Asia Broadband Inc. (AABB) stated that its management and technical advisors have been performing procurement assessments of the competencies and capacities of mining processing and facility equipment with supply agents and distributors for its new manufacturing plant.
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To increase processing throughput, extract more metals, and reduce production costs, the company will use automated, efficient mining equipment. A larger processing capacity will also be integrated into the new plant and used when the initial output levels have been achieved.
In accordance with the terms of the historic and long-term processing and production agreement signed last December for a sizable stockpile of gold and silver ore in Las Jimenez, Etzatlan, Jalisco, Mexico, Asia Broadband recently finished buying the land for the location of the new processing facility that will be constructed.
The agreement, which is now being submitted to the Mexican Mining Registry (DGM), gives the company the exclusive right to acquire the 4 million tons of ore stockpile at a price that is both reasonable and profitable. According to a recent appraisal report, the stockpile is worth more than $800 million in gold and silver combined.
The stockpile processing project is the company’s greatest high-yield asset acquisition to date as part of its strategic development effort to enhance AABB’s physical gold holdings and acquire gold output.
The ore stockpile at Etzatlan, Mexico, is 5.8 miles away from the 4.94-hectare processing plant land parcel, which also contains a water concession, while the AABB Buenavista mining warehouse is 48 miles away. The construction of the new plant is projected to cost $3 million, and its initial processing capacity is 200 tons per day (tpd).
The mill is expected to generate over $11 million in revenue yearly at this initial stage of processing. As soon as the mill’s initial processing level is regularly at capacity, the company will also accelerate the installation of a mill extension to enhance processing capacity by a factor of 5 to 1,000 tpd.
While AABB aims to process ore from its other mining property holdings that are advantageously situated close to the mill site, the company is moving forward with the construction of a new processing mill that will largely be used to treat the stockpile ore.
A strategic mineral assay lab will also be constructed on the facility’s property to lower analysis costs and produce faster mineral results reports, enabling the company to choose the best quality ore for processing to effectively optimize plant revenues.
Our new production processing facility and ore stockpile agreement will be the foundation of the Company’s increasing revenues and profits in 2023 and for many years to come. Our mining operations are now well advanced to realizing a much higher level, which will also open new doors of opportunity to the Company going forward.
Chris Torres, President and Chief Executive Officer, Asia Broadband Inc.
By concentrating operations in parts of Mexico where AABB has a relative advantage in development resources and expertise easily accessible for rapid expansion to surpass the company’s prior gold production success, AABB continues to execute its mining property development and acquisition strategy to optimize capital utilization.