SIERRA RESOURCE GROUP, INC., (SIRG) a publicly traded company owns 80% interest in the Chloride
Copper Mine formerly Emerald Isle, in Mohave County, Arizona.
The mine is a past producer, has permitting (needs some updating), an already disturbed area and not a
The mine has proven reserves of 27 million pounds (NI 43-101 compliant Technical and 9.9 million
pounds of copper in Tailings The main pit resource can be expanded with drilling to the south of the
existing open pit mine to prove out additional recoverable reserves.
The Mine is fully developed for operation with substantial investments expended to date on processing
facilities and infrastructure which hosts a fully developed mine, leach pads, solvent extraction plant and
electro-winning SX/EW plant as well as required infrastructure to conduct the full operation.
We believe we have exceptional geological, geo-statistical, engineering, regulatory, environmental,
financial and operating competencies on our senior team.
We seek an investor partner for $5,000,000. $1,600,000 brings the mine back into full production, which
at full capacity will produce approximately 7,000,000 pounds of copper per year , $2.6 million to purchase
the minority groups 20% interest and $800,000 for working capital. The investment may be secured by
the mine , plant and equipment.
The investment will be paid back in 2-5 years out of cash flow.
The plant can be refurbished in 90 days.
Permitting will take 4-6 months.
Terms and conditions open for discussion.
• Proven resource of 36 million pounds of Copper worth $126 million at
• Fully secured investment with above average annual return
• The mine is a past producer
• Can be in full production in 6 months
• Has permitting (updating required)
• The mine is fully developed for production
• Existing plant and equipment on site
• Required infrastructure to operate mine already in place
• Exceptional Operating and Management team in place
Overall, the Company organized its management team and the professional board members with
the intent of achieving the highest level of corporate governance, effectiveness and transparency
in its operations. We believe we have exceptional geological, geo-statistical, engineering,
regulatory, environmental, financial and operating competencies on our senior team. In addition,
we will strengthen our systems through agreements and relationships with strategic and critical
J. Rod Martin, CEO Age 49. Is the Founder and Managing Partner of Blackpool Partners, LLC a
private equity group. Has over 20 years of experience a a principal and senior officer in public and
private companies including experience with start-up operations, as well as his experience with
financing transactions, qualify him to serve as CEO.
Michel Rowland, VP/Exploration/Director Age 73 a Geologist and Qualified Person ( Q.P.) for the
form 43-101F1 has many decades of experience as a successful VP of Operations and VP of
Exploration for some top mining and mining exploration companies. His skill and extensive
experience in exploration and exploitation phases of mining operations qualify him to serve as VP
Travis M. Snider, Consultant and Senior V.P. of Operations. Is a current Director for Alliance Mining
Corp where he advises on exploration and permitting in the USA, negotiates with local, state and
federal agencies, assists with the process of raising money for future operations and locates and
evaluates new properties.
He has worked for Wilcox Professional Services as Vice President of Mining and Oil and has
worked in a supervisory capacity for Phelps Dodge, Mactec Engineering, Quality Testing and ATL.
He holds B.S. Environmental Chemistry – Arizona State University and numerous certifications
including ATTI Techniques for an Empowered Work Force -DDI, MSHA – Surface & Underground
Mine, OSHA, HAZWHOPER Hazardous Waste Training, ASTM – Environmental Phase I and
Phase II, ISO 9000 Auditor, ISO 14001 Auditor and Project Management – Boot Camp.
Luis Munoz, Director Age 31 is a lawyer and was just appointed to a top legal government position
in Ecuador. In 2004, he received a Doctor of Law Degree from Universidad International del
Ecuador located in Quito, Ecuador. Mr. Munoz’ extensive legal experience with business
management and corporate transactions and with the laws of South America, where the Company
intends to expand, qualify him to serve as a director.
Ricardo Cordón, Director Age 55. President and COO, ARC, Guatemala, since 1988, providing IT
systems and business process optimization. His customers include some of Central Ameras
largest companies. He is a graduate with Honors of Princeton University. His experience and
skills in business management, business process optimization and IT systems consulting qualify
him to serve as a director.
Timothy Benjamin, Chairman of the Board/Director Age 45. Manager, Process Improvements at
Assurant Solutions Inc., a Fortune 300 company. Many years experience as CFO for public and
private companies as well as performing financial and compliance due diligence for these
companies. He also held supervisory positions with the Federal Reserve Bank of Atlanta. His
experience and skill in public company accounting, compliance and reporting make him qualified to
serve as Chairman.
The Chloride Copper Mine, historically known as the Emerald Isle mining operation was originally developed as a
venture between the U.S. Bureau of Mines (U.S.B.M.) and the mining division of El Paso Natural Gas, El Paso
Mining and Milling.
The U.S.B.M. underwrote the development of the project to expand its background in the leaching of oxide copper
ores. It was thought the operation would pay for the study, which it did and it operated successfully until 1973,
when the Bureau determined that its research objectives had been achieved. It assigned its interest in the project
to El Paso and continued testing privately until 1974.
The Mine was purchased in 1980 by TSC Enterprises from El Paso Mining and Milling. In 1992 TSC applied for and
was granted an Aquifer Protection Permit (APP) # P-101846. In the period from 1991 to 1995, TSC designed and
constructed a heap leaching (SX-EW) facility to produce cathode copper and it operated until 1996 when copper
prices declined so the operation was shut down to conserve the reserves.
After a period of inactivity at the mine and plant SGV Resources purchased the facility on September, 30, 2004.
SGV updated and expanded the resource estimates at the mine and they also attempted to update many of the
permits on the site but financial problems halted the progress on the site.
In April 2010 Sierra Resource Group Inc. acquired the rights to the property with the plans to update the permits to
the mine and SX-EW Plant and bring the site back into full production. Thus creating new jobs and tax base for
Mohave County while cleaning up some of the issues that have been created due to the past mining operations.
In September 2011 we completed a capital budget assessment for retooling the plant and equipment, we’ve written
a Mine Plan of Operation for permitting and will be submitting to BLM in the next few weeks.
Chloride Copper Mine
First Year at Full Production
($3.5220 average Copper Price per pound*)
(*Based on the 12/7/11 London Metal Exchange Cash Seller Price of $7,766US$/tonne)
•$24,654,000 Gross Revenue
• $16,221,000 Net Operating Income
• Less 20% Minority Ownership & 8.5 NSR Points
• $11,419,000 Net Income
• $14,274,000 Net Income @ 100% Ownership
Requires 15 MG/kg – 36 MJ/kg
(Conventional Process Requires An
Estimated 65 MJ/kg)
Our Start-up Plan for the Chloride Mine, includes mine plans, heap leach, solvent extraction plant
modifications and electro-winning plant modifications.
Operating costs will be approximately $1.18 per pound of copper produced, including project
administrative costs and indirect costs.
Proven reserves at the site host 27 million pounds of proven copper using a 70% recovery factor in
year one, 10% in year two and 5% in year three. The first two years of stripping will be minimal
and approximately 860,000 tons of pre-stripped ore, the bulk of which has already been drilled and
blasted, ready for mining.
At approximately mid-Year Two, the limited push-backs in the 825 Mine Plan will commence to
expose additional ore without significant stripping costs.
Of the 27 million pounds of proven copper, 15 million pounds is considered to be ‘easily
recoverable’ and includes approximately 9 million pounds contained in tailings. The processing
plant are designed to produce 8,000 pounds of premium grade cathode copper per day, grading
99.99% purity. Approximately 75% of the equipment required to expand the plant capacity to
15,000 pounds per day has been purchased and is on site, ready for installation. The cost of this
expansion is included in the Capital Cost Section of this study.
The full Copper Removal Operating Plan is available as a separate attachment (Scope Report)
There are three types of copper mineralization at Chloride Copper Mine, as follows:
The first type is primary fissure vein mineralization containing copper sulphides (Thomas, 1949). This
was the type of mineralization which was mined in 1917 and 1918, but is no longer the target at the
The second type is blanket type primary copper mineralization and has been the exploration target
during the past twenty years. It occurs within the dark conglomerate and is reported to consist
primarily of tenorite (CuO). This mineral is sometimes called copper pitch or melaconite and “much of it
seems to be cryptocrystalline or amorphous” (Williams, 1992). It is the pitchy dark brown to black
material which commonly occurs within the Gila Conglomerate.
The third type of mineralization is represented by secondary copper minerals, in the form of copper
staining, such as malachite (CuCO3.Cu(OH)2) and chrysocolla (CuO.SiO2.H2O). These minerals
occur on fracture planes as well as within the matrix of the dark conglomerate. Minor cuprite (Cu2O)
and dioptase (H2CuSO4, a rare mineral of copper) have also been identified. Chrysocolla also occurs
as a thin veneer around tenorite grains (Williams, 1992).
Manganese oxides are also commonly present with the first, second, and third type of copper
mineralization at the Chloride Copper Mine.
The Board of Directors of Sierra Resource Group, Inc sets high standards for the
Company's employees, officers and directors. Implicit in this philosophy is the
importance of sound corporate governance. It is the duty of the Board of Directors to
serve as a prudent fiduciary for shareholders and to oversee the management of the
Company's business. To fulfill its responsibilities and to discharge its duty, the Board
of Directors follows strict procedures and standards.
Pre approved monthly reoccurring expenses are paid directly from the accounting
Capital expenditures in excess of $5000 must be approved by the VP of Operations
Capital expenditures in excess of $50,000 must meet Board approval.
Additional Information Available Upon Request
Technical N143-101 Report (Proven Copper in Pit)
Tailings Project Certificate of Analysis (Proven Copper in Tailings)
Detailed Capital Budget
Use of Proceeds Summary and Detail
Projected Cash Flows Summary and Detail
Plant and Equipment Appraisal and Valuation
No adverse claims letter from counsel
Sierra Resource Group Inc. is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended
(“Exchange Act”). For your convenience, we have made available to you on this website a number of reports describing
our mining properties, including a Technical Report on the Chloride Copper Mine prepared pursuant to National Instrument
43-101, Standards of Disclosure for Mineral Projects (“Technical Report”). The definitions of National Instrument 43-101
(“NI 43-101”) are adopted from those given by the Canadian Institute of Mining, Metallurgy and Petroleum, while the U.S.
reporting requirements to which we are subject are governed by the SEC Industry Guide 7 (“Guide 7”). These reporting
standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported,
but they represent different approaches and definitions. For example, under Guide 7, mineralization may not be classified
as a “reserve” unless the determination has been made that the mineralization could be economically and legally
produced or extracted at the time the reserve determination is made. Therefore, you are cautioned that, while the terms
“measured mineral resources,” “indicated mineral resources” and “inferred mineral resources” are recognized and required
by NI 43-101 and may appear in the Technical Report, rules adopted by the SEC do not recognize them. Investors are
also cautioned not to assume that any measured or indicated resources will ever be converted into Guide 7 compliant
reserves. The United States Securities and Exchange Commission (the “SEC”) limits disclosure for reporting purposes to
mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website,
such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," or "inferred," which
may not be consistent with the reserve definitions established by the SEC. Investors are urged to carefully consider the
disclosures describing our mining properties that we have made in our most recent Form 10-K filed with the SEC. You can
obtain a copy of this filing from the SEC website, a link to which can be found at the top of this page.
Forward-looking statements in this document do not constitute guarantees of future performance. Such
forward-looking statements are subject to risks and uncertainties that could cause actual results to differ
materially from those anticipated. You can anticipate that actual results will be different due to the inherent
uncertainty of estimates; forecasts and projections may be better or worse than projected. Forward-looking
statements may relate, among other things, to expected financial and operating results and the Company’s
ability to achieve its goals, plans and objectives. The risks and uncertainties that may affect forward-
looking statements include among others: the Company’s limited operating history, the speculative nature
of the Company’s planned operations, difficulty in developing new projects, difficulty gaining necessary
governmental approvals, the Company’s lack of market research and marketing organization, the
Company’s inexperience in operating internationally, and difficulty managing rapid growth. At this time,
there can be no assurance that the Company will obtain the financing it needs to execute its plans. For a
more detailed discussion of the risks and uncertainties of Sierra Resource Group’s business, please refer
to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010, the
Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2011, and the Company’s
Reports on Form 8-K, all filed with the Securities and Exchange Commission, and as subsequently
amended. The Company assumes no obligation to update any forward-looking statement contained in this
document or with respect to any of the information described herein.
This presentation may include material nonpublic information.
Pursuant to SEC Rule 10b-5, until full public disclosure and
dissemination of the material nonpublic information contained
herein, the recipient must not effect (or cause the effecting of)
any transactions in the Company's securities, including without
limitation, any hedging or similar transaction that may have the
same economic effect as a short sale of common stock.
J. Rod Martin CEO