portion of the last four years in the Cariboo including a Summer spent living in a wellsite trailer on an active placer mine owned by our private company. Our private company bought those mining claims for $25,000, mined them for a summer with limited success, but then managed to sell them for $100,000. That is when I determined that there is a way to add value to claims through permitting, putting in a bit of infrastructure (roads, retention ponds etc.) and logging the property if necessary. The key was finding a structure that would allow us to have that value added using someone else’s money.
I have built a team of local people, including miners, geological consultants, permitting specialists and our related private company is about to start its fifth season of placer mining. The private company also manufactures gold mining equipment (trommels etc.) for the placer mining community. CCR retails smaller mining equipment and supplies from a portion of our office space on Quesnel. That pays for our rent and a portion of our administrative costs. More importantly, it provides a presence, credibility, and familiarity with the local placer miners. Studying the placer industry by immersing myself in it is how I refined the business model. It has been over five years in planning and experimentation to get here.
Our placer model is a relatively low-risk way of benefitting from the placer boom that is happening. Our other businesses, private and public, in Quesnel are seeing a large increase in demand for our products and services. Demand for decent claims is only increasing as well. Our model is to get paid cash rent by the miners who then add value to our placer claims by mining a small portion, putting in roads and ponds and doing exploration. While this is much like a royalty model, we do not get paid a royalty in gold. I have been at this long enough to know there is no economic way to enforce that royalty in a placer mining setting. Instead, we set a cash rent at the start of the season which is based on anticipated gold recoveries. Once the rental deal is signed, Green River puts up the reclamation bond, which is refundable once reclamation is completed. In many cases, we can recover the cost of the claim and the bonding from one season of rent. However, the real value comes from the increase in the value of the claims as they are turned into actual placer mines from what often looks like a piece of raw forest.
We already own 21 square kilometres of placer claims in good areas. We plan to have a significant number of claims permitted by next Spring at minimal cost. This is scalable, especially for us. We have a very visible presence in the region. All our key people are long time residents of the Quesnel area and, even though placer mining is seasonal, we can keep them on payroll all year through having them work for our related private company enterprises when they aren’t mining
.
We are thrilled with the possibilities that our Fontaine Lode Gold project presents. The Fontaine Lode project is a highly prospective and inexpensive lottery ticket that we do hope to cash. However, our placer mining model gives us a separate way to profit from the gold industry without having to rely on any single exploration project.”
About Green River Gold Corp.
Green River Gold Corp. acquires and develops placer mining claims and mineral claims.
Headquartered in Edmonton Alberta with offices and retail in the heart of the Cariboo Mining District in Quesnel, British Columbia, Green River Gold is currently seeking opportunities in the placer mining industry.
The Company controls a 100 percent interest in the flagship Fontaine Lode Gold Project, a 100 percent interest in the Fontaine Placer Gold Project, a 100 percent interest in the Little Swift Placer Gold Project and a 100 percent interest in the Sovereign Gold Placer Project as well as a 100 percent interest in two placer properties on the Swift River. The 8,900-hectare Fontaine Load Gold Project is situated 12 kilometers southwest of Barkerville. The properties straddle an 18-kilometre length of the Barkerville and Quesnel Terranes and are contiguous to Osisko Gold Royalties’ Cariboo Gold Project (formerly Barkerville Gold Mines) and Omineca Mining’s Wingdam Project.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.