Cotton & Western Mining, Inc.
Volume I Edition III
From Manila, the Philippines
October 30, 2006
MANILA: THE PHILIPPINES…….
WE RECEIVED THE CHEMICAL ANALYSIS TODAY FROM THE CORE SAMPLES TAKEN AT THE NAGSABONGAN IRON DEPOSIT..
THE NAGSABONGAN IRON DEPOSIT IS NOT OUR LARGEST AT 18 MILLION METRIC TONS, BUT IS OUR BEST QUALITY FE. IT IS ALSO IS THE LESS COSTLY TO PREPARE AS THERE IS ONE LARGE SURFACE EXPOSED WALL AT 12 MILLION METRIC TONS AND IT IS ALSO THE NEAREST TO THE OCEAN AT APPROXIMATELY 17 KILOMETERS FROM WAWA..
COMPOSITE ANALYSIS WERE TAKEN FROM DRILL HOLES L-1 FROM 0 TO 15 FEET, N-16 IS 15 TO 30 FEET AND N-19 IS 30 TO 50 FEET.. THE IRON (FE) CONTENT WAS CONFIRMED TO BE AS REPORTED BY THE GEOLOGICAL SURVEY.. COMPOSITES ARE 67.69, 66.77 AND 69.02 PERCENT FE.. THE TRACE ELEMENTS OF SILICA, SULFUR AND ALUMINUM ARE ALL LOW, ONLY THE TITANIUM IS MARGINAL AND MAY RESULT IS SOME PENALTY? TITANIUM IS 0.04, 0.14 AND 0.11. VANADIUM WAS ALL <0.004 …. METRIC TONS PER CUBIC METER ARE 3.66 THROUGH 3.88 AS THE HIGH FE CONTENT LENDS ITSELF TO HEAVIER MATERIALS.
WE HAVE SENT OUT THE CERTIFIED ANALYSIS TO SOME STEEL MILLS IN CHINA, WITH THE INTENT OF STARTING CONTRACT NEGOTIATIONS BY THE END OF NOVEMBER.
THERE ARE TWO DIRECT ROUTES TO WAWA FROM NAGSABONGAN MOUNTAIN, WE ARE NOW DECIDING WHICH WILL BE THE LESS COSTLY TO CONSTRUCT THE HEAVY HAUL ROAD. WE HOPE TO BEGIN THE ACCESS ROAD CONSTRUCTION AT THE END OF THE RAINY SEASON, WHICH SHOULD BE BETWEEN THE 15 AND 30TH OF NOVEMBER.
TRACKED CRUSHING AND SCREENING EQUIPMENT WILL BE SHIPPED IN FROM THE UNITED STATES IN DECEMBER. IT IS OUR INTENTION TO START SHIPPING 15,000 METRIC TONS A WEEK FROM THE SMALL DOCKS AT WAWA UNTIL SUCH TIME WE CAN CONSTRUCT A DEEP WATER JETTY AND HIGH SPEED LOADING BAND. I HAVE PLACED TO THE UPPER RIGHT A PHOTOGRAPH OF THE SMALL DOCK AT WAWA. GEARED VESSELS USING GRABS WILL HAVE TO BE USED FOR THESE SMALL SHIPMENTS.
WE WILL NOT BUILD A ROAD FROM NAGSABONGAN TO THE JADE DEPOSITS UNTIL AFTER WE BEGIN THE IRON ORE MINING OPERATIONS. WE HAVE LEARNED THAT THERE IS A STRONG DEMAND FOR MINDORO JADE FROM CHINA JADE FACTORIES. I HAVE PLACED IN THE LOWER RIGHT A PHOTOGRAPH OF A SMALL SPECIMEN THAT IS POLISHED. OUR NEXT NEWS LETTER SHOULD REPORT THE BEGINNING OF THE ROAD CONSTRUCTION.
SHALLOW WATER (15FT) DRAFT DOCK AT WAWA ON MINDORO ISLAND; APPROXIMATELY 17KM (10 MILES) FROM THE NAGSABONGAN IRON DEPOSIT
Cotton & Western Mining, Inc.
IT HAS COME TO MY ATTENTION THAT SOME OF OUR SHAREHOLDER’S HAVE BEEN SPECULATING ON HOW OUR OPERATIONAL COST IS STRUCTURED COMPARED WITH OTHER MINING COMPANIES. I WILL SAY HERE THAT WE ARE A SMALL SCALE MINING COMPANY WITH VERY LITTLE OVERHEADS. IT WOULD BE VERY HARD TO LOOK AT OTHER COMPANY’S OPERATIONS AND COMPARE IT WITH OURS FOR A NUMBER OF REASONS, OF WHICH I WILL GIVE SOME EXAMPLES HEREIN.
FIRST OF ALL, DEPENDING ON THE MINERALS INVOLVED, IT MAY TAKE A VERY EXPENSIVE PROCESSING PLANT TO SEPARATE AND / OR CONCENTRATE THE MINERAL TO MEET THE INDUSTRY STANDARD SPECIFICATIONS. WE DON’T HAVE THAT NEED. I HAVE LOOKED AT A LOT OF IRON DEPOSITS ALL OVER THE WORLD AND WHAT I LOOK FOR IS THE FOLLOWING; ONE, IT MUST BE OF COMMERCIAL SIZE TO US OF AT LEAST 4,000,000 METRIC TONS. TWO, IT MUST HOLD A HIGH GRADE PERCENT OF IRON MINERALS WITH LOW TRACE ELEMENTS SO WE DO NOT HAVE THE HEAVY COST OF EXPENSIVE PROCESSING PLANTS. AND THREE, IT’S VERY IMPORTANT THAT THE MINE IS LOCATED WITHIN A 100 KM OF A PORT SO WE MAY NOT BE EAT UP WITH TRANSPORTATION COST WHICH IS THE SINGLE LARGEST COST IN MINING. WE HAVE FOUND ALL THREE OF THOSE CRITERIA ON MINDORO ISLAND. OTHER FACTORS ARE MINING TECHNIQUES. I MENTIONED ABOVE THAT WE WOULD BE USING TRACKED MOBILE CRUSHING AND SCREENING EQUIPMENT. THE REASON FOR THAT, IS THAT IT ELIMINATES THE NEED TO USE EXPENSIVE MINING TRUCKS TO HAUL THE MINERALS TO A STATIONARY CRUSHING AND PROCESSING PLANT. WITH TRACKED CRUSHING EQUIPMENT, WE BLAST IT AND THEN BACK THE CRUSHERS RIGHT UP TO THE MATERIALS. YOU CAN SEE THIS EXAMPLE ON OUR WEBSITE UNDER THE PHOTOGRAPH GALLERY FOR LOS CRESTONES MINE. ALSO KEEP IN MIND THAT THIS IS A LOW-TECH INDUSTRY, SO WE DO NOT WANT TO TRY AND MAKE IT ANY MORE COMPLICATED THAN IT HAS TO BE. JUST SIMPLE EQUIPMENT AND LABOR WORKING HARD..
I HOPE TO BRING YOU A LOT OF GOOD NEWS IN THE COMING WEEKS CONCERNING OUR PROGRESS IN OPENING THE NAGSABONGAN IRON DEPOSIT…
THANKING ALL OF OUR SHAREHOLDERS FOR BEING A PART OF THIS ENDEAVOR….
RESPECTFULLY,
Robert L. Cotton
ROBERT L. COTTON
PRESIDENT & C.E.O.
COTTON & WESTERN MINING, INC.
THE ABOVE SPECIMEN OF MINDORO JADE WAS HAND SANDED AND POLISHED BY ME. IT REVEALS A SPECTRUM OF GREEN, WHITE, BLACK, GREY AND GOLD COLORS. THE MINERAL IS GREENSTONE IT IS USED FOR CRAVINGS, TABLE TOPS AND IN SOME CASES THE AFFLUENT CHINESE WHO ARE OBSESSED WITH THE LUCK OF JADE USE IT FOR FLOOR OR KITCHEN AND BATHROOM TILE.. AT $100.00 A SQUARE FOOT FOR TILE, THAT’S KIND OF RITZY. IN BULK ONE CUBIC METER CUBES SALE FOR $1,000.00 PER METRIC TON WHICH IS ABOUT $3,200.00 PER CUBIC METER.
WE HAVE LEARNED THAT HANAN PROVINCE IN CHINA IS THE JADE MANUFACTURING CAPITAL OF THE WORLD WITH OVER 1,000 STATE OWNED AND PRIVATE COMPANIES. SO IT NOW APPEARS THAT THERE IS A SIZEABLE MARKET FOR OUR MINDORO JADE
THIS NEWS LETTER IS POSTED ON THE COMPANY WEB-SITE AND ELECTRONICALLY MAILED TO THOSE WHO HAVE REGISTERED TO RECEIVE COMPANY NEWS LETTERS AND DIRECTED FROM THE E-MAIL ADDRESS BOOK OF BOB COTTON. READER COMMENTS AND SUGGESTIONS ARE WELCOMED AND MAY BE DIRECTED TO bobcotton@cottonwestern.com
THIS NEWS LETTER IS MEANT TO INFORM INVESTORS AND THE GENERAL PUBLIC OF RECENT ACTIVITIES AND PROGRESS OF THE COMPANY; IT IS NOT INTENDED OR MEANT TO SOLICIT INVESTMENT. COTTON & WESTERN MINING, INC. IS A REGISTERED NEVADA CORPORATION, ENGAGED IN THE EXPLORATION, DEVELOPMENT AND MINING OPERATIONS OF SELECTED MINERALS.
COTTON & WESTERN MINING, INC. IS A NON-SEC REPORTING COMPANY, THE COMPANY’S STOCK IS QUOTED THROUGH THE PINKSHEETS UNDER THE TICKER SYMBOL: CWRN
