Searchlight plans to reopen underground ramp at Rio

Executive Summary

• Searchlight Resources Inc. has engaged High Grade Mining Consulting Ltd. to evaluate the costs and conditions required to reopen the underground ramp at the past-producing Rio Gold Mine, located near Creighton, Sask., and Flin Flon, Man.
• The initial phase of the project involves surface engineering, geological and environmental studies, and permitting consultations with Indigenous and local stakeholders to determine the viability of future exploration, development, and production.
• The company highlights the significant change in economic viability compared to the mine's 1989 closure, noting that current gold prices (~$5,000/oz) are substantially higher than the ~$400/oz price that led to the mine's shutdown, while legacy infrastructure (1,500m of underground workings) remains intact.

Key Details

• Consultant Engagement: High Grade Mining Consulting Ltd., led by mining engineer Gary Haywood, PEng, has been retained to provide consulting services for the Rio Gold Mine reopening.
• Project Scope: The first phase includes surface engineering, geological and environmental studies, and permitting/consultation with First Nations, Metis, and local stakeholders.
• Rio Gold Mine Infrastructure:
  • Located ~5 km south of Creighton, Sask., and Flin Flon, Man.
  • Contains an estimated 1,500 metres of modern underground workings.
  • Includes a ramp decline to approximately 122 metres (400 feet) below surface.
  • Surface reclamation was completed in 1989, preserving underground infrastructure.
• Historical Context & Economics:
  • Mine closed in 1989 due to low gold prices (~$400 USD/oz, equivalent to ~$1,050 USD in 2026 dollars).
  • Current gold prices are in the ~$5,000 USD range.
  • Prior to closure, a 10,000-tonne bulk sample averaged 4.1 grams per tonne gold.
• Asset Portfolio: The Rio mine is part of the 100%-owned Bootleg Lake claim group, which also includes the Henning-Maloney, Wekach, and Robinson Creek prospects.
• Recent Exploration Results (Bootleg Lake Property):
  • Searchlight has drilled below historic workings, intersecting mineralization including:
    • 5.24 grams per tonne gold over 4.0 metres.
    • 2.09 grams per tonne gold over 19.0 metres.
  • These results confirm mineralization extending below the mine workings, supporting the plan to reopen and dewater the underground workings.
• Historical Development:
  • Henning-Maloney mine developed 305 metres of drifts/crosscuts by 1941; closed due to WWII.
  • Rio deposit discovered in early 1980s; Flin Flon Mines advanced to mining stage.
  • A 300-ton-per-day mill was acquired but operations faced metallurgical, economic, and legal challenges.
  • Vista Mines Inc. acquired the property in receivership, driving a new decline to 122 metres in 1987 and collecting the 10,000-tonne bulk sample in 1988.

Notable Quotes

• "Searchlight is evaluating the potential of establishing a modern gold mining operation on the Bootleg Lake property, centred on the Rio mine portal, but also including other 100-per-cent-owned gold properties nearby. These prospects include the Henning Maloney mine, where Searchlight has conducted a successful drill campaign under the old workings, the Wekach mine and the Robinson Creek prospect where substantial drilling has taken place by other operators," stated Stephen Wallace, Searchlight's chief executive officer.