Sterling Ventures » Project: Quarry Valuation » Country: USA » Location: Gallatin County, KY » Commodity: Aggregates At the request of Sterling Ventures MW developed a detailed valuation of a green field limestone mine that the company had permitted in Gallatin County, Kentucky. The proposed underground mine included primary crushing and screening operations underground with the secondary screening and stockpiling located on the surface. The limestone products will be transported to markets by truck, with the primary market being the Northern Kentucky area with some sales into the western portion of the Greater Cincinnati area.. MW completed an Appraisal Report defining the Fair Market Value (FMV) of the mineral reserve. The report defined: Mineral Resource – This report will define the Mineral Resource based on site specific drilling data combined with the correlation of the mining horizons to other active mining operations. Reserves – Based on the minability of the resource at other defined operations the report detailed the economic feasibility of mining the property Mining Approach – This report identified the proposed mining methods for the property and their applicability to the reserve. Selection of the mining approach was based on the experience of mining the same mineral horizon at other local quarries. Based on the approaches to the valuation of the property it was determined that an income approach based on the royalty analysis was the most applicable. The report defined the key parameters including production schedule, assumed royalty rate discount factor and analysis period. Following the completion of the valuation report MW was retained to prepare a progress report for the lending institution detailing the current status of the project, the production capacity and the configuration of the mining activity © 2004 Morgan Worldwide, Inc. All Rights Reserved | Contact