American Mining & Minerals, LLC
Brenda & Ana Maria Iron Mineral Reserves
Executive Summary
Executive Summary (Cont.)
Puerto Vicente Guerrero
Executive Summary
American Mining & Minerals, LLC (or "AMM" or "the Company") is a Nevada Limited Liability Company.
AMM has purchased the mineral mining rights to three iron ore concessions in the Mexican State of Guerrero, an hour from the resort city of Acapulco, in the Southern Sierra Madre Iron Belt. Geological evaluation and analysis has been performed on the three concessions by independent geologists. These mines have visible iron ore bodies exposed to the surface with magnetometer studies showing extremely positive results. The geologic estimates of the ore volume of the deposits have been estimated based on the size of footprint of the ore bodies, and a depth factor that is considered to be conservative. This estimate has produced an estimated 14 million metric tons of high grade iron ore. It is thought the deposits available could be significantly larger than this volume. However, the Company believes that at a volume of 14 million tons, the mines are economically viable with significant value and is using such a volume for its present forecasts and projections. The Company has identified and entered into discussions for substantial additional deposits. It intends to acquire these rights in the near future, which would materially enhance the iron deposits controlled by the Company.
The chemical analysis of the iron ore samples from these mines have shown the iron (Fe%) content results ranging from 61.92% to 69.62%, with a composite index of 66% Fe average. Iron ore above the 62% Platts Bench Mark Price Index, will gain higher pricing per each percentage point above the index. Raw Crude Iron Ore above 62% Fe is considered to be DSO (direct ship ore) because it is of such high iron content that no further processing nor is magnetic separation needed before the ore is blast furnace ready to be refined to Pig Iron (the bases for most steel products). This makes naturally occurring DSO highly desirable and it is thought that most of the direct ship ore deposits in the world are being depleted.
Executive Summary (Cont.)
The Company believes its iron ore rights offer additional advantages beyond the quality and volume of the ore. Significant volumes of iron ore are exposed at the surface, and therefore, mining this ore is much more along the lines of operating a rock quarry than a traditional mine. There is no need to move significant volumes of material to extract the mined material, mineral veins do not need to be located, and extraction is relatively uncomplicated. These mines also offer the advantage that they are located close to the coast and within a viable distance that should maintain trucking costs to the port financially reasonable. Furthermore, there is a ready work force available for each mine that are presently under employed and the prevailing wages in the area are very low (about $20 per day).
The present market value of the iron ore at the mines is estimated to be about $90 per ton), and the total delivered costs to a destination port are estimated to be about $50 dollars. The market for iron ore is a commodities based market and it is a global market. At 14 million tons of iron ore, the value of the iron ore within these mines would be approximately $1.26 billion with anticipated gross profits of about $566 million (for reasons stated above, it is possible the deposits, and therefore the values, could be higher). The Company believes it can extract 14 million tons of ore, or more, within 5 years, based on present market factors.
The Company continues to explore the acquisition of other high grade mining rights. The Company anticipates acquiring additional substantial iron ore deposits within the next 12 to 24 months.
Financial and Sales functions of the Company will be performed primarily from the United States. To complete the above mentioned tasks the company is seeking $5,000,000 in additional funding.
Puerto Vicente Guerrero
Puerto Vicente Guerrero (also known as Puerto Escondido) is an industrial port located 125 miles from the Brenda and Ana Maria Mines. The port has a depth of 8 meters at the dock and a depth of 16 meters and the end of the rock wall.
The depth of the port is currently sufficient for our company to load 10,000 metric ton transfer barges at the dock, which will then transfer the ore into larger 80,000 Panamax vessels near the end of the rock wall.
Using Puerto Vicente Guerrero instead of the traditionally used port of Lazaro Cardenas will save our company substantial heavy haul trucking costs and loading fees.
Our company has the only industrial facility with in a 5 mile radius of Puerto Vicente, located just 1 mile from the port. The facility has ample storage for iron ore. The President of our company, Antonio Cardenas Jr.’s lumber company (American International Lumber, www.ailumber.com) has been the only company to make barge shipments out the port in the last 20 years.