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Re: None

Thursday, 06/26/2014 6:41:15 PM

Thursday, June 26, 2014 6:41:15 PM

Post# of 30838
Feasibility
Even though risi
ng energy costs and mining components have risen, the overall feasibility of the
projects remain excellent. A very robust 76% profit margin exists in the numbers summarized
below.
The development plans call for the initial construction of a 500,000 to
ns per year heap leach
operation at Asset #26 at a cost of approximately $10 million. $2 million is needed in the
coming year to complete drilling, metallurgist and other items related to obtaining the operations
permit.
1
9
The cost to extract the ore i
n open pit mining and transporting the ore to the heap leach site is
estimated at $14 per ton. The cost to process the ore into finished 95% pure dore bars is
estimated at $14 per ton.
An average ton of ore is conservatively estimated to contain at lea
st 6 ounces of silver and 0.03
ounces of gold. At today’s prices ($1500/oz for gold and $25/oz for silver) that equals
approximately $195 per ton.
Rate of recovery is estimated at 60%. 60% x 500,000 tons equals 300,000 tons net. .
300,000 tons x $
195 = Gross Revenue of
$ 58,500,000
Or 300,000 tons x 6 oz ag = 1,8M oz @ $25/oz = $45M And 300,000 tons
x .03 oz gold = 9k oz au @ $1500/oz = $13.5M... Combine $45 & !3.5 = $58.5M
Cost to Mine and Haul 500,000 tons x $14
-
7,000,000
Cost to Process to Dore Bars 500,000 tons x $14
-
7,0
00,000
Projected Gross Profit Before Distribution to Owners
$ 44,500,000
Projected CJT Mining 50% Share of Gross Profit
$
22,250,000
Additional capacity expansion or higher tech processing facilities can be developed out of
profits.
So in co
nclusion the company has the management and mining
site
s available
and more than
adequate ore from our lode mining claims
at Asset
#26 to supply the proposed 500,000 tons per
year precious metals mining and processing facilities for more than 20 years

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