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WESTERN
SIERRA MINING CORP Pink Sheets WSRA
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Business
and Technology
WESTERN SIERRA MINING CORP (WSRA) is an international precious metals and natural resource development company headquartered in the state of Arizona, USA In the United States, Western is developing the Mud Springs property located at Battle Mountain, Nevada for both barite and placer gold. The property lies in Crescent Valley directly between the Battle Mountain and Carlin Trends and comprises nearly 1,000 acres. WESTERN operates in Mexico through its 100% owned Mexican subsidiary Compania Montana Negra, SA de C.V. The Company has constructed a gravity separation plant in the state of Sonora specifically designed for the recovery of placer gold and intends to begin processing 35,000 tons of low grade gold ore during the last quarter of 2005. WESTERN also provides a variety of services to the mining industry such as project certification, geological evaluations, site construction, extraction or recovery technology and environmental permitting. The Investment Opportunity With the recent price stability of precious metals and the continued improved demand for industrial minerals from under-developed countries, the long-term outlook for gold, silver, barite and other minerals produced by the Company is extremely positive. Given the current capital structure and the relatively small existing and structured debt, the insertion of minimum capital will have a significant impact on the generation of profits and so the future stock price. |
| Mission and Competitive
Advantage
The mission of Western Sierra Mining Corp is creating profits through the efficient production and recovery of precious and industrial minerals from the earth's surface. This is accomplished by utilizing low cost modern equipment that relies on proven extraction technology. The high cost of exploration is offset by the acquisition of proven resources adding only acceptable cost to the non-operating expense. Western specializes in the development of resource assets containing less that 500,000 ounce gold equivalent and so minimizes the competition from the larger mining companies. Because of its relative size, Western is able to mobilize its resources and develop a potential concession site in a shorter period of time. This mobilization includes infrastructure, plant construction and permitting. The long-term growth of Western Sierra Mining will come from the continued operation of the Battle Mountain property and the acquisition and development of additional mineral resources properties both in the United States and Mexico. |
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The
Mud Springs Development Project - Battle Mountain Nevada
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Western has recently signed a Limited Mining Agreement with ASDI Capital securing the right to mine the Mud Springs property for barite and placer gold. Mud Springs is located 15 miles south east of Battle Mountain Nevada and 2 miles south of Crescent Valley. The property is situated between the Battle Mountain and Carlin Trends where total gold reserves for the area are estimated to be in excess of 150 million ounces. ASDI Capital reserves the right to mine the underground and mineralized gold while Western will mine the placer. Halliburton, Hughes Tool and Schlumberger all have rail sidings within 10 miles of the property making delivery of the final material to their distribution facilities relatively inexpensive. |
| The drill data from
the Crescent Valley property indicates gold values consistent with the area,
a large low grade deposit. No reliable data is available on the grade of
placer on the property, but the location has previously produced both placer
gold and barite and shows good geological indications of the presents of
additional gold in the alluvial fan associated with the property.
We have started the permitting process to implement a 1,000 ton per day barite mining operation. The property has been previously mined for barite and placer which the Company hopes will significantly simplify the permitting process. The plan of operation calls for first clearing two plateaus's setting a high bench and exposing the larger barite veins. The clearing process will produce some 50,000 tons of barite ore ready for sale. The objective of the clearing process, besides preparing the first shipment, is to expose the vein structure in preparation for blocking out barite reserves for the remaining production and delivery schedule for 2006. Full scale production is scheduled to begin early in the first quarter of 2006 Under a separate notice with BLM we will perform limited sampling of the lower alluvial fan areas for placer gold. This work could start during the forth quarter of 2005. The conservative bottom line is that 4 million tons of barite at $5 per ton, net-net, is 20 million dollars over the life of the project which at 1,000 tons per day is 10 years. Notwithstanding the upside potential of the placer deposits, the barite alone will carry the company into next ten years and instantly stabilize the negative cash flow while providing the impetus to build a solid mining company. |
| Certain information
set forth herein contains "forward-looking statements" within
the meaning of the federal securities laws. Forward-looking statements include
statements concerning plans, objectives, goals, strategies, future events,
future revenues or performance, capital expenditures, exploration efforts,
financing needs, plans or intentions relating to acquisitions by the Company
and other information that is not historical information. The word "estimates,"
"expects," "anticipates," "forecast," "plans,"
"intends," "believes" and variations of such words or
similar expressions are intended to identify forward-looking statements.
The Company' forward-looking statements are based upon the Company's current expectations and various assumptions. The Company's expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties, but there can be no assurances that management's expectations, beliefs, and projections will result or be achieved or accomplished. The Company's forward-looking statements, apply only as of the date made. |