Summary
PROVEN AND PROBABLE RESERVES: 2,224,000 OUNCES OF GOLD and 48,000,000 OUNCES OF SILVER, or $3.26 BILLION
Proven and Probable Reserves of $3.26 billion at $1,100 per ounce gold and $17 per ounce silver. Extensive drill test program. Prior permitting shows no NEPA issues. Property includes six lode mining claims on 120 acres of BLM land. Located 23 miles east of Wickenburg, Arizona. Year around production.
This mineral property has been drill tested and reported on by professional geologists and mineral companies. It fully complies with US SEC Industry Guide 7 requirements for insertion into a US public company.
No Longer Available
Location and Access
The Castle Springs property is located approximately 23 miles east of Wickenburg, Arizona. There is easy and unrestricted access to the property by taking Castle Springs Road off of State Highway 89 approximately 12 miles southwest of Wickenburg. This is a remote desert environment with little or no non-productive overburden or brush cover. The production season is year around. Water is available from wells to be drilled on the property into a known aquifer.
Description
The average ore tenor in Zone 1 is 0.35 ounces of gold per ton. Total Zone 1 tonnage calculations are 8,000,000 tons. The average ore tenor in Zone 2 is 0.103 ounces of gold per ton. Total Zone 2 tonnage calculations are 4,000,000 tons. The average ore tenor for silver across the claims is 3 ounces of silver per ton. Total tonnage calculations for silver reserves are 16,000,000 tons.
These calculations provide an average ore tenor for gold across the property at a tenor of 0.185 ounces per ton or an approximate value of $166.80 per ton at $900 per ounce. Silver provides an additional 3 ounces per ton or $51, for a total ore value per ton of $217.80. A 90% recovery rate will yield an overall recoverable average value of $196.02 per ton. Average mining costs are $10, milling costs $20, smelting and refining costs $5, environmental and reclamation costs $5, and contingency and other costs $3. This leaves an average net profit of $153 per ton.
At 100 tons per hour, the operation should yield a net profit $122,400 per 8 hour shift. A double shift operation should yield a net profit of $244,800 per day. Running the double shift 24 days per month should yield a net profit of $5,875,200 per month. Assuming about 11 months of actual operation, the annual net profit should be $64,627,300.
To expedite permitting, crushing, milling and smelting should be done offsite on a private property parcel to be leased or acquired. In essence, the mining permit will be to extract and haul ore.
The permit jurisdiction is the US Bureau of Land Management. A Plan of Operations and NEPA analysis need to be performed. There are no anticipated impediments to BLM permitting. An exhaustive environmental analysis has already been completed by the State of Arizona and concluded with a finding of “no significant impact.”
Ore Reserves:
Proven US $3.26 Billion - (US $3,262,400,000.00)
Gold: 2,224,000 oz @ $1,100 oz - $2,446,400,000.00
Silver: 48,000,000 oz @ $17 oz - $816,000,000.00
Castle Springs has been exhaustively tested by a wide range of independent professional geologists and large corporate mineral interests. Extensive documentation is available for review. All work completed by Phoenix Energy, Sawyer Consultants, Alan R. Grant, the State of Arizona and others validate the proven ore calculations of US $3.26 Billion.
Cash Flow:
Annual net profit US $64 Million at 100 tons per hour.
Additional Information
The following technical document and reports are available for review:
2008 Addendum to 2003 Jenkins Technical & Executive Summary
2003 Jenkins Technical & Executive Summary
1996 GoldTech Engineering Sampling & Assay Report
1984 Jenkins Property Geology Report
1981 State of Arizona Environmental Assessment
1981 Phoenix International Energy Report
1981 Phoenix International Energy Bulletin
1981 Phoenix Electric News Bulletin
1981 Alan R. Grant Geology Report
1980 Sawyer Consultants Geology Report
Other information available for review:
BLM LR2000 Database Report Verifying Ownership
2009 Independent Appraisal Report
Area and Site Maps
Peter - omnimetal@aol.com
