Published: June 4, 2020 at 9:30 a.m. ET

NEW YORK, June 4, 2020 /PRNewswire via COMTEX/ -- NEW YORK, June 4, 2020 /PRNewswire/ -- In times of economic crisis, there's no safer investment than gold. Gold's historic reputation as a safe haven asset looks promising for mining companies as the global economy witnesses the volatile valuation of currency. Kingman Minerals Ltd. (CVE: KGS) has been preparing operations on a historic mine site in Arizona, benefiting from the cost efficiencies of revitalizing an already established exploration site. After a brief suspension of mining activities in order to evaluate operational risks associated with the COVID-19 pandemic, 

Knowing where to dig is critically important when mining for gold—this concept may seem obvious, but it's actually a complicated proposition. Profitable mining involves identifying accessible, financially viable deposits within mining friendly jurisdictions, and on sites that are accessible for the transportation of equipment, staff, and the gold once it is extracted. Kingman'sMohave project, satisfying these requirements, poses promising potential for the company.

Located in Mohave County, Arizona, the Mohave Project benefits from being located in a mining friendly jurisdiction. This support makes it easier for mining companies to work within the state.

Kingman has chosen ground for its work that is known to contain valuable deposits and that is accessible enough to support a new mining operation. The Mohave site is located 35 miles outside the town of Kingman, from which the company takes its name, and it has direct road access from Historic Route 66 and Antares Road. This location allows an ease of access to bring supplies and resources onto the site as mining operations are established and expanded.

Water supplies on site will keep down costs for this part of the operation, while the proximity of a town ensures that there is support for staff coming in. But perhaps the greatest asset of the Mohave Project is one that might surprise those fresh on the minerals sector scene – the ground had already been mined.

The Importance of History

An important part of Kingman's strategy is the return to an old mining claim – the 167-hectare Rosebud Mine.

Discovered in the 1880s and mostly mined in the 1920s and 1930s, the Rosebud Mine is a critical part of the Mohave Project. Previously worked mines are increasingly being exploited by modern mining companies as proven sites of minerals. Reactivating existing sites with new mining techniques offers the potential for easy picking and bigger profits.

Though the most accessible resources have usually been extracted from these sites, the land still holds rich potential for discovery. Modern mining techniques ensure that previously difficult-to-extract lodes can be accessed safely and cost effectively. This technique has been applied to extract newly valuable battery minerals such as cobalt from old copper mines and to revive abandoned precious metals sites. Kingman will be tapping into wealth that previous generations of miners left behind.

Those previous generations are one of the great advantages of renewed digging on old claims. Records from their work help to direct new operations, providing evidence for metal deposits. At the Rosebud Mine, records from the original digging era have been combined with surveys from the 1980s to calculate the likely wealth on the site – an estimated 664,000 ounces of gold and 2,600,000 ounces of silver.

Equipped with old records, Kingman has set about new sampling work on the site. Old records—while helpful—can't be relied on for modern operations, so companies like Kingman test to confirm the existence of predicted or previously recorded deposits. Two rounds of underground reconnaissance and testing, combined with historic data, will allow Kingman to provide new estimates of the value of the site in the next few months.

The presence of historic mining workings makes it easier to exploit deposits once they are confirmed. With workings that stretch 2,500 feet underground, the Rosebud Mine's historic conditions allow for a significant decrease in the costs of mining gold—increasing the potential profits of a valuable and sought-after commodity.

https://www.marketwatch.com/press-release/currencys-volatility-shines-spotlight-on-gold-2020-06-04?tesla=y