Western Sierra Resource Corp (OTCMKTS: WSRC) is a gold and silver mining company that owns several historical precious metal reserves in Arizona. It completed negotiations and executed an agreement to acquire a 70% stake in Silver Stage Mining Group, Inc. (SSMG) for $10 million.
Consideration to be deployed for the development of the Sage Hen Mining Claims in Western Nevada
As per the agreement, the consideration of $10 million will be used to develop the Sage Hen Mining Claims, which will help the company construct the 100ton/day plant, commence production, and recover operations. Sage Hen Mining Claims has 640 acres within the Oreana Trend, extending to depths of 1000 feet in an active mining area containing precious metals.
As per the management, Sage Hen Claims offerssignificant development opportunities. In addition to precious metals such as gold and silver, the recovery system indicates Platinum, Palladium, and rhodium metals in the mining area.
Production to enhance within 12 months
(OTCMKTS: WSRC) and SSMG will commence permitting process to obtain a five-acre disturbance permit on a 640-acre area. 100 ton/day production facility is expected to come on stream with the next 12 months.On the success of this pilot plant, the company intends to file for another permit to increase the facility’s capacity to 1100 per day. The additional cost to increase the capacity is $50 million.
Minimum cost, maximum production = higher net income
The company is expected to use its expertise rather than relying on any third-party reports. Thedevelopment of the mining area is expected to require limited heavy equipment, minimal excavation, and no caustic extraction byproduct. The project is expected to generate an annual net income of $269 million on the successful completion of the pilot project.If the company gets permission to increase the capacity, it can generate a net income of $3.2 billion.