OPERATIONAL PROJECT DESCRIPTION AND PLAN December 2014 The following discussion for the proposed Mining Operations (In Feldspar; Copper; Gold; Silver and Tungsten), Ore Processing Operations and Associated Facilities, as well as Frac Sand Business Development; and Infrastructure as described herein are collectively identified as the “ALMI” Projects.
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Operational Project Description and Plan - ALMI December 2014
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OPERATIONAL PROJECT DESCRIPTION AND PLAN
December 2014
The following discussion for the proposed Mining Operations (In Feldspar; Copper; Gold;
Silver and Tungsten), Ore Processing Operations and Associated Facilities, as well as Frac
Sand Business Development; and Infrastructure as described herein are collectively identified
as the “ALMI” Projects.
Project Description and Investment Support Documentation Page 1
OPERATIONAL PROJECT
DESCRIPTION AND PLAN
ARAMCO LAND AND MINERAL, INC.
December, 2014
“ALMI” Operational Plan
The proposed and current Mining Operations (In Feldspar; Copper; Gold; Silver and Tungsten),
Ore Processing Operations and Associated Facilities, as well as Frac Sand Business Development;
and Infrastructure Plan in Arizona by Aramco Land and Mineral, Inc., (ALMI) in favor of valuable
in ground assets and minerals were previously identified in Private Placement Offerings for the
Rainbow Valley Mining project and the Lex Mining Projects (issued in publications in Feb 2013
and June 2013 respectfully). The following discussion is compiled from notes, publications, and
documents in relation to all operational aspects of the aforementioned. All projects are identified
as the “ALMI” Projects. Aramco Land and Mineral Inc., is the parent company, operating
company and the Project Coordination’s Proponent.
This document is prepared pursuant to the United States Bureau of land Management, and together
with other documents as previously mentioned, collectively is the process of compilation for
submission and review. This document is a general outline prepared in accordance with 36 CFR
228A Administration for mining Plans of Operation Authorized and Administered.
The claimant and operator is ARAMCO LAND AND MINERAL, INC., (ALMI) with a business
address of 2529 East Ivy Street, Mesa, Arizona 85213. Telephone number for the Corporation is
(480) 685-7879. ARAMCO LAND AND MINERAL, INC. (ALMI)’s Federal Tax Identification
Number is 46-1485824.
ALMI in connection with this document and thru related projects within the company is seeking
approximately bridge financing opportunity of $ 15,000,000.00 US Dollars. The funds will
cover construction costs of mill site, mining claim and expansion of corporation, and operational
costs.
INDEX
Project Description and Investment Support Documentation Page 2
Page Category
1 Section I: ALMI Operational Plan
3 Section II: Executive Summary
11 Section III: The “Lex Mining” Operation
19 Section IV: The “Rainbow Mine” Operation
29 Section V: Summary Specific to Personnel Operations in
Arizona
30 Section VI: Use of funds
SECTION II. EXECUTIVE SUMMARY
Project Description and Investment Support Documentation Page 3
The Company Introduction
ARAMCO LAND AND MINERAL, INC., an Arizona type “S” Corporation, has a main focus
on land and mineral rights acquisition, and development. The Corporation was founded in
November 2012 and has maintained strong personnel in management, with experience in business
development, mining, and international endeavors. In addition, the current leadership has
extensive knowledge and experience in land and mineral rights acquisition and development.
ARAMCO LAND AND MINERAL, INC., has a strong belief that the corporation differentiates
from other entities in Arizona, based on the land and mineral rights that are currently in the
possession of the company, and the lifelong mining history of the President “Emeritus”. The
location of the land and mineral rights are in areas that show a strong and exceptional history for
the past 150 years of mining in the State of Arizona.
ARAMCO LAND AND MINERAL, INC., is presently focusing on four avenues of revenue
streams based upon mining, milling, and utilization of mineral resources.
1) “LEX” Mine: ALMI currently possess rights to the “LEX” mine, formerly known as
the “Bobtail Mine”, and located in the heart of the “Pinal Schist”. In this location, the
Pinal Schist (Charles A. Ferguson, 1996) is considered to hold the strongest concentration
of mineral assets. The Pinal Schist (Hoxie, 2012) is the largest copper basin reserve in
Southeastern Arizona. Appendix “K” of the aforementioned “Lex Mine” PPM dated 15
Jan. 2013, illustrates that the Pinal Schist is in a geological formation similar to what
would appear in a satellite interpretation of the meteorological event referred to as a
hurricane, yet in the geological formation, the feeder bands merge in the center. It is at
this center of the apex that copper is in the largest quantities, and it is at this center, that
the Lex Mine is found. The mining operation is moving forward while an agreement is
under review with Asarco LLC, and their parent company Groupo Mexico, for advanced
development of an Operational Joint Venture (The mine will be developed under
compliance and supervision of Asarco LLC, and Asarco LLC will purchase the copper
ore slurry for processing at the Hayden Facility, In Arizona).
The in ground asset associated with this project is estimated to exceed US Dollars of
$1,000,000,000,000.00 (One Trillion). Copper Reserves are estimated at greater than 138
million tons of ore. Revenue from the sale of copper slurry through monetization of a
“Forward Sales Contract” is expected within 120 to 150 days into ALMI through a
proposed joint agreement with INSCX Exchange of Manchester UK, and Asarco LLC, a
subsidiary of Groupo Mexico. Under the terms of the Operational Joint Venture, Asarco
LLC will provide key leadership and supervision of the mining operation, and purchase
the copper ore slurry from ALMI for agreed upon price of 20% below the market price on
the LME (London Metals Exchange), which is approximately $7280.00 US Dollars per
Project Description and Investment Support Documentation Page 4
metric ton. This could easily bring approximately $803,712,000,000.00 US Dollars of
revenue over the lifetime of the project.
Through INSCX Exchange, and under the terms of a 5 month forward sales agreement,
funding would occur on 50,000 tons of ore. The first five months of shipments to the
Hayden facility would be paid in advance to ALMI less the 20% which will be paid to
Asarco LLC and this will provide operational funds for the operations of all projects
within the corporation, and the ability to secure any existing debts. When the ore is
shipped to Hayden, and processed, Asarco LLC would further process the sale to the end
user through INSCX Exchange. The debt on the “Forward Sales contract would be
paid in full from the end user purchasing the final copper product.
On the first 5 months of shipment of 50,000 tons of ore (10,000 ton per month), proceeds
paid to ALMI could be $291,000,000.00 less fees to INSCX Exchange, and any
operational costs to Asarco LLC. Proceeds paid out to Asarco LLC would be
$72,800,000.00. Everyone wins in the proposed Operational Joint Venture
Agreement which has been presented and is pending documentation and final acceptance
by Asarco LLC, and Group Mexico.
2) “Rainbow” Mine: This ALMI Project is a mining site located in Southwestern
Maricopa County, of Central Arizona. The mineral deposit is one focused on
Feldspathic/Silica (detailed is subsequent form) located in approximately a 387 claim
deposit is situated within The Buckeye Pluton. The Buckeye Pluton is generally
considered to be a fine to medium grained peraluminous two-mica granite. The ALMI
deposit is composed of a medium to coarse-grained porphyritic granite. The highly
unique nature of the coarse-grained mineralogy of the ALMI deposit has significant
economic benefits that allow ALMI to pursue an international market in “glass”
production. In addition the mineral resource has great value in nanotechnology with
application in semi-conductor production. Feldspar Reserves are estimated at greater than
600 million tons. On the international market feldspar in the form of White Silica
Feldspathic Sand, sells for approximately $120.00 US Dollars per ton. Revenue from
the sale of White Silica Feldspathic Sand through monetization of a “Forward Sales
Contract” is expected within 90 to 120 days into ALMI through a joint agreement with
INSCX Exchange of Manchester UK, and representative with the Government of
Kazakhstan, and Turkey utilizing the product for the development of glass products.
The key factor is the “exclusive” relationship. The present contract discussion with
INSCX Exchange and the government of Kazakhstan is for a quantity of 30,000 Metric
tons per month for 36 months at $100.00 US Dollars per ton. First draft of the contract
was completed in December 2013 and attached.
Project Description and Investment Support Documentation Page 5
3) ‘Frac Sand” project: Frac Sand is used to help extract oil and gas from previously
hard to reach shale deposits. ALMI, in an Exclusive Joint Venture Relationship with
INSCX Exchange (see INSCX Letter dated 17 Jan. 2014: Supply of Proppant Sands
et al [attached], is currently working with an affiliate group of Frac Sand Facilities,
Coating Plants, and Frac Sand Mining companies in North America (Preferred Sands
LLC, and US Silica have presently indicated that a joint venture relationship would be
mutually beneficial), to develop an exclusive international selling platform, through the
contract mediation of INSCX Exchange with other members of the exchange, which
include INEOS, and Halliburton, major end users in Frac Sand. INEOS is the global
number one producer of polyethylene, one of the world's largest manufacturers of
chemicals and oil products, whom now wish to expand into shale gas operations in the
United Kingdom for use as feedstock. Halliburton is presently developing mining
operation along the northern shores of the United Kingdom. The key factor again is the
“exclusive” relationship between the parties. It is believe that the sales activities of Frac
Sand into the United Kingdom could bring profit margins of 10-15% on the different
Frac Sand Products, including the “Dow Chemical” Product, exclusively produced by
Preferred Sand LLC. ALMI is presently in the initial stages of a joint venture
relationship with Preferred Sands LLC, and US Silica as major providers for the
UK and European markets. A 10% margin of profit equates to $20.00 - $22.00 US
Dollars a ton. Presently we are pending closure to a spot order for 250,000 MT of Frac
sand.
4) Process Technology: Through INSCX™ exchange a proprietary process has been
made available for bolt-on to the Copper mining project at the Bobtail/LEX mine. The
licensor through technical innovation, understanding of electrolytic processes and use of
modern materials, has developed the Adaptive Electrolytic Process, described as a high
speed and high selectivity technology of copper electrorefining and electrowinnig.
The Process is a software and hardware system which effectively accelerates the age-old
process of electrolytic production of copper. The result is a dramatic improvement in
production performance and current efficiency, significant lowering in operating cost and
capital investment, while also delivering an unexpected extension of potential uses well
beyond its traditional market place by allowing for copper production directly from bleed
and waste electrolytes.
The status of the process is approved by INSCX™ exchange, (the “Exchange”) which
will accept copper fabricated using the process as deliverable against an Exchange
contract. Process has already been used by a lead EU Copper producer (Global top 10)
which in trials recorded a 40-60% productivity increase.
Project Description and Investment Support Documentation Page 6
Aramco Land & Minerals Inc., has been provided the ability as an Exchange member to
secure license of the process via the Exchange as is (on operation of the Bobtail/LEX
mine) and/or as part of any joint-venture the corporation sought to negotiate with a
mainstream Copper producer.
Features
• Adaptive Electrolytic Process can be implemented in the existing copper refineries
without essential changes in the tank houses’ infrastructure – only customized power
supplies and its dedicated software and related detectors should be implemented.
• Up to 50% higher cathode current densities can be used to obtain commercially pure
copper. Typical current efficiencies are above 97%.
• Traditional stainless steel cathodes or copper starter sheets can be used.
• Cathode copper is received in broad spectrum of copper content in electrolyte from
50g/liter down to 1g/liter
• Cathode copper is received with the exceptional commercial purity higher than
>99,995%.
• No co-deposition of Arsenic neither evolution of dangerous AsH3 gas.
• Limits evolution of dendrites, keeps the cathodes surface smoother.
• Higher tolerance of contaminants in solution does not use reagents or chemicals.
• Reduced applicability of reagents or chemicals.
Rationale
Selected consequences to the economic viability of the Process ARE CITED BY THE
LICENSOR AS FOLLOWS:
• Reduced capital cost of copper production and recovery process.
• Licensing based on nominal up-front fee and ongoing royalty based on throughput
collected on trade through the Exchange.
• Reduced operating cost and a simplified flow sheet.
• Accelerated return on capital.
• Improved product purity and possibility to price underlying material at a premium to
LME Grade A price.
• Higher productivity than conventional methods.
• Higher % of the highest grade cathodes within population of all produced cathodes.
Profit Margins
Project Description and Investment Support Documentation Page 7
• With the placement of the bolt on technology at another facility other than the facility at
ALMI, ALMI would be a recipient of .25% royalty based upon the production amount
thru the tank and smelter at the facility.
• To illustrate the potential of income from this licensed technology, if the technology
were bolted on in the Hayden facility of Asarco, then ALMI would receive .25% of the
gross from the revenue of the copper developed at the Hayden facility, as a share of the
royalty for the licensed process. Hayden presently process at 70% capacity. The
capacity of the facility is 27,400 tons a day (Hayden Operations, 2014). Revenue based
upon pricing for copper from the LME would be approximately $500,000 US Dollars per
day.
The process has received favorable interest from Asarco, LLC, for bolt on at the Hayden
facility, and used with copper slurry not only from ALMI’s Lex Mine, but from other
mining ventures that Asarco processes the ore from. If that happens, bolting the process
on in the Hayden facility, ALMI will receive the .25% royalty per agreement with
INSCX.
Principal Offices
Our principal offices are located in Mesa, Arizona. We were incorporated in Arizona November
27th 2012. The success of the Corporation will continue to depend on its ability to identify mining
opportunities, and property that would be conducive to mining operations, and structuring
operational joint venture agreements that are mutually beneficial to all parties involved. The
relationship with INSCX Exchange and its affiliates is an invaluable asset as the corporation moves
forward. In addition, as the Corporation introduces new opportunities, it will need to hire addition
personnel, thus affording job growth to the communities that surround the endeavors of the
corporation.
Management Plan
ARAMCO LAND AND MINERAL, INC., (ALMI) with the guidance and assistance of others,
is seeking to hire personnel who will have a substantial amount of experience in the steel industry,
mineralogy and mill operations. This experience is considered essential to allow full
implementation of the company’s resources. Other required personnel will be hired as the needs
dictate. The founding principles are expected to remain guiding policy and direction which will
include participation on the board and, as appropriate, in operational positions. Brief summaries
of the experience of the principles appear below.
Except as noted, and as required to provide needed experience, the company intends to hire its
personnel in the local market and to provide necessary training to those employed. Full scale
Project Description and Investment Support Documentation Page 8
operation of all initial facilities could require as many as 300 personnel. These will require and
produce a variety of skills and are expected to be reasonable well paying positions within the
community. We intend to pursue State and Federal Funding, for training assistance and to facilitate
a continuous training program. In addition, we intend to continue our pursuit of the deployment
of strategic partners, who will provide invaluable supervision on the operation efforts of our
mining facilities, and in marketing (i.e. Pending agreement with Asarco LLC; Current agreement
with INSCX Exchange respectfully)
It is the desire that ARAMCO LAND AND MINERAL, INC., (ALMI) will go public within a
6 month time frame, with the strong development of the properties currently in possession, and
those on the list for acquisition and joint ventures.
Principles:
Mr. Daniel R. Pero
President and Chief Executive Officer, ARAMCO Land and Mineral, Inc., 52, one of the
founders of the company with direct responsibility for strategic planning, finance, and staffing,
and corporate development, and legal development of national and international ventures. Mr.
Pero is retired Military, serving in both the United States Marine Corps, (just short of fourteen
years) and the United State Army (a little over ten years). Mr. Pero is a combat disabled veteran
based upon service in Beirut in 1983, and the Gulf War. His background also includes serving a
couple years as a Hydro Meteorologist, for NOAA-National Weather Service. Mr. Pero worked
as a Secondary Education School Teacher in Business Management and Information Technology,
and an Assistant Principal for a Public Charter High School. Mr. Pero attended Juniata College;
and Rio Salado College. In addition, Mr. Pero has a BS in Business Management, and a BS in
Legal Studies graduating from Kaplan University. Mr. Pero has earned his Jurist Doctorate from
Concord School of Law, Kaplan University. Mr. Pero has a strong background in finance, owning
and operating a Mortgage Brokerage firm in Mesa, Arizona.
Additional Board Members:
Jim Taylor Yost
Vice-President, Aramco Land and Mineral Inc., 42, is responsible for the mill site, and all
construction and product output of the mining operation. Mr. Yost has 24 years extensive
experience in the heavy equipment, concrete and construction industries. Mr. Yost has been
responsible for residential building site preparation involving but not limited to heavy equipment
preparation for footings, foundations, walks and drives. He has further extensive experience in all
phases of concrete production and utilization. Mr. Yost has served in multiple roles as site
Project Description and Investment Support Documentation Page 9
foreman, Job superintendent over residential track development and commercial building
construction. Mr. Yost has significant experience in managing construction teams, subcontractors
and in general site management. Mr. Yost is directly responsible for the Rainbow Mine Project in
Buckeye Arizona.
Dr. Brian Christopherson
Treasurer, Aramco Land and Mineral Inc., 43, Dr. Christopherson is responsible for strategic
planning, finance and public relations interface with subsidiary companies. Dr. Christopherson’s
educational background began in 1987 attended Ricks College with a major in business
management. After completing his education at the University of the Pacific School of Dentistry,
Dr. Christopherson completed a general practice residency while serving in the United States Air
Force at Offutt AFB Nebraska. Following residency, Dr. Christopherson opened a successful
general dental practice in Durango Colorado. Advancing his skills, he completed training in
Endodontics, and then he established his current private practice in Mesa, AZ. Dr. Christopherson
has a strong background in personal relations and business development. Dr. Christopherson has
been involved in startup companies, involving international trade and development, specific to the
textile, and agricultural fields. He has extensive knowledge and relationships in Albania, a focus
point of previous endeavors.
**Special Note**
The Corporation co-founder, MR. Floyd Bleak, passed in Feb. of 2014. In memory of Mr. Bleak,
here is a tribute to his accomplishments:
Mr. Floyd R. Bleak
President “Emeritus”, ARAMCO Land and Mineral, Inc., 81, one of the founders of the
Company, and provides a wealth of knowledge to the current mining assets held by the company.
Most recently, Mr. Bleak was instrumental in the formation and development of Black Mountain
Corp; Southwest Exploration Inc.; and North American Environmental corp.; where he served in
various positions, from Director, through President. These companies grew the mining industry
in Arizona, specific to gold exploration, and potash. From 1990 to 1992, Mr. Bleak served as
Treasurer of Sun Walker Development Corp., a publicly-held mining company. Mr. Bleak was
vice President of Mariah International from 1987 to 1988 where he developed mining properties.
From 1983 to 1986, Mr. Bleak was president of Jassmr Corp., where he managed and developed
a deposit of lightweight rock used in lightweight concrete, Jassmr was acquired by Arizona Tufflite
Corp.
Section III. The “Lex Mining” Operation
Project Description and Investment Support Documentation Page 10
The property is located in the Globe-Miami Mining District of Arizona and is reached by
automobile from Globe, the distance being 16 miles. The Globe-Miami District is one of the
largest copper producing districts of Arizona, having the Magma, Ray, Inspiration and Miami
Mines. The property consists of 17 lode mining claims, or approximately 400 acres.
F.L. Ransome of U.S. Geological Survey refers to the Mariana Mines in Globe Folio #111. “As
examples of lode deposits may be cited the Summit, Cole, Goodwin and Mariana lodes, carrying
sulphide ores in Pinal Schist”.
In the Mariana Mine, chalcopyrite (copper), spharlerite (zinc), galena (lead), pyrite (iron) and
huebnerite (tungsten) occur together in a quartz gangue {within the gangue can be found mica and
feldspar, which can be extracted and sold separately}; none of the minerals show a later or earlier
origin than the others. The property was opened by sinking a shaft to a depth of 215 feet and past
records show that much direct smelting ore was mined from the 100 foot level and shipped to El
Paso to be smelted.
The geology is simple. The country rock which encases the veins is the Pinal Schist. Three veins
of commercial thickness and value are shown on the surface and are partially developed at depth.
The main vein is from 3 feet to 10 feet wide and has a lateral extension of 3,000 feet. The main
shaft on the Bobtail Vein was reopened and encountered the top of old workings at 60 feet. The
shaft at all points was in the vein which varied from 3 to 4 feet in thickness.
Two test carloads were mined and shipped in the early 70’s to the International Smelter at Miami
and the Smelter returns follow:
SMELTER LOT 2799- SMELTER LOT 2413-
Gold 00.165 oz. Gold .275 oz.
Silver 13.30 oz. Silver 29.1 oz.
Copper 31.51% Copper 5.29%
Gross Value in 1970 was estimated at $43.44 per ton on Lot 2799.
Gross Value in 1970 was estimated at $61.89 per ton on Lot 2413.
The Bobtail vein is of simple fissure type and shows a persistent thickness from the surface
to the bottom of present shaft at 215 feet. Mineral Reserves are estimated at approximately
140,000,000 tons based upon previous mine development, and core drilling. The thickness of the
fissure averages 4.4 feet to this depth. The lateral extension of the vein (1,500 to 3,000 feet) offers
ample room for lateral development, with the possibility of blocking out large tonnages of
commercial ore that justify a major mining operation. Veins #2 and #3 contain tungsten and zinc
Project Description and Investment Support Documentation Page 11
and a small flotation mill that will prep the material for further processing, would concentrate these
metals in addition to gold, silver and copper.
The average of 20 reported smelter shipments is as follows:
GOLD .44 oz. per ton
SILVER 25.6 oz. per ton
COPPER 7.51%
Equals a gross value of @ $7,210 per ton, based on today’s metal prices (Dec. 2013).
The project was obtained by quitclaim from Nancy Shepard, and Mr. Floyd Bleak, and the “below
ground” assets are obtainable through either an expansion of the current mine shaft operation, or
through open pit. ALMI projects is considering the operation of an open pit mine, similar to the
surrounding projects currently maintained by Freeport McMoRan, and Resolution Copper, and
Asarco LLC.
Freeport McMoRan currently operates the project in Miami Arizona, a pit operation with refinery
consisting of a smelter. This operation by Freeport McMoRan, is the nearest operation to the “Lex
Mine”, and Freeport McMoRan provides details of the Miami Operation as follows: