With all the new projects obtained by FRMA management, I have tried to compile an informative discussion of the potential of the mining holdings held by FRMA either directly or via its control of GracePoint Mining Corp. I use “ bracket PR info from FRMA and My comments “are highlighted”
In no particular order.
“GRACEPOINT MINING CORP currently has five mining projects that encompass over 48,000 acres in Mexico.
1.Majestral-“Firma Holdings Corp. (OTC: FRMA) is pleased to announce that through its subsidiary Gracepoint Mining Corp, it has entered into a binding agreement with MX Gold Corp. (TSX VENTURE: MXL) (FRANKFURT: ODV) (OTCQX: MXLGF) to acquire a 50% interest in the Magistral Del Oro tailings project, which is located in what is known as the "Golden Triangle" in Santa Maria Del Oro, Durango, Mexico.
The project includes a fully permitted 500 TPD Dynamic Cyanide counter current system plant. Construction of the plant was completed in 2013, for approximately $4.5 million and is in excellent condition. It is unencumbered, fully permitted, and it is estimated that it can be fully operational within 4 to 6 months. Additionally, the Magistral project includes the exclusive rights to process approximately 1.2 million tonnes of mineralized mill tailings, grading an average of 2.06 gold per tonne (79,000 ounces of gold).
The agreement calls for an initial cash payment of U.S. $250,000 to Gracepoint and an investment of $2,225,000, over 90 days, to meet current obligations and make various modifications and additional enhancements to the plant, and for startup capital”
The project requires an environmental alteration of the land which was historically damaged by a spill from the retention pond used by previous owners. That will be the first work done. It is estimated revenue flow could start in 3-4months. Estimated 790,000 oz of gold. If gold is priced at $1250 per oz = $98,750,000 The initial tonnage is expected to be 50 tons a day but possibly increased. There is an existing permit.
As well additional revenue can be earned from the Cyanide plant . Gracepoint and Magistral each have 45% interest.
2.The Picacho project” area consists 7,060 ha and is located in the Northern Sierra Madre Gold Belt, 120 km south of the U.S. border and 65 km northeast of Yamana’s Mercedes production project (expected to produce at 120,000 ounces per year). The area has a high level of exploration activity, is close to a national paved highway, power grid, and a 1,200 m airstrip.
Work to date on Picacho has identified nine gold-bearing veins over four mineralized target areas with an aggregate strike length of over 10.8 km. Drilling of approximately 5,300 meters has been completed along only 600 meters of the vein system, with true width intercepts including 11.3 m of 15.6 g/t gold, 6.1 m of 4.7 g/t gold, and 9.4 m of 7.8 g/t gold.
Gracepoint is currently assessing all Picacho related data to determine next steps.”
This project 100% owned by FRMA [via ADIT Minerals] had been J/V with Yamana a number of years ago. Yamana drilling had found approximately 105,000 oz of gold, but the crash of gold prices forced Yamana to prioritize their projects and they withdrew from the project. There has been various other parties who have expressed interest in the geology of the area for further investigation. I would think that if the revenue generating projects that are moving to production are successful, FRMA may work the property themselves.
3.Durango Smelter Project“ FIRMA HOLDINGS ANNOUNCES THE ACQUISITION OF IDS SMELTER AND JOINT VENTURE WITH MX GOLD CORP.
Through its subsidiary, GracePoint Mining Corp., Firma Holdings Corp. has acquired a controlling interest in the IDS smelter. The smelter will become a major component of the formation of GracePoint's new Durango smelter project. The project is located in what is known as the Golden Triangle in Durango, Mexico. The Durango smelter project consists of a past-producing smelter, engineered to recover gold and silver, along with various base metals.
In addition, GracePoint has entered in to a binding agreement for MX Gold Corp. to acquire a 50-per-cent interest in the Durango smelter project. The agreement calls for scheduled payments totalling $1,525,000; and, upon the project achieving a cumulative net operating cash flow of $10-million, a benchmark bonus payment of $2.5-million.
Francis Biscan, chairman and chief executive officer of Firma Holdings Corp., stated, "Having worked with MX Gold's technical team on our Magistral joint venture project, we are very pleased to have them The acquisition includes a fully permitted smelter that was completed in 2014 for a throughput capacity of 50 tonnes per day (TPD). The smelter was built to receive and process high-grade direct ship ores and concentrates from small-scale miners across the state of Durango and beyond. The concept was birthed by the vision of Rosa Isela De La Rocha, a state Senator for Durango. Using a central location to safely and more efficiently process daily production, the community of local miners could enhance economics and quality of life. By eliminating the need for each miner to process, or otherwise dispose of, their individual ore production, the miners are able to spend more time producing and also receive a higher return from their production.
Mrs. Rosa Isela De La Rocha, Durango State Senator, stated; "It is my passion and my continued desire to complete the work I began in 2010, that was designed to help the mining community of Durango. I am very pleased to have found a community friendly company that understands my vision and is willing to help bring this project to a completion."
Mr. Francis Biscan Jr., President of Firma Holdings Corp., stated, "We are very fortunate to have secured a project that can provide a significant source of near term revenue for our company and simultaneously help the small scale mining community of Durango."
During Gracepoint's pre-purchase due diligence time, it has been confirmed that sufficient high-grade ore supply could be secured in adequate quantities to meet and substantially exceed the current throughput capacity of the smelter.
Furthermore, a project plan has been developed and work has begun on several fronts: contact has been made with several mining groups to evaluate the supply potential from each group, including estimated average grades of what they have been producing, and purchase parameters; an analysis of the permitted flow sheet by a reputable metallurgist that has significant experience with smelter recoveries, will be commissioned to confirm the previous expectations or recommend any modifications to enhance economics.
Additionally, at the plant site, various efforts have been initiated, including; recalibrating the truck scale, rebuilding the metallurgical lab; setting up the crushing circuit; overall cleanup of the site; and the hiring of critical personnel. Gracepoint believes the mining sector is looking for low cost production over exploration alone. As with Magistral, the ability for a project to be in production within a relatively short time frame due to an existing permit is paramount to the projects merits. “
I suspect this project could be the most exciting, but only time will tell
FRMA and MXL management seem to promise a great melding of their respective talents. Mr R. Biscan and his team has proven a talented group capable of identifying significant mining projects and the important ability to structure mechanisms to gain the interest of other potential investors. MXL has a powerful and visionary entrepreneur in Mr.Dan Omeniuk and a proven manager of mining development in Mr.Hugh McPherson
4. The Don Ramon Plant and holdings
“Gracepoint Mining currently owns. The 100% owned Don Roman district has 70+ distinct structures identified within 8 km diameter of a 100% owned centralized processing mill.”
Gold, silver, Zinc were identified in significant quantities. The company constructed a first class processing plant . Unfortunately the initial mining of the metals and and the utilization of the mill was NOT run properly and the collapse of mineral prices caused the plant to be mothballed. Managment is convinced that a better plrevenue. Hopefully,the revenue flow from the other projects held by Gracepoint, will allow funding for a proper development of the assets at Don Ramon.
5. "Aldama Project".
“Firma Holdings Corp. (OTC PINK: FRMA), through its subsidiary GracePoint Mining Corp, is pleased to announce the acquisition of the Aldama Plant, the Aldama Groupings, and the establishment of what will be called, the "Aldama Project".
GracePoint has secured an exclusive tolling lease with the Aldama Merrill Crowe processing plant, including an option to purchase the company that controls the plant. The plant was completely refurbished in 2014, as a tolling facility, for the processing of local and regional ores and concentrates. The facility is in excellent condition, fully permitted, fully staffed, and immediately operational.
Initial Gold and Silver ore feed will come from the acquisition of the Aldama Groupings, a cluster of seven claims, along with multiple third party sources that have been identified.
In addition, GracePoint is excited to announce it has entered in to a binding agreement, with Atlas Minerals II, to acquire a 50% Joint Venture interest in the Aldama Project. The agreement calls for initial scheduled payments totaling $400,000; which will be used to produce from the Aldama Groupings, secure third party ore feed, and for the initiation of plant processing.
. By securing an exclusive tolling arrangement, we can combine the acquisition of the Aldama groupings, along with other feed sources in the region, and begin to generate cash flow as early as March of 2017."
The appeal of almost instant revenue flow from the project is obvious. It is already operational. The present 40 ton production is expected to be increased Flotation system is operational . The permit is in place. Not a major revenue source but guestimate of $5 million a year NET is not to be sneered at.
Please do your own DD .I hope this posting will stimulate an intelligent and fact filled discussion.I have been an investor in FRMA and their previous appelants as Tara Gold, Tara Minerals and experienced the lows and highs of their history. Its been fun and painful but in my case rewarding. Management has tried their best and can, in spite of setbacks , be proud of many of their efforts. My days are numbered but I hope we will see new historical highs before long
