The Process & Technology

 

Technical Report

FROM:                  Lost Dutchman Mines LLC

RE:                         FIELD TEST RESULTS:   LDM technology   (Automated Mobile Mining Operation)

DATE:                   January 12, 2014

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Site Selection:

                The purpose of the field test was to evaluate the LDM technology system in an actual mining environment.   To that end, the decision was made to find a mine site for the field test that would allow Lost Dutchman Mines  LLC to focus on its new technology that had been proven in the laboratory under a controlled environment.   The field test operation therefore attempted to avoid having to utilize any proven mining techniques, such as crushing or excavation of the source.  Further, since the purpose of the field test was to evaluate the ability of LDM technology to concentrate gold/silver and not to produce income from gold/silver, the site’s concentration level was of minimal importance.

                Various potential sites were evaluated.   These evaluations involved analysis of the site’s support capability (e.g. housing), size/grade of the source material, regulatory restrictions which might be encountered, the site’s owner, and the assays for the gold/silver at the site.

                The chosen site provided an abundance of tailings which were in the general size and assay that was desired (thereby eliminating the need for any crushing) which had an acceptable level of gold and silver.   The chosen site had been an operating gold/silver mine for many years; the tailings had all been previously processed which increased the challenge for the LDM technology system.

Equipment Design/Preparation:

                Once the site had been chosen, the engineering staff of Lost Dutchman Mines began the design and construction of the LDM technology field unit.   The design of the unit was made to process in the 1000-2000 pounds per hour range and allow for the expansion of processing by employing multiple LDM technology units working in parallel.

                The LDM technology unit required that the tailings being fed into it be of a consistent dimension for optimal operation.   Two screening systems were employed to accomplish the task. 

                The first screen was a rotary screen which first removed any rocks/debris over one inch in diameter and then removed any rock having a diameter in excess of  on-eighth of an inch.   The rotary screen also was employed as a dryer to remove moisture from the tailings which used kerosene in this field operation.   Output from the rotary screen was fed pneumatically to the second screen.

                The second screen used was a vibrating screen which separated the output of the rotary screen into three groups:  greater than 30 mesh; 30-60 mesh; and less than 60 mesh.  

Tests were made using a sample of  the site’s tailings through the vibrating screen and the results of the three groups were assayed to find the highest concentration of gold/silver.   The assay indicated that the 30-60 mesh proved to be the most advantageous.   The 30-60 mesh was then fed into the LDM technology unit which was optimized for this range as head ore.

(Chemical Analysis of Tailings) Because of the tailings history, being processed earlier, we assume there is no free gold in the head ore being used.

To assist in the portability and for housing, the LDM technology unit was designed to fit into a 53 foot semi-trailer.   The computer control mechanism as well as the mechanical mechanism within the sem-trailer allow for another two to three mechanical units to be deployed within the same trailer.   A single computer control is able to operate all of the units once they are installed; but, for the field test, a single mechanical unit was installed.

The LDM technology unit required electricity but does not use any water or chemicals.   The electricity was provided by a portable generator which operated using diesel.

Air filtration was provided for the semi-trailer.

Field Operation:

                The semi-trailer was transported to the site and fully erected; a suitable generator and a backhoe were rented.  Field tests with documentation were then commenced.

                During the field tests, the parameters of the LDM technology unit were adjusted to evaluate the effectiveness being obtained.   Assays were made on the 30-60 mesh source material and the concentrated materials.   Assays were performed only by Cooper State Analytical Labs, a certified assay lab,  to maintain consistency.   These assay reports are included on the webpage.

                In November, the weather at the site made it extremely difficult for the staff.  The data collected to that point proved the concept and operation of the experiment was curtailed and the  LDM technology unit was shut down.   The computer program was removed and returned to the Lost Dutchman Mines headquarters.

Analysis and Planned Enhancements:

                The results of the assays are listed on the webpage and prove that the technique utilized by the LDM technology unit were very successful, especially since the LDM technology unit doesn’t require any water nor does it use any chemicals.

                The cost associated with the experiment for staff, fuel for the generator and the heaters, rental of the generator, and operation of the LDM technology unit itself, was in the $5,000-6,000 range.   If an additional two or three units were installed in the trailer, the operating cost is expected to increase in the 10-20% while the output triples.

                Expansion of the LDM technology processing capability is also easily accomplished through the use of parallel systems (thereby eliminating any potential down time of the refining operation) or by engineering enlarged LDM technology units.

The cost of LDM technology in its current configuration is in the $300,000 range with an expected life of ten years.

A further refinement of the vibrating screen to deliver a narrower range of material to the LDM technology unit is anticipated to increase the effectiveness of the mechanism.

Although the site did not contain contaminates such as mercury or lead, it is anticipated that the LDM technology mechanism can remove these contaminates to remediate an existing mine site.  Further experimentation will be required at a site which has such contaminate problems.

Anticipated Advantages for a Mining Operation:

                Based upon the results experienced as well as the basic character of the technology (no water, no chemical requirements), the following cost reductions are anticipated for full scale operation:

1. Reduced Costs in Waiting for the Permitting Process:  The average time to permit a mine in the U.S. is ten years.   Using a process that does not require water or leachates, reduces the time to permit and therefore the mine can start generating revenue sooner.   Reduction of time, in part, will come from a reduced Environmental Impact Statement and reductions regarding aquifer monitoring and testing.   The requirement for well and aquifer protection permitting is also eliminated.
2. Reduced Cost for Infrastructure:   By not using water or leachates, the infrastructure required to support the use of these materials is totally eliminated.   This includes, such infrastructure as:  pipelines, storage tanks, buildings, and evaporation/catch ponds.
3. Reduced Cost due to Smaller Footprint:  Because of the reduced infrastructure, the costs associated with engineering, construction permitting, and the development/construction of the mine facility is reduced.
4. Reduced Cost Related to Safety Materials:   Without hazardous materials on site, may of the safety requirement associated with these materials are no long required.  Emergency wash off facilities, containment materials for accommodating large spills, hazmat procedures and equipment, are all eliminated.
5. Reduced Costs Related to Water Supply:  Because the process doesn’t require any water, the infrastructure associated with the production, storage, and transportation of  water is significantly limited.   The only water required is that necessary for the personnel.
6. Reduced Consultant Fees:  With the elimination of water and leachates, the need for hiring consultants to locate and develop a water source and to assure its protection is also reduced.   Further, consultants required for handling, storage, retention, and disposal of the leachates is eliminated.   This includes the full range of consultants:  civil, structural, electrical, and environmental engineers as well the legal staff in dealing with hazardous leachates.
7. Reduced Public Relations:  The biggest public reluctance to mining is a perceived threat to the water supply from either excessive pumping or from leachates contaminating the water supply.   Without the use of water or leachates, public concern is minimized.
8. Reduced Regulation:  One of the most interesting aspects of the LDM technology technology is whether or not a mine might be regulated under the same rules as a sand and gravel operation.   If so, this switch will significantly speed up the permitting process, reduce the reporting requirements to the governmental agencies, and reduce the remediation costs.