frustrationanother project in difficulty
why ???? unlucky or unable to manage
Nippon is currently contract mining in Arizona:
Nippon entered into a gold production agreement with Au Consolidated inc., an Arizona Company. In Q4-2016 Nippon began Thermal Fragmentation operations on selected high grade narrow surface veins at Au Consolidated Inc.’s property located in Cochise County, near Willcox in the State of Arizona, U.S.A. To date, in excess of 480 six-inch holes were drilled all on the same mineralized structure, and thermal fragmentation operations have begun.
Nippon is using its own equipment and has also moved its portable 75 TPD mill onto the property, set-up is expected to be complete soon. In the interim material is being stockpiled. This mill was originally purchased new by NIP.V in 2008 for its Rockmec 1 gold project, it has a replacement value of ~$5 million. The mill has the capacity of one Dragon unit; one dragon unit has the capacity of ~100TPD (important to note is that precision of Thermal Fragmentation technology can often reduce dilution by up to 5 times, making the 75TPD mill the equivalent of 375TPD).
Nippon has a partnership agreement on this Arizona project to produce 3,000 oz of gold. Recovered gold ounces on the first 2,000 oz will be shared on an 80/20 ratio. Nippon will be entitled to 80% of the gold ounces whereas Au Consolidated Inc. will be entitled to 20% of the gold ounces produced. 1,000 ounces of gold recovered will be shared based on a ratio of 60/40. Once gold production reaches the initial target of 3,000 ounces as stipulated in the agreement, a long-term agreement or sale of the thermal fragmentation unit(s) and Nippon’s treatment plant can be negotiated between the parties.
Funding for activities was secured by Nippon via a Forward Gold Purchase Agreement with European buyers. Nippon sold 1200 units at US$900.00 per unit, each unit representing one (1) gold ounce. The company intends to complete delivery of the gold ounces to the buyers ~14 months following on site mobilization. Nippon will also take the opportunity to showcase its technology to mining companies that have demonstrated a keen interest in implementing the technology within their own operations.