Discovery Minerals Ltd (OTCMKTS:DSCR) Executes an Agreement with Sierra Gold LLC to acquire the Ruby Mine in California and has commenced preliminary work.
Early Market Reaction
Shares of DSCR are trading higher as of 11 am up 18% to .01335. Volume is already at its 30-day average daily volume of 180 million shares a day.
According to today’s release, the Ruby is one of California’s best-known buried placer mines, and is considered by many to be one of the largest producing river channel mines of modern times. It features a system of gold-bearing Tertiary channels which have been reported to have already produced over 250,000 ounces of gold. The Ruby is also renowned for its production of coarse and jewelers-grade gold, with the largest gold nugget weighing 201 ounces or 17 pounds. It is conservatively estimated that 134,844 ounces of gold are available for near-term recovery from identified channels using the existing Ruby infrastructure.
DSCR geologists have commenced generating a 3-D model of the property and workings as well as geological evaluation and assessment of all known existing resource targets. Identifying additional channels as well as lode deposits in quartz veins that are known to exist on the property and will require additional development and geological survey work that has already commenced.
Russel Smith CEO of Discovery Minerals Ltd commented; ” We are extremely happy to complete our agreement with Sierra Gold LLC. to acquire The Ruby Mining claims and commence mining operations on this historic project. While Ruby has been one of the most prolific mines in California, what is so extraordinary is how much of the claims are virtually unexplored. The combination of already identified near term mining targets with the largely unexplored greenstone belt provides significant potential of additional gold reserves. We will bring new technology and geological survey process to Ruby that we believe will quickly identify new mining targets.”