Black Mammoth acquires America Mine property

Executive Summary

• Black Mammoth Metals Corp. has completed the acquisition of the America Mine gold property in San Bernardino County, California, paying the final $500,000 USD payment to secure 100% ownership with no royalties.
• The property comprises 258 hectares (640 acres) consisting of four patented claims and 45 BLM-administered claims, featuring an open-pit heap leach opportunity on previously disturbed ground with existing infrastructure including water and power.
• A base case economic estimate was calculated using a $400/oz gold price, though the company explicitly states that historical reserves are not considered current mineral reserves due to insufficient work by a qualified person to verify them under NI 43-101 standards.

Key Details

• Transaction Structure: Black Mammoth Metals Corp. completed the purchase of the America Mine gold property.
• Consideration: Final payment of $500,000 USD was paid; the company now owns the property 100% with no royalties.
• Property Location & Size: San Bernardino County, California; approximately 258 hectares (640 acres).
• Claim Status: Four patented claims and 45 claims on Bureau of Land Management (BLM) administered lands.
• Infrastructure & Logistics:
  • Year-round access via a three-kilometre-long dirt road from Amboy Highway.
  • Sufficient water available on-site.
  • Power available: three phases, 440 volts/1,200 amperes.
  • Location is uninhabited and not visible from the highway.
• Geological Characteristics:
  • Open-pit heap leach opportunity on previously disturbed ground.
  • Gold mineralization located in a shear zone between upper and lower plate.
  • Exploration upside exists downdip and along strike in both directions.
  • No known federally recognized rare, threatened, or endangered plant or animal species.
• Economic Estimate (Base Case):
  • Gold selling price: $400 per ounce.
  • Pit slopes: 45 degrees.
  • Process costs: $3.75 per short ton.
  • Mining costs: $0.85 per short ton.
  • Range of gold recoveries estimated.
• Reserve Status: Historical reserves exist on the patented claims but are not classified as current mineral reserves.
  • Reason: Insufficient work by a qualified person to classify them under NI 43-101.
  • Discrepancies: Historical estimates used different criteria (modelled oxidation characteristics) and outdated methodologies/standards compared to contemporary regulations.
  • Lack of detailed documentation and verification processes from the original estimation period makes it difficult to ensure accuracy under current standards.
  • A qualified person has yet to determine procedures to upgrade or verify these historical reserves.
• Qualified Person: Mark J. Abrams, CPG No. 11451, Director of Black Mammoth, reviewed and approved the technical content.