DUNS Number: 080883467
NATIONAL SALES CORPS
Dane Mining & Exploration Group – A Series Trust
Gold, Silver & Silica
The operating partner of the mine died 8 years ago, and the mining operation was shut down. The shareholders of the company have decided to complete a stock sale of the company. As of October 20, 2017, National Sales Corps acquired 100% of the stock Dane Mining & Exploration Ltd. Through this acquisition, it established an operating entity to place the mine back into full operations and provide not less than 8,000,000 ounces of Gold to one of our affiliate Public Companies over a 10 year forward production agreement. This will provide an asset back stock of not less than 1 gram per authorized common share.
The Volcano & Kimball mines are located in Hidalgo County, New Mexico, three miles from the Arizona/New Mexico state line, and nine miles north of Interstate 10. The Volcano & Kimball property is 20 acres each, deeded and patented, and there are ten 20 acres each Bureau of Land Management (BLM) claims around the mines and held by Dane. The company is in good standing with an active mining permit.
In 1981, Thomas Young wrote his Masters Thesis on the Volcano Mine and the surrounding BLM area for his Degree of Master of Sciences in Geological Engineering from the University of Arizona. In his thesis/essay, he indicates that the gold is more widely distributed than the silver and those minerals increase with depth. Mr. Young’s engineering study went in-ground to the 500 foot level, and determined the proven/probable ore was approximately 40,000,000 tons, therefore the overall amount of silver would be 800,000,000 ounces, the overall amount of gold would be 40,000,000 ounces, the overburden (rock not showing much mineral value used for road construction, etc.) is approximately 150,000,000 tons, the silica is approximately 100,000,000 tons, copper would be approximately 75,000 pounds, and there is also an undetermined amount of molybdenum below the 500 foot level. The Kimball property/mine has not been mined by Dane Mining & Exploration LTD, but the plat map shows an audit on the property, which showed 3 ounces of gold and 10 ounces of silver per ton. It is estimated at 20,000,000 tons of mineable ore, and the El Oro vein located on the Kimball is believed to be a richer vein than the Volcano vein.
Total Proven/Probable/Possible Reserve Value
based on the above prices is estimated to be $147,434,000,000
Dane Mining and Exploration, LTD, purchased the Volcano and Kimball mines May 5, 1997. Dane Mining & exploration, LTD was incorporated in Nevada on August 13, 1997, by Judy Dane and NSC acquired it in October 2017. The Volcano Mine has been mined as an underground gold-silver producing property since 1886. It was patented under “U.S. Mining Law of 1885” in 1922. (Patent results in a Warranty Deed.)
Dane Mining has the ability to lease the 10 surrounding BLM mining claims and with these patented mining properties (Volcano and Kimball) and the 10 BLM claims, the company has established that the proven mineable ore reserve exceeds 40 million tons. Dane Mining leased the property in 1994 and mined the Volcano Mine as an open pit mine. In 1997, an open pit mining permit was obtained from the State of New Mexico and Dane Mining & Exploration. LTD mined the Volcano and sold the ore to Phelps Dodge Co.
Past mining payout sheets have shown the silver to average over 20 ounces per ton and the gold to average over 1 ounce per ton.
In 1981, Thomas Young wrote his Masters Thesis on the Volcano Mine and the surrounding BLM area for his Degree of Master of Sciences in Geological Engineering from the University of Arizona. In his thesis/assay, he indicates that the gold is more widely distributed than the silver and those minerals increase with depth. Mr. Young’s engineering study went in-ground to the 500-foot level and determined the proven/probable ore was approximately 40,000,000 tons. Mr. Young’s thesis was approved by the University of Arizona’s School of Engineering’s W. C. Peters, Professor of Mining and Geological Engineering, and is currently a reference periodical in the school’s library.
Given the proven/probable gross reserve of 40,000,000 tons of silver at an estimated 20 ounces per ton, the overall amount of silver would be 800,000,000 ounces, calculated at a market price of $17.71 (6/6/2017), would give an approximate value of $14,192,000,000. The gold at 1 ounce per ton, equals 40,000,000 ounces at a market price of $1,297.00 (6/6/2017), would give an approximate value of $51,880,000,000. The overall value of the gold and silver from the Volcano mine would be approximately $66,072,000,000.
The overburden (rock not showing much mineral value used for road construction, etc.) is worth approximately $10 per ton. There is approximately 150,000,000 tons of overburden valued at $1,500,000,000. The silica value is $125 per ton and there are approximately 100,000,000 tons with a market value of $12,500,000,000.
There has also been a proven amount of copper of at least 1 pound of copper per ton. The current price of copper is $2.56 (6/6/2017) per pound. The approximately 75,000 pounds of copper has a value of $192,000. According to the thesis by Mr.Young, there is also an undetermined amount of molybdenum below the 500-foot level. Molybdenum has a current market value of $29 per pound; however, we are not able to estimate the value contained in the mine.
Discounted back for the cost of mining, the fluctuations of metals values and the possible differences in mineral quantity, the estimated value of the Volcano mine should be around $60,000,000,000.
The Kimball property/mine has not been mined by Dane Mining & Exploration LTD, but the plat map shows an adit on the property, which showed 3 ounces of gold and 10 ounces of silver per ton. It is estimated that 20,000,000 tons of mineable ore are available on the Kimball, which would put possible reserves for the Kimball at $81,362,000,000. The audit has probably caved in and been covered by sand, but the El Oro vein located on the Kimball is believed to be a richer vein than the Volcano vein.
Dane Mining & Exploration, LTD. has current active mining permit and is in good standing. Two Surety Bonds for reclamation totaling $48,876.83 will need to be replaced upon closing by the new owner.
Total Proven/Probable/Possible Reserve Value based on the above prices is estimated to be $147,434,000,000.
NSC has operating affiliates to support the development of new technology and bring Dane Mining Group into full production in restarting mining operations within the next 2 quarters. Acquire an additional 5 to 15 other properties and milling site through the western part of the United States. Dane will be the starting operations since the permit is up to date and operations can start immediately.
Given the active mining permit in New Mexico, we will look to acquire other reserves in the area and other states, and countries.
Estimated start-up Cost $15 - 20,000,000, (For one of seven potential operations, plus reclamation in California for 2017 through 2018.)
Operating cost to mine 2,250 to 2,500 tons of ore & overburden a week.
Items Operating cost per week
22 employees $49,500.00
Equipment 10 years write off/maintenance $95,500.00
Drilling blasting $14,000.00
Assay Lab $5,000.00
Misc. expense $25,000.00
Estimated Gold & Silver washed out and other minerals washed out of 1400 tons of silica per week:
Item Gross Net
Gold at 2oz per ton (2,800 oz @ $950.00) $2,660,000.00
Silver at 25 oz per ton (35,000 oz @ $17.00) $595,000.00
Silica 1,400 tons @125.00 $175,000.00
Other minerals $5,000.00
Overburden 1,050 tons @ 2.50 $2,650.00
Net per week
Gross Revenue $3,437,650.00
Operating Cost $213,500.00
Estimated Weekly Net Revenue $3,224,150.00
The intent of this report is to summarize geological formation, location information, past shipping reports and open pit mining plans concerning the Volcano Mine for the stockholders of Dane Mining & Exploration, LTD from J.L. Dane, President.
The Volcano Mine has been mined as an underground mine since 1885. It was patented under "U.S. Mining Law of 1885" in 1922. Patent results in an owners Title of Warranty Deed. Dane Mining & Exploration has purchased and holds a Warranty Deed to the patented property. The company has leased 10 surrounding Bureau of Land Management(BLM) mining claims. With this patented mining property and 10 BLM claims, the company has established that the mineable reserve exceeds 40,000,000 tons.
The mining property consists of a silica deposit with enriched veins (Exhibit 1) with an apparent length of over 4500 feet. Silica vein width varies from 150 feet to over 200 feet containing economic shoots of silver and gold. A parallel silver deposit has a width from 13 feet to 15 feet and a depth of over 500 feet with an apparent length of 1500 feet on the Volcano Mine property.
A depth of 500 feet in vein material was reached by examination of the old mine workings by company personnel and professional mining advisors.
As recently as 1994-1995 previous lessees removed 50,000 tons of overburden from the silver vein and exposed the silica deposit with the inherent minerals gold and silver. (Exhibit 1) Approximately 2500 tons of ore was mined and shipped to the smelter from the silica vein and adjacent silver vein, resulting in a Gross Profit to the company the sum of $70,957.70 (Exhibit 3-7) This exploratory work prepared the silica vein for mining. When the silica deposit is mined and shipped to the smelter the adjacent 13 foot silver vein will also be mined and shipped.
In 1997 a mining permit was issued to J. L. Dane by the state of New Mexico, the USA, and a mining plan were registered with the BLM.
Historically, during September 1981, Dolan Campbell, the operator of the Volcano Mine at the time, shipped several railroad cars of Volcano ore from Steins, NM, the USA to Asarco, Inc., El Paso, Tx. The Asarco receiving reports show that the ore carried:
111.9 tons AU .19 oz/ton AG 36.11 oz/ton
103.5 tons AU .23 oz/ton AG 55.32 oz/ton with independent sampling and professional assaying, results have indicated that the silica percentages will be in excess of 85%.
Two properties located in southwest New Mexico, USA. Deeded, patented, and permitted for open-pit mining. Surrounded by 10 leased BLM claims. Located eight miles on a good gravel road from highway I-10 and principal railroad tracks with east and westbound sidings.
The Recent production of 2,500 tons of silica ore averaged 7,605.24 ounces of silver, 217.815 ounces of gold, totaling $122,404.35. Property is designed to service copper smelters with silica, which is needed as a flux in the production of copper. The silver and gold are purchased by the smelter.
A by-product of mining is the production of a high-grade decorative rock which is much in demand. Approximately 50,000 tons of decorative rock is available for shipment in various sizes. Estimated ore reserve is over 43 million tons. The property has been professionally surveyed and appraised.
The Miller Surveying Company, a registered survey company of Silver City, New Mexico, USA, has surveyed the Volcano patented property and the 10 BLM claims surrounding it reestablishing proper corner markers. (Exhibit 9)
A mining permit (#H1008ME) has been issued to J.L. Dane, President, Dane Mining & Exploration, LTD by the state of New Mexico, USA, and a mining plan is registered with the BLM.
The company will mine the exposed silica deposit and silver vein to a depth of 300 feet, the width of 150 feet, and length of 300 feet in PHASE I of the mining plan, producing an estimated 4000 tons per month of shippable ore or a minimum of 953,333 tons. The local copper smelters use the silica as a flux in the production of copper, extract the silver and gold values and remit 85% to Dane Mining & Exploration.
Mining costs for Dane are estimated to be $15.00 per ton. Transportation costs to the smelter, $10.00 per ton. This will make the cost of mining and shipping cost of $25.00 per ton. Previous shipments averaged 20.70 oz/ton silver and .172 oz/ton gold. By careful control and selective mining, the smelter pay price should always be higher than previous shipments. See Volcano Mine Cash Flow Projections. (Exhibit 15)
PHASE II will expand the mining of the silica and adjacent silver vein by extending the depth another 200 feet length of 700 feet and width of 130 feet, producing an estimated 1,483,000 tons. (Exhibit 9) Workings in the underground Volcano Mine, which extend to a depth of 500 feet, show no signs of flooding.
PHASE III will expand the mining operation south through BLM claims Dane I and Dane II, (Exhibit 9) following the silica deposit and vein material.
Action Mining Services, Inc., Sandy Oregon, have developed a roasting and recovery system bringing recoverable gold values to about 1.1 oz/ton of mine rune ore. (Exhibit 11)
Mr. George Brown of George Brown Consulting, Inc. Johnson City, Tennessee was consulted concerning the possibilities of marketing silica as a by-product. His work established that by using a "washing process" the silica will be improved and gold and silver recovery will be increased 30% to 100% by removing the sulfosalts. (Exhibit 10-12)
Their work has indicated that with a processing mill, we can increase the profitability of the ore. A mill with adequate water and power has been located.
The suggested "Greenfield" evaluation of the Volcano Mine by Mr. George Brown gives it a life of 15 years for PHASE I and a value of $7,000,000. (Exhibit 10)
Mr. Don Kerr, a certified General Real Estate Appraiser of New Mexico, Arizona, and Texas, approved and accepted by New Mexico Energy, Minerals and Natural Resources, appraised the Volcano Mine to have a value of $18,680,000 as of May 16, 1998.
In November 1998, a contract was entered into with RecWest, a company from Tucson, Az. To mine and ship ore from the Volcano Mine to Phelps Dodge, Chino Smelter RecWest shipped 475 tons of low-grade ore to the Chino Smelter after turning the project over to an inexperienced mining engineer for 4 months. Their contract was canceled.
In March 1999, W.L. Maintenance and Dane Mining commenced mining and processed approximately 4,380 tons of high-grade silica, with good silver and gold values for smelter use. Also produced are approximately 16,000 tons of "Decorative Rock" in various sizes ready for shipment.
On August 30, 1999, W.L. Maintenance canceled all contracts, assigned all ownership of mined and processed rock to the company and left.
At this time Dane Mining is:
1. Discussing with several Copper Smelting Corporations, the possibility of long-term silica, silver and gold supply contracts in Arizona, New Mexico, and Texas.
2. Aggressively researching the Decorative Rock business. Approximately 90% of the remaining overburden necessary to be moved is Decorative Rock. Commercial Decorative Rock companies have been contacted in Tucson, Las Cruces, Silver City and other areas. Negotiations are on-going at this time.
At this time, Dane Mining & Exploration, LTD is negotiating with companies that will mine the Volcano Mine, taking advantage of its high silica, silver and gold values, and the market for decorative rock.
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