Apr 2 2014
Intertech Solutions Inc. ("Intertech Solutions Inc.," "ITEC" or the "Company") is pleased to report that it has executed a definitive Gold Streaming Agreement with CMI Associates, Inc. Under the terms of this agreement, ITEC has acquired an ongoing interest in the Keen Placer Mine, a producing, alluvial gold project located near Helena Montana.
The Keen Placer Mine currently requires funding to expand daily throughput capacity and efficiency upgrades to the existing plant and site facilities. ITEC, through its gold streaming agreement model, will provide up to $500,000 USD to CMI to ensure the mine capacity is increased 800 cubic yards or 1,100 tons of gold bearing material per day while reducing processing costs per tonne. In return, ITEC will receive 75% of net revenue until payback of the original investment and then 25% of all net revenue until the resource is fully depleted. The Keen Placer Mine will commence the 2014 production season prior to June 1st, thus establishing ITEC with cash flow from gold sales before the end of the second quarter.
The Keen Placer Mine has an initial 200,000 tons of immediately accessible gold bearing gravels at an estimated grade of 0.5 grams per ton (0.016 ounces per ton). When this stock pile is fully processed over the 180 day season, we anticipate recovery at 3,200 ounces of gold production or $4,000,000 at $1250 per ounce gold. ITEC has calculated less than a 2 month payback period on its $500,000 and an additional $800,000 in net profits for the inaugural season. The mine has a historic recovery rate in excess of 98% all gold ore that was confirmed by independent engineering analysis last season.
In addition to production from the Keen Placer Mine, by late November, we will have the WPE Mine in Arizona commissioned and in full operations further increasing cash flows to the Company.
Intertech Company President, David Naylor stated that "the addition of the proven low risk Keen Placer Mine to ITEC's growing portfolio of gold streaming assets not only increases our near term revenue, but more importantly provides a strong base of operations to further leverage our ability to acquire additional gold producing properties."
About Intertech Solutions Inc. (OTCPK: ITEC)
Intertech Solutions is a fully integrated, gold project finance, management and services consulting Company that provides development capital, engineering, project supervision and technical management to gold projects. The Company operates from its offices in Scottsdale, Arizona.
Source: Intertech Solutions Inc.