IN MEXICO
MINING
Minerals, Metals:
Dreams and Profit
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MINING IN MEXICO
Investment Opportunities
CAUTION
In any mining investment proposal look for these three terms. Be cautions that they tests were made by qualified professionals. There should be no hedging, nothing but straight forward presentation of FACTS.
Ask to see the documents and the credential of the experts.
Look at the title of the land and examine carefully the claim. Maker sure the proper registrations have been made, documents are "Notarized," especially in Mexico where Notary takes on a different meaning.
Know those presenting the proposal, the managers and the operators.
Financial numbers are simple in mining. All is risk and rewards are usually exceptional and long lasting. In most cases the investment can be safer by steping into the picture: Steps include searching or prospecting, exploration to prove or disprove deposits and development followed by marketing. Naturally, if there is no obvious market there would be ot need to go after the deposits. The market is strong in coal, gold, silver and all the other precious metals. Markets for sophisticated industrial metals and chemicals are exceptional fruitful for immediate and long term.
Read, Research and Investigate.
LiveinMexico.com presents this proposal with all confidence in the people, the market, the approach, the talent and preparation. If you think we have not disclosed everything, let us hear from you.
Your questions, suggestions and comments would be appreciated.
In Mining Ventures there are risks but there are great opportunities as well.
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Continued from HOME
Editor's Note.
This is a continuation of a memorandum sent us by good friend, people whom
we have known for years and have profited with in ventures. This is a mine
of great information and you would find it profitable to read it and take
notes.
MINING PROJECT FOR EXTRACTION, PROCESSING,
SALE OF HIGH PURITY QUARTZ,
SILICA, FELDSPAR, AND MICA IN WESTERN MEXICO
This is a brief summary of a mining project in Mexico located 150 kilometers (90 miles) from the City of Guadalajara, Jalisco. The zone of interest is only 3 kilometers off a paved highway with a total driving time of 2 ˝ hours from Guadalajara. The project consists of 2 mining claims, one of 9 hectares and another recently claimed of 100 hectares. This zone is economically depressed with high State and Federal priority for investments that will create jobs and regional development thereby avoiding migration to the USA, characteristic of this zone.
Both of the claims are privately owned by Mexican individuals and one US citizen and will soon be put into a legitimate Mexican mining corporation to carry out this project, once the financial and marketing studies in process indicate the adequate investment required first for a plant with state-of-the-art technology, turn key type with a capacity for processing 182 metric tons per day and then possibly for a plant of larger capacity to process 750 – 1,500 metric tons capacity daily.
This last option is quite attractive at this moment, depending on the decision of a major silica consumer concerning purchases of raw material for a large glass bottle operation near Guadalajara which requires 6,000 metric tons per month of silica sand, along with 700 metric tons of feldspar as well as another 12,000 metric tons per month of silica and 1,200 of feldspar for a sister plant located in the City of Queretero. Also pending is the possibilty of supplying another major silica consumer 10,000 metric tons monthly also located in Queretro. These large volumes sales would be available in 2 years, allowing us sufficient time to carry out the in-detail geology and plant installation according to current project plans.
The project has been developed since September, 2001 as part of an effort of this company to locate a source of high purity quartz, an important mineral with excellent future in the production of semiconductors and fiber optics, as well as specialized optical and glass products. The potential for exporting this quartz to US markets will create needed dollar income for Mexico. With the production of muscovite mica as a sub-product of this project for the Mexican national market, there will no longer be a need to import mica from India in dollars, also helping to reduce the flow out of Mexico of US currency. This will be the first time that muscovite mica has been produced in Mexico.
As metallurgical studies progressed during last year, it was found that this deposit not only has potential for production of high purity quartz, but as sub-products, silica, feldspar and mica can also be produced, as these types of mineral deposits are rare but have become of commercial importance thanks to their development in the State of North Carolina, where several companies produce the above products from deposits very similar to ours.
This company investigated thoroughly the metallurgical process developed through state-of-the art technology by a North American state university over the past 30 years. This technology has led North Carolina to become the largest producer of feldspar and silica in the United States, with mica as a sub-product and ultra high purity quartz being developed there by Unimin, with it’s world famous “iota quartz” trademark for use in semiconductors above all.
After much investigation of this type of pegmatite mineral and having obtained the assistance of the above mentioned state university, where we bench tested several representative samples from our mine and found we can produce a very high purity quartz as well as probably the highest quality feldspar in North America, along with an excellent quality silica and mica. These results are encouraging to date although more work is being done in geology to ascertain consistent quality in both claims.
The original 9 hectares claim shows excellent quality material and has geological reserves of 1.8 million metric tons with an amount presently defined as positive, with a core drilling program soon to confirm the positive reserves at a minimum of 250,000 to 500,000 tons. This area will be worked by open pit methods which will reduce costs greatly, even though originally it was mined by using two tunnels approximately 40 years ago. The modern technology mentioned above permits the cheaper open-pit exploitation. It is a classical pegmatite structure, very typical of North Carolina pegmatites.
The second and larger claim of 100 hectares shows very large reserve potential for several millions of metric tons which will give this project an even larger potential, especially for eventual export of the high purity quartz, and quite possibly feldspar, as well as for local and national markets, especially the huge ceramic industry in Monterrey which consumes great volumes of silica and feldspar. It also will be worked using open-pit methods. Although it is close to the nearby pegmatite structure of the first claim, this newer claim consists mostly of massive granite and granodiorite structures, which are very similar to North Carolina’s structures, with a presence of feldospathic sands also showing possibilities of exploitation just as in the above mentioned state, where this material is also known as “alaskites” from which quartz, silica, feldspar and mica are economically obtained.
What is needed now is to carry out the core drilling exploration phase and the construction of a commercial plant at the mine site which we plan to set up with technical assistance from the North American state university. With this plant we will be able to produce and sell regularly to local buyers of silica and feldspar, along with some smaller export markets for high purity quartz and mica which we have detected to date. Also this plant will fine tune the precise metallurgical (flotation) process for a plant of larger capacity once the local and international markets confirm the exact tonnages yearly they will require to satisfy their demands.
Although this size of a plant (182 metric tons daily of raw ore feed with a minimum recovery of 75%-80% of high purity quartz, silica, feldspar and mica; which are approximately 136 tons per day in a 24 hour continuous flotation operation, 5 days per week), may not be economic in the United States, our preliminary data shows that this plant will prove profitable here in Mexico with costs showing profits, as long as the extraction and production in the plant are carried out correctly.
The pilot plant will create a total of 48 jobs, of which at least 43 will be for local professional, technical and unskilled workers who will be trained for well paid jobs. This project should also help establish local related businesses such as shops for maintenance and repair of transportation vehicles, a gasoline station, hotel and restaurant facilities, etc. as there will be a large influx of hauling vehicles and personnel for moving the 2,730 metric tons monthly of finished products, as well as for the personal needs of improved health, educational and recreational and social facilities for both the workers and professional staff and their families.
According to preliminary figures by experts at state university the capital outlay for the 182 metric ton per day pilot plant (for grinding, flotation and drying) will be approximately $5,000,000 US Dollars, including building cost erection and installation. This plant will produce a product –50 mesh +150 mesh through 400 mesh of quartz, silica, feldspar and mica. These figures also include capital for open pit operation and extraction of the ore and working capital. With a business plan we hope to confirm the total required investment mentioned above, including funds for final drilling program, detailed geology/sampling and the production of 4 to 8 metric tons of end samples so as to obtain the formal purchase orders of each mineral in the zone of the 9 hectares claim to ascertain that the plant will have sufficient volume and quality of feed to guarantee the recovery rates above mentioned so as to recover the original investment plus interest.
Regarding the second claim with larger reserves of ore, modern plant with state-of-the-art flotation plant has been contemplated, being the same type of plant set up for the first operation, but for a 750 – 1,500 MTPD operation with costs of 2-3 million dollars (used) to 4-5 million dollars (new). Also the support plant for fine grinding and bagging for 325 mesh products will require an additional 1.5 – 3 million dollars depending on specifications and quantities, along with funds for exploitation equipment, working capital and sundry items. As there will be the need for some drilling and more geology to quantify reserves and their quality from the new 100 hectares claim, and therefore assure an adequate life span for this larger plant, we estimate that perhaps a total investment of $10,000,000 US Dollars will be required so as to assure the success of this larger undertaking.
Taking into account the 2 options for the 182 MTPD operation (Option 1) and a sophisticated 1,500 MTPD (Option 2), we are looking at a probable maximum capital outlay of approximately US5,000,000 (Option 1) to US$10,000,000 (Option 2) for plant, including drilling equipment, primary and secondary crushers, screening equipment, rod mill, flotation cells, dryers, bins, storage warehouse, offices, vehicles, cost of the construction of buildings and installations, including the supporting plant for fine grinding and bagging. The above amounts should cover all environmental and mining permits plus waste water treatment installations and working capital for the plant as well as the mine operation.
The purpose of this Memorandum is to locate an investor for this project who will be willing to provide the capital for the first option and possibly second option.
So as to better acquaint any interested party with more precise data and under a strict confidentiality agreement, we can show all the available ownership information as well as all geological studies, analysis, metallurgical studies, feasibility study, drill program, etc. and an eventual visit to the mine site.
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