Magnesite/Magnesium and Other Reserves
Needles & Captain Claims
- Needles, California
NEEDLES CLAIMS &
1. The Needles Claims are approximately 1 mile long by 1 mile wide.
2. The Patent Property is 55 acres across the top of the mountain of mineral
surrounded by the Needles Claims.
3. The claims encompass mountain ranges as well as flat lands with very little
brush or shrubs. Mineral deposits are at surface level protruding above the
ground forming mountain ranges. The entire Needles Claim, over a mile square,
consists of mountain ranges composed largely of magnesite and magnesium. The
Patent Property sits in the middle at the top of the mountain.
4. Gabbs Mining in Gabbs Nevada estimates that this location alone has more than
enough to justify a mining operation. The amount needed to start a mining
operation is seventy-seven million tons with a reserve of three-quarters of a
million tons. The representative stated at his best estimate from what he could
see after walking the entire area was that he thought there was at least two to
three times the amount required to start an operation on the Needles claims
alone. Therefore, at our best estimate these claims contain conservatively two
hundred million tons of mineral.
5. Rail: The Needles claim is approximately 6.5 miles from the rail station. The
rail yard in the town of Needles has two independent main rails heading north
and south. Spurs/off sets in the yard run one quarter to one half mile long on
eight tracks. This is a tremendous asset to this operation because it will
accommodate flat bed rail cars which hold the container boxes of mineral stacked
piggy-back on the flat cars. Storage of the flat beds will be held on these
rails for transport.
6. The Captains Claims are approximately 3.25 miles long by approximately 1.25
mile wide. Located approximately 6 miles sw of the Needles Claims.
7. The Captains Claims are mainly flat lands with easy access from the power
company’s road or from the town of Needles.
8. There are currently two major open pits approximately fifty feet deep. These
pits are approximately one-third of the way into the middle of the pool.
9. The Captains Claims have much more magnesite and magnesium then the Needles
Claims do. The entire valley appears to be almost completely covered with
magnesite and magnesium. Again the Gabbs Mining company has told us that they
believe that there is much more magnesite and magnesium at this location than
the Needles Claims have. Additionally we have heard the same from Peter Howe of
Howe International who has also seen the property. We therefore estimate this
reserve at three hundred million plus tons.
10. In an addition to the magnesite and magnesium there are other minerals at
this location. There are also deposits of gold, silver, jasper and a mountain
range of rare earth.
We have a loose rock Assay Report from Mr Roger Smid that tested at 48% for
magnesium on the Captains Claim. When testing you take 4% off the top for
contamination which leaves 96%. Therefore we must conclude that this material is
approximately 50% magnesium. The approximate market price for reduced magnesium
ore now is about US$3,300 per ton.
Simple math - $3,300/ton (refined) x 100,000,000 tons= $330,000,000,000 refined
magnesium ore value. Figuring just raw material reserve value for 100,000,000
tons generates a 1.29 Billion US dollars gross. The magnesium asset alone should
generate approximately 330 Billion US Dollars per 100 Million tons based on the
With the estimated reserves, it should take about 2000 years, at 275 tons a day
of processing, to complete this project.