Throughout the initial and second quarters of 2021, a comprehensive drilling and trenching effort was executed under the vigilant supervision of iron geologists, covering roughly 10% of the mineral right area encompassing the Iron Ripple Creek Project. In December 2021, ZNA Mining Solutions, an independent technical consulting firm boasting iron experts who meet the "Qualified Persons" criteria in accordance with Regulation S-K 1300, unveiled its autonomous technical report on the project, aligning with the NI 43-101 industry standards. This report by ZNA signifies the estimation of approximately 7.85 million tons of inferred iron ore resources within the 10% of the Iron Ripple Creek Project area that underwent examination.
In the year 2021, SGS, an autonomous analytical laboratory and technical advisory firm, initiated preliminary investigations into the processing route for a representative iron ore sample collected from deeper layers during drilling activities at the Iron Ripple Creek Project. The preliminary results, derived through a combination of crushing and dry magnetic separation processes without water involvement, have yielded an iron concentration of 64.4%. Such a level of iron content, when achieved in a commercial product, aligns with the industry's standard for a "premium" product.
In the year 2021, Geoline, an independent engineering and environmental licensing consultancy, dedicated its efforts to conducting comprehensive technical studies. These studies spanned both "dry" and "wet" climate seasons throughout the year. The purpose of these studies was to compile the necessary data required for Buchwa Resources to submit a standard petition to the relevant local regulatory body. This petition sought the approval and issuance of an operational license for an open pit iron mine within its Iron Ripple Creek Project.
According to the independent technical report, the Iron Ripple Creek Project boasts a consistent and uninterrupted presence of primary mineable iron ore, extending from the surface to a depth of approximately 150 feet. Buchwa Resources' technical team holds the belief that ore extraction can be accomplished through standard open pit excavation, making it a straightforward process. As of the date of this prospectus, Buchwa Resources anticipates its initial iron ore revenues from the Iron Ripple Creek Project mine to materialize in the first quarter of 2023. While the sale of raw iron ore offers a direct avenue to generate cash flows, Buchwa Resources is also contemplating the vertical integration of its business. This involves processing the iron ore into a higher concentration product before sale, potentially commanding significantly higher profit margins. With the initial result of 64.4% iron, as obtained by SGS from project samples, there is a promising potential for the production of a "premium" iron product.
