LEXINGTON, Ky., Jan. 13 /PRNewswire-FirstCall/ -- VirtualHealth Technologies, Inc. (OTC Bulletin Board: VHGI) today confirmed that VHGI Gold, its wholly owned operating subsidiary, has given formal notice that it intends to accept the lease assignment for the Treasure Gulch Group mines and initiate ore sampling on-site within 30 days as Phase I of their gold production plan. Additionally, VHGI Gold released initial details concerning Phases II & III of its plans to target the $50,000,000 in estimated gold reserves for processing.
Gold Lease Detail Clarification
"I would like to take this opportunity to clarify what the Lease-Purchase Option is and what it means to VHGI shareholders. Our lease rights through 2013 carry no royalty provisions or profit sharing requirements, and we have right to all the gold that we produce through 2013. Pursuant to the purchase option clause, if we purchase the property prior to February 2013 then we will of course own it free and clear. VHGI fully intends to purchase the property as early as later this year, subject to financing; if we do not purchase the property we have renewal options after 2013 that allow for annual renewal through 2023 with some revenue sharing."
"We have formally notified the prior lease holder of our intent to accept the lease assignment and have negotiated full equity and cash payments with them. Payments for the lease extension to the property owner have been completed for the period through 2012, and we have negotiated an extension through February 15, 2013 for VHGI Gold to conduct gold mining operations," stated Jim Renfro, President of VHGI.
Phase I Testing
Over the next few weeks VHGI intends to initiate Phase I of our Gold Production Plan at Treasure Gulch. The plan calls for surface ore deposits to be sent to an analytical laboratory to determine the best possible gold extraction methodology, as well as a short-term structure sampling program to determine the value of the subterranean holdings as to the possible quantity and grade of Gold Bearing Ore that could be extracted. Both options could potentially produce first gold in 30 to 60 days on a laboratory scale. Supervision of this work has already been contracted for by VHGI Gold.
Phases II & III Gold Production
"The next step is for VHGI to construct a small 'pre-production' facility complete with a small test plant facility as we evaluate how quickly we can complete a 'full-scale' 6 ton per hour hard rock processing facility to implement full production," continued Renfro. "We are presently evaluating 12 month pro-forma financial models that show us to be cash flow positive within 120 days of commencing operations with first year revenues of $4.7 million and earnings of $3.4 million; second year revenues and income are forecast higher as the bulk of the expenses come from the initial construction costs."
In a related note VHGI said they hope to release details confirming VHGI Gold management appointments within the coming weeks.
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 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 Industry and intends to pursue these opportunities through Lease-Purchase opportunities, Acquisitions and Joint Ventures. Investors are invited to obtain information concerning our operations at http://www.virtualhealthtechnologies.com or http://www.vhgigold.com or by calling shareholder relations at 859-514-6982.
"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 SEC 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 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
SOURCE VirtualHealth Technologies, Inc.