The Burwash Creek Claims are aptly named for their proximity to Burwash Landing, a small community situated off historical mile 1093 on the Alaska Highway in Yukon, Canada. The site is situated along the southern shore of Kluane Lake, yet provides easy access from the highway for sustained mining operations.
The two Claims, along with the technical reports, were purchased in 2016 for $50 million each. The appeal of this business opportunity resulted from an in-depth review of the technical report, National Instrument 43-101 (Form 43-101F1) and, the subsequent review by an independent expert. The gold yield statement is based on exploration findings determined over the course of the two-plus year process of report preparation. Consequently, the measured (proven) reserves are more accurately defined than a Claim that is based on only a few completed drill holes.
Burwash Creek deposits have proven to be more consistent in their nature than the majority of other placer mines. The reason for this is due to the recurring (approximately every 20-year major flooding) that takes place on this watershed. The property, located at the mouth of the furthest downstream canyon on Burwash Creek, is enriched yearly through the channel with minor yearly flooding as well. As a result of both types of weather events, gold and other metals are deposited in the form of fines that are washed out of deposits higher up the floodplain.
From the surface of the property to its tested depth at 70 feet, the site is open to depth and bedrock that have not been encountered in any of the testing or bulk mining to date. This even-distribution of noble metals is a major difference between this Burwash property and most placer deposits.
130 International can state with great confidence that the Burwash Creek property has been tested in great detail with very good results—likely offering enough pay-gravels in the first 70 feet to justify the ability to mining of this deposit for many years and still be open to greater depth down the line.
One of the mining plans proposed to execute this business opportunity on a full-scale is to raise $240 million. The following pro-forma Profit and Loss statement illustrates that, at this level in 5 years, 130 International would realize over $600 million—a clearly viable commercial opportunity with the right capital partner.
For now, 130 International has taken a conservative approach, allocating $10 million for further exploration to deeper depths down to bedrock. There is a real chance that these claims may yield much more than is indicated at this time.
The company has commissioned the services of Orebits Corp. to digitize one of the Burwash Creek claims, using the sales of these assets to fund the mining operation, as well the cover the costs of the debenture offering coupon.