Frequently Asked Questions (F.A.Q)
This section holds the most general questions about Sungro Minerals:
- In total, how many drill holes have been done in Conglomerate Mesa?
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There have already been over 80 holes punched in Conglomerate Mesa with the total amount of drilling in excess of 10,000 feet.
- What is the quality of the Gold?
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Based on the findings outlined in the NI 43-101 Report, the gold deposits per ton are at Commercially concentrated levels:
5 feet @ 0.103 opt Au
6 feet @ 0.124 opt Au
7 feet @ 0.251 opt Au
10 feet @ 0.030 opt Au
15 feet @ 0.105 & 0.208 opt Au
20 feet @ 0.038 opt Au
40 feet @ 0.151 & 0.370 opt Au
140 feet @ 0.123 opt Au
For further reference please see pages 2, 39, 41-43, 47-51 in the NI 43-101 Report. View Report
- What type of gold deposit mineralization is it?
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The gold mineralization type is similar to the "Carlin-type" deposits of north-central Nevada. The Carlin type deposits represent some of the largest hydrothermal gold deposits in the world. The invisible nature of the gold in the deposit makes it difficult to find those kinds of deposits. The class of deposit was defined after the Carlin mine became a mass producer of gold in the 1960s and it was recognized that other deposits of that type should exist. Most of the mines in the Great Basin in the United States belong to the Carlin type. Carlin type deposits have also been found in China and Macedonia.
- What is the development and or operational timeline?
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This is an undertaking of 18 to 24 months for site development which culminates in permitting for mining production. As the time-line moves into the second year, the Company expects to begin the work for operational mining permits so that as the final site exploration, development, and production planning draws to completion, they are ready to move into actual production.
- Other than the expected 2,000,000 Ounces of Gold, what other minerals are expected to be found?
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As per the NI 43-101 the following mineral deposits are expected as follows:
Silver: 249,640,000 Ounces
Lead: 4,803,200,000 Lbs.
Zinc: 18,012,000,000 Lbs.
Copper: 31,000,000 Lbs.
- Would the USD $10 million financing, as mentioned in our Press Release dated February 17, 2011 bring the mines into production?
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No, the purpose of the $10 million is to bring the mines to the point that allows the start of production. The achievement of "feasibility" as this stage is known is to lay out the mining methods, have the permitting under way, and solidify the actual values of what is on the property. Typically, this effort results in "proven" reserves of minerals that are much greater than the current report indicates. In addition, the use of the remaining funds will allow the company to "graduate" to a more established exchange.
- Up to date, what has been the amount invested by Sungro Minerals into Conglomerate Mesa?
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To date, Sungro has invested about $3.5 million into the project. This has consisted of payments under the mineral agreement, payments to maintain the claims with the county and the Bureau of Land Management. There are ongoing payments for certain items that amount to approximately $350,000 a year. In addition, some of the costs have covered the evaluation of the NI 43-101 Report.
- Up to date how much investment has gone into developing the land from previous companies?
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Sungro has estimated that all of the previous companies have invested approximately $12.0 million in the exploration of the claims.
- What about environmental issues?
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The Company believes it will have to deal with environmental questions, but that it will be part of the normal review and issuance of permits. As mining is currently being done in the surrounding area, this should not be an issue.
- Would there be any problems in obtaining mining permits for Conglomerate Mesa?
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Sungro does not anticipate permitting issues. Permits for this property were issued to BHP Billiton and Sungro intends to renew those permits once funding is obtained. Like any mining company we expect to pass both production and environmental reviews. The Company anticipates being able to move the process of permitting along in a reasonably efficient manner with nominal difficulties.
- Why has the company not been able to raise "substantial" funding in the US for this project?
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The Company is currently in discussion with a number of potential U.S. based investors. To date, all "seed" investors have come in from US sources. The previous capital raising structure was not setup formally until the NI-43101 was completed.
- How is the ownership of Conglomerate Mesa secured by Sungro Minerals?
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The claims that make up the Conglomerate Mesa project are deed and title recorded with Inyo county tax assessor's office.
- What is the tenure of the mining claims given by the Bureau of Land Management to Sungro Minerals?
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The claims are perpetually held by the Company so long as the annual claims maintenance payments are made.
- How suitable is the surrounding area to mining? I.e. is there ample water supply, how close are major highways and railroad tracks. What is the population of the surrounding towns?
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Railcar is 3 miles from the claims. Both water and electric are in sufficient quantities and are accessible to the mine. Inyo County has a population of approximately 21,000. The County has the highest per capita unemployment in the State of California.
- Has mineralogical test work been done on Conglomerate Mesa?
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Yes. Enough mineralogical testing has been completed for our geologist to advise that the cost to extract is definitely economical. Our geologist estimate the extraction cost not to exceed $500 per ounce.
- The NI 43-101 has a few pages that are "intentionally left blank". Why is this?
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Prior to the company staking an additional 217 claims in the area which blocked out anyone from staking miscellaneous "nuisance" claims that could have interfered with our development, we redacted the maps and coordinates from the report that was available to the general public. We can make this information available if it is required.
- The time table for the start of production is rather aggressive. What makes you think it can be completed in 2 years?
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It is entirely possible that start of production could take longer than 2 years if we are not able to work with the federal and state officials to develop a plan that is acceptable. We intend to work with local officials as this will be a large job creation project for the area which has some of the highest unemployment in the state. Environmental questions and issues may cause some delays; however, one of the most important is the heap leach process. This could take longer to get approved, but our neighbor Atna is already in production with this method and in fact is expanding their heap leach production. Additionally, we can truck the ore to the rail siding and send it out of state for processing to existing facilities. While this may cost a bit more, it is an alternative to building our own facility and can short stop some of the objections we would receive. We are confident we will engage to handle the permitting process that we will, within reason be able to stay close to the timeline. We also have some excellent contacts in both federal and state government who are willing to assist as needed in our efforts.
- How long will it take to convert the prior documentation and former maps from past companies into digital format?
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About 95% of the original documentation was converted to a digital format in connection with the effort to generate the NI 43-101. The issue as Mr. Moore stated in the Report is that it was not all originally provided in digital format, MAY not have been done in compliance with the current NI 43-101 standards.
- How deep is the deepest hole that has been drilled?
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There are a number of holes in excess of 1,000 feet. They are distributed throughout the claims and have shown very high ounces per ton.
Gold we have seen:
1,190 .084 opt
1,200 .062/.043 opt various depths
1,080 .064/.076 opt various depths
Silver in the Santa Rosa:
1,173 1.36 opt
1,225 3.20 opt
1,328 1.40 opt
1,395 1.84 opt with .016 opt of gold