MINES FOR SALE

CASTLE SPRINGS MINE        - - - -         EXECUTIVE SUMMARY

Location:  Near Wickenburg, Arizona USA.  4 claims totaling 80 acres on BLM land.

Mineral Reserves:  US $5.68 Billion

                        Gold:  2,224,000 oz @ $1,800 oz - $4,003,200,000

                        Silver: 48,000,000 oz @ $35 oz - $1,680,000,000

Cash Flow:  Annual net profit projection US $190 Million at 100 tons per hour.

Location: The Castle Springs property is located approximately 23 miles east of Wickenburg, Arizona.  There is easy and unrestricted access to the property by taking Castle Springs Road off of State Highway 89 approximately 12 miles southwest of Wickenburg. This is a remote desert environment with little or no non-productive overburden or brush cover. The production season is year around.  Water is available from wells to be drilled on the property into a known aquifer.

Mineral Reserve Reporting Standards: There are currently multiple and conflicting standards worldwide for the reporting of mineral reserves. Following a major stock fraud, Canada enacted a very restrictive law entitled NI 43-101 that essentially dismisses testing data older than 2 years.  Under this standard, the Castle Springs Ore Reserves would be characterized as estimated or historical reserves. Despite intensive lobbying by Canada, the US government has not adopted 43-101 standards. Under existing US law, embodied in SEC Industry Guide 7, and based on the reporting standards set forth by the US Society of Mining Engineers, the Castle Springs Ore Reserves would be characterized as Proven and Probable Reserves.

Ore Reserves:  Castle Springs has been exhaustively tested by a wide range of independent professional geologists and large corporate mineral interests.  Extensive documentation is available for review.  Extensive work has been completed by Phoenix Energy, Sawyer Consultants, Alan R. Grant, the State of Arizona and others, validating the mineral resreve calculations.

Production Analysis:  The average ore tenor in Zone 1 is 0.35 ounces of gold per ton. Total Zone 1 tonnage calculations are 8,000,000 tons.  The average ore tenor in Zone 2 is 0.103 ounces of gold per ton. Total Zone 2 tonnage calculations are 4,000,000 tons.  The average ore tenor for silver across the claims is 3 ounces of silver per ton.  Total tonnage calculations for silver reserves are 16,000,000 tons. 

These calculations provide an average ore tenor for gold across the property at a tenor of 0.185 ounces per ton or an approximate value of $333 per ton at $1,800 per ounce.  Silver provides an additional 3 ounces per ton or $105 per ton at $35 per ounce, for a total ore value per ton of $438.  At an approximate 92% recovery rate, the yield is an average recoverable value of $403 per ton. Average mining costs are estimated at $10, milling costs $20, smelting and refining costs $5, environmental and reclamation costs $5, and contingency and other costs $2. This leaves an average net profit projected to be $361 per ton.

At 100 tons per hour, the operation should yield a projected net profit $361,000 per 10 hour shift. A double shift operation should yield a net profit of $722,000 per day.  Running the double shift 24 days per month should yield a net profit of $17,328,000 per month.  Assuming about 11 months of actual operation, the annual net profit is projected to be $190,608,000.

Crushing, Milling and Smelting Operation:  To expedite permitting, crushing, milling and smelting should be done offsite on a private property parcel to be leased or acquired.  In essence, the mining permit will be to disturb the surface, extract and haul ore.

Permitting:  The permit jurisdiction is the US Bureau of Land Management.  There are no anticipated impediments to BLM permitting.  An exhaustive environmental analysis has already been completed by the State of Arizona and concluded with a finding of “no significant impact.”

Price: Price will be quoted directly to qualified buyers or intermediaries.

The following technical documents and reports are available for review:

2008 Addendum to 2003 Jenkins Technical & Executive Summary
2003 Jenkins Technical & Executive Summary
1996 GoldTech Engineering Sampling & Assay Report
1984 Jenkins Property Geology Report
1981 State of Arizona Environmental Assessment
1981 Phoenix International Energy Report
1981 Phoenix International Energy Bulletin
1981 Phoenix Electric News Bulletin
1981 Alan R. Grant Geology Report
1980 Sawyer Consultants Geology Report

Other information available for review:

BLM LR2000 Database Report Verifying Ownership

2009 Independent Appraisal Report

2010 Appraisal Report Update

Area and Site Maps

Area and Site Photographs (see limited photos below)

If you are interested in purchasing the Castle Springs Mine, or in obtaining further information, please click here for contact information.

Old Mill Site Area

Old Mill Site Area

Trenching Test Area