We want to purchase existing gold mine operational and upgrade it that is own sale .Aim to produce 10kg of gold per month i.e. 10 000 grams = USA $600,000 per month annual turnover of $7,200,000.The mine is currently on sale and running we want to take it over as soon as we secure funding on or before 30/3/2012.The funding required is US$ 10,000,000.
The mine is based on 100ha and has a strike length of over 1,5km, there are two reefs parallel to each other workings prior to 1938 were done down to 170mt over a average reef width of 1,5mt and a recovery of 5.4g/t there are over 120 000 ton of old dumps grading at over 0.8g/t custom milling tailings run at over 2,5g/t recovered.
Currently there is only one running stamp mill for custom milling ( also known as Toll milling ), and one 2000 ton per month ball mill with the ball mill it runs in cyanide solution.
Drill reports indicate at least 600kg of gold, but the parallel zones indicate possibilities of up to one ton of bullion recently in house exploration revealed a very possible footwall parallel zone too.
Equipment includes 8ton per hr crush plant, 4 ton per hr mill plant, 2000tpm cyanide plant, two wheeled tractors and one tracked tractor - compressor - on site lab with AA machine - new ex Australia - V-SAT broadband internet - satellite connection, full electrical and water infrastructure, Cat 920bl excavator, 39kva generator set.
There is a 4 bed roomed managers house and some employee housing.
The old dumps are worth $4000 000 – 00.
They will cost 50% to extract.
Gold is the symbol of worth so; there is no competitor in this because of high techniques involved in mining. The market is broad not every one is currently doing gold mining because of funding difficulties.
Once I get funding I would have secured an opportunity to beat competitors who are struggling to rise funding.
The breakdown of financing is as follows.
• I will need USA $ 1.8 million to purchase the running mine.
• I will need USA $ 5,050 000 to upgrade the mine to increase output production.
• I will need USA $3,150,000 purchase of equipment.
Total required is USA $10,000,000.
We are looking for an equity investor. The share offer we propose is within the range of 25% -30% negotiable. Dividends will be 49% for the equity investor and 51% for the company owner. I am looking for the silent investor since we have enough qualified expertise to the mine.