Land, Tenure and History

Goldbanks is composed of 874 unpatented mining claims (about 16,500 acres or 6,680 hectares), all located on federal land.

The earliest recorded gold production in the Goldbanks district was in 1907, at the Goldbanks Merger mine located on the eastern margin of Goldbanks Hills. Mercury was discovered in 1913 in the central portion of the district, which quickly led to the commencement of the Quicksilver Mine. The mine produced mercury from 1914 through 1969. Additionally, the Pronto Plata mine, located 7 kilometers northwest of the Quicksilver Mine, also produced small quantities of mercury (Percival, 2010).

Numerous gold exploration companies have operated in the Goldbanks district, including Bear Creek Mining (Kennecott), Santa Fe Gold, USMX and others through the mid-1980’s with little success. The majority of these programs focused on zones below or along strike of cinnabar-bearing opaline silica. In 1988, G. L. Grauberger discovered a large area of low-grade mineralization that would become the Main Zone of the Goldbanks deposit. The smaller KW deposit was discovered in 1994 and is located 3 kilometers north of the Main Zone. Kinross Gold Corporation acquired the project in 1997 from Restoration Minerals, a company founded by G. L. Grauberger, with the goal of delineating a bulk-tonnage open-pit resource. Kinross optioned the project to Newmont in 2000, then later to Desert Gold Ventures Inc. in 2004.

Prior to 2013, drilling outside of the resource areas had primarily been vertical RC condemnation holes. Kinross re-acquired 100% of the project in 2012 and has been conducting exploration since that time. Project exploration expenditures through 2015 exceed US$25 million (Ellis and Stroup, 2015).