Sterling Group Ventures Inc. (fka SGGV)

[kafen]

As mentioned in my previous post, the official website listed 3 major mining areas in Chenxi county. Our mine is one of the three. The following news from the county website was about another one of the three. This mine is 10 miles west of our mine so it has better road access.

http://www.chenxi.gov.cn/E_ReadNews.asp?NewsID=1965

Bascially it talked about a Chinese investment firm invested about $1.6 Million to open this mine, which is expected to produce about 30,000 tons of phosphate rocks (numbers are what I roughly calculated assumping $140/ton and $1 = 7 RMB). So I guess our mine should be larger than this as we plan to produce 100,000 ton/year, right? The interesting part is how fast they move onto the production. This is a summary from the news about their road map.

1. 03/2010 intial agreement signed
2. 05/2010 geologists from the investment firm finished the evaluation of the mine and the investment was decided.
3. 08/2010 started road construction, power line connection and application for mining permit.
4. 10/2010 purchased equipments, trained workers.
5. 11/2010 finished all the infrastructure work including paving 4 Km road in the mining area and 4 Km of power line connection.
6. 11/2010 started building plants. mining permit approved in local government and waiting for state government approval.
7. 12/2010 everything is ready for production, just waiting for the final approval of the permit.

I believe SGGV will follow a similar road map once it starts moving.