Chrome and Magnesite Licensed Mining Investment Project in Turkey

The mine site is located at Tavsanli, Kutahya and has a prospecting licence which is valid until 25.11.2019. The field is located near the Kutahya–Balikesir highway.

The field was pre-owned. Previously it had been owned by a German company who conducted minimal activity at the site, although this did extend to the creation of the existing galleries, and the collection of a limited amount of readily accessible surface ore. Subsequently, said German company elected not to renew its licence, on account of the high costs of further geophysical surveying and exploration at that time, returning it to the Turkish Government.

Analysis results show that ore tenor (grade) ranges between 19 – 28% Cr (36 – 43% Cr2O3). Therefore, the fields can be defined as economically feasible and categorised as medium–quality chrome deposits.

An individual later acquired the site and did not progress any activity whatsoever, it effectively lied dormant for a considerable number of years, following which the incumbent owner acquired the rights of the property.

Following acquisition, a further 600 mt was quarried from the surface and sold at circa US$ 360,000.00 as the price for chrome ore at that time was in the region of US$ 600.00 per mt.

The study and accompanying addendum have been prepared to present the poorest case scenario deploying the lowest levels of recoverable reserve, e.g. no incremental capacity utilisation has been incorporated in the projected monthly production scenarios, and the most conservative ore sales price has been used where appropriate, as such this should be taken into consideration.

It is wholly expected, and supported by the Technical Evaluation, that the field should yield considerable returns for investors.

The current owner is keen to progress and develop further activities at the field with interested potential partners, and as such is enthusiastic to receive comments and enter into a direct dialogue.

Location, location, location... The field is located in Turkey’s world-renowned belt for primary Alpine type chrome deposits and magnesite: the Konya–Kutahya– Eskisehir triangle.
The field has already produced a quantity of 19 – 28% Cr (36 – 43% Cr2O3), is economically viable, and categorised as a medium–quality chrome magnesite field.
The *financial values of the P+P+P reserves for chrome and magnesite already surveyed at “The Location” (Table 4 p.11) are detailed in Table 7 (please see attached document).

Taking just the proven chrome reserves at the location and SE of, in isolation, the recoverable proven reserve at today’s prices is conservatively valued at US$ 18.7 million.
This location is only one of eight reserve coordinates, a further seven have yet to give up their reserve potential as prospection works (drilling and trenches) have yet to be completed at these locations. Potentially, the entire 11.74km2 licensed field holds tremendous potential.
Detailed in table 8 (please see attached document) are the production figures for a number of businesses with local operations in the immediate Tavsanli, Kutahya vicinity.
It is realistically anticipated that initial production at Tavsanli, Kutahya field will commence between 6,000 – 8,000 MTPM increasing to 10,000 MTPM.

To further realise the fields potential it is now necessary to expand the geophysical surveying and to commence ten drilled explorations at a capital cost of 50,000 GBP each, plus a one off charge of 25,000 GBP, which includes the fees of the requisite three geological engineers.
It is anticipated that a third party company will be engaged to undertake this work.
An additional 15,000 GBP is required to meet Land Registry and Leasing charges, which includes 5,000 GBP fees to the Ministry of Environment and Forestry.
It should be noted that Government taxes and disbursements are levied at a rate of 2% of Sales Revenue.

The third party company will meet their own initial capital costs with the exception of the #Production Facility, which will cost 10 / 15,000 GBP – 100,000 GBP dependent on requirements.
Please see Table 9 fort the Estimated Capital Cost
The project is expected to earn profit from the first year of operation. The project is expected to attain a positive cash flow from the first year of operation.
A non-disclosure agreement is to be signed before entering into a contract.