The Oro Grande Mine
The Oro Grande Mine is part of a set of Placer Mines laid out in a grid formation. Totaling over 1,000 acres combined. Each numerical designator, ie “GP25” or “GP43” is a 20 acre claim sites within the Oro Grande Mine area. We will be mining one of those 20 Acre Claims with an estimated value of $1.481 Billion in Gold alone.
We will NOT be purchasing this mine, nor will we be doing any risky financial maneuvers with it. As compensation we will receive 33 1/3 percent of the net from the income of the mine, after operating costs and Severance taxes. The operating costs will be around 10% and the severance tax is 6%.
Time to extract all gold from the mine will be around 18 to 24 months with Hill Country Industries, Inc expecting to make a little over $400 Million. After the gold has been mined, we will return and extract the PGM’s or Platinum Group Metals. The PGM extraction takes much longer and requires special permitting for the chemicals needed to extract the PGM’s. So, it makes sense for us to extract the gold first and the mine owner concurs with our assessment.
The $3.5 million we are requiring will be paid back within 90 days. The $3.5 Million will be repaid from the first gold in the box and paid directly to the investor. Then the investor will receive 8.33% of the NET. This is approximately 25% of our 33.33%. The investor will receive this for all operations at the mine site for its duration.
We will be extracting using “wet” methods. This is a standard wet trommel that recirculates the water to “Wash” the raw material and capture the gold in a Sluice Box. The gold is in nugget form and is very dense in this area with .6 Ounces per ton. This equates to $1,080 per ton of material processed.
One of the reasons this site is so heavy in gold is that it lays just below an old hard rock mine tailings pile. Over the past 100 years the gold that the old prospectors didn’t get out of the ore had gradually leached out and was captured in this valley. The old methods for gold mining left thousands of ounces of small micro gold. Add this material to the already heavy deposit of gold in the old riverbed and its one giant gold trap. The 43-101 reserves report will verify the value of this site.
Location
This site is located in the Wickenburg Arizona area. Approximately 70 miles NW of Phoenix Arizona. The climate is dry and hot with summertime temperatures reaching 120 Fahrenheit. The region is a well-known mining area with several million ounces of gold recovered. The area we will be mining has been untouched and is considered virgin ground. The topography is small hills with washes between them and a diverse desert ecosystem. Adjacent to the area to be mined there is private property owned by the mine owner that will be available to us to use for our processing plant, this will enable us to quickly setup operations without the need for BLM (Bureau of Land Management) review.
Mineral Extraction
As stated earlier, we will be using the wet method for gold and silver extraction. The process will be to remove the material, stockpile pardirt, then run it through the trommel. From the trommel it will pass through a standard sluice to capture the larger gold then drop into a Vertical Centrifuge. The Centrifuge will extract the fine and micro fine Gold. From there the tailings will drop into a Dewatering Tank that will collect the tailings and the water will be directed to our 3-phase contained settling tanks. In order to reduce evaporation of the water in this very hot climate we will be using 500 BBL (22,500 Gallon) Frac Water tanks as our settling ponds. The water will be reused, and the tanks will have the solids vacuumed out daily.
The Slucies and Centrifuge will be cleaned out daily and the concentrate will be held overnight in a safe. The following morning the concentrates will be delivered to the Gold Room to be processed. At the gold room we will use a Duplex jig to separate all the larger gold from the concentrate, then run the remainder over a vibratory table to separate the fine and micro fine material.