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PROFITABILITY OF SMALL MINERS

Small miners provide investors with a better ROI because they can have more control over expenses and their operational cost per ounce of production is much lower from reduced overhead. Reduced operating costs and better recovery efficiency allow for the reprocessing of lower grade materials that have already been removed from deposits and have some materials that are already on size for extraction.

Mineral processors can get a product to market at an early stage by concentrating minerals that carry precious metals and free milling gold by gravity and enhanced gravity packaging a viable multi-mineral concentrate to smelters or refiners with the least amount of expenses possible. In effect making a wholesale gold product that has near full value but is unfinished. This is done by taking advantage of onsize material and separating it from larger value bearing head ore that requires further comminution. This reduces the cost of second stages of recovery by reducing the volume of material needing to be ground for further concentration.

CONCENTRATE CONTRACTS

Mineral cons are put under contract with a broker or smelter / refiner after a multielement test is performed to determine all minerals and metals present in the concentrate and the value based on costs to remove them for individual sale. Once a product is under contract it is delivered to buyer in the quantities and timing specified in the contract within a grade range that is also specified in the contract. We are paid based on fire assay values per package on delivery. Our contracts are based on 92 percent of spot price on the element being bought given its purity. The payment schedule is 80 percent of total up front and a provisional payment of 20 percent after refinery deductions or penalties, if any, within 30 to 60 days. Any discrepancies of values in the concentrate that are contested by the refiner are sent to and umpire who will assay their own sample which was collected at the time of purchase. The results of which are final and whichever side is proven closer to claim will be paid the full amount or the reduced amount.