AI
Monday, November 21, 2011 10:55:41 PM
SGGV summary – 11-21-11 ($0.0765)
NI 43-101 identifies as “WORLD-CLASS MINING OPERATION” and “SIGNIFICANT PROJECT.”
Sterling Group Ventures, Inc. (USOTC: SGGV, FRANKFURT: GD7)
350 S. E. Marine Dr., Suite 4743
Vancouver, BC., V5X 2S5
State of Inc: NV
Phone: 604.689.4407
Fax: 604.408.8515
URL: www.sterlinggroupventures.com
Email: info@sterlinggroupventures.com
PRINCIPALS:
CEO - Raoul N. TSAKOK
Family-run private investment grp. - http://farmindcapital.com/raoul.html
DD on Tsakok investment firm - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60160522
PRESIDENT – Xuxin (Richard) SHAO
47, Ph.D., Metallurgy
DIRECTOR – Gerald William RUNOLFSON
68, P.Eng.
Also, Pres. Elkon Products, Inc., Pres. Drunker, Inc. (DKIN), Dir. Horseshoe Moning (TSX: HSX)
DIRECTOR – Robert G. SMILEY
65, Consultant, former lawyer,
Also Pres. Richco Investors, Inc., Drucker, Inc. (DKIN), Dir. Canadian Imperial Venture Corp. (CQV), Teuton Resources Corp (TUO), Silver Grail Resources (SVG).
SENIOR ENGINEER – Shi-jin QIN
Many years’ experienced working with phosphate, including:
-- 645 Brigade and 679 Brigade, Northwest Geological Bureau, the Qilianshan Brigade of Gansu Province Geological Bureau and the No. 2 Brigade of the Gansu Geological Bureau;
-- Director, Yichang District Chemical Industry Bureau of Hubeai Province mining department, a significant phosphate producer, in charge of mining construction and technical management;
-- Senior Engineer and Vice Chief Engineer, Yichang Phosphorous Chemical Industry Group, Ltd. In charge of phosphate mining, construction, and development of phosphorous chemicals;
-- Senior Engineer and resource / reserve appraiser, as well as consultant in the phosphate mining industry.;
-- participated in the R&D of a number of phosphate projects in China;
-- won many awards in his field.
MARKET CAP - $5,766,570 ($.0765/sh) (11-21-11)
SHARE STRUCTURE (11-21-11):
A/S – 500,000,000
O/S – 75,380,000
Warrants – 28,387,500
Options (O/S) – 0
Fully Diluted – 94,117,841
Float – 24,000,000
TO BE UPDATED LATER
AWAITING – Gaoping Deposit
1. $500,000 expenses employed for staging and commencement of production.
3. November 10, 2014 – Permit granted by government of China for Gaoping Deposit expires (permit does not need to be transferred). Note: Investment Certificate approved by government of China is for a term of 30 years (to May 2041 AD).
4. June 13, 2031 – Term of Business License reflecting JV between Silver Castle (Sterling’s Hong Kong subsidiary) and Hongyu Mining Co., Ltd. for Hongyu mine expires.
AWAITING – Shujiatai Deposit
1. July 10, 2012 – by this date, Sterling to have completed DD on Shujiatai Phosphate Property in Shimen Co., update Chinese study reports, and, thereafter, set up JV (see 3-9-11 8K).
PICTURES OF GAOPING MINING SITE
YouTube video, Hunan Chenzhou, China Tour
Gaoping Deposit Location Map
Drill Holes
Gaoping site
Phosphate on Gaoping site
HISTORICAL:
11-20-11 – 8-K with Ni 43-101 Property Evaluation Report for the Gaoping Phosphate Property of 11-1-11 filed therewith.
11-1-11 – Property Evaluation Report for the Gaoping Phosphate Property; updated NI 43-101 Geologics.
MINERALIZATION RESULTS
Gaoping Mining Lease
- - inferred estimate of 2,190,142 tons of 22.58 % P2O5.
-- 2nd Resources New Lease (see p. 22-23) – inferred increased to 5,185,656 tons of 22.58% P2O5.
-- Licensing Fees are only negative consideration for this increase in lease size.
Tanjiachang Exploration Concession
-- Village (see p. 23) of 58,165,000 tons of P2O5; not yet verified used to establish advanced royalty. (p. 23).
-- It is the intention of the company, the Chenxi Co. Hongyu Mining Co., Ltd. to expand the mining activities and capacity in the Tanijiachang Village Phosphate Area.
-- LOI executed by Chenxi Co. Merchants Bureau, Hunan Province, China, and Silver Castle Investments, Ltd.
-- Hongyu was required to invest not less than ¥20 mil in the country, including resource fees to Chinese gov’t + apply to expand the scale of current mining permit.
-- Acquisition of Tanjiachang Exploration Concession cost ¥87,000,000 over 6-year period for prepayment of royalty to gov’t of $13.68 mil (¥15 / ton) based on 58 mil tones of phosphorite.
-- Pymt of royalty can be spread over 6 yrs + a schedule of work credits is applied as pymt in lieu.
-- Preparing Exploration License application (Tanjiachang Exploration Concession). Expect to be granted.
-- Recommended exploration program on Tanjiachang Concessoin consist of: trenching, assaying, preliminary metallurgical testing, total amt for this exploration work is budgeted at $127,350. These monies would then be applied against the prepaid royalty
* No formal measurements; no drilling; no documented records of costs have been provided. Accordingly, no Reserve estimate can be given. Production grades have been estimated by the buyer in Chenxi and are probably lower than actual assay grades. Assay grades were probably never taken of the production.
** Once plant is established, product will meet national and international standards. (p. 43).
GAOPING PHOSPHATE PROPERTY MINING COMMENCEMENT
-- Initial start-up costs less than $500,000.
-- Mining could commence immediately w/ expenditure of about $500,000.
-- This would provide surface infrastructure and mine start-up funding.
-- Mine would provide immediate income, and operation would be self-sustaining and profitable throughout remainder of its development and exploration phases.
PROJECT SELF-FUNDING AT START-UP
-- Immediately after mining has begun, mat’l produced is sellable to local agricultural fertilizer distributor and income will be forthcoming within a couple months of start-up.
GAOPING PHOSPHATE PROPERTY - MINING LEASE UTM COORDINATES
1. X=3102000 Y=37444690
2. X=3102985 Y=37444925
3. X=3103920 Y=37445430
4. X=3104210 Y=37445300
5. X=3104593 Y=37445604
6. X=3104555 Y=37445715
7. X=3104215 Y=37445465
8. X=3103910 Y=37445600
9. X-3102915 Y=37445065
10. X=3102000 Y=37444850
GAOPING MINING LEASE - GEOGRAPHIC COORDINATES OF MINE RANGES
Longitude East 110°26’15” ~ 110°27’05”
Latitude North 28°01’49” ~ 28°03’14”
BUYER IN CHENXI
-- Product with grades of 30% P2O5 or better will fetch $70.73 (¥450) in an open market.
ROADS NEAR MINE SITE
-- Roads adequate for start-up.
-- Road along mining lease is unpaved and occasionally steep, but in good condition for a 4x4 vehicle. Logging trucks were using this road recently without problem, except road is only one lane and passing has to be organized where passing bays exist.
-- Hwy outside city to mining area is a narrow, rural agricultural and logging road, but is paved and in good condition.
-- Secondary road turning off hwy about 2 km from mining area, is less well maintained, but still paved and quite useable by 4x2 vehicles.
TRANSPORTATION TO RAIL HEAD in CHENXI
-- Mine would initially require 300 meters of abt. 50# rail, 400 short rail ties and 6 – 3 ton side dump ore cars.
-- Distance from mine site to Tanjiachang is abt. 7 km. Tanjiachang is connected to Chenxi City town by 30 km of good secondary hwy.
-- Roads in and around Chenxi City are in poor condition, but in process of being repaired.
-- Total mileage from mine site to Chenxi (county seat) is 37 km, 2 ½ hour drive, convenient for local officials.
-- Mine site is 57 km away from Chenxi Railway Station on Xiang-Qian Railway.
-- Use of this rail svc for mat’l transportation is convenient and could prove to be an economic windfall.
ELECTRICITY
-- Moderate level of power lines pass thru property, but would require upgrading for heavy industrial use.
WATER
-- Water is abundant in valley bottoms, but will require some infrastructure to accommodate mining.
WORK FORCE
-- Population is moderate with collection of experienced miners available in Simengrong valley and at the village of Tanjiachang.
-- Skilled workers are also available in Chenxi.
-- Readily available trucking contractors.
TERRAIN
-- Lease is in mountainous terrain with steep hill sides forested with native species and some planted pine forest. Valley bottoms are developed into terraced ride paddies. Coincident phosphate deposits which have been cut by erosion of the steeply incised valleys has rendered these valley bottoms very fertile.
WEATHER
-- Hunan has a humid, subtropical climate.
-- Monsoon rain falls mostly in April, May, and June.
-- July and August are hot and humid.
-- Annual rainfall is 49.2” – 68.9” in Chenxi and probably higher at property due to increased elevation.
-- Temperatures are 39 °F – 46 °F in January, and 79 °F - 86 °F in July.
ANIMALS
-- 70 kinds of mammals, including tigers, bears, and macaques, 310 kinds of birds, over 70 kinds of creeping animals, and over 160 kinds of fish. No animals seen during geologist visit for this report.
10-31-11 – Entry into MDA
Development of Dangxiongcuo abandoned; consideration to be made.
8-4-11 -- Powerpoint Presentation – Sterling Group Ventures - Phosphate
7-26-11 – Sterling Appoints Experienced Miner for Phosphate Development in China
Appointed Mr. Shi-jin QIN as Senior Engineer. See above for Mr. QIN’s CV.
7-11-11 – Sterling Group Ventures, Inc. Completes Acquisition of China Phosphate Company
7-11-11 – 8K -- Completion of Acquisition or Disposition of Asets, Fin’l Stmt
1. Received all required approvals from Chinese authorities for completion of its acquisition of Chenxi County Hongyu Mining Co., Ltd. (“Hongyu) per 10-18-10 Agmt.
2. Consideration: RMB 2 million Yuan were paid to Hongyu shareholders.
3. Issued 10 million common shs.
4. SGGV subsidiary, Silver Castle Investments, Ltd. Now holds 90% of Hongyu. Other 10% held by nominees of Company.
6-15-11 - Sterling Receives Business License to Operate China Phosphate Project
Huaihua City Administration Bureau for Industry and Commerce awarded amended business license to reflect JV between Silver Castle (Sterling’s Hong Kong subsidiary) and Hongyu Mining Co., Ltd. License terminates June 13, 2031.
5-31-11 Stockvest Quarterly, Summer 2011; Twittered 6-10-11
5-24-11 – Investment Certificate Granted – Gaoping Deposit, Chenxi Co.
Sterling Receives Approval to Acquire China Phosphate Company.
1. Approval of Investment Certificate; given a term of 30 years; allows for mining, processing, sale of phosphate ore and products under its mining permit.
2. Approval of Silver Castle (Sterling’s Hong Kong subsidiary), investment in the operating Chinese company, Chenxi Co. Hongyu Mining Co., Ltd (“Hongyu”). As a result, Silver Castle will control 90% of the shares of Hongyu.
3. Sterling also applied for the Amendment of the Hongyu’s business license to reflect the new JV structure, & anticipates its approval by local authorities shortly before putting the Hongyu phosphate deposit into production.
4. The company is currently reviewing other potential phosphate project acquisitions.
http://ih.advfn.com/p.php?pid=nmona&article=47805975&symbol=SGGV
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63491373
5-23-11 – Sterling Contracts StockVest
PR contract is for an initial 3 month term; various investor info svcs w/b provided.
Per Max Power’s telecom of May 25, 2011 with Stockvest, it plans to provide:
1. Trade shows taking SGGV to multiple shows all over the world, starting with an accredited investor’s conference in early June in Colorado, followed by: July NOLA FSX show, Aug. SFO The Money Show, Sept 3 shows Toronto + Vancouver World Money Shows, Oct. Chicago + Miami, then rest of year in London, HK, and other cities.
2. Video – producing video for SGGV w/ professional production values highlighting huge opportunity that exists for investors.
3. PRs – disseminate PRs out on hundreds of news wires and insure that Google and other search engines pick up on it.
4. Email blasts, Electronic IR kits, and Mailings – sending info out to opt in investors, no spamming.
5. StockVest Quarterly – prominently displayed in its newsletter,, as well as placing it on a web informational portal on their website.
4-16-11 – Financials ending Feb. 28, 2011
4-13-11 – 10Q (Quarterly Report ending May 31, 2010
3-16-11 – 8K
3-16-11 – News -- Private Placement
-- Private Placement = $2 mil. to be used toward 10-18-10 Agmt re Gaoping phosphate mine with other phosphate resources in Hunan and for working capital.
-- 20 mil units (each unit = 1 common sh + 1 non-transferrable sh purchase warrant) @ $.10 ea.
-- Each warrant exercisable for 1 yr to purch add’l common sh at $.15/sh.
-- Current Warrants O/S at various exercise prices from $.15 to $1.00 / sh, if exercised, w/ raise another $8,839,125.
-- Warrant holders already picking up their shares: also issued 801,666 common shs at $.18 / sh from exercise of warrants by holders + recv’d $144,300 cash.
-- Fully diluted upon exercise of all warrants, there w/b 93,767,841 shs of cap stock issued + O/S.
-- 752,500 finders’ units issued relating to PP.
4-9-11 – 8K
LOI signed 11-10-10 filed in 8K. Sterling will conduct DD on Shujiatai phosphate property in Shimen Co. w/in 1 ½ yrs and update, if req’d., any Chinese study rprts for bldg mining, processing, + chem. plant. After DD complete, Sterling shall set up a JV in Shimen Co. for developing property. See 11-10-10.
3-9-11 – 8K
10-18-10 – Entry into MDA | Sterling signed 2 Agmts w/ Chenxi Co. Hongyu Mining Co., Ltd (“Honghyu”) + its S/Hs (“Hongyu S/Hs) re Gaoping Phosphate Mine in Tanjiaxiang, Chexing Co., Hunan Province, China. and other phosphate resources.
2-28-11 – 10Q
2-15-11 – Pacer Search
No lawsuits found against any of the principals (corps., and Tsakok, Shao, Runolfson, and Smiley) listed in the 10-18-10 Agreement.
2-28-11 – 10Q
2-14-11 – 8K
1. Approved extension of 3,817,500 Series A Sh Purch Warrants for earlier of 1 yr from current date of expiry or to close of bus on 30th day after takeover bid for Company’s issued and O/S sh capital has been made by 3rd pty and approved by share holders.
2. BoD approved acceleration of warrants expiry date any time prior to extended expiry date of Warrants to close of bus on 30th day after day on which closing price of shs exceeds $.80 for 20 consecutive trading days.
3. Upon exercise of Series A Sh Purch Warrants at $.50 ea, holder will receive 1 Common Sh of company and a Series B Sh Purchase Warrant exercisable at $1.00 for another yr. The Series A Sh Purch Warrants were originally issued pursuant to a PP commencing in Feb. 2004.
2-11-11 – News – Micro Cap Acquires Phosphate Company in China
2-11-11 – News – Micro Cap Acquires Phosphate Company in China
2-10-11 – CEO Reply to Sanction
2-10-11 – News – SGGV CEO Sanctioned in B.C. (2006)
1-24-11 – News – Sterling Arranges Funds to Develop China Phosphate Deposit
1-11-11 – 10Q (ending Nov. 30, 2010)
1-4-11 – News – US Fertiliser Prices Track Higher
1-1-11 –2011 Sulfer Market Forecast
12-26-10 –Sterling Group Ventures, Inc. Corporate Report
12-4-10 – News – Roadmap – Silvercorp Well Dug In
12-1-10 – News – China Hikes Fertilizer Tariff to Stem Exports
10-21-10 – 8K – Announce 10-18-10 Agreement
Terms: 1) Sterling to conduct DD on property w/in 1 ½ yrs and update Chinese study reports, if necessary. 2) Sterling will set up JV to develop deposit + build a mining, processing, + chemical plant.
Location: Shimen County, Hunan Province of China.
Est. value = $5.04 bil.
10-21-11 – Sterling Acquires Phosphate Company in China
10-18-10 – HONGYU AGREEMENT – GAOPING FIELD
Structure:
Sterling Group Ventures, Inc.
-> Sterling Makaelo Holdings, Inc. (100 held by Sterling)
--> Silver Castle Investments Limited (set up in HK, 80% held by Makaelo, 20% Chinese)
---> HK Invested Hongyu [Chenxi County Hongyu Mining Co., Ltd. (90% held by Silver Castle).
Terms:
1) Silver Castle will inject capital, subject to gov’t approval, to develop + put into production the Gaoping Phosphate mine, which has 58.16 mil tons of phosphate rock resource grading 19.8% P2O5 (est. value = $8.14 bil). Production costs est. $34/ton.
2) Hongyu agrees to surrender its future exclusive cooperative rights to Sterling. Honghyu S/Hs acknowledge and agree that Sterling shall set up an investment company in Hong Kong, which will initially be owned 80% Sterling, 20% Hongyu S/Hs. If Sterling does not complete taking over Hongyu thru the investment company w/in 3 months after signing the agmts, Sterling shall pay RMB 200,000 Yuan to Hongyu S/H as down pymt.
3) The Hongyu S/H shall keep the GP Property in good standing at all times during term of Agmt and shall keep Permit valid and effective, free from encumbrance or liability. Hongyu agrees to assist w/ above matters. The investment co. shall acquire 90% interest in Hongyu. The remaining 10% interest in Hongyu s/b transferred to nominees of Sterling. After this transaction, Hongyu s/ become a Hong Kong/China JV company (“HK Invested Hongyu”). Within 5 business days after approval of HK invested Hongyu by the appropriate Chinese authorities, Sterling s/ pay RMB 2 mil Yuan to the Hongyu S/Hs.
4) Sterling will ensure that the net assets value of Hongyu w/b RMB 5 mil Yuan during the acquisition.
5) The Hongyu S/Hs also agree to sell their 20% interest in the Investment Co to Sterling when requested to do so, in exchange for 10 mil common shs of Sterling’s capital stock t/b issued as consideration for such sale and shall at all times be subject to the rules + rqmts of US regulatory bodies bearing j/d.
6) The Hongyu S/Hs and Sterling agree that Sterling s/h all Hongyu’s title and interest in any phosphate properties, including, but not limited to the GP Property, and Sterling shall arrange for the financing of building a mining and processing plant on the GP property.
7) The Parties agree that the registered capital of HK Invested Hongyu s/b increased to the req’d level in order to build a mining processing plant and other facilities. Sterling s/ cause al the registered capital of HK Invested Hongyu t/b timely advanced to the accounts of Hongyu according to Chinese regulations.
8) Until such time as the acquisition is complete under the terms of the Agmt, Sterling w/b responsible for day-to-day maint ovhd costs of Hongyu, but will not be req’d to pay for any costs related to the building of a potential processing plant or other facilities. After the Agmts are signed, Hongyu s/ hand over all its documents and seals to Sterling. Sterling s/b in charge of maint of Hongyu during the period of the Agmts.
Project Plan
Project Name: Hunan Province, phosphate Tanjiaqiao field Gaoping phosphate
Location: Chenxi County Twp. High Tanjiaqiao Field Village
Constr. Content + Scale: annual output = 100K tons phosphate rock
Total Investment: 300 (million Yuan)
Owner: Chenxi County Hongyu Mining Co., Ltd.
Contact: Wu Haifeng
Phone: 13.97.308.1355
Evaluation by: Environmental Protection Science Research Institute Huaihua
Contact: Engineer Xiang
Phone: 07.45.273.0023
Facts about Chenxi County:
1. A railroad
2. 3 highways
3. River transportation (near branch of Yangtz river).
4. Also has reserves of coal, Cu, CaCO3, diamond, U.
5. Chemical plant producing phosphate fertilizer distributing to neighboring provinces.
http://baike.baidu.com/view/185444.htm, http://baike.baidu.com/view/2341720.htm
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60259931
http://baike.911cha.com/a2InNg==.html
Mining Report
China does not have official report (e.g., 43-101). Quantity of phosphate does appear reasonable
5-31-10 – Outlook Report, Int’l Fertilizer Indus. Assoc. Annual Conf., Paris (France)
5-31-10 – Outlook Report, Int’l Fertilizer Indus. Assoc. Annual Conf., Paris (France)
11-10-09 – Mining Permit [valid to 11-10-14; does not have to be transferred
-- Present Permit allows for 100,000 tons / yr.
-- Sterling plans to use open pit method + to increase production from initial 100K ton / yr to at least 400K ton / yr.
-- Hongyu paid resource fees to Chinese gov’t for 3.13 mil tons of phosphate resources for 5-year permit period only 3.13 mil tons).
-- Anyone who mines in China m/ pay resource tax + mineral resource compensation fee. The mineral resources compensation fees depend on mineral sales revenue, and are payable 2x per yr. See SGGV Post 243.
-- In Hunan province, phosphate rock hung suspended mineral resource tax levy since 10-1-2008.
China has imposed a 100-175% tariff to curtail exports.
FACTS ABOUT PHOSPHATE:
Cannot be synthesized, and is non-renewable.
Essential to process of photosynthesis.
Absorbed thru soil (est. 1.5 bil lbs of P is absorbed per year).
Several types used in fertilizer, but in North America, Ammonium Orthophosphates, such as diammonium phosphate (DAP) and monoamonium phosphate (MAP) are dominant, as they contain Nitrogen (another needed fertilizer).
CAVEAT: The entirety of the above was compiled by and contains opinions of this user, and is not to be relied upon. Do your own due diligence.
NI 43-101 identifies as “WORLD-CLASS MINING OPERATION” and “SIGNIFICANT PROJECT.”
Sterling Group Ventures, Inc. (USOTC: SGGV, FRANKFURT: GD7)
350 S. E. Marine Dr., Suite 4743
Vancouver, BC., V5X 2S5
State of Inc: NV
Phone: 604.689.4407
Fax: 604.408.8515
URL: www.sterlinggroupventures.com
Email: info@sterlinggroupventures.com
PRINCIPALS:
CEO - Raoul N. TSAKOK
Family-run private investment grp. - http://farmindcapital.com/raoul.html
DD on Tsakok investment firm - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60160522
PRESIDENT – Xuxin (Richard) SHAO
47, Ph.D., Metallurgy
DIRECTOR – Gerald William RUNOLFSON
68, P.Eng.
Also, Pres. Elkon Products, Inc., Pres. Drunker, Inc. (DKIN), Dir. Horseshoe Moning (TSX: HSX)
DIRECTOR – Robert G. SMILEY
65, Consultant, former lawyer,
Also Pres. Richco Investors, Inc., Drucker, Inc. (DKIN), Dir. Canadian Imperial Venture Corp. (CQV), Teuton Resources Corp (TUO), Silver Grail Resources (SVG).
SENIOR ENGINEER – Shi-jin QIN
Many years’ experienced working with phosphate, including:
-- 645 Brigade and 679 Brigade, Northwest Geological Bureau, the Qilianshan Brigade of Gansu Province Geological Bureau and the No. 2 Brigade of the Gansu Geological Bureau;
-- Director, Yichang District Chemical Industry Bureau of Hubeai Province mining department, a significant phosphate producer, in charge of mining construction and technical management;
-- Senior Engineer and Vice Chief Engineer, Yichang Phosphorous Chemical Industry Group, Ltd. In charge of phosphate mining, construction, and development of phosphorous chemicals;
-- Senior Engineer and resource / reserve appraiser, as well as consultant in the phosphate mining industry.;
-- participated in the R&D of a number of phosphate projects in China;
-- won many awards in his field.
MARKET CAP - $5,766,570 ($.0765/sh) (11-21-11)
SHARE STRUCTURE (11-21-11):
A/S – 500,000,000
O/S – 75,380,000
Warrants – 28,387,500
Options (O/S) – 0
Fully Diluted – 94,117,841
Float – 24,000,000
TO BE UPDATED LATER
AWAITING – Gaoping Deposit
1. $500,000 expenses employed for staging and commencement of production.
3. November 10, 2014 – Permit granted by government of China for Gaoping Deposit expires (permit does not need to be transferred). Note: Investment Certificate approved by government of China is for a term of 30 years (to May 2041 AD).
4. June 13, 2031 – Term of Business License reflecting JV between Silver Castle (Sterling’s Hong Kong subsidiary) and Hongyu Mining Co., Ltd. for Hongyu mine expires.
AWAITING – Shujiatai Deposit
1. July 10, 2012 – by this date, Sterling to have completed DD on Shujiatai Phosphate Property in Shimen Co., update Chinese study reports, and, thereafter, set up JV (see 3-9-11 8K).
PICTURES OF GAOPING MINING SITE
YouTube video, Hunan Chenzhou, China Tour
Gaoping Deposit Location Map
Drill Holes
Gaoping site
Phosphate on Gaoping site
HISTORICAL:
11-20-11 – 8-K with Ni 43-101 Property Evaluation Report for the Gaoping Phosphate Property of 11-1-11 filed therewith.
11-1-11 – Property Evaluation Report for the Gaoping Phosphate Property; updated NI 43-101 Geologics.
MINERALIZATION RESULTS
Gaoping Mining Lease
- - inferred estimate of 2,190,142 tons of 22.58 % P2O5.
-- 2nd Resources New Lease (see p. 22-23) – inferred increased to 5,185,656 tons of 22.58% P2O5.
-- Licensing Fees are only negative consideration for this increase in lease size.
Tanjiachang Exploration Concession
-- Village (see p. 23) of 58,165,000 tons of P2O5; not yet verified used to establish advanced royalty. (p. 23).
-- It is the intention of the company, the Chenxi Co. Hongyu Mining Co., Ltd. to expand the mining activities and capacity in the Tanijiachang Village Phosphate Area.
-- LOI executed by Chenxi Co. Merchants Bureau, Hunan Province, China, and Silver Castle Investments, Ltd.
-- Hongyu was required to invest not less than ¥20 mil in the country, including resource fees to Chinese gov’t + apply to expand the scale of current mining permit.
-- Acquisition of Tanjiachang Exploration Concession cost ¥87,000,000 over 6-year period for prepayment of royalty to gov’t of $13.68 mil (¥15 / ton) based on 58 mil tones of phosphorite.
-- Pymt of royalty can be spread over 6 yrs + a schedule of work credits is applied as pymt in lieu.
-- Preparing Exploration License application (Tanjiachang Exploration Concession). Expect to be granted.
-- Recommended exploration program on Tanjiachang Concessoin consist of: trenching, assaying, preliminary metallurgical testing, total amt for this exploration work is budgeted at $127,350. These monies would then be applied against the prepaid royalty
* No formal measurements; no drilling; no documented records of costs have been provided. Accordingly, no Reserve estimate can be given. Production grades have been estimated by the buyer in Chenxi and are probably lower than actual assay grades. Assay grades were probably never taken of the production.
** Once plant is established, product will meet national and international standards. (p. 43).
GAOPING PHOSPHATE PROPERTY MINING COMMENCEMENT
-- Initial start-up costs less than $500,000.
-- Mining could commence immediately w/ expenditure of about $500,000.
-- This would provide surface infrastructure and mine start-up funding.
-- Mine would provide immediate income, and operation would be self-sustaining and profitable throughout remainder of its development and exploration phases.
PROJECT SELF-FUNDING AT START-UP
-- Immediately after mining has begun, mat’l produced is sellable to local agricultural fertilizer distributor and income will be forthcoming within a couple months of start-up.
GAOPING PHOSPHATE PROPERTY - MINING LEASE UTM COORDINATES
1. X=3102000 Y=37444690
2. X=3102985 Y=37444925
3. X=3103920 Y=37445430
4. X=3104210 Y=37445300
5. X=3104593 Y=37445604
6. X=3104555 Y=37445715
7. X=3104215 Y=37445465
8. X=3103910 Y=37445600
9. X-3102915 Y=37445065
10. X=3102000 Y=37444850
GAOPING MINING LEASE - GEOGRAPHIC COORDINATES OF MINE RANGES
Longitude East 110°26’15” ~ 110°27’05”
Latitude North 28°01’49” ~ 28°03’14”
BUYER IN CHENXI
-- Product with grades of 30% P2O5 or better will fetch $70.73 (¥450) in an open market.
ROADS NEAR MINE SITE
-- Roads adequate for start-up.
-- Road along mining lease is unpaved and occasionally steep, but in good condition for a 4x4 vehicle. Logging trucks were using this road recently without problem, except road is only one lane and passing has to be organized where passing bays exist.
-- Hwy outside city to mining area is a narrow, rural agricultural and logging road, but is paved and in good condition.
-- Secondary road turning off hwy about 2 km from mining area, is less well maintained, but still paved and quite useable by 4x2 vehicles.
TRANSPORTATION TO RAIL HEAD in CHENXI
-- Mine would initially require 300 meters of abt. 50# rail, 400 short rail ties and 6 – 3 ton side dump ore cars.
-- Distance from mine site to Tanjiachang is abt. 7 km. Tanjiachang is connected to Chenxi City town by 30 km of good secondary hwy.
-- Roads in and around Chenxi City are in poor condition, but in process of being repaired.
-- Total mileage from mine site to Chenxi (county seat) is 37 km, 2 ½ hour drive, convenient for local officials.
-- Mine site is 57 km away from Chenxi Railway Station on Xiang-Qian Railway.
-- Use of this rail svc for mat’l transportation is convenient and could prove to be an economic windfall.
ELECTRICITY
-- Moderate level of power lines pass thru property, but would require upgrading for heavy industrial use.
WATER
-- Water is abundant in valley bottoms, but will require some infrastructure to accommodate mining.
WORK FORCE
-- Population is moderate with collection of experienced miners available in Simengrong valley and at the village of Tanjiachang.
-- Skilled workers are also available in Chenxi.
-- Readily available trucking contractors.
TERRAIN
-- Lease is in mountainous terrain with steep hill sides forested with native species and some planted pine forest. Valley bottoms are developed into terraced ride paddies. Coincident phosphate deposits which have been cut by erosion of the steeply incised valleys has rendered these valley bottoms very fertile.
WEATHER
-- Hunan has a humid, subtropical climate.
-- Monsoon rain falls mostly in April, May, and June.
-- July and August are hot and humid.
-- Annual rainfall is 49.2” – 68.9” in Chenxi and probably higher at property due to increased elevation.
-- Temperatures are 39 °F – 46 °F in January, and 79 °F - 86 °F in July.
ANIMALS
-- 70 kinds of mammals, including tigers, bears, and macaques, 310 kinds of birds, over 70 kinds of creeping animals, and over 160 kinds of fish. No animals seen during geologist visit for this report.
10-31-11 – Entry into MDA
Development of Dangxiongcuo abandoned; consideration to be made.
8-4-11 -- Powerpoint Presentation – Sterling Group Ventures - Phosphate
7-26-11 – Sterling Appoints Experienced Miner for Phosphate Development in China
Appointed Mr. Shi-jin QIN as Senior Engineer. See above for Mr. QIN’s CV.
7-11-11 – Sterling Group Ventures, Inc. Completes Acquisition of China Phosphate Company
7-11-11 – 8K -- Completion of Acquisition or Disposition of Asets, Fin’l Stmt
1. Received all required approvals from Chinese authorities for completion of its acquisition of Chenxi County Hongyu Mining Co., Ltd. (“Hongyu) per 10-18-10 Agmt.
2. Consideration: RMB 2 million Yuan were paid to Hongyu shareholders.
3. Issued 10 million common shs.
4. SGGV subsidiary, Silver Castle Investments, Ltd. Now holds 90% of Hongyu. Other 10% held by nominees of Company.
6-15-11 - Sterling Receives Business License to Operate China Phosphate Project
Huaihua City Administration Bureau for Industry and Commerce awarded amended business license to reflect JV between Silver Castle (Sterling’s Hong Kong subsidiary) and Hongyu Mining Co., Ltd. License terminates June 13, 2031.
5-31-11 Stockvest Quarterly, Summer 2011; Twittered 6-10-11
5-24-11 – Investment Certificate Granted – Gaoping Deposit, Chenxi Co.
Sterling Receives Approval to Acquire China Phosphate Company.
1. Approval of Investment Certificate; given a term of 30 years; allows for mining, processing, sale of phosphate ore and products under its mining permit.
2. Approval of Silver Castle (Sterling’s Hong Kong subsidiary), investment in the operating Chinese company, Chenxi Co. Hongyu Mining Co., Ltd (“Hongyu”). As a result, Silver Castle will control 90% of the shares of Hongyu.
3. Sterling also applied for the Amendment of the Hongyu’s business license to reflect the new JV structure, & anticipates its approval by local authorities shortly before putting the Hongyu phosphate deposit into production.
4. The company is currently reviewing other potential phosphate project acquisitions.
http://ih.advfn.com/p.php?pid=nmona&article=47805975&symbol=SGGV
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63491373
5-23-11 – Sterling Contracts StockVest
PR contract is for an initial 3 month term; various investor info svcs w/b provided.
Per Max Power’s telecom of May 25, 2011 with Stockvest, it plans to provide:
1. Trade shows taking SGGV to multiple shows all over the world, starting with an accredited investor’s conference in early June in Colorado, followed by: July NOLA FSX show, Aug. SFO The Money Show, Sept 3 shows Toronto + Vancouver World Money Shows, Oct. Chicago + Miami, then rest of year in London, HK, and other cities.
2. Video – producing video for SGGV w/ professional production values highlighting huge opportunity that exists for investors.
3. PRs – disseminate PRs out on hundreds of news wires and insure that Google and other search engines pick up on it.
4. Email blasts, Electronic IR kits, and Mailings – sending info out to opt in investors, no spamming.
5. StockVest Quarterly – prominently displayed in its newsletter,, as well as placing it on a web informational portal on their website.
4-16-11 – Financials ending Feb. 28, 2011
4-13-11 – 10Q (Quarterly Report ending May 31, 2010
3-16-11 – 8K
3-16-11 – News -- Private Placement
-- Private Placement = $2 mil. to be used toward 10-18-10 Agmt re Gaoping phosphate mine with other phosphate resources in Hunan and for working capital.
-- 20 mil units (each unit = 1 common sh + 1 non-transferrable sh purchase warrant) @ $.10 ea.
-- Each warrant exercisable for 1 yr to purch add’l common sh at $.15/sh.
-- Current Warrants O/S at various exercise prices from $.15 to $1.00 / sh, if exercised, w/ raise another $8,839,125.
-- Warrant holders already picking up their shares: also issued 801,666 common shs at $.18 / sh from exercise of warrants by holders + recv’d $144,300 cash.
-- Fully diluted upon exercise of all warrants, there w/b 93,767,841 shs of cap stock issued + O/S.
-- 752,500 finders’ units issued relating to PP.
4-9-11 – 8K
LOI signed 11-10-10 filed in 8K. Sterling will conduct DD on Shujiatai phosphate property in Shimen Co. w/in 1 ½ yrs and update, if req’d., any Chinese study rprts for bldg mining, processing, + chem. plant. After DD complete, Sterling shall set up a JV in Shimen Co. for developing property. See 11-10-10.
3-9-11 – 8K
10-18-10 – Entry into MDA | Sterling signed 2 Agmts w/ Chenxi Co. Hongyu Mining Co., Ltd (“Honghyu”) + its S/Hs (“Hongyu S/Hs) re Gaoping Phosphate Mine in Tanjiaxiang, Chexing Co., Hunan Province, China. and other phosphate resources.
2-28-11 – 10Q
2-15-11 – Pacer Search
No lawsuits found against any of the principals (corps., and Tsakok, Shao, Runolfson, and Smiley) listed in the 10-18-10 Agreement.
2-28-11 – 10Q
2-14-11 – 8K
1. Approved extension of 3,817,500 Series A Sh Purch Warrants for earlier of 1 yr from current date of expiry or to close of bus on 30th day after takeover bid for Company’s issued and O/S sh capital has been made by 3rd pty and approved by share holders.
2. BoD approved acceleration of warrants expiry date any time prior to extended expiry date of Warrants to close of bus on 30th day after day on which closing price of shs exceeds $.80 for 20 consecutive trading days.
3. Upon exercise of Series A Sh Purch Warrants at $.50 ea, holder will receive 1 Common Sh of company and a Series B Sh Purchase Warrant exercisable at $1.00 for another yr. The Series A Sh Purch Warrants were originally issued pursuant to a PP commencing in Feb. 2004.
2-11-11 – News – Micro Cap Acquires Phosphate Company in China
2-11-11 – News – Micro Cap Acquires Phosphate Company in China
2-10-11 – CEO Reply to Sanction
2-10-11 – News – SGGV CEO Sanctioned in B.C. (2006)
1-24-11 – News – Sterling Arranges Funds to Develop China Phosphate Deposit
1-11-11 – 10Q (ending Nov. 30, 2010)
1-4-11 – News – US Fertiliser Prices Track Higher
1-1-11 –2011 Sulfer Market Forecast
12-26-10 –Sterling Group Ventures, Inc. Corporate Report
12-4-10 – News – Roadmap – Silvercorp Well Dug In
12-1-10 – News – China Hikes Fertilizer Tariff to Stem Exports
10-21-10 – 8K – Announce 10-18-10 Agreement
Terms: 1) Sterling to conduct DD on property w/in 1 ½ yrs and update Chinese study reports, if necessary. 2) Sterling will set up JV to develop deposit + build a mining, processing, + chemical plant.
Location: Shimen County, Hunan Province of China.
Est. value = $5.04 bil.
10-21-11 – Sterling Acquires Phosphate Company in China
10-18-10 – HONGYU AGREEMENT – GAOPING FIELD
Structure:
Sterling Group Ventures, Inc.
-> Sterling Makaelo Holdings, Inc. (100 held by Sterling)
--> Silver Castle Investments Limited (set up in HK, 80% held by Makaelo, 20% Chinese)
---> HK Invested Hongyu [Chenxi County Hongyu Mining Co., Ltd. (90% held by Silver Castle).
Terms:
1) Silver Castle will inject capital, subject to gov’t approval, to develop + put into production the Gaoping Phosphate mine, which has 58.16 mil tons of phosphate rock resource grading 19.8% P2O5 (est. value = $8.14 bil). Production costs est. $34/ton.
2) Hongyu agrees to surrender its future exclusive cooperative rights to Sterling. Honghyu S/Hs acknowledge and agree that Sterling shall set up an investment company in Hong Kong, which will initially be owned 80% Sterling, 20% Hongyu S/Hs. If Sterling does not complete taking over Hongyu thru the investment company w/in 3 months after signing the agmts, Sterling shall pay RMB 200,000 Yuan to Hongyu S/H as down pymt.
3) The Hongyu S/H shall keep the GP Property in good standing at all times during term of Agmt and shall keep Permit valid and effective, free from encumbrance or liability. Hongyu agrees to assist w/ above matters. The investment co. shall acquire 90% interest in Hongyu. The remaining 10% interest in Hongyu s/b transferred to nominees of Sterling. After this transaction, Hongyu s/ become a Hong Kong/China JV company (“HK Invested Hongyu”). Within 5 business days after approval of HK invested Hongyu by the appropriate Chinese authorities, Sterling s/ pay RMB 2 mil Yuan to the Hongyu S/Hs.
4) Sterling will ensure that the net assets value of Hongyu w/b RMB 5 mil Yuan during the acquisition.
5) The Hongyu S/Hs also agree to sell their 20% interest in the Investment Co to Sterling when requested to do so, in exchange for 10 mil common shs of Sterling’s capital stock t/b issued as consideration for such sale and shall at all times be subject to the rules + rqmts of US regulatory bodies bearing j/d.
6) The Hongyu S/Hs and Sterling agree that Sterling s/h all Hongyu’s title and interest in any phosphate properties, including, but not limited to the GP Property, and Sterling shall arrange for the financing of building a mining and processing plant on the GP property.
7) The Parties agree that the registered capital of HK Invested Hongyu s/b increased to the req’d level in order to build a mining processing plant and other facilities. Sterling s/ cause al the registered capital of HK Invested Hongyu t/b timely advanced to the accounts of Hongyu according to Chinese regulations.
8) Until such time as the acquisition is complete under the terms of the Agmt, Sterling w/b responsible for day-to-day maint ovhd costs of Hongyu, but will not be req’d to pay for any costs related to the building of a potential processing plant or other facilities. After the Agmts are signed, Hongyu s/ hand over all its documents and seals to Sterling. Sterling s/b in charge of maint of Hongyu during the period of the Agmts.
Project Plan
Project Name: Hunan Province, phosphate Tanjiaqiao field Gaoping phosphate
Location: Chenxi County Twp. High Tanjiaqiao Field Village
Constr. Content + Scale: annual output = 100K tons phosphate rock
Total Investment: 300 (million Yuan)
Owner: Chenxi County Hongyu Mining Co., Ltd.
Contact: Wu Haifeng
Phone: 13.97.308.1355
Evaluation by: Environmental Protection Science Research Institute Huaihua
Contact: Engineer Xiang
Phone: 07.45.273.0023
Facts about Chenxi County:
1. A railroad
2. 3 highways
3. River transportation (near branch of Yangtz river).
4. Also has reserves of coal, Cu, CaCO3, diamond, U.
5. Chemical plant producing phosphate fertilizer distributing to neighboring provinces.
http://baike.baidu.com/view/185444.htm, http://baike.baidu.com/view/2341720.htm
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60259931
http://baike.911cha.com/a2InNg==.html
Mining Report
China does not have official report (e.g., 43-101). Quantity of phosphate does appear reasonable
5-31-10 – Outlook Report, Int’l Fertilizer Indus. Assoc. Annual Conf., Paris (France)
5-31-10 – Outlook Report, Int’l Fertilizer Indus. Assoc. Annual Conf., Paris (France)
11-10-09 – Mining Permit [valid to 11-10-14; does not have to be transferred
-- Present Permit allows for 100,000 tons / yr.
-- Sterling plans to use open pit method + to increase production from initial 100K ton / yr to at least 400K ton / yr.
-- Hongyu paid resource fees to Chinese gov’t for 3.13 mil tons of phosphate resources for 5-year permit period only 3.13 mil tons).
-- Anyone who mines in China m/ pay resource tax + mineral resource compensation fee. The mineral resources compensation fees depend on mineral sales revenue, and are payable 2x per yr. See SGGV Post 243.
-- In Hunan province, phosphate rock hung suspended mineral resource tax levy since 10-1-2008.
China has imposed a 100-175% tariff to curtail exports.
FACTS ABOUT PHOSPHATE:
Cannot be synthesized, and is non-renewable.
Essential to process of photosynthesis.
Absorbed thru soil (est. 1.5 bil lbs of P is absorbed per year).
Several types used in fertilizer, but in North America, Ammonium Orthophosphates, such as diammonium phosphate (DAP) and monoamonium phosphate (MAP) are dominant, as they contain Nitrogen (another needed fertilizer).
CAVEAT: The entirety of the above was compiled by and contains opinions of this user, and is not to be relied upon. Do your own due diligence.
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