LEXINGTON, Ky., Dec. 22 /PRNewswire-FirstCall/ -- Virtual Health Technologies, Inc. (BULLETIN BOARD: VHGI) through its wholly owned subsidiary VHGI Gold, today released initial analysis of technical data received from the consultants hired to evaluate and formulate its development plan at the Treasure Gulch and Zero Mining properties in Prescott, Arizona. Recoverable estimates are approximately 45,000 ounces of Gold between the 2 claims, with a combined extractable value of approximately $50,000,000 using valuations of $1200.00 per ounce of gold. Initial production costs are budgeted at approximately $200.00 per ounce.
VHGI intends to release updates concerning their gold development plan including financial feasibility studies for this and other projects under consideration after scheduled ore sampling, laboratory testing and continued project analysis. Current historical data for this property can be viewed in our last 8K filing.
Property Overview
Both vein systems are strong and continuations over hundreds of feet. At surfaces on the Treasure Gulch property are approximately 5000 tons of ore, amenable to low cost surface extraction. Additional reserves are available with depth, but no doubt only by underground development. The surface block will average approximately .7 to .9 ounces per ton (opt) Au, but with mine dilution a 0.6 opt Au can be expected. As identified by underground sampling, ore with a much higher tenor is clearly to be expected from any future production; nevertheless, the entire ore reserve block has been assigned a conservative average of 0.65 oz/ton Au after dilution. Still, evidence clearly suggests a grade far in excess of 1.0 oz/ton Au within the deeper workings.
Treasure Gulch Reserves Calculations
The ore reserve block at the Treasure Gulch mine averages 8 feet wide, has a minimum vertical dimension of 100 feet and a strike length of 500 feet. It is known that the vein system extends at least 200 feet; nevertheless, for reserve calculations a 100 foot cutoff is assigned. A lower block is considered as only possible and therefore not considered in any valuation. The total tonnage for a combined proven/probable ore reserve is then: 8' x 100' x 500'/ 12 cu.ft/ton = 33,330 tons.
A weighted average grade was calculated and arbitrarily reduced to approach the average grade of the surface oxidized block at approximately 0.65 oz/ton Au, with silver values ignored. The result is a total tonnage of 33,330 tons, yielding 21,664 oz of Au.
Zero Mines Reserves Calculations
The Zero vein has considerable known strike length, but due to insufficient sampling, a portion of both the east and west extension have been eliminated for any calculations, and a deeper possible block has also been ignored for reasons of conservatively. The end result is a block summarized from detailed calculations to be as follows: 5' x 100' x1000'/12 = 41,660 tons of ore. As with the Treasure Gulch Mine, a detailed calculation for weighted average ore tenor was made with the results being 0.58 oz/ton Au yielding 24,163 oz Au.
Summary
At $1200/ oz Au, the total reserve would result in a calculated gross recoverable value of 45,827 oz Au x $1200/ oz = $54,992,400. Assuming a recovery rate of 92% (typical for a hard rock recovery operation) the extractable value would be $50,593,008. No account here is made to predict the cost of production but a reasonable estimation would be $100 per ton of processed ore or approximately $200/ ounce Au. One should also not discount the secondary ore bodies that are believed to be a depth and east and west of strike.
For more information please consult the company's 8K filing. Information can also be obtained at http://www.virtualhealthtechnologies.com/ or http://www.vhgigold.com/ , or by calling shareholder relations at 859-514-6982.
About VHGI and VHGI Gold
VHGI is a diverse company with assets and interests focusing on opportunities within the Healthcare Technology Industry and Precious Metals / Energy Resources Markets. VHGI Gold, a wholly owned subsidiary of VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Gold Mining, Precious Metals and Energy Resources Markets. Although Gold is selling at 25 year high prices and Oil & Gas continue to be trading at significant premiums, global economic events have created significant opportunities within these markets. VHGI intends to pursue these opportunities through Lease-Purchase opportunities, Acquisitions and Joint Ventures for the goal of enhanced shareholder value.
"Safe Harbor" Statement:
VirtualHealth Technologies, Inc. and VHGI Gold, LLC cautions investors that none of the information concerning the valuations of mineral deposits or other data reported above has been verified by outside geologists or other verifiable sources beyond representations made to VHGI which ultimately came from the owner of the subject property and their associates. The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website, such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," and "inferred," that the SEC guidelines strictly prohibit us from including in our filings with the SEC.
Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks and uncertainties detailed in the Company's SEC filings. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
For Further Information:
Shareholder Relations - Communications 859-514-6982
Virtual Health Technologies, Inc.
CONTACT: Shareholder Relations - Communications, +1-859-514-6982
Web Site: http://www.virtualhealthtechnologies.com/
