Additional Profiles
Generation X Stocks is proud to feature A public Company engaged
in mining in the U.S. and Mexico. WSM has a mining production
contract in Mexico to process 35,000 tons of gold bearing
ore that the Company believes will yield 0.25 ounces gold
per ton of material. Full production is scheduled to begin
during the third quarter 2004.
Symbol-WSRM
Traded OTCBB-Pink Sheets
Shares Outstanding - 26,285,670
Current Price $1.47-$2.00
State of Incorporation-Utah
Date of Incorporation-1903 |
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WSRM PERFORMANCE ADVANTAGES
No expense for marketing and sales.
No technology required.
Short term to positive cash flow.
All necessary permits in place.
Extensive history with operations in Mexico and the Federal
government.
Management provided the original capital to complete the
initial phases of operation.
STRATEGY
Complete the current processing contract to establish positive
cash flow.
Expand operations through continued acquisition.
SUBSIDIARIES
Western Sierra Inc.
Black Mountain Mining, S.A. de C.V.
1. Overview and Objectives
Western Sierra Mining, a Utah Corporation (the Company),
was formed to develop low cost mining properties located
primarily in or near the Sierra Nevada mountain chain. This
area generally extends from southern Idaho to the Central
Plains of Northern Mexico. The business philosophy is to
produce precious metals at the lowest possible cost per
ounce without the high cost of exploration. In general,
this is accomplished by operating either placer or heap-leach
operations on properties that have been previously explored
and found to be to small for the larger mining companies.
The break point is perceived to be approximately 1,000,000
ounces gold. The concept provides for a relatively short-term
to positive cash flow, low overhead and a minimum investment
in capital equipment. While it is true that the profit margins
may be slightly reduced because of the need to operate someone
else's discovery, the risk/reward ratio is substantially
increased because of the reduced risk capital. Our water/gravity
separation production cost, fully capitalized, for gold
is near $100/ounce and for heap leaching $160/ounce. The
operational area of the Sierra's, while not fixed in stone,
provides a historically rich belt of known material, and
operations that can be mobilized and serviced from a central
location. Western became a fully reporting public company
during the last quarter of 2003 and is n traded on the OTCBB
under the symbol WSRM . The Market Maker of our common stock
is Public Securities located in Spokane, Washington. The
Company operates in Mexico through its 100% owned Mexican
mining company Black Mountain Mining S.A. de C.V. Mexico
is ranked 8th out of the top 100 countries for commercial
investment. With the advent of President Fox and NAFTA,
Mexico provides a safe, governmental pro-active and resource
rich environment in which to operate.
2. Projected Income
The gross revenue from processing the existing stockpiled
ore at the Acuna Mine is projected to be $2,519,000 dollars
with a net income of $1,200,000 to the Joint Venture which
is then split 50% Western and 50% Acuna Mining Company.
First cash flow is estimated to begin during the third quarter
of 2004. The concentrates produced will be taken to the
State of Arizona as an unfinished product, smelted and distributed
as processed.
3. Recent Events
The Company has entered into a contract agreement to process
30,000 tons of mine dumps located at the Picacho mine. The
Picacho mine has been in production for 15 years and has
stockpiled the ore during the course of production. The
stockpiled ore averages 0.25 ounces gold per ton. The processing
of this material will take 12 to 14 weeks and will provide
some $ 750,000 net to The Company. Production is scheduled
to begin during the third quarter of 2004. The Company has
spent in excess of $850,000 to purchase and set in place
the equipment necessary to begin production. The net profits
from the first operation of the extraction plant, combined
with additional outside capital, will be utilized to increase
the production from the existing plant and further develop
other primary targets of Western. The Company has begun
preliminary negotiations with the Acuna mining company to
process the ore generated directly from the current mining
operations. This material contains substantially increased
amounts of gold (2.5 ounces per ton) and silver and the
Company is of the opinion that it may be possible to negotiate
a mutually beneficial long-term contract with Acuna.
4. Continued Growth
Now that Western has completed construction of its first
operational facility and has entered the production mode
at Picacho, plans are underway to expand the current production
rate and construct a second gravity extraction plant in
the same geographical region. Production at the Picacho
plant will be expanded through the increased ore feed stock
from the current 14 tons per hour to 35 tons per hour and
simultaneously improving the input value from 0.25 ounces
gold per ton to 2.15 ounces gold per ton. The input feed
is increased by modifications to the Acuna grinding and
crushing operation and the improved values are realized
by processing the higher-grade ore from the mine. Additional
revenues will also be attained by selling the silica sand
(a by-product of recovery) and processing the sulfide ore
produced, a step in the process not contemplated in the
original design.
In addition, the Company continues to evaluate several
locations for a second extraction facility. Currently under
evaluation are three potential sites. All have significant
reserves of placer gold, one with some existing infrastructure.
Subject to contract negotiations with the owners, the Company
is confident the first expansion contract will be in effect
prior to the end of August 2004. Western is also evaluating
a potential Joint Venture to acquire a large heap-leach
concession near the Picacho mine. There currently exists
substantial infrastructure, proven reserves of near 700,000
gold with small amounts of silver, an electrolytic extraction
plant and smelter. Western will make final decisions based
on the best possible use of available funds, a good outcome
from the evaluation of risk vs. reward, short-term to positive
cash flow and maximum use of existing infrastructure.
