THE MINING COMPANY holds 6 BLM Claims of 560 acres each.

These claims are replete with commercial and precious minerals, not limited to gold, silver, platinum, palladium, rhodium and iridium. The value of just one claim is estimated to be worth at least US $ 4 Billion (to a depth of 100ft). With gold at around $1,800 opt, this valuation should be revised upward.

These mineral claims lay on an alluvial plain that is in an area where mountains have been eroded into sand and gravel, filling a valley to depths of 3,000 feet. The minerals have been determined to be roughly uniform in dispersal throughout the geological area. The mining technology required for their recovery is of the simplest kind. Basically, it involves placer mining, where sand and gravel are dug from the ground and processed through extraction equipment to concentrate precious metals. The concentrate is milled and processed to recover the precious metals. No blasting or underground work will be required. Mining operations have to be permitted and bonded.

The project will be conducted in two main phases: a pilot phase and a production phase.


Operations

The operations will be executed in two overlapping lines of work. First, a pilot plant with associated laboratory will be established. It will function to complete the engineering of the production facility. This process is planned to be completed in month 4. Partially in parallel, the production facilities will be established and the mine site will be prepared. A 9-10 months time frame is estimated to complete the production facilities. There are two components of the operations, the mining and the processing of the ore, which will be physically separated for several reasons (easier permitting, better security, and flexible ore sourcing). The offset to this are higher transportation costs which will not overcome the benefits of the separation, in particular because the head ore will already be partially concentrated 10:1 at the mine site.


Sales

The electroplated mud can be sold as is and may not have to be converted into a dore bar. Most refiners (or banks) would melt the dore bar anyway. Selling the mud directly would save THE MINING COMPANY and the buyer one step in the processing. THE MINING COMPANY has two sales contracts for a minimum of 100kg per month of gold and platinum each. Additionally, THE MINING COMPANY holds two letters of intent from third parties offering to purchase any and all production of this mine. Several other parties have expressed their eagerness to do the same. Preliminary contacts with a cement producer seeking to expand operations in Arizona have also been made to find an exit for the mining by-products, sand and gravel as well as magnetite.

A detailed Revenue/Expense plan for a five year projection is available upon request, along with a detailed breakdown of the use of funds.





Markets

The available precious metals have ready markets. Gold, platinum and palladium are vigorously traded and daily quotes are available online, in major newspapers, and from stock brokerage firms throughout the world. Predictions for prices of these metals abound and vary from catastrophic declines to phenomenal increases. The truth is that no one, experts included, can know for sure the future prices of precious metals. But given recent global monetary inflation, these metals will likely increase in price, as they always have done in times of currency uncertainties. In addition to inflation pressures, increasing global commodity demand will exert even more pressure on the prices of precious metals. Rhodium is a metal unknown to the general public and it is probably better characterized as a "rare" metal rather than a "precious" metal. It is primarily used in the manufacture of catalytic converters used in the automotive industry to reduce or eliminate toxic emissions from vehicle exhaust systems. This metal is rapidly replacing platinum as the preferred catalyst because it is more efficient and a converter using rhodium will last the life of the vehicle. Rhodium is in short supply and that existing supply is by many considered to be under the control of a de-facto monopoly. Automobile manufacturers worldwide are dependent on this monopoly for their supply. In addition, manufacturing fuel cells requires the use of Rhodium. As fuel cell technology drives down the price of the cells, they will become a factor in industrial applications. The fuel cell industry will continue to grow creating an even greater demand for Rhodium. In short, the markets for the Company's output are well defined historically and are easily accessible.


Exits

THE MINING COMPANY holds two purchase contracts for 100kg of Platinum and for 100kg of Gold per month by independent parties. Other parties have indicated their desire to engage in purchase contracts. The most desirable form of deliverable that emerged from the discussions with potential buyers is the anode mud obtained by electroplating the leach solution. Banks and/or refineries take the approach of melting any intake product anyway. This way THE MINING COMPANY may be able to save the step of creating dore bars, while delivering a desired product.


Individual Discussion

The minerals and metals that are contained in the ore will be extracted and processed at different times. The primary focus will be originally on gold being the most well understood precious metal in the ore. Platinum group metals will be included shortly thereafter (2-3 months). Other salable minerals, in particular magnetite, will be extracted in year 2, or early year 3. The recovery of magnetite will require a more elaborate mining infrastructure and does not offer a return on investment as high as gold/silver and the PGMs do.

	Exit Strategies
Gold/Silver	Gold and silver are readily salable metals in refined state. We plan on building our own laboratory right away to produce semi-refined gold and silver with a purity of 80-90%. The product will be assayed and delivered to one of several metal houses, including Johnson Matthey and others, that will purchase essentially unlimited quantities. Rodney Beyer has past experiences and industry relationships selling hundreds of thousands ounces of silver to metal houses. There is virtually an unlimited demand for the metal in today's markets, private and public. Precious metals may also be stored for future monetization and as collateral for other projects in which THE MINING COMPANY may engage.
PGMs	The platinum group metals will not be as easily sold. The recovery will likely focus on dore bars (mixed bars of several metals with a less then refined purity). One alternative will be to engage end users of these metals, e.g., car makers, directly to engage in delivery contracts. This opportunity has not yet been explored sufficiently.
Magnetite	The primary outlet for Magnetite is as an iron ore resource. It must be extracted, washed, and otherwise preprocessed to obtain a salable product, in this case with up to 70% iron content. Industry standard is in the mid 60%. However, the equipment needed for the tonnage required to make enough salable product is much more involved than for the precious metals recovery, and thus, while profitable, has a lesser margin. This mineral will be mined at a more advanced stage of the project. One alternative use of magnetite is as a mix-in component of specialty concrete requiring greater hardness. It may be possible to use some quantities for this purpose, yet here again, the margin is less than the precious metals recovery, and thus, this may not be our initial focus.

Loan Repayment

Draws on the line of credit would be made over the course of several months in the first year matching milestones to be achieved. The repayment of the loan will occur in the second year coinciding with the start of the first full production line. The loan can be paid back within the 24 months time window without unduly impacting the ongoing operations or profits of the mine.

Actual payments may vary. The loan terms are unknown at this time and are assumed to be around 12% including all upfront points. An additional maximum of 10% upfront financing fee is build into the pro forma financials separate from the loan repayment schedule to satisfy the need for compensation of intermediaries. The burden of loan repayment will roughly be two parts repayment to one part profits between Month 13 and Month 18 of the project. This burden will drop to roughly one part repayment to four parts profits once the 300,000 ton per month level will be achieved between Month 18 and Month 24.

Each claim encompasses an area of 560ac. The claims are virgin dessert land and no ongoing disturbances occur. The claims have been valued by an independent geologist.

The claims are located atop a major magnetite bearing alluvial flat ("black sands"). The material is well rounded and granular between 1/16 mm and 2.5 cm. It is loose and can easily be separated into fractions by simple physical means. Geological assessments have found the sediment to be remarkably uniform in composition in horizontal as well as vertical extent. Extensive matrix core drilling in this area and on the claims themselves have not reached bedrock, indicating a minimum depth of the sediment of at least 1000 feet throughout the valley; up to 3000 ft are assumed. While there are bedrock protrusions within the valley none are on the claimed properties.

The area is located in an arid desert environment. The topography consists of an alluvial plain sloping gently westward at a rate of about 50 feet per mile. Drainage, above and underground, follows the surface slope westward. Washes crossing the claims are usually dry except for the two rainy seasons when occasional water flow can be observed. The area has no surface water, yet drill tests have found aquifers between 40 and 440 feet with pump tests yielding 500 gallons per minute.


Precious metals discovered so far include

Gold (Au),
Silver (Ag),
Platinum (Pt),
Palladium (Pd),
Rhodium (Rh),
in two samples Iridium (Ir).

Assays

The assays conducted on the ore body are summarized and are available upon request.


Resource Estimates

The Black Sands have been explored extensively. THE MINING COMPANY owns a total of present day in-ground value of close to $36.5 Billion to a depth of 100ft and $180B to a depth of 500ft.


Assays     Details         NDNC     Data Room


It will cost $250,000 to set up a mini production line, with continuous processing. An investor will receive a 5% equity position in the company for the $250,000.

The next phase will be to build a pilot plant, with the capability of processing a ton a day of ore. This will cost around $2MM and take between 4 to 6 months to complete and the investor will receive a 15% equity position in the company.

For $100MM you will receive 49% of the new JV. It works on a sliding scale. For $20MM, which is really the bottom end of an investment that would work for the project, you will get a 25% interest.


Fill out the NDNC and send it to me via email or FAX 1-866-592-5124,
I will promptly put you in touch with the owners!