A Mine Development, Promotion, and Operation Joint Venture
What happens when you take a mine technology development company with extensive property development and heavy construction experience and combine it with a planning and project management company with extensive environmental and logistics experience? You get a dynamic enterprise that reduces project risk and increases success through hands-on experience, extensive planning, proprietary mining technology, risk mitigation, project management and robust cost control. When you combine this with a culture that emphasizes ethics, people, and environment over profits, you get an unbeatable combination that reduces potential conflict in the project communities, prevents environmental stop work orders, and ensures that the project risk is limited from outside influences.
1027 Processing Company has spent the last 13 years completing extensive R&D, laboratory studies and pilot plant tests to develop a proprietary technology for harvesting precious metals, using nontoxic and environmentally safe methods. In fact, water that is used in our processing plants leaves cleaner and better than it came in. In addition, 1027 has over 30 years of experience in heavy construction and property development. They help develop and build working mine projects, road projects, site-work projects, housing subdivisions, sewer systems and water systems.
Southern Piedmont Materials staff have a total of over 60 years of combined experience in project planning and management including master and environmental planning, project, program and logistics management, risk mitigation, financial analysis, and cost control. We have extensive experience planning for the unknown aspects of a project, carefully bookending the possible variables, developing strategies to mitigate the risk, and developing contingencies for various scenarios. These are strategies that allow projects to continue moving forward as different variables come into play.
When we combine our skills, we are able to take mine assets from the status of potentially valuable to extremely valuable with demonstrated metals recovered from ores and everything needed to begin a turnkey mining operation. We analyze a project from cradle to grave to ensure efficient operation, ensure regulatory compliance, and ensure the land is reclaimed and restored at the project end.
Our Project Development Process
Our value proposition to mineral rights owners and/or landowners is to bring them the needed expertise and resources to increase the value of their mine assets and increase that value at least tenfold. Usually there will be no cost to these owners for this service, instead we share in the increased profits that the project generates. Our first step is to assay the ore on any given project to determine if it meets our criteria for extraordinary profit potential, that is, a project where the ore contains hidden values in micro or complex gold, and bonded PGMs. After fully vetting a project, completing a teaming contract and creating a budget, we have an asset that is ready for project investment partners. With funding in hand, we will complete an extraction study incorporating our ETA Technology to determine the true value of the ore based on extraction results and extraction process costs. At this point the project can be sold at a premium or we can increase the value of the asset further through the development of a Mine Operation Plan (MOP). After an intense analytical and methodical process developing the MOP, we reach a milestone where the project asset value increases exponentially and does so immediately. This collection of plans provides everything needed to begin a turnkey mining operation. At this point, a decision will be made to operate the mine ourselves with our primary partners, raise additional capital with secondary partners if needed to begin operations, or sell the project outright. Our group will retain a percentage share on any project we sell allowing the concession owner, the primary partners, and the Joint Venture to receive revenue from the project for the lifetime of the project. We have located and partially developed a number of Alabama properties worthy of gold mining operations. With our prospecting work thus far we have located hundreds of potential mine locations in Alabama, Georgia, the Western United States and Mexico. With our lab and pilot plant work we have extracted gold from 160 of those sites. 59 of these sites that we have discovered are prime Alabama gold rich areas that had assays showing values above 45-ggpt (grams of gold per ton) and twenty-eight of these sites had samples that tested higher than 100-ggpt.
The MOP Elevates the Asset Value of the Project
The value is increased because of the dramatic risk reduction to bring the mine into full production. The value of the asset has been proven at this point with demonstrated recovery, rights to mine the project secured, and an operational plan for processing. The MOP is also the project’s final Feasibility Report providing the roadmap for production, the capital required, and the profitability. In short, it is the proof of the project’s projected value, and sets the stage for success.
MOP Components
When we develop a project, we develop it to the point of having a solid operation plan, or in other words the master plan for the project. The MOP is the master plan and contains several components, including a Business Plan with a detailed project budget and a step-by-step path forward. It has a Mine Design that includes excavation plans, haul road design, water retention and control, and environmental protections. It includes a full-scale Processing Plant Design, derived from Pilot Plant studies and test operations, and identifies each component and its electrical usage, the order of operations, and maintenance requirements. Another component is a summary of all the mine development work done complete with exhibits. The exhibits are the “show your work” portion of the equation and provide the data and results of the Assay / Mapping Studies, an Environmental Study and Environmental Protection Plan, a thorough Extraction Study and a strong Pilot Plant Study that was used to fine tune the plant design for optimum metals recovery.
The MOP also includes the required legal documentation that grants the partners control of the project, the rights to mine the property (by either a mine concession, or mineral rights deed, or mine claim, or mineral right lease, or mining contract.), a legal opinion verifying project ownership and all the necessary permits required to begin operation.
The bottom line is at this stage, all the risk has been reduced virtually to performance risk only, and the MOP becomes strong proof of the mine’s value. Whereas our mine development work has transformed our project from a raw asset with great potential to a proven asset with the hurdles removed and now the mine is exponentially more valuable.