Hydro-Mining – The “Key” to Subterranean Wealth – Green Mining
Mining gold and other heavy valuables has not presented any
impressive advancements since heap leaching became feasible in the
1970’s. Heap leaching is special as it targets micron gold with a new
method of recovery that exposes vast new gold resources for chemical
mining – although at great environmental impact and cost. But now,
another special advancement in mining is ready to target vast new
resources including gold, rare earths, gems and others (hereinafter
“heavy or heavies”) using a non-chemical green mining technique
sensitive to the environment – it is called “Hydro-Mining”.
“Hydro-Mining” is an eco-friendly drill-mining method and system
that mines virgin ground at depths (hundreds of feet) never before
touched. It is a minimally invasive geo-scopic process (analogous to
arthroscopic surgery) and is the modern-day “key” to mining vast
subterranean virgin resources while maintaining environmental integrity.
This green mining process combines a sonic core-drilling rig with
hi-tech specialized mining attachments (Hydro-Mining string) and
processing equipment to transform the function of a sonic core-drilling
rig into a modern jet-mining machine. Pulsed water jets create an
underground cavity while lifting up suspended lighter slurry to the
surface (process #1) and vortexing down larger heavies (e.g. gold
nuggets as much as 8 inches wide) into a sump trap. The sonic core
barrel is then used to recover the heavies (process #2). Backfilling the
cavity completes the process.
Consider this example – a mining cavity is created in placer 150
feet down just above bedrock and 3 feet in height, 30 feet in diameter,
and it took one 10 hour shift with three operators. This equates to
mining 78.5 cubic yards of virgin ground in 10 hours with minimal
environmental disturbance. If each cubic yard paid 4.0 grams (a little
more than 1/10 of an ounce) of gold, more than 10 ounces could be
recovered in one 10 hour shift. That’s $10,000 per shift at $1,000 per
ounce gold. What if the virgin ground was paying 1 ounce per cubic yard?
Recovery is 78.5 ounces per one 10 hour shift or $78,500 (A recovery of
over $2m per month per one shift per day!)
The profit expectations are staggering since almost all Hydro-Mining
will be in virgin ground with more than an ounce per cubic yard not that
uncommon. The question is – can this really work? An expert at the
United States Patent & Trademark Office (USPTO) relates, yes!
Two extensive patents (26 claims in total) that describe
Hydro-Mining’s apparatus and methods using acoustically pulsed energy to
mine valuable subsurface resources – have been allowed by the USPTO for
licensing, even without a prototype. The expert examined the extensive
documentation and evidence and cross-referenced more than 2.5m possible
conflict hits and concluded that Hydro-Mining is new, useful, and
operative which satisfies the condition for patenting.
It should be noted that an “idea or concept” is not a patentable
item; accordingly, these patents are a tangible innovative adaption of
borehole mining – a proven drill-mining process designed for recovery of
difficult and heavy materials. These are very strong patents that
overcome the heavy recovery problem and as such are much more than an
idea or concept. It is a new mining process and the beginning of an
impressive green mining industry.
A fitting financial model has also been designed for this upstart
industry using good mining and business practices to insure an
aggressive focus on profit motives by:
- Establishing a parent company to develop, manage and research to achieve goals.
- Exploring and cataloging measured resources for current and future Hydro-Mining projects.
- Financing Hydro-Mining units for ownership and royalty payments from each unit.
- Sale/leasing the financed units to independent operators to mine measured resources.
- Subdue competition and move rapidly on mineral rights acquisitions.
- Being the first on an imminent “gold rush” for economic sub-surface mineral rights.
The financial model is based on a “franchise mining concept” – the real gold mine! Discussion follows.
The Franchise Mining Concept and Its Application to Hydro-Mining
There are many virgin Hydro-mining targets throughout the world. Some
are well documented and others have only a good story but all will
require a location study to determine Hydro-Mining potential. It’s much
like a fast food franchise checking traffic flow to determine if a
franchise at that location will pay. Franchise mining requires the same
type of checking, through sampling, by a sonic drill called a Beta Unit.
When a Beta Unit discovers a possible location for Hydro-Mining, the
location is called an Alpha location. After acceptance of the Alpha
location and its measured resources capable of paying for a Beta Unit
conversion to an Alpha Unit by adding ancillary mining attachments, a
Hydro-Mining franchise is created. The Alpha Unit becomes the franchise
financed by an IPO and paid for by the resources of the Alpha location.
Each Beta Unit location identifying an Alpha location can create a
Hydro-Mining franchise (Alpha Unit) for sale/lease.
The Hydro-Mining Franchisor
There are several criteria used to judge the success of a franchise.
The single most important is strength of management. Management in this
franchise model is centralized in “Hice Exploration and Royalty
Corporation (HERC)” an Alaska corporation – the “franchisor”. To begin
with, HERC will raise $4m in convertible debt for funding the startup
structure and a Beta Unit:
- Step #1 – the setup:
1) Purchase sonic drill and ancillary equipment for Alpha and Beta
Testing – $1.8m. (2) Provide working capital and crew for on-site Beta
testing – $300k. (3) Begin IPO registration for Regulation A+ Tier II
raise for $50m – (cost=)$1.0m. (4) Form public limited partnership to
acquire and hold mineral rights – $300k. (5) Provide insurance
alternative for seed capital investors – $200k. (6) Administration,
legal, patent assignments, other – $400k. Total $4m convertible to
- Step #2 – locating Hydro-Mining Sites:
There are many locations throughout the USA having indicated or
inferred resources that are uneconomical to mine using traditional
methods. These locations may be Hydro-Mined; but, will require Beta Unit
testing dependent on mineral rights negotiations by a Limited
Partnership (LP). On acceptance, HERC will schedule Beta Unit testing to
identify measured resources for a possible Alpha location.
- Step #3 – the Hydro-Mining franchise:
Any Alpha location (or combination of several locations) having an
acceptable resource target will justify a Hydro-Mining franchise with an
Alpha Unit conversion. Individual crew employees working on the Beta
Unit may be offered the opportunity to be franchise owners/operators and
may purchase the franchise subject to financing by the IPO.
The Hydro-Mining Franchisee
The Beta Unit crew are individuals that are trained by HERC and
deployed with a Beta Unit. Crew members interested in the franchise
opportunity will be given a franchise contract to review prior to
training (Federal Trade Commission requirement). A crew member
satisfying HERC’s observations for management skills, ethical poise, and
work ethic may become the “franchisee” on acceptance for sale/leasing
an Alpha Unit by the IPO established by HERC. The “franchisee” will
purchase/lease the Alpha Unit for $5m paying a minimum of $150k/month
for three years. The IPO will pay HERC $3.4m for conversion netting HERC
$500k per Alpha Unit. The IPO will net $1.6m per conversion on the
sale/lease. At least 10 conversions will be targeted per year.
Seed Capital Investment
This IPO model can be initiated for $4m ($500k minimum per investor)
from investor’s seed capital (convertible debt – within 24 months to 20%
voting common in HERC); or, an alternative model for prototype
development can be initiated for $5m and 30% conversion. The prototype
model will be in production within a year with gold paying for IPO
offering and seed capital payouts or stock conversions. There are other
unique advantages to this prototype development model that should be
Investors will also hold individual equity in the LP and stock equity
in the IPO. Debt secured by HERC corporate assets, or, a unique offer
in charitable tax deductions. Exit strategy in five years when IPO
exercises option to purchase HERC for $100m(+).
Contact Tom Hice, CPA (Executive Vice-President) at the numbers listed below.
Gib Hice (President)
Expertise in technical detail, patent-pending application status, historical and future application of methods and apparatus evolution of Hydro-Mining:
- Tele: (541) 582-3880
- Cell: (541) 291-0529
- Fax: (541) 582-3880
- Email: firstname.lastname@example.org
Financial engineering expertise in fund raising, project development, mineral rights expansion, public marketing and equity building:
- Tele: (541) 582-0803
- Cell: (541) 621-2657
- Fax: (541) 582-6052
- Email: email@example.com
Doug Devine (Vice President)
Expertise in advanced survey technology in satellite imagery, 3-D modeling, ultra-modern survey technology, and mapping development:
- Tele: (541) 772-5777
- Cell: (541) 944-1708
- Email: DDevine@pacificsurvey.com