Use of Proceeds & Proforma Financial Statements West Port Energy, LLC Consolidated AK, AZ, CA & MT

Transcription

1 WESTPORT ENERGY, LLC Use of Proceeds & Proforma Financial Statements West Port Energy, LLC Consolidated AK, AZ, CA & MT This document contains proforma financial statements for the ten year period of 2017 to 2026 projecting the results of operations due to fully exploiting the insitu gold ore resources contained within WPE s Alaska, Arizona, California and Montana gold properties

2 Table of Contents Executive Summary - Introduction... 3 Assumptions... 3 Capital Expenditures... 3 Operating Results... 3 Financial Results... 4 Net Present Value... 4 WPE - Capital Expenditure Timeline 2017 to WPE - Proforma Financial Statements... 6 WPE - Statement of Operations; 2017 to WPE - Statement of Operations; 2022 to WPE - Proforma Balance Sheet: 2017 to WPE - Proforma Cash Flows: 2017 to WPE Net Present Value (NPV) Analysis WPE Resource In situ Valuations WPE - Proforma Assumptions WPE Depreciation schedule West Port Energy LLC Property Locations and Legal Descriptions ARIZONA...13 ALASKA...13 CALIFORNIA...14 MONTANA

3 February 2, 2017 Executive Summary - Introduction The proforma financial statements contained herein are for the ten year period of 2017 to 2026 projecting the complete results of operations due to fully exploiting the insitu gold ore resource contained within WPE s consolidated portfolio of gold properties which include; Alaska-Hunter Creek Project, Arizona s West Port Gold Mine, California-Carr Mine and the Montana Gulch Property. All amounts are presented in United States Dollars. Assumptions West Port Energy s four properties; AK, AZ, CA and MT together within the 10 year timeline presented contain a total of 30 million tons of resource containing gold ore for a total in situ value of $1.36 billion. Within these proforma financial statements are very conservative increases for the price per Troy Ounce (toz) over the 10 years of 2017 to The current prevailing price of gold at $1,200 per toz is used for all of 2017 and increasing to $1,225 for 2018 and then remaining consistent at $1,250 for all of 2019 to Capital Expenditures The entire capital expenditure budget for the four properties of $15 million will have $13.6 million deployed by the end of 2018 allocated towards Plant & Equipment and site infrastructure. This will achieve full and sustainable production capacity in 2019 to 2026 of 60,000 tons per week or 3.1 million tons per year. Operating Results Tons processed will total 1.6 million in 2017, 2.9 million in 2018 and then with 2019 obtaining full operating capacity will hold consistent at 3.1 million tons annually until the known resource is depleted in Toz recovered will be 82,200 in 2017, 148,500 during 2018 and 159,000 for 2019 to 2026 for a total of 1.51 million toz recovered over the life of the mining project. 3

4 Financial Results EBITDA is projected at $71.2 million for 2017, $131 million during 2018, and $141.7 million per year for 2019 to This is based on a price of gold at $1,250 per toz while at full production capacity. Total gross income over the life of the project will be $1.875 billion, direct mining costs will average 26% for a gross margin of $1.39 billion for the 10 years and net operating income after capital expenditures and all other indirect costs during the same time period will be $1.32 billion. Over the life of the project the financial position of the Company rapidly and continually strengthens its liquidity due to its ability to monetize the insitu resource. At the end of 2019 total current assets are $344 million and long term non liquid assets are $1.02 billion, by the end of 2026 total liquid current assets will be $1.36 billion. Net Present Value Applying a risk rate of 8% to factor all the assumptions and the volatility of the price of gold that has already been conservatively presented, the Net Present Value (NPV) of the West Port Energy gold properties are; $866 million. 4

5 WPE - Capital Expenditure Timeline 2017 to 2026 WPE; AK, AZ, CA & MT SUMMARY CAPITAL EXPENSE - TIME LINE AK Capital costs - Alaska, Hunter Creek Property $ 5,500,000 $ 85,000 $ 85,000 $ 85,000 $ 55,000 AZ Capital costs - Arizona, West Port Gold Mine $ 4,075,000 $ 200,000 $ 150,000 $ 100,000 $ 95,000 CA Capital costs - California, Carr Mine $ 2,750,000 $ 50,000 $ 40,000 $ 40,000 $ 30,000 MT Capital costs - Montana, Gulch Property $ 935,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 Totals $ 13,260,000 $ 345,000 $ 285,000 $ 235,000 $ 190,000 Cumulative Total $ 13,260,000 $ 13,605,000 $ 13,890,000 $ 14,125,000 $ 14,315,000 WPE; AK, AZ, CA & MT SUMMARY CAPITAL EXPENSE - TIME LINE Totals AK Capital costs - Alaska, Hunter Creek Property $ 55,000 $ 45,000 $ 45,000 $ 45,000 $ - $ 6,000,000 AZ Capital costs - Arizona, West Port Gold Mine $ 95,000 $ 95,000 $ 95,000 $ 95,000 $ - $ 5,000,000 CA Capital costs - California, Carr Mine $ 25,000 $ 25,000 $ 20,000 $ 20,000 $ - $ 3,000,000 MT Capital costs - Montana, Gulch Property $ 10,000 $ 7,500 $ 5,000 $ 2,500 $ - $ 1,000,000 Totals $ 185,000 $ 172,500 $ 165,000 $ 162,500 $ - $ 15,000,000 Cumulative Total $ 14,500,000 $ 14,672,500 $ 14,837,500 $ 15,000,000 $ 15,000,000 $ 15,000,000 5

6 WPE - Proforma Financial Statements WPE - Statement of Operations; 2017 to 2021 WPE; AK, AZ, CA & MT 2017 to 2026 Annual Proforma Year: Tons processed - AK, Hunter Creek 271,440 1,048,320 1,085,760 1,085,760 1,085,760 Tons processed - AZ, WPG 444, , , , ,000 Tons processed - CA, Carr Mine 140, , , , ,000 Tons processed - MT, Gulch Pty 780, ,000 1,040,000 1,040,000 1,040,000 WPE combined tons processed 1,636,440 2,925,520 3,139,760 3,139,760 3,139,760 Toz recovered - AK, Hunter Creek 8,727 33,704 34,908 34,908 34,908 Toz recovered - AZ, WPG 28,588 30,093 30,093 30,093 30,093 Toz recovered - CA, Carr Mine 13,542 48,149 52,663 52,663 52,663 Toz recovered - MT, Gulch Pty 31,347 36,571 41,796 41,796 41,796 WPE combined Toz recovered 82, , , , ,460 Gross revenue - AK, Hunter Creek $ 10,472,391 $ 41,287,701 $ 43,634,961 $ 43,634,961 $ 43,634,961 Gross revenue - AZ, WPG Mine $ 34,306,107 $ 36,864,019 $ 37,616,345 $ 37,616,345 $ 37,616,345 Gross revenue - CA, Carr Mine $ 16,250,261 $ 58,982,430 $ 65,828,604 $ 65,828,604 $ 65,828,604 Gross revenue - MT, Gulch Pty $ 37,616,345 $ 44,800,023 $ 52,244,924 $ 52,244,924 $ 52,244,924 WPE combined gross revenue $ 98,645,104 $ 181,934,171 $ 199,324,835 $ 199,324,835 $ 199,324,835 Processing costs - AK, Hunter Creek $ 4,071,600 $ 15,986,880 $ 16,829,280 $ 16,829,280 $ 16,829,280 Processing costs - AZ, WPG Mine $ 6,335,550 $ 6,903,000 $ 7,020,000 $ 7,020,000 $ 7,020,000 Processing costs - CA, Carr Mine $ 2,808,000 $ 10,233,600 $ 12,012,000 $ 12,012,000 $ 12,012,000 Processing costs - MT, Gulch Pty $ 11,700,000 $ 13,877,500 $ 16,120,000 $ 16,120,000 $ 16,120,000 WPE combined direct mining costs $ 24,915,150 $ 47,000,980 $ 51,981,280 $ 51,981,280 $ 51,981,280 Gross margin - Gold $ 73,729,954 $ 134,933,191 $ 147,343,555 $ 147,343,555 $ 147,343,555 Gross margin - Kaolinite-Bentonite Clay $ 3,111,111 $ 3,111,111 $ 3,111,111 $ 3,111,111 $ 3,111,111 Total Gross Margin $ 76,841,065 $ 138,044,303 $ 150,454,666 $ 150,454,666 $ 150,454,666 Indirect variable costs Alaska - Hunter Creek Project $ 929,094 $ 1,161,367 $ 1,451,709 $ 1,451,709 $ 1,451,709 Arizona - West Port Gold Mine $ 1,521,792 $ 1,902,240 $ 2,377,800 $ 2,377,800 $ 2,377,800 California - Carr Mine $ 480,566 $ 600,707 $ 750,884 $ 750,884 $ 750,884 Montana - Gulch Property $ 2,669,810 $ 3,337,263 $ 4,171,578 $ 4,171,578 $ 4,171,578 Total indirect variable costs $ 5,601,261 $ 7,001,577 $ 8,751,971 $ 8,751,971 $ 8,751,971 EBITDA $ 71,239,804 $ 131,042,726 $ 141,702,695 $ 141,702,695 $ 141,702,695 Capital Exps - Plant & Equip Depr. $ 1,989,000 $ 3,433,050 $ 2,497,635 $ 1,826,345 $ 1,342,191 Net Income $ 69,250,804 $ 127,609,676 $ 139,205,060 $ 139,876,351 $ 140,360,504

7 WPE - Statement of Operations; 2022 to 2026 WPE; AK, AZ, CA & MT 2017 to 2026 Annual Proforma Year: Tons processed - AK, Hunter Creek 1,085,760 1,085,760 1,085,760 1,085,760 1,085,760 10,005,840 Tons processed - AZ, WPG 468, , , , ,000 4,656,600 Tons processed - CA, Carr Mine 546, , , , ,000 5,007,600 Tons processed - MT, Gulch Pty 1,040,000 1,040,000 1,040,000 1,040,000 1,040,000 10,010,000 WPE combined tons processed 3,139,760 3,139,760 3,139,760 3,139,760 3,139,760 29,680,040 Toz recovered - AK, Hunter Creek 34,908 34,908 34,908 34,908 34, ,695 Toz recovered - AZ, WPG 30,093 30,093 30,093 30,093 30, ,426 Toz recovered - CA, Carr Mine 52,663 52,663 52,663 52,663 52, ,994 Toz recovered - MT, Gulch Pty 41,796 41,796 41,796 41,796 41, ,286 WPE combined Toz recovered 159, , , , ,460 1,506,401 Gross revenue - AK, Hunter Creek $ 43,634,961 $ 43,634,961 $ 43,634,961 $ 43,634,961 $ 43,634,961 $ 400,839,777 Gross revenue - AZ, WPG Mine $ 37,616,345 $ 37,616,345 $ 37,616,345 $ 37,616,345 $ 37,616,345 $ 372,100,889 Gross revenue - CA, Carr Mine $ 65,828,604 $ 65,828,604 $ 65,828,604 $ 65,828,604 $ 65,828,604 $ 601,861,527 Gross revenue - MT, Gulch Pty $ 52,244,924 $ 52,244,924 $ 52,244,924 $ 52,244,924 $ 52,244,924 $ 500,375,762 WPE combined gross revenue $ 199,324,835 $ 199,324,835 $ 199,324,835 $ 199,324,835 $ 199,324,835 $ 1,875,177,954 Processing costs - AK, Hunter Creek $ 16,829,280 $ 16,829,280 $ 16,829,280 $ 16,829,280 $ 16,829,280 $ 154,692,720 Processing costs - AZ, WPG Mine $ 7,020,000 $ 7,020,000 $ 7,020,000 $ 7,020,000 $ 7,020,000 $ 69,398,550 Processing costs - CA, Carr Mine $ 12,012,000 $ 12,012,000 $ 12,012,000 $ 12,012,000 $ 12,012,000 $ 109,137,600 Processing costs - MT, Gulch Pty $ 16,120,000 $ 16,120,000 $ 16,120,000 $ 16,120,000 $ 16,120,000 $ 154,537,500 WPE combined direct mining costs $ 51,981,280 $ 51,981,280 $ 51,981,280 $ 51,981,280 $ 51,981,280 $ 487,766,370 Gross margin - Gold $ 147,343,555 $ 147,343,555 $ 147,343,555 $ 147,343,555 $ 147,343,555 $ 1,387,411,584 Gross margin - Kaolinite-Bentonite Clay $ 3,111,111 $ 3,111,111 $ 3,111,111 $ 3,111,111 $ 3,111,111 $ 31,111,111 Total Gross Margin $ 150,454,666 $ 150,454,666 $ 150,454,666 $ 150,454,666 $ 150,454,666 $ 1,418,522,695 Indirect variable costs Alaska - Hunter Creek Project $ 1,451,709 $ 1,451,709 $ 1,451,709 $ 1,451,709 $ 1,451,709 $ 13,704,135 Arizona - West Port Gold Mine $ 2,377,800 $ 2,377,800 $ 2,377,800 $ 2,377,800 $ 2,377,800 $ 22,446,428 California - Carr Mine $ 750,884 $ 750,884 $ 750,884 $ 750,884 $ 750,884 $ 7,088,346 Montana - Gulch Property $ 4,171,578 $ 4,171,578 $ 4,171,578 $ 4,171,578 $ 4,171,578 $ 39,379,698 Total indirect variable costs $ 8,751,971 $ 8,751,971 $ 8,751,971 $ 8,751,971 $ 8,751,971 $ 82,618,605 EBITDA $ 141,702,695 $ 141,702,695 $ 141,702,695 $ 141,702,695 $ 141,702,695 $ 1,335,904,090 Capital Exps - Plant & Equip Depr. $ 995,784 $ 750,674 $ 576,097 $ 452,393 $ 341,050 $ 14,204,217 Net Income $ 140,706,911 $ 140,952,021 $ 141,126,598 $ 141,250,302 $ 141,361,645 $ 1,321,699,873 7

8 WPE - Proforma Balance Sheet: 2017 to 2026 WPE AK,AZ,CA & MT Proforma Balance Sheet (Yearly) $US Year Assets Cash 71,239, ,042, ,702, ,702, ,702,695 Short term investments - 71,239, ,282, ,985, ,687,920 Total current assets 71,239, ,282, ,985, ,687, ,390,615 Inferred resource Total resources insitu value 1,357,525,719 1,155,243,190 1,013,540, ,837, ,135,104 Plant & Equip net of deprec. 11,271,000 8,182,950 5,970,315 4,378,971 3,226,779 Total Assets $ 1,440,036,523 $ 1,365,708,669 $ 1,363,496,034 $ 1,361,904,690 $ 1,360,752,499 Liabilities and Equity Accounts Payable Long Term Liabilities Other Liabilities Net Worth 1,440,036,523 1,365,708,669 1,363,496,034 1,361,904,690 1,360,752,499 Total Liabilities and Equity $ 1,440,036,523 $ 1,365,708,669 $ 1,363,496,034 $ 1,361,904,690 $ 1,360,752,499 WPE AK,AZ,CA & MT Proforma Balance Sheet (Yearly) $US Year Assets Cash 141,702, ,702, ,702, ,702, ,702,695 Short term investments 627,390, ,093, ,796,005 1,052,498,700 1,194,201,395 Total current assets 769,093, ,796,005 1,052,498,700 1,194,201,395 1,335,904,090 Inferred resource Total resources insitu value 588,432, ,729, ,027, ,324,324 21,621,629 Plant & Equip net of deprec. 2,415,996 1,837,822 1,426,725 1,136, ,783 Total Assets $ 1,359,941,715 $ 1,359,363,541 $ 1,358,952,445 $ 1,358,662,552 $ 1,358,321,502 Liabilities and Equity Accounts Payable Long Term Liabilities Other Liabilities Net Worth 1,359,941,715 1,359,363,541 1,358,952,445 1,358,662,552 1,358,321,502 Total Liabilities and Equity $ 1,359,941,715 $ 1,359,363,541 $ 1,358,952,445 $ 1,358,662,552 $ 1,358,321,502 8

9 WPE - Proforma Cash Flows: 2017 to 2026 STATEMENT OF CASH FLOWS WPE; AK,AZ,CA & MT - Year Cash From Operations $ 16,250,261 $ 58,982,430 $ 65,828,604 $ 65,828,604 $ 65,828,604 Cash From Receivables Operating Cash Inflow 16,250,261 58,982,430 65,828,604 65,828,604 65,828,604 Other Cash Inflows Equity Investment Increased Borrowings 1,989,000 3,433,050 2,497,635 1,826,345 1,342,191 Sales of Business Assets A/P Increases Total Cash Inflows 18,239,261 62,415,480 68,326,239 67,654,949 67,170,796 Cash Outflows - Direct mining costs 11,700,000 13,877,500 16,120,000 16,120,000 16,120,000 Cash Outflows - Other 5,601,261 7,001,577 8,751,971 8,751,971 8,751,971 Repayment of Cap. Ex. 1,989,000 3,433,050 2,497,635 1,826,345 1,342,191 A/P Decreases A/R Increases EBITDA -3,040,000 34,670,303 38,458,999 39,130,289 39,614,442 Dividends Total Cash Outflows 19,290,261 24,312,127 27,369,606 26,698,315 26,214,162 Net Cash Flow -1,051,000 38,103,353 40,956,634 40,956,634 40,956,634 Cash Balance -1,051,000 37,052,353 78,008, ,965, ,922,254 WPE; AK,AZ,CA & MT - Year Cash From Operations $ 65,828,604 $ 65,828,604 $ 65,828,604 $ 65,828,604 $ 65,828,604 Cash From Receivables Operating Cash Inflow 65,828,604 65,828,604 65,828,604 65,828,604 65,828,604 Other Cash Inflows Equity Investment Increased Borrowings 995, , , , ,050 Sales of Business Assets A/P Increases Total Cash Inflows 66,824,388 66,579,278 66,404,701 66,280,997 66,169,654 Cash Outflows - Direct mining costs 16,120,000 16,120,000 16,120,000 16,120,000 16,120,000 Cash Outflows - Other 8,751,971 8,751,971 8,751,971 8,751,971 8,751,971 Repayment of Cap. Ex. 995, , , , ,050 A/P Decreases A/R Increases EBITDA 39,960,850 40,205,960 40,380,537 40,504,241 40,615,584 Dividends Total Cash Outflows 25,867,755 25,622,645 25,448,067 25,324,364 25,213,021 Net Cash Flow 40,956,634 40,956,634 40,956,634 40,956,634 40,956,634 Cash Balance 200,878, ,835, ,792, ,748, ,705,421 9

10 WPE Net Present Value (NPV) Analysis WPE ; AK, AZ, CA & MT NPV Analysis: Timeline: years: 2017 to 2026 Discount rate: 8% Year: Net Income $ 69,250,804 $ 127,609,676 $ 139,205,060 $ 139,876,351 $ 140,360,504 Year: Net Income: $ 140,706,911 $ 140,952,021 $ 141,126,598 $ 141,250,302 $ 141,361,645 NPV $ 865,669,396 Total Net Income : $ 1,321,699,873 10

11 WPE Resource In situ Valuations ALASKA-HUNTER CREEK, Resource in situ value: 10,000, grams per ton : 10,000,000 grams Convert to toz. Number of grams per toz: ,492 Toz. Price per toz. $ 1,200 Cost to process each toz. ($15 * ) $ 467 Net value per toz: $ 733 Resource net insitu value: $ 235,797,299 ARIZONA - WEST PORT GOLD MINE, Resource in situ value: 5,000, grams per ton : 10,000,000 grams Convert to toz. Number of grams per toz ,492 Toz. Price per toz. $ 1,200 Cost to process each toz. ($15 / ) $ 233 Net value per toz: $ 967 Resource net insitu value: $ 310,793,683 CALIFORNIA- CARR MINE, Resource in situ value: Gold 5,000, grams per ton : 15,000,000 grams Convert to toz. Number of grams per toz: ,238 Toz. Price per toz. $ 1,200 Cost to process each toz. ($20 / ) $ 207 Net value per toz: $ 993 Resource net insitu value: $ 478,689,921 MONTANA-GULCH PROPERTY, Resource in situ value: 10,000, grams per ton : 12,500,000 grams Convert to toz. Number of grams per toz: ,865 Toz. Price per toz. $ 1,200 Cost to process each toz. ($15 * ) $ 373 Net value per toz: $ 827 Resource net insitu value: $ 332,244,816 Combined WPE-AK, AZ, CA and MT resource in situ value: $1.36 Billion 11

12 WPE - Proforma Assumptions Please refer to the individual property assumptions for Alaska-Hunter Creek Project, Arizona-West Port Gold Mine, California-Carr Mine and Montana-Gulch Property. WPE Depreciation schedule Declining balance method Depreciation rate half year & full year: /2 yr 15% Full yr 30% Deprec. on current years purchase: $ 1,989,000 $ 51,750 $ 42,750 $ 35,250 $ 28,500 Deprec. On prior year(s) purchase full rate: 3,381,300 2,454,885 1,791,095 1,313,691 Total deprec. Taken for the year 1,989,000 3,433,050 2,497,635 1,826,345 1,342,191 Cumulative deprec. Taken 1,989,000 5,422,050 7,919,685 9,746,030 11,088,221 Net Asset value after depreciation: 11,271,000 8,182,950 5,970,315 4,378,971 3,226,779 Check total to cumulative asset : 13,260,000 13,605,000 13,890,000 14,125,000 14,315,000 Declining balance method Depreciation rate half year & full year: /2 yr 15% Full yr 30% Deprec. on current years purchase: $ 27,750 $ 25,875 $ 24,750 $ 24,375 $ - $ 2,250,000 Deprec. On prior year(s) purchase full rate: 968, , , , ,050 11,954,217 Total deprec. Taken for the year 995, , , , ,050 14,204,217 Cumulative deprec. Taken 12,084,004 12,834,678 13,410,775 13,863,167 14,204,217 Net Asset value after depreciation: 2,415,996 1,837,822 1,426,725 1,136, ,783 15,000,000 Check total to cumulative asset : 14,500,000 14,672,500 14,837,500 15,000,000 15,000,000 Totals 12

13 West Port Energy LLC Property Locations and Legal Descriptions ARIZONA The Westport Goldmine is located 2 miles off the Interstate 10 highway, off the Dome Rock Road exit, 6 miles due west of Quartzsite, Arizona (pop. 3677) which is intersected by the U.S. Route 95 running north to south. The mine site elevation is approximately 1,100 feet throughout the acreage. Westport lies within the Middlecamp Mining District, La Paz County Arizona. Land area: Type of claims: 690 acres un-patented Legal description: Township 4 north, Range 20 west, Sections 20, 21, 28, 29, Gila Salt Base Meridian ALASKA The Hunter Creek Placer Goldmine is located in the Rampart District, Yukon-Koyukuk Borough, Alaska. The Hunter Creek Goldmine lies within the Yukon Mining District, 40 miles due west of Fairbanks Alaska (pop. 33,800) the largest town inland of Alaska. The area surrounding the mine site is low elevation, 800feet, with excellent water access for both mining and transport. Land area: Type of claims: 16,831 acres 351 acres patented, 16,480 acres unpatented Legal description: Hunter Creek: Patent # MS 2370 (351 acres) Unpatented (7*160 = 1,120 acres) Township 8 North, Range 11 West, Sections 31, 32, 33, Fairbanks Base Meridian Dawson Creek: Unpatented (8*16 = 1,280 acres) Township 7 North, Range 12 West, Sections 2, 11, Fairbanks Base Meridian Idaho Bar Lease: Unpatented ( 10*160 = 1,600 acres) Township 7 North, Range 12 West, Sections 3, 4, 10, Fairbanks Base Meridian Rampart Area Claims: Unpatented (66*160 = 10,560 acres) Township 7 North, Range 12 West, Sections 12, 14, 15, 16, 17, 18, 20, 22, 23, 24, 27, 28, 29, 30, 32, 34, 35, Fairbanks Base Meridian & Unpatented (12*160 = 1,920 acres) Township 7 North, Range 12 West, Sections 9, 21, 26, 33, Fairbanks Base Meridian 13

14 CALIFORNIA The Carr Mine is located in Butte County California, within the Sierra Nevada Mountains at 6,500 foot elevation. The mine site is 36.4 miles or about an hour s drive from Paradise California (pop. 28,000) the largest community nearby, which is in turn 10 miles from Chico California on CA 99 Highway. There are many hamlets or old abandoned communities between Paradise and the Carr Mine; the most famous is Inskip an abandoned mining town. Land area: Type of claims: 200 acres patented Legal description: The Carr Placer Mine: Patented (200 acres) Township 25 North, Range 5 East Sections 9, 16, Mt. Diablo Base Meridian APN #s , , MONTANA The Montana Gulch Goldmine is located 15 miles due east of Helena Montana, in the Confederate Gulch Valley, Diamond City mining district, West-Central Montana, Broadwater County. Helena (pop. 29,750) has a long gold mining history dating back to the 1830s. The Gulch project has excellent water access, manpower and services centered in Helena for quick and efficient placer mining. The mine elevation is 4,000 feet and there are four seasons to run full operations. Land area: Type of claims: 240 acres patented Legal description: Keene Placer Mine: Patented Township 10 North, Range 2 East, Sections 13, 24, Montana Base Meridian MS # 3336/4547, Patent # Western Star Lode: Geocode Western Star Mill Site: Geocode