Native Metals, LLC

Native Metals, LLC is a SPE created by Stone Resources, LLC to jointly own with investors and operate a historical mine in Arizona that has been tested across 4 years of effort to have high yields of Platinum Group Metals (PGM's).  It is 100 patented/private acres with existing heavy equipment infrastructure near Prescott, AZ.   The founder, Rod Herring, has spent approximately $250K across 4 years to identify a suitable location, understand the assayed ore yields with respect to a commercial capacity refinery using hydro-metallurgical (chemicals) process to efficiently extract the precious metals from the complex ore chemistry.  This raise goes toward a rudimentary refining process done as quickly and inexpensively as possible while still proving the basic chemistry/process as well as the values in the ore we are recovering in small lab batches which are all assayed by the latest ICP and AA analyzers. This will be to run for a short period limited production and execute sales transactions thereby proving yields, people and processes. This leads to two successive incremental expansions requiring  business expansion vs business start funding parameters.  Ore yields from this mine and two subsequent ore bodies have gross yields of Au & Ag but primarily PGM's (platinum group metals) ranging from $12K - $19K per ton per what we've extracted in 10 lb lab refining batches. The goal is three phases. This funding for $75K is the first phase and will operate a lower yielding rudimentary protocol at 10 tons per month ont he men site where the ore originates.  Phase two is approximately $2M and that is to upgrade to a 60 ton per month more advanced (expensive equipment) leaching and smelting circuit.  Phase three which will garner the highest yields based on what we can extract with smaller lab processes close to $19K per ton. That plant will require an additional $3M raise and produce 20 - 25 tons per day.  Phase one will use almost entirely existing equipment already on location and go towards overhead and raw materials for production (mining and refining).     COGS is about $1500/ton at a small scale dropping to $1200/ton with economies of scale and overhead to manage is about 5% of gross. A large gross margin model for a business making base products, investment and industrial uses, that are currently imported from contentious overseas sources.  This will all be done in Arizona.