The Mormon Basin district is a well-known area south of Baker City and north of Vale Oregon located in southern Baker county and northern Malheur County. Gold production in this area has been both lode and placer, with each type producing in excess of 13,000 ounces from 1904 to 1959. More than one-third came from the Mormon Basin District.

The property is on two separate 100-acre parcels with the lower 100 acres mined in recent years. The upper 100 acres was set up for full production and permitted for 500,000 annual yards. It was abandoned in 2011 when the mine operator decided on better ground in Nevada and abandoned the property in 2011 to mine a property in Nevada instead.

An Oregon Hedge fund that had financed the property and is now seeking a quick sale at $425,000. Mining details follow:

Mine Potential:

· Estimated 2.4 million yards of gold bearing gravel.
· $12 per yard average yield based on $1,250 per ounce (adjusted to $1,000 per ounce for refining and purity).
· $7 per yard average cost to mine based on recent history.
· Using a 100-day mining season at 1,000 yards per day, gross production is $1,200,000 less costs of $700,000, yielding $500,000 net.
· Mined over 24 years, 2.4 million yards will yield $12,000,000 net (at current low gold prices).

Mine Breakeven:

· One production yard should produce on average .4 grams of placer gold. Every 80 yards should produce 1 ounce. A 1,000-yard day should produce 12.5 ounces, or roughly $12,500, at $1,250 per ounce (adjusted to $1,000).
· A 100-day mining season at 1,000 yards per day should net $500,000 to the mine owner. This is a one-year payback on the property purchase.
· Cost of equipment should be less than $300,000 to process 1,000 yards per day.

This property also has significant potential for exploration and mining near the creek using a process called hydromining (an environmentally friendly underground drilling technique). Because this ground near the creek is virgin and has not been mined, the potential for very high yields per yard is substantial.

With gold prices at a 30% discount from recent highs and heading back up, this is an ideal time to invest in this property, either for actual production, or to bank the property for near term appreciation and resale.