Little Diamond Creek Phosphate Mine Project
The Diamond Creek Mine project is 840 acres of federal mineral lease rights and posses a high grade phosphate ore body with historical production, significant ore grades, excellent metallurgy and modest permitting requirments. Approximately 50,000 tons of the high grade phosphate rock is surface-exposed, as a result of previous stripping and mining operations, allowing for ease of extraction, while allowing for further resource confirmation via the opening and assessing of existing, exposed outcroppings of phophate material. The initial Plan of Operations are focused on Stage I surface mining of the Southern Section which contains an estimated 3,880,000 tons of rich phosphate ore. In addition, a drill program will expand our 43-101 study guidelines to a full resource analysis and pre-feasibility study.
The company will capitalize on the availability of a surplus of mining service resources in all segments, including geological mining, equipment and processing making Falcon Isle Resources one of the few new operations to bring a phosphate rock mine to production this year. While others are working with much lower grade material, Falcon Isle Resources should realize significant net profits due to high ore values, coupled with tight cost control measures and off-take agreements for sale of phosphate ore production to large production facilities.
The company will focus its mining operations on both the historical operations and new resource exploration. Management is structured around a non-operator model, utilizing existing resources, contract miners, operating toll processing facilities and independent geological consultants. Our model is a low overhead financial model with management’s primary focus on production and resultant profitability. Falcon Isle Resources intends to further expand the Little Diamond Creek Mine property with a combination of cash and equity.
PROPERTY HISTORY AND LOCATION
Diamond Creek Mine has a long history of phosphate mining exploration and development. The phosphate deposit had been mapped, trenched sampled and mining had commenced at an open pit operation on the property in 1937 with additional operations as late as 1981.
A 1.5 acre portion of the high grade phosphatic rock (29% average P205 value) has been stripped of overburden. Estimates vary, but if the phosphate averages 7 or 8 feet in thickness, as studies indicate, as much as 50,000 tons of phosphatic rock could be mined from the surface in this area alone.
In 1986 the U.S. Forest Service granted a road use permit for the Maple-Diamond Road No. 70025 for access to the property. The property is accessed by driving 11 miles southeast from the town of Spanish Fork. The Denver and Rio Grande railroad runs through Spanish Fork Canyon about 8 miles SW of the property boundary. Ore can be transported by rail from the cities of Spanish Fork, Mapleton and Provo, Utah where Falcon Isle Resources is currently considering the acquisition or lease of a rail load-out sites along with facilities to further processing and year round distribution of the phosphate rock.