Idaho Strategic purchases Butte Gulch property next to Golden Chest Mine

Idaho Strategic Resources has purchased the Butte Gulch property located next to the Company’s producing Golden Chest Mine. The Butte Gulch property is comprised of approximately 169 acres of private land and mineral rights located directly east and adjacent to the Golden Chest Mine. The Butte Gulch property was placer mined for gold as many as four separate times over its history, however, it is relatively unexplored for its lode deposit potential. In addition to the property’s proximity to IDR‘s operations, mineralized gold veins have been reported on the property by prior operators indicating the potential to host additional lode gold deposits. Butte Gulch is also a strategic purchase for the Company due to its potential to serve as the future site for a shop and/or new milling facilities as Idaho Strategic continues to expand its operations in the greater Murray Gold Belt district. The Company’s 2024 plans include an increased focus in the MGB and enhanced production at the Golden Chest. The addition of Butte Gulch to Idaho Strategic’s district-scale Murray Gold Belt landholdings further demonstrates an emphasis on increasing IDR’s exploration efforts on locating additional mines within the Company’s property package. The Company also recently purchased around $1 million of equipment for the new mill tailings paste backfill system. It is estimated that the addition of a paste backfill system will result in cost savings of approximately $20 per tonne of ore. Both the purchase of Butte Gulch and the paste backfill system are considered important components in the planning for and eventual operation of new milling facilities in the MGB. The Murray Gold Belt district was originally discovered in 1883 leading to a gold rush in the area until the early 1890’s when silver was discovered nearby in the Silver Valley, leaving the Murray Gold Belt largely forgotten. With much of the greater MGB owned or controlled by one or two ‘non-mining’ groups since the early 1900’s, little modern exploration has been conducted in the past 100 years. Given the presence of numerous historic gold mines and prospects throughout the district, Idaho Strategic is planning to be the first Company to conduct a comprehensive test of the district. Relatively recent IDR samples from the surface and underground have yielded values ranging from 5 to 75 grams per tonne gold exposed in veins related to igneous activity. In addition to our own sampling, IDR’s geologists have undertaken steps to aggregate its own prior drill data and information learned from historic mines in the MGB to design an exploration plan. It is reported that from about 1885 to 1926, approximately 200,000 ounces of gold was recovered from placer mining in Prichard Creek, which runs along IDR’s extensive land package. In consideration for the purchase of Butte Gulch, Idaho Strategic has agreed to an overall purchase price of $1,000,000 inclusive of a $350,000 down payment at closing, and monthly interest-only payments for the next 3 years followed by a balloon payment for the remaining amount due at that time. The term of the loan can also be extended if needed.