Replies to post #25995 on New Colombia Resources Inc fka NEWC

[enthalpy]

Bolded my favorite parts of the Coal Mine and Aggregate report by the Consultant!

https://drive.google.com/drive/folders/0BxSKP5j2FlsebU9kT3Y4SHlOSm8

Aggregates

The aggregate situation appears to be a much closer production possibility. Good exposures of limestone and limey shale are present near the coal exposures. This material appears to cover an area some 500 x 500 m and could possibly be up to 40 m thick. It occurs either as free dig material or as aggregate that could be ripped with a bulldozer. Therefore, there are two potential aggregate materials that could be supplied to the construction industry. Shale could be used for road base and limestone could be used for concrete. Although only a guess at this stage, this volume of material could be equivalent to 1,000,000 tons of aggregate. A good size aggregate quarry operation would be around 250,000 tons a year production. Therefore, we can see possibly four years of operation.

The limestone is a much higher value material then shale. But on average for both materials over the four years we could expect revenues of approximately $20 million. Operating costs and capital costs could be in the order of 35% which would leave some $12 million in net revenue.

This equates to some $3 million a year pretax cash flow. Capital equipment estimates are the following:

Equipment* Number US$
D-8 or D-9 Dozer 2 $700,000
760 Loader 2 $600,000
40 t Haul Truck 2 $200,000
Water Truck 2 $100,000
Total 8 $1,600,000
* High Quality Used Equipment purchases could possibly be financed through Exim Bank. Alternatively, mining could be contracted out, with the contractor providing and maintaining the equipment. This may well be the best option, particularly for the first year as the operation beds down. NCR already owns the crushing plant, with most payments made. The crushing plant will produce limestone and shale product, sized to client specifications in the range of 1-4". Limestone and shale will be separately batch processed.

Of course, these are only very rough estimates and would need to be better clarified by the engineering consultant. He will prepare a technical report which will include an aggregate mine plan and cash flow model. This report in Colombia called a PTO will be presented to the local authorities as part of the application for the quarrying permit.

Looking at the Google Earth satellite images there is a good chance that there is much more aggregate material on the company's mining permits. It is concluded we should be able to establish a strong cash flow generating business that could be the basis of growth in Colombia. If we can significantly increase aggregate resources, then this indeed would be a profitable investment.

As with the coal, the site is ideal for open pit mining, with no strip, just vegetation and soil removal. Mining would comment at the top of the hill, moving down, so exaction is easiest. 40 tonne mine trucks would haul aggregate downhill with empty trucks returning uphill as depicted
in the figure below. The plant will be located at the bottom of the area that contains enough aggregate for one year's production. This has been restricted to the farm owned by NCR, as

[TradeToWin]

This is by far the best technical breakdown of this stock to date!!!! These are the same thoughts I have had but to put them all into one coherent post is absolutely GORGEOUS!! Awesome post/breakdown man. And all the technical aspects to back it up. You're the man Enthalpy. Bringing the Heat.. pun INTENDED lol.

[HombreMuerto]

Orphan drug status would be pure cake here. They have refined their medical products since 2014, apparently with reproducible local strains into reproducible products. Big plus when compared to the average American flowers and bong hit mentality.

We should see how the pain cream sells pretty soon.

But the coal is what really makes this company valuable, pot just makes it have a higher media profile. If you find another business that has this much potential, please tell me what it is.