Hamilton East

Project Location

The Mt. Hamilton project is located in White Pine County, Nevada, specifically in the northern White Pine Mountains. The coordinates are 115.56° W Longitude and 39.25° N Latitude.

Project Description

The Mt. Hamilton project encompasses two deposits: the Centennial and Seligman Deposits, both wholly owned by MH-LLC. These deposits are collectively referred to as the "Mt. Hamilton" or the "Project".

Geology and Mining

The project involves mining in several open pits at high elevations ranging from 8,100 to 9,480 feet above mean sea level. The mining method will use conventional truck and shovel/loader techniques to deliver 10,000 tons per day of ore to a primary jaw crusher located at 8,650 feet elevation. The crushed ore will then be transported via a vertical ore pass and conveyor system to a coarse-ore stockpile at 7,550 feet elevation.

Processing and Infrastructure

The ore will be processed using a secondary cone crusher and other facilities. The project will share the same ore flow and ore processing facilities for both deposits. Water rights have been secured, with 875 acre-feet per annum of water available, sufficient for peak water requirements. The water will be supplied by an existing well in Seligman Canyon, which can produce 500 gallons per minute, along with a backup well.

Economic and Financial Aspects

The project has a favorable economic projection based on feasibility-level capital and operating costs. Key financial metrics include:

• Operating costs: $11.51 per ton
• Operating Margin (EBITDA): $294,042
• Life of Mine (LoM) Capital: $121,518
• Income Tax: $56,643
• Cash Flow Available for Debt Service: $115,882 to $184,760
• Net Present Value (NPV) at 5%: $78,466 to $131,835
• NPV at 8%: $60,817 to $106,951
• Internal Rate of Return (IRR): 26.0% to 35.4%.

Status and Future Plans

The initiation of construction activities is dependent on securing financing, which is currently underway. A program of definition drilling is anticipated to convert additional resources into reserves and to support the permitting of an expanded leach pad.

Ownership and Management

The project is owned by MH-LLC, and the technical report and feasibility study were conducted by SRK Consulting in 2014.