Background: Company used a previous Shell to reverse merge to take over the Benton and Gold Bug mines in Oregon. The company has spent over $9M to build a processing mill and prepare the Benton mine for production. After the Benton mine is in full production the Gold Bug mine will be started up. With the only permitted processing mill in Oregon there are numerous acquisition targets within several miles that can be procured to add to production and reserves in the future.
Information from Company. Financials being worked on and will be released within 2 months.
Fully Diluted Outstanding 38M Float 8M Management owns 30M Reserves: Benton Mine 235K oz – Only small amount of land has officially been surveyed. Additional reserves expected. Gold Bug mine. Reserves to be determined. Averaged 2 oz/ton when mined in the 40’s.
Debt Zero Status of Mine: Fully permitted and in production. Capacity is 300 tons/day. Mine Life – 10-15 years
Assumption mining costs aprox. $300/oz, mine in production 300 days/year Revenue Estimates based on Grading estimates @ 100 tons/day Grading @.25oz/ton = 25 oz/day x 300 days/year = $4,500,000/year @$600/oz Earnings estimate approx. $300/oz = $2,250,000 year
Grading @.50oz/ton = 50 oz/day x 300 days/year = $9,000,000/year @$600/oz Earnings estimate approx. @ $300/oz = $4,500,000 year
Earnings Estimate for Benton Mine only At Capacity of 300 tons/day range 6.7M (.25 oz/ton) to 13.5M (.50 oz/ton) in earnings
Future Plans: 1) Update and release financials 2) Apply to OTCBB(2 months) and then to AMEX after $2 requirement met 3) Bring Benton up to full capacity 4) Open up Gold Bug Mine – Late 2007 5) Update Website 6) Start Investor Relations Effort 7) Present at Minerals Conference – Late 2007
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.