PRESS RELEASE

MINES SHARES DEVELOPMENT, LLC ACQUIRES HIGH GRADE IRON MAGNETITE MINE IN NORTHERN ARIZONA. ASSETS ESTIMATED TO BE IN EXCESS OF $100 BILLION.

RARE EARTHS DISCOVERED

READ FOLLOWING EXPOSE FOR FURTHER INFORMATION

Forward-Looking Statements  

This site contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond the Company’s control. All statements, other than statements of historical facts included in /on this site, regarding such matters as the Company’s strategy, future operations, financial positions, estimated revenues or losses, projected costs, prospects, plans, and objectives of management are forward-looking statements. When used in this documents package, the words “will,” “believe,” “intend,” “anticipate,” “estimate,”“expect,” “project,” “plan” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements speak only as of the date of this Business Plan. Although the Company believes that its plans, intentions and expectations reflected in, or suggested by, the forward-looking statements made in / on this site, and any additional offering documents, are reasonable, the Company can give no assurance that these plans, intentions or expectations will be achieved.

 

This Corporate Overview summarizes the proposed structure and terms of a potential business venture (“Business”).  This Corporate Overview is merely intended to obtain indications of interest in participating in the Business.  Accordingly, this Corporate Overview is not intended to be, nor is it to be construed as, a binding agreement, nor as an offer of securities or a solicitation of an offer to purchase securities.  This Corporate Overview is subject in its entirety to the terms and conditions of any definitive agreements (if any) to be executed in the event the Business is consummated.

Contact:  Terry Massey, President

 Phone: 702-557-2674

E-mail: tmassey@masseyresources.com

Contact: David A. Kirk, CEO

Phone: 702-219-3949

E-mail: davidalankirk@hotmail.com

 

CORPORATE OVERVIEW

Mine Shares Development, LLC (also referred to as “the Company”) is currently developing a significant, high grade, iron ore magnetite mine in Northern Arizona. The current and historic assay reports show in excess of 600 million tons of mineable ore. The Company has existing claims under contract and said claims are being surveyed for accuracy and being registered with the proper state, county and federal authorities. Present demand for the iron ore, Magnetite, is increasing exponentially as the demand for steel is rising in expanding markets such as China, Japan and South Korea. The Company intends to take full advantage of this demand and estimates the beginning of mining before the end of 2011. Also within these claims are significant amounts of precious metals, gold and silver. These precious metals will be mined as a second step to the Magnetite ore. Earlier test data (1985) related to a testing process using cyanide agitation resulted in projected daily production revenues of gold to be $78K @ $350 per ounce and projected daily production revenues for silver being $112K @ $5 per ounce.  As anyone can readily see the opportunity for tremendous profits are contained in all three metals, Magnetite, Gold and Silver. 

The Company combed claim filings to find those mining claims that not only fit the ore asset requirement but also possessed a long term generational ownership.  Owners of these claims stopped production when the cost versus the market prices for precious metals did not equate to enough profit.  When the markets turned, the average age of the owners prevented them from re-opening of the claims. 

 

PROPERTY OVERVIEW

The Company is excited to begin operating a significant Magnetite mine in Northern Arizona. This mine is estimated to be viable for fifty years plus of mining.  The Company has earmarked additional mines for future development.

Phase I:  Santa Margarita Placer Mine, Congress, Arizona

The claims under contract cover over 22,000 acres at the base of the Weaver Mountain range and consist of 79 claims. There have been volumes written on the assayed content of magnetite within these claims, some dating back to the early 1900’s.

In 1985 W.E.R., Inc of Hot Springs, Arkansas hired ERIEZ Magnetics of Erie, PA to analyze the claims. The synopsis of the ERIEZ report suggests the following and is backed up by lab analysis;

1. Dry magnetite concentration of the magnetite ore, with no size reduction, produced a concentrate grading of 71.4% using a two stage separation process.
2. The Company, Mine Shares Development, LLC,  performed independent testing of the magnetite material and found that after three (3) magnetic passes the lab results tested out at 71.81% iron ore with a magnetite content 97.86%, which is an extremely high grade.

The most stunning report was performed in 1984 when RIMCO Corporation initiated a program to confirm the results of previous evaluations in the area. Their study reported some phenomenal results. Forty-seven samples were taken from backhoe pits and dozer trenches. The results indicated an average grade of 7.8% magnetite. This confirmed data obtained by the previous geologists and mining engineers who have sampled this area. It is generally accepted by all concerned, geologist and mining engineers that the claims average anywhere from 5% to 7% magnetic to a mineable depth of 300 feet. This report went on to confirm other reports that estimate over 600,000,000 tons of magnetic material within the claims. Mine Shares, Development, LLC owns a total of 79 claims; Fifty-nine (59) claims on BLM land at 160 acres per claim for a total of 9,440 +/- acres. Twenty (20) claims on State Trust land at 640 acres per claim for a total of 12,800 +/- acres. Total acreage of claims is 22,240 +/- acres.

 Below is the formula used to determine tonnage for total claim field:

One acre=43,560 square feet

• 43,560 square feet divided by 24 cubic feet per ton=1,815 tons per acre foot of depth.
• 1,815 tons x 7.8% grade x 90% recovery=127.4 tons of recoverable iron per acre foot of depth.
• THEREFORE-Open pit mining to 300 feet of depth would have the potential to produce

22,240 acres x 127.4 tons/acre/ft x 300 feet= 850,012,800 tons of recoverable iron ore.

• Open pit mining to 350 feet of depth would result in the potential to produce:

22,240 acres x 127.4 tons/acre/ft x 350 feet=991,681,600 tons of recoverable iron ore.

But equally exciting is the results of analysis performed by numerous engineers, geologists and mining corporations in regard to precious metals within the magnetic sand material. Below are analysis from the 1985:

• The analysis used the figure of 22,417 tons processed per day. The Company has taken these numbers and cut them in half to 11,200 tons processed per day. The analysis in 1985 used a high market price for gold of $450 per ounce and for silver $8 per ounce. Again, the Company uses a very conservative price point of $1200 per ounce for gold and $30 per ounce for silver, 25% below present day market price points. Using these numbers the daily gross revenues are as follow;
  • 11,200 tons of material processed per day with a recoverable gold ore of .01 ounce per ton priced at $1200 per ounce equates to $134,000 gross revenue per day.
  • 11,200 tons of material processed per day with recoverable silver of 1 ounce per ton priced at $30 per ounce equates to $336,000 gross revenue per day.

Every report, every analysis, every sampling, every laboratory report is consistent with the one before and the one after. The Company is 100% confident in the validity of the assays and analysis and will endeavor to expedite the recovery of all minerals.

MARKET ANALYSIS

The first logical question that should or would be asked is, “If these mining claims are so valuable then why hasn’t any of the reporting companies mined the claims?”  The synoptic events of the markets are as follow;

1961, one of the first inspections and subsequent analysis reported in detail with corresponding laboratory reports.

• Gold was $35 per ounce and estimated recovery processes for finite gold ore was not established. Recovery cost exceeded market price.
• Silver was $.90 per ounce and again estimated recovery cost for silver ore exceeded the market price.
• Magnetite was in demand during the early sixties and this is primarily one of the reasons so many analyses were requested by so many companies. These companies existed and were looking to expand their presence in the market. In late 1970 and the early1980’s the steel markets began to collapse taking down companies controlled by John D. Rockefellers and Jay Gould. Then in the 1990’s foreign governments began dumping their steel in US exacerbating an already weak market.

These issues coupled with additional economic factors of the time caused companies not to move forward even after their geologist and mining engineers advised them of the quality of the claims. If  you have no market and if it cost more to take it out of the ground than it is worth then the claim will not be mined.

Now leap forward to 2011.

• Gold is $1600+ per ounce and the estimated recovery cost per ounce is $350-$450 NET, creating a $1200 spread.
• Silver is $40 per ounce and is part and parcel of the gold recovery process again creating a significant spread.
• Foreign governments, private citizens, hedge fund managers, and large investment groups are stockpiling gold and silver at increasing rates as the US Dollar decreases in value couple with uncertain political strife in countries around the globe. In short there is no shortage of buyers for precious metals. Some analyst predicts gold to be as high as $5,000 per ounce within the next 24 months.
• Magnetite is again becoming an in-demand product. China, Japan, and Korea are ramping up their programs. In May of 2011 one expert, Mr. Robert Hayes of Australia, states the following:

South African consulting engineering firm Amec Minproc says magnetite might be the next big growth commodity to be eyed by China and will also form an integral part of its infrastructure build programme. Since early 2000, China has been initiating a number of economic growth programmes in an attempt to make the Asian giant a global economic powerhouse. Already the country has the second-biggest economy in the world behind the US.  Central to this has been the country’s ambitious infrastructure build programme, which has been significantly geared towards commodities such as copper, iron-ore and coal. But, as Amec technical director Greg Hayes points out, China’s dependence on magnetite is growing. “Over the past four years, the magnetite market has seen unprecedented growth, with the price of magnetite reaching levels never thought of before. This has been primarily driven by China, which will continue to grow the market as its infrastructure build programme gains momentum,” says Hayes.

It goes without saying that the appetite in Japan, having experienced their recent catastrophes will grow exponentially in the coming years as they try to rebuild their automobile business as well as the infrastructure of their country. 

STRATEGY & IMPLEMENTATION

The Company intends to brand the business and yield the greatest opportunity for everyone involved in its operations – from executives and investors, to miners, refiners, and buyers.  

MANAGEMENT SUMMARY

David Kirk, Chief Executive Officer, Chairman of the Board

• A founding investor of the Company who has spent most of his adult life in working in business development; founder of the Noah’s Ark Foundation.

Terry B. Massey, President, Board Member

• Has been involved in various worldwide marketing efforts for the past 28 years as well as Senior Management of multi-national companies; will also serve as the “media face” of the Company.

James Shadlaus, Chief Financial Officer, Board Member

• CPA (retired) with extensive experience in real estate development, brokerage, and finance.

Paul Swartz, Director, Board Member

• Highly accomplished entrepreneur holds an MBA from the Wharton School of Business.

 

Outside Legal Counsel

Kenneth D. Polin, Esq.

Kenneth D. Polin is a partner with Jones Day firm of San Diego, CA.  Mr. Polin has over 30 years of experience in the areas of securities, venture capital, mergers and acquisitions, and other financing transactions.

3275 South Jones Blvd. Ste. 106, Las Vegas, NV 89146