Letter of Intent signed with Shiprock Peru SAC

Gold Horizons Mining, (ticker GHMG on the GXG Markets) senior joint venture partner has signed a letter of intent with Shiprock Peru SAC with the stated goal of creating a joint venture to develop the companies mining and processing plant assets and to provide the Yuramayo Processing Plant construction, operational and engineering services associated with this industry.  Because of the sensitive nature of the negotiations, I cannot release all of the details at this time. However, some of the assets and services being discussed that we could acquire include the following:

  •  A 2,000-hectares mining concession, which is part of the Yura Mine, located in Arequipa, Peru. This concession offers opportunities ranging the total spectrum.  It would provide mineral to our processing plant as well as the opportunity for our company to participate in exploration and drilling. 
  • The total property is in excess of 17,000 hectares and several million dollars has already been invested in this project toward permitting, legal and exploration studies.  Over 50 kilometers of road building has been completed, thousand of samples have been taken as well as geo survey mapping.  The results of drilling this property could confirm many billions of dollars in minerals.   Out of the 5000 hectares that have been accessed, 2000 veins have been identified and 6,000 surface samples have been taken.
  • Included in the mining concession is a decimated gold zone and numerous surface samples have been taken reporting an average of 2 plus grams per ton.  A proposed drilling project of approximately $5 million could confirm up to $3 billion in gold ore reserves if the results averaged 1 gram per ton to a depth of 100 meters over the identified zone. 
  • Infrastructure.  Included in the proposed J.V, our company will have access to mining equipment i.e. dump trucks, excavators, bulldozers, graders, rollers, compressors, and other various equipment essential to mining and processing plant operations.
  • Shiprrock SAC would provide engineering, construction, and operational support for the Yuramayo Plant.  This would include ramping up production as well as adding flotation and gravimetric circuits to our existing CIP plant.  The required financing to achieve this is limited, since Shiprock SAC already owns an approximately 100-ton per day floatation plant. Upon financing and government approval, this plant would be installed at the Yuramayo plant.  Included is both the hardware (power lines, poles and a 500 kva substation) as well as the installation thereby connecting the Yuramayo plant to the grid.   Compared with diesel generators, this electricity from grid would result in a 10 to 20 percent savings in the overall costs per ton to process ore and improved reliability of service!
  • Additionally- legal, accounting, and G & A services required to run and maintain a mining company will be available to our company.  This cannot be underestimated since our j.v partner has over 20 years of experience operating in Peru as a large-scale mining status*. 

 

Large-scale mining projects must meet a minimum in size and tons per day processed.  For example, some large-scale mining projects being developed in Peru include Glencore Xstrata PLC's $6 billion Las Bambas copper deposit, a $4.4 billion expansion at Sociedad Minera Cerro Verde SAA, and HudBay Minerals Inc. $1.8 billion Constancia project.