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Union Bar Gravel Project
Located in the municipality of Hope, British Columbia, the site covers 160 project acres. It has a project life expectancy of 100+ years and has an estimated total value of $1 Billion based on historic and recent exploration program data, with the ability to work in water at depth.
Analysts have determined the project has a high probability of success due to the following factors:
- Private land ownership
- Deep surface gravel mineral rights
- Placer gold rights with separately tested gold values
- Sand and gravel rights with historic and recent aggregate estimates
- Experienced and seasoned senior management
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Union Bar Gravel Project
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Hope, BC
Location and Local Area Information
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Metro Vancouver
& Fraser Valley
Construction Hub
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HWY 1 – 152 km
Hope to Vancouver
along the
Fraser Valley corridor
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Union Bar
Gravel Project
Location and Surrounding Area Information
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Metro Vancouver &
Fraser Valley
Construction Hub
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HWY 1 – 152 km
Hope to Vancouver
along the
Fraser Valley corridor
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Union Bar
Gravel Project
Local Area Amenities
The City of Hope’s amenities are a 5-minute drive from the property and include: restaurants, shopping, motels, hotels, and a hospital. Local services include fuel, equipment supply and repair, abundant labour pool, as well as BC Hydro at site. Hope is located only 90 minutes from Metro Vancouver and the cities in the Fraser Valley.
Transportation
Transportation is available by truck onsite with access to the Trans Canada Hwy #1, and Highways #3, #5 and #7. And by CP Rail onsite, CN Rail across the river, and by barge facilities within 40 minutes of the site.
Operating Costs
These are derived by using Blue Book Equipment Rates (All Found Hourly Rates). Production is based on an 8-month season; 20 days per month, 10 hours per day. To meet the production quota of 250,000 MT (metric tonnes), the company will acquire equipment capable of processing 200 cubic yards per hour. The company will assist Triple O Contractors Ltd. to run an eight-month season avoiding winter conditions, which will reduce labor costs and allow for annual repairs and maintenance. With the proposed production rate, CANYON will stockpile material to ensure year-round sales, 12 months per year.
Planned Sales Forecast
Construction Hub – Gravel Revenue
The Target Market gravel prices range from $15 to $50 plus per metric tonne depending on product and market. Canyon’s sand and gravel are a higher yield river gravel and sand product preferred by cement, construction, and landscaping companies. The price used for our pro forma projections is conservative at a lower mid-mark price per ton of $25/metric tonne.
Gold Revenue
Gold revenue has been determined by using the Canadian Spot Price as of November 20, 2020, at $2,450CAD and adjusted downwards to $2,400CAD. Gold is projected to maintain value through 2025 at USD 1850+ or Canadian Spot $2,405CAD. We estimate that one tonne of gravel and sand may yield $15 of gold per MT based on Triple ’O’ Contracting’s previous historic results and our recent exploration testing.
GOLD INCOME STREAM
- $15 of gold for 0.20 gm/mt recovered from 250,000 mt of washed & screened gravel = 1,600 ounces @ $2,400 CAN*
- Approx. annual revenue $3,840,000*
*Based on historic bulk sampling and recent gold lab results
GRAVEL INCOME STREAM
- 250,000 mt @ $25/mt from washed, screened and sized gravel sales*
- Approx. annual revenue $6,250,000*
*Based on present market prices
TIPPING FEES INCOME STREAM
- 250,000 mt @ $8/mt from tipping fees of clean excavation fill arriving from the Fraser Valley with each truck*
- Approx. annual revenue $2,000,000*
*Based on trucker quoted fees
TOTAL 2024 PRO FORMA ANNUAL REVENUE
- Approx. annual gross revenue $13,525,000
- Less Operating Costs contracted @ $10/mt = $3,572,575
- Approx. annual gross margin $9,952,425
- Approx. net revenue $7,221,843 EBITDA
- Note: Additional revenue may be derived from Black Sand, Garnets, and PG Metals. Management prepared estimates and may not be relied upon.