Our Phase I Development Plan is to commence and enhance mining activities on the Gold Basin and the Gold River group properties as funding becomes available. Western has invested over $800,000 of its own funds to prepare these mines for operations, and over the past six months we have raised funds internally to initiate additional acquisitions, complete corporate audits and commence production to make the transition from an acquisition and exploration company to a revenue based gold and silver production company.
Specifically, we have concluded an acquisition of the Gold River Mine group ($400M in reserves), entered into a lease/option with other public mining companies for Oro Cache, Treasure Gulch, Sun Gold and Eagle. Infrastructure enhancements and final pre-production testing is now complete at the Gold Basin Mine and we continue to work closely with the owners of the Bluebell and DeSoto that we believe contain significant gold, silver and copper reserves.
Summarized information about the 3 mines follows:
1. Gold Basin
The Gold Basin Placer Project is viewed as one of the best placer projects in Arizona , from the standpoint of proven reserves through exhaustive testing, ore tenor, location and logistics, water availability and year around climate.
Description and Location: The Gold Basin claims are located on 332 acres in central Arizona , within the Hassayampa River Basin , some 20 miles south of Prescott , Arizona . The claims are near paved Arizona State Highway 89 and fully accessible using an unpaved forest service road to the site.
Ore Quality and Volume: Over $750,000 has been spent on extensive surface and drill testing, bulk sampling and assays over the past 15 years. The claims contain at least 17-24 million tons of processable head ore. Proven, possible and indicated reserves shown from Nebeker and other reported data exceed $400 million at $750 per ounce gold. Much of the ground with the same or similar geology has not yet been tested.
Plan of Operations: The program is divided into two phases. Using equipment that currently exists on site, Western will initially operate a small scale 20 yard plant. A second plant will be constructed to expand future operations to 40 to 50 yards per hour and will run simultaneously.
Mine Reserves and Financial Projections (Phase 1):
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Yearly Cash Flow $2.0 million**
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Margins 50%
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Reserves oz. Gold: 150,000 oz proven / 400,000 oz probable-indicated
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Reserves $ Gold: $112 million proven / $300 million probable-indicated
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Mine Life 20 (+) years
** - Note: Productivity of the Gold Basin Mine may be increased by 100% in less than 12 months with the use of the existing cash flow and Western plans to do so.
2. Gold River
Description and Location: On May 5, 2008, the Company acquired the Gold River Mine Group consisting of eight mines including the SunGold, Big Chief Group (4 mines), Oro Cache, Eagle and Treasure Gulch. The mines are located southeast of Prescott , Arizona in the Bradshaw Mountains .
The Company has entered into two agreements to either lease or lease with an option to purchase four of these mines, Treasure Gulch and Sun Gold and Eagle and Oro Cache.
These contracts require a considerable investment on the part of the leasers to fund the development of the above listed mines with Western being the development contractor.
Western is currently negotiating with other mining companies for additional lease option agreements and is also acquiring additional resource properties through its exploration division.
Western has a variety of these relatively small but profitable mining opportunities in various stages of development, some ready for immediate production. They are designed to provide the Company with a depth of security to minimize the down side investment risk. 3. Blue Bell/DeSoto
Description and Location: On September 7, 2008, we entered into an agreement with the owners of the Blue Bell and De Soto mines located on the southeastern slopes of the Bradshaw Mountains in central Arizona . The agreement provides the Company a two-year lease with a fixed price option to purchase the property for $2,000,000.
Ore Quality and Volume: The combined properties have in excess of 550 acres of patented (free and clear) land. Both mines have previously produced gold, silver and copper. The Company intends to construct a small hard rock gold/silver recovery plant on this site to provide a central location for processing material from the SunGold and other mines it owns in the Gold River Mine Group. During the fourth quarter of 2008, the Company will begin an evaluation of the Blue Bell and De Soto mines. Although these mines were closed in the early 1940's, substantial geological information exists as well as production records. These geological reports, prepared during and since that period indicating various amounts of reserves of silver, copper and gold will enable the Company to make estimates as to any proven, probable or indicated reserves for these minerals.
4. General Notes:
Western has a variety of these relatively small but profitable mining opportunities in various stages of development, some ready for immediate production. They are designed to provide the Company with a depth of security to minimize the down side investment risk.
The business plan calls for the establishment of positive cash flow coming from some of the operations while simultaneously moving on to the next project. The Gold Basin project above provides the positive cash flow to ensure a positive outcome for the bottom line while the next project is being developed.
Western currently owns or controls the above listed properties.
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