Cotton & Western Mining Inc CWRN

From InvestorsHub part 1

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Thursday, November 25, 2010 9:20:44 PM
Re: None

Post # of 12161

REPOST
Per numerous requests, with his permission, I am reposting pesquero's post that gives excellent insight on the current CWRN's project situation from the standpoint of someone who lives and works in close proximity to the production site as well as has some actual mining industry expertise.

Originally posted on Nov. 20th by user pesquero (edited to comply with iHub's TOS)
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This IHUB Board certainly represents the best (if not only) forum even remotely worth browsing through occasionally.
However, it is PAINFULLY obvious that great many here have absolutely no idea what it takes to either build or run a company, much MUCH less a company in the mining business, which is by its very nature a complicated business.
The BOTTOM LINE is that (since my earlier posts) CWRN is MUCH closer to success and creating Positive Cash Flow. Indeed, I would say only weeks away. Bob deserves a lot of credit for successfully navigating the (not minor) barriers he has been confronted with while scrupulously adhering to the law. If you think that may be difficult in Mexico, try the US or Canada sometime.
Assuming the imminent delivery of the Magnetic Separator from Valley occurs shortly (as I do, since Bob has already taken delivery of $3-4 Million of mining/crushing equipment over the past few months) he will be able to separate the crushed inventory and transport it to Ensenada using any of the 100`s of independent truckers (with brand new or nearly new Peterbilt trucks built in a Mexican factory 150 miles from Ensenada) dying to get a contract from CWRN, and over perfectly paved roads I might add, for those of you who are "confused".
CWRN has a couple of alternatives for locations within the Port of Ensenada where the ore can be both stockpiled and shipped, both of which are PRESENTLY being dredged to accomodate Panamax vessels (60-90,000 Tons). My company is involved in the dredging, so don`t start questioning that now.
CWRN doesn`t even NEED to actually load the ore aboard ship to create cash flow. Once it is in the Port, has the documents certifying the Fe content, which can be issued by any one of the several globally known inspection services (SGS etc. and who are all happy to serve Ensenada) he can recieve up to 70-80% of its market value from any one of DOZENS of Iron Ore buyers, with the balance on an FOB (Freight On Board)basis. This is common practice in the industry.
Any miner needs time to adjust the mining/crushing/separating process to reach optimum recoveries. But make no mistake about it. What I have seen and held in my hand, once beneficiated (separated) will be perfectly saleable Iron Ore. Sulfur contamination (a problem which has caused CWRN grief in the past along with many other miners worldwide) is not a problem in this geographical area. In fact, even the high Sulfur ore from Michoacan that neither CWRN nor anyone else could sell years ago, is now bought by China, albeit at a stiff discount due to the lack of facilities to reprocess it.
CWRN is hoping to ship ore at a minimum of 63% Fe, but even 60% Fe would sell like hotcakes. Figure a 2% discount per Ton per 1% Fe. Hell, China buys 52% FE from India all day long, and the AVERAGE grade of ore leaving Australia is <58%, and falling annually as they run out of High Grade deposits!!
There has undoubtedly been some dilution occur over the past year. What would you expect? Do you think money just falls out of the sky to get a new business off the ground?
Furthermore, dilution is not much of an issue at this stage of any infant company`s Pink Sheet share price. At this point CWRN trades on pure "anticipation" of success or the lack thereof. Worry about dilution once profitability has been established and the market (the real market, not sub penny day traders) has valued the PPS based on a multiple of earnings.