New York, NY / ACCESSWIRE / September 17, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a company note on Standard Metals Processing, Inc. (OTCQB: SMPR), a comprehensive custom toll milling company based in Nevada.
"During August, 2014, SMP updated investors on progress at its Tonopah Property in Nevada, including the purchase of heavy construction and milling equipment, the installation of three monitoring wells and the completion of three rounds of background water testing. Once operational, the Tonopah Property will house a state of the art toll milling and mineral processing facility, and SMP will be ideally situated to benefit from the lack of processing capacity in the market," commented Ajay Tandon, CEO of SeeThruEquity.
Highlights of the note are as follows:
- Comprehensive custom toll milling operation. Toll milling is a process whereby mined material is crushed and ground into fine particles to ease the extraction of any precious minerals contained therein, such as minerals in the gold, silver and platinum metal groups. Custom milling and refining can include many different processes that are designed specifically for each ore load and to maximize the extraction of precious metals from carbon or concentrates. SMP is currently building the only comprehensive custom toll milling operation in Nevada. This 1,186 acre property will contain a state of the art facility capable of providing assay, extraction engineering and refining services to junior mining companies located in the Western United States, Canada, Mexico and Central America.
- Lack of processing capacity creates sizable opportunity. SMP is positioning itself to take advantage of a favorable supply-demand imbalance for metal and mineral processing services in the Nevada region. As precious metals prices have risen in the last decade, investment in the space has grown in both the opening of new mines and the re-opening of mines with proven reserves. Numerous junior mining players have entered the space, but the cost of building a new processing mill, with long environmental lead times for construction and significant regulatory requirements, make building their own processing mill a very prohibitive decision. As major miners have vertically integrated processing facilities and reserve their capacity for their own operations, a real shortage of independent toll milling capacity has arisen for the junior miners.
- Toll milling and concentration overview. Ore is sent to SMP’s facility at the responsibility and cost of the customer. SMP will take a sample of the ore through a specific ore sampling procedure. SMP’s metallurgist will test the sample on site. To obtain a quantitative determination of the amount of a given substance in a particular sample, SMP can perform wet methods and dry methods. Concentration is the separation of precious minerals from other materials by utilizing different properties of the minerals to be separated. The leaching process uses chemicals to extract the metals from the solid materials (concentrates) and bring them into a solution. Once the metals are in the solution, it is passed through carbon or resin columns where the precious metals are deposited onto the carbon/resin.
- SMP controls very unique assets. Purchase by SMP in 2011, the Tonopah, Nevada facility is a very unique and valuable asset. The land encompasses 1,183 deeded acres, one of the largest private land holdings in Esmeralda County, Nevada, and the land includes buildings, mine tailings, a dormant milling facility, abandoned milling equipment and water permits. Approximately 334 acres of this land has an estimated 2.2 million tons of tailings, known as the Millers Tailings, from the historic gold rush of Goldfield and Tonopah, Nevada sitting on it.
- High barriers to entry. SMP is well situated to take advantage of the supply/demand imbalance for toll milling capacity in the Nevada region, and it also benefits from the high barriers to entry for future competitors. The Tonopah property is a very unique asset, and properties of this nature are not often available for purchase. Obtaining the permits necessary to construct a new facility is very costly and projects have significant lead times due to onerous regulatory requirements. Through its wholly-owned subsidiary, Tonopah Custom Processing, Inc., SMP was required to file a Water Pollution Control Permit (“WPCP”) Application with the Nevada Department of Environmental Protection ("NDEP") Bureau of Mines and Mining Reclamation for the approval of the permits necessary for a small-scale mineral processing facility planned for the Tonopah Property.
The report is available here: SMPR Initiation Primer. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms.
Please review important disclosures on our website at www.seethruequity.com.
About Standard Metals Processing, Inc.
Standard Metals Processing, Inc. is being developed as the only comprehensive custom toll milling operation in Nevada that is designed to provide entrepreneurial – mid-mines with four different independent process circuits under one roof in order to produce the greatest yields available through the extraction of precious, strategic minerals from mined material.
Find out more at www.smprinc.com.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
(646) 495-0939
SOURCE: SeeThruEquity