Bullion Monarch (BULM) Plan of Operation
[MY INITIAL REPORT]
Plan of operation (from 10Q):
Management believes there are adequate funds to continue current operations for the next six to eight years, if we seek outside funding to develop our EnShale technology and related mining operations rather than funding it internally. Revenues from Newmont USA Limited’s (a subsidiary of Newmont Mining Corporation [“Newmont”]) Leeville/East Ore mine are anticipated to be between $3.5M and $4.5M per year; however, these revenues may fluctuate, based upon the price of gold, and the price of gold could cause changes in the mining operations of Newmont on the Leeville/East Ore mine that could result in increases or decreases in these royalties
Our management reached an agreement with Gold Mountain Exploration and Development Company (“Gold Mountain”) respecting its Sumpter Oregon property (now known as the “Gold Mountain” property), to increase our 1% ownership by funding its legal fees to ensure Gold Mountain’s legal interest in this gold property. Recently, an out of court settlement was reached, whereby Gold Mountain’s 50% property interest was established, and we anticipate receiving an additional 9% interest in Gold Mountain. This increased our ownership interest to a total of 10% of Gold Mountain. During fiscal year 2010, we plan to attempt to acquire a larger interest in Gold Mountain or the Gold Mountain property.
We have been contacted by Kennecott Copper, Freeport McMoran and others interested in our Ophir lead, silver and copper property located in Ophir, Utah. Our Ophir property is situated near Rio Tinto’s Kennecott copper mine and is surrounded by Kennecott mining claims. The Ophir district is a historically rich silver producer. We have also has had inquiries into the possibility of further exploration and drilling of the hard rock potential of our North Pipeline gold property, and are weighing those potential opportunities against undertaking our own exploration program for this property during fiscal 2010 or 2011.
Nevada Rae Gold, Inc. (“Nevada Rae Gold”) commenced production on our North Pipeline property in late 2007; however, Nevada Rae Gold has been slowed by complications in their operation for processing the placer resource on the property. At last report, they continue to work on correcting their processing deficiencies. Nevada Rae Gold continues to make lease payments to us.
We are in the final stages of completing our agreement with Dourave Mining and Exploration, Inc. (“Dourave Canada”) for the exploration and development of the Bom Jesus and Bom Jardim properties in the Tapajos region of Brazil, based upon our initial Letter of Intent dated May 10, 2009. Geological reports recently provided by Dourave Canada to us have strengthened our management’s belief that these properties merit further exploration. Once the joint venture agreement has been finalized and executed, it is anticipated that the Dourave subsidiary will contribute the Bom Jardim and Bom Jesus mining properties to the joint venture. At that time, we anticipate converting our $250,000 interest in mineral rights into an equity contribution into the joint venture, which will give us a 33.33% interest in the joint venture. In addition, as part of the Letter of Intent, we will contribute an additional $80,000 monthly for the next 19 months, ending August 2011. Based on the level of exploration activity, the monthly contribution amounts may be increased.
EnShale has completed the construction of a pre-production plant to process oil shale in Uintah County, Utah. Utah Fabrication of Tooele, Utah, fabricated the plant and is working with the company to make necessary on-site refinements prior to putting the plant into operation. We plan to process 5,000 tons of oil shale and are interested in testing numerous aspects like oil quality, heat balances, emissions and process optimization.
During the completion of EnShale’s demonstration plant, we will be evaluating various opportunities, such as joint ventures or the raising of the funds necessary to construct the expected full production plant and underground mining operations in the Vernal, Utah, area. The funding may take the form of equity, debt or a combination thereof. It will, as is normal for such a financing process, require a proper due diligence period followed by a contractual negotiation period – all common to the financial industry for such a secondary public and private offering.
Our management believes that the world market for development of natural resources remains strong and will continue to be so for the foreseeable future. Management looks forward to planned future growth and profitability in this area.
We do not expect to sell or dispose of any of our assets during the next 12 months
Disclosure: LONG BULM







