IntroductionSilica/sand property FOR SALE!!!!
Located in the Texas Panhandle, Silica City is one of the most significant silica deposits to ever be discovered in America. On this 323.14 acre site, there are proven reserves of 54 million tons of high-grade silica, averaging 96.5% Si02.
Potter County, Texas
22 miles northwest of Amarillo, Texas
About Silica CityIndustrial sand and gravel, often called “silica,” “silica sand,” and “quartz sand,” includes sands and gravels with high silicon dioxide (SiO2) content. Some examples of end uses for these sands and gravels are in abrasives, filtration, foundry, glassmaking, hydraulic fracturing, and silicon metal applications. The specifications for each use differ, but silica resources for most uses are abundant. In almost all cases, silica mining uses open pit or dredging methods with standard mining equipment. Except for temporarily disturbing the immediate area while operations are active, sand and gravel mining usually has limited environmental impact.
The site is easily accessed by 21 miles of paved highway and one mile of unpaved county maintained all weather roadway. The main line of the Burlington Northern Railroad is contiguous to the property’s western border. It consists of one mile of rail with an adjacent work spur. Major three phase power is within one mile; natural gas within one-half mile; and water and telephone is available.
Within a 300 mile radius of the deposit, in excess of 1,000,000 tons of container glass,
fiberglass, plate glass and foundry sand is consumed. This deposit has logistical advantage to these consumers over all other present producers.
All successful industrial mineral operations depend on certain criteria, which include the following:
Ability to be mined and processed economically.
Having near access to key utilities.
Having a transportation advantage to a large customer base.
Silica City possesses all of the above criteria.
This deposit has undergone extensive geological drilling, metallurgical testing and market evaluation to determine its economic potential.
All the elements are present for a successful financial investment.
Investment Synopsis **Seller owns the fee simple surface of the land upon which this deposit is located. Seller also owns the working interest in all silica and sand leases which will be assigned to the Buyer upon the date of sale.
Seller reserves and excepts from this assignment of this 323.14 acre deposit an overriding royalty on all of the silica and sand produced and removed from the Leases equal to the difference, if any, between the total royalty burdens of record as of the date of this Assignment and Six Percent (6%), thereby delivering to the Purchaser a net revenue interest in and to the Leases of Ninety-Four Percent (94%). This overriding royalty shall be free and clear of all costs, claims, charges, expenses and taxes, except production or severance taxes and shall be delivered in the same manner as provided in the Leases for calculation and payment or delivery of royalty therein reserved to the Lessor. The overriding royalty interests herein reserved under the Leases shall never be less than Two Dollars and Fifty Cents ($2.50) per ton for each and every ton of silica and sand removed from the Leases.
** Seller's estimates are based on analysis of experts.
The Numbers$5,000,000.00 Listing Price
54 Million Tons (Proven Reserves)
$40 Average Current Silica Sales Price Per Ton
$12 Total Projected Mining Cost Per Ton
$28 Projected Pretax Profit Per Ton
800,000 Tons Annual Production
$22.4 Million Projected Annual Pretax Profit
67.5 Years Life of Reserves
$1.5 BILLION Projected Pretax Profit for 67.5 Years
Deposit Review323.14 Acreage
54 Million Tons Proven Reserves
96.5% Sio2 Average Grade
4 feet Average of Overburden Soil Horizon
20 to 80 feet Ore Thickness
Open Pit Mining Method
PhotosPlease visit www.silica-city.com for pictures!!!