Exhibit 96.3
Technical Report Summary on
ACT Holdings Company Limestone Operation
Izard County, Arkansas, USA
Prepared for:
United States Lime and Minerals, Inc.
SK-1300 Report
Effective Date December 31, 2023
Report Date: February 20, 2024
DISCLAIMERS AND QUALIFICATIONS
SYB Group, LLC ("SYB") was retained by United States Lime & Minerals, Inc. ("USLM") to prepare this Technical Report Summary ("TRS") related to ACT Holdings, Inc. ("ACT") limestone reserves and resources, was also prepared by SYB and originally filed as exhibit 96.3 to the USLM form 10-K for the year ended December 31, 2021. This TRS provides a statement of ACT's limestone reserves and resources at its mine located in Izard County, Arkansas, and has been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC"), Regulation S-K 1300 for Mining Property Disclosure (S-K 1300) and 17 Code of Federal Regulations ("CFR") § 229.601(b)(96)(iii)(B) reporting requirements. This report was prepared for the sole use by USLM and its affiliates and is effective December 31, 2021.
This TRS was prepared by SYB Group's President who meets the SEC's definition of a Qualified Person and has sufficient experience in the relevant type of mineralization and deposit under consideration in this TRS.
In preparing this TRS, SYB relied upon data, written reports, and statements provided by ACT, Arkansas Lime Company, also a wholly-owned subsidiary of USLM, ("ALC") and USLM. SYB has taken all appropriate steps, in its professional opinion, to ensure information provided by ACT, ALC and USLM is reasonable and reliable for use in this report.
The Economic Analysis and resulting net present value estimate in this TRS were made for the purposes of confirming the economic viability of the reported limestone reserves and not for the purposes of valuing ACT or its assets. Internal Rate of Return and project payback were not calculated, as there was no initial investment considered in the financial model. Certain information set forth in this report contains "forward-looking information," including production, productivity, operating costs, capital costs, sales prices, and other assumptions. These statements are not guarantees of future performance and undue reliance should not be placed on them. The ability to recover the reported reserves depends on numerous factors beyond the control of SYB Group that cannot be anticipated. Some of these factors include, but are not limited to, future limestone prices, mining and geologic conditions, obtaining permits and regulatory approvals in a timely manner, the decisions and abilities of management and employees, and unanticipated changes in environmental or other regulations that could impact performance. The opinions and estimates included in this report apply exclusively to the ACT mine as of the effective date of this report.
All data used as source material plus the text, tables, figures, and attachments of this document have been reviewed and prepared in accordance with generally accepted professional geologic practices.
SYB hereby consents to the use of ACT's limestone reserve and resource estimates as of December 31, 2023 in USLM's SEC filings and to the filing of this TRS as an exhibit to USLM's SEC filings.
Qualified Person: /s/ Keith V. Vickers
Keith V. Vickers, TXPG #3938
President, SYB Group, LLC
1216 W. Cleburne Rd
Crowley, TX 76036
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Table of Contents
, | | | | |
|
| List of Figures |
| 4 |
| | List of Tables | | 5 |
1 | | Executive Summary | | 6 |
2 | | Introduction | | 7 |
3 | | Property Description and Location | | 10 |
4 | | Accessibility, Climate, Local Resources, Infrastructure, and Physiography | | 11 |
5 | | History | | 11 |
6 | | Geological Setting, Mineralization, and Deposit | | 12 |
7 | | Exploration | | 16 |
8 | | Sample Preparation, Analyses, and Security | | 19 |
9 | | Data Verification | | 20 |
10 | | Mineral Processing and Metallurgical Testing | | 20 |
11 | | Mineral Resource Estimates | | 20 |
12 | | Mineral Reserve Estimates | | 23 |
13 | | Mining Methods | | 24 |
14 | | Processing and Recovery Methods | | 25 |
15 | | Infrastructure | | 26 |
16 | | Market Studies | | 26 |
17 | | Environmental Studies, Permitting, and Plans, Negotiations, or Agreements with Local Individuals or Groups | | 27 |
18 | | Capital and Operating Costs | | 28 |
19 | | Economic Analysis | | 28 |
20 | | Adjacent Properties | | 31 |
21 | | Other Relevant Data and Information | | 31 |
22 | | Interpretation and Conclusions | | 31 |
23 | | Recommendations | | 31 |
24 | | References | | 32 |
25 | | Reliance on Information Provided by the Registrant | | 32 |
Appendix A: List of Data Included in the Geologic Model | | 33 | ||
Appendix B: Annual Cash Flow Analysis | | 34 |
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List of Figures
1. |
| Fig. 3.1 |
| Location and Resource Property Map for ACT Holdings Operations |
2. | | Fig. 6.1-1 | | Arkansas Geological Provinces |
3. | | Fig. 6.1-2 | | Regional Geologic Map, Eastern Ozark Plateau |
4. | | Fig. 6.4-1 | | ACT, Local Area Stratigraphic Column |
5. | | Fig. 6.4-2 | | ACT West to East Cross-Section |
6. | | Fig. 7.1-1 | | ACT, Drill Hole Locations |
7. | | Fig. 7.1-2 | | ACT Core Hole Log |
8. | | Fig. 11.3 | | ACT, Top of the Plattin Limestone |
9. | | Fig. 13.2 | | ACT, Estimated Final Mine Limits |
10. | | Fig. 15.1 | | ACT, Operations Infrastructure |
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List of Tables
| | | | |
1. |
| Table 1.1 |
| ACT Holding Company, Inc. – Summary of Limestone Mineral Resources as of December 31, 2023, Based on $12.70 Crushed Limestone |
2. | | Table 1.2 | | ACT Holding Company, Inc. – Summary of Limestone Mineral Reserves as of December 31, 2023, Based on $12.70 Crushed Limestone |
3. | | Table 1.3 | | Operating Costs |
4. | | Table 2.3 | | Glossary of Terms and Abbreviations |
5. | | Table 2.4 | | Visits Made by QP to ACT |
6. | | Table 5.2 | | Historical Exploration and Development Drilling |
7. | | Table 6.4 | | ACT Property Stratigraphy |
8. | | Table 7.1-1 | | All ACT Drilling Projects |
9. | | Table 7.1-2 | | Summary of 2005 Exploration Drilling |
10. | | Table 7.1-3 | | Summary of 2006 Exploration Drilling |
11. | | Table 7.1-4 | | Summary of 2019 Development Drilling |
12. | | Table 7.1-5 | | Summary of All ACT Drilling |
13. | | Table 11.2-4 | | Resource Parameter Assumptions |
14. | | Table 11.3 | | Summary of the Drill Hole Database for the Model |
15. | | Table 11.4-1 | | ACT Holding Company, Inc. – Summary of Limestone Mineral Resources as of December 31, 2023, Based on $12.70 Crushed Limestone |
16. | | Table 12.4 | | ACT Holding Company, Inc. – Summary of Limestone Mineral Reserves as of December 31, 2023, Based on $12.70 Crushed Limestone |
17. | | Table 17.1 | | Mining and Environmental Permits |
18. | | Table 18.2 | | Operating Costs |
19. | | Table 19.3-1 | | Sensitivity Analysis: Varying Discount Rate |
20. | | Table 19.3-2 | | Sensitivity Analysis: Varying Contractor Open Pit Mining Costs |
21. | | Table 19.3-3 | | Sensitivity Analysis: Varying Contractor Overburden Mining Costs |
22. | | Table 19.3-4 | | Sensitivity Analysis: Varying Contractor Underground Mining Costs |
23. | | Table 19.3-5 | | Sensitivity Analysis: Varying Limestone Price |
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1 | Executive Summary |
This Technical Report Summary ("TRS") is an update to the December 31, 2021 (filed March 2, 2022) to that TRS. This report contains reconciled resources and reserves, updates economic estimates, and extends to the crushing circuit output point of reference.
The ACT Holdings, Inc. ("ACT") mine is currently being mined by a contract miner using conventional open pit mining. In the future, as mining progresses, room and pillar underground mining will also be employed. It produces high-grade limestone with calcium carbonate ("CaCO3") quality above 96.0% from the Plattin formation that is crushed by the contract miner's crushing circuit. The crushed limestone is conveyed to a rail spur on the mine property that is owned and operated by Arkansas Lime Company ("ALC"). ALC transports the limestone by rail to the ALC operation. This crushed limestone is available for sale to customers and ALC operations. The ACT mine is located in Izard County, Arkansas, on approximately 2,500 acres owned by ACT that contains known high-grade limestone reserves in a bed that typically ranges from 25 ft. to 30 ft. The mine was previously operated from approximately the 1950s to the late 1970s by former owners.
The ACT mine has procured and will operate in compliance with the required authorization to quarry and air and stormwater permits that were issued by the Arkansas Department of Environmental Quality ("ADEQ"). ACT will be required to refile the authorization to quarry in 2028 and renew the air and stormwater permits in 2027 and 2024, respectively.
The average annual production rate for the ACT mine is estimated to be approximately 500,000 to 1,000,000 tons of limestone per year. The expected mine life at that rate of production is approximately 80 years.
Geologic and analytical data from local drilling have proven that the Plattin limestone has a consistent CaCO3 content above 96.0% and a small range of thickness (25 ft. to 30 ft.) across the entire ACT property. These analytical results from more than 70 drill holes are sufficient to establish reasonable certainty of geological presence and grade or quality continuity on the property. The geologic confidence is high and verified by the abundance of drilling results.
As noted in section 2.1, Keith Vickers of SYB Group ("SYB"), a consultant for United States Lime & Minerals, Inc. ("USLM") for over 20 years, served as the Qualified Person ("QP") and prepared the estimates of limestone mineral resources and reserves for the ACT mine. Summaries of the ACT mine's limestone mineral resources and reserves are shown below in Tables 1.1 and 1.2, respectively. Sections 11 and 12 set forth the definitions of mineral resources and reserves as well as the methods and assumptions used by the QP in determining the estimates and classifications of the ACT mine's limestone mineral resources and reserves.
Table 1.1 ACT Holding Company, Inc. – Summary of Limestone Mineral Resources as of December 31, 2023, Based On $12.70 Crushed Limestone 1, 2
| |||
Resource Category | In Place (tons) | Cutoff Grade (% X) | Processing Recovery (%)3 |
Total Mineral Resources 4 | 115,428,000 | Above 96.0 (CaCO3) | N/A |
Measured Mineral Resources 5 | 10,392,000 | Above 96.0 (CaCO3) | N/A |
Indicated Mineral Resources | - | - | N/A |
Total Measured and Indicated Resources | 10,392,000 | Above 96.0 (CaCO3) | N/A |
Notes: 1 Price Source from USGS Mineral Commodity Summaries 2023.
2 Crushed limestone through the crushing circuit.
3 N/A: Not Applicable because estimated resources are in place.
4 Inclusive of Limestone Mineral Reserves.
5 Exclusive of Mineral Reserves.
Table 1.2 ACT Holding Company, Inc. – Summary of Limestone Mineral Reserves as of December 31, 2023, Based On $12.70 Crushed Limestone 1, 2
Reserve Category | Extractable (tons) | Cutoff Grade (% X) | Mining Recovery (%)3 |
Probable Reserves | 21,047,000 | Above 96.0 (CaCO3) | 95.0/75.0 |
Proven Reserves | 68,176,000 | Above 96.0 (CaCO3) | 95.0/75.0 |
Total Mineral Reserves | 89,223,000 | Above 96.0 (CaCO3) | 95.0/75.0 |
Notes: 1 Price Source from USGS Mineral Commodity Summaries 2023.
2 Crushed limestone through the crushing circuit.
3 Mining recovery is listed as open pit/underground recovery.
The modeling and analysis of the ACT mine's resources and reserves have been developed by ALC and USLM personnel
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and reviewed by the management of the companies, as well as the QP. The development of such resources and reserves estimates, including related assumptions, was a collaborative effort between the QP and personnel of the companies.
Since all mining and overburden removal is performed by a contractor, there are no capital costs. Limestone mining and crushing costs for ACT were estimated using its contract with its contractor.
Table 1.3 Operating Costs
Operating Cost Estimate | Cost |
Contractor Open Pit Mining Cost Per Ton | $6.75 |
Contractor Overburden Mining Cost Per Stripping Ton | $1.75 |
Contractor Underground Mining Cost Per Ton | $7.75 |
It is the QP's overall conclusions that:
1. | The ACT mine limestone deposit has been proven by geologic and analytical data from local drilling to have quality and thickness that are very consistent. Because of the simple geology, the mining methods for the mine are straightforward and consist of conventional open pit mining and conventional room and pillar mining for the underground portion of the mine. |
2. | The data detailed in this report that was used to estimate the resources was adequate for the resource interpretation and estimation. |
3. | The mining operations are performed by contract miners, and there are no significant factors onsite that will impact the extraction of the ore body. |
4. | Absent unforeseen changes in economic or other factors, including additional federal or state environmental regulations, the economic analysis and the amount of Proven and Probable Reserves indicate the operation reasonably has approximately 80 years of estimated mine life at current production levels. |
2 | Introduction |
This TRS is intended to be an update to the TRS filed on December 31, 2021. Unchanged sections are included for clarity and completeness. There have not been any drilling programs on the property since the 2021 filing. The resource and reserve tables have been reconciled for production since the filing date of the previous TRS through the effective date of this update. A primary update was moving the sales point of reference from before the crusher to after the crushing circuit and aligning the costs associated with the production and sale of crushed limestone.
2.1 | Issuer of Report |
Mr. Keith Vickers of SYB Group, LLC ("SYB"), a consultant for USLM for over 20 years, prepared this Technical Report Summary ("TRS") on ACT's mining operations located in Izard County, Arkansas. Mr. Vickers is a Qualified Person ("QP"). USLM is a publicly traded company on the NASDAQ Stock Exchange under the ticker symbol USLM, and ACT is a wholly-owned subsidiary of USLM.
2.2 | Terms of Reference and Purpose |
The purpose of this TRS is to support the updated disclosure of mineral resource and reserve estimates for ACT's mining operations located in Izard County, Arkansas, as of December 31, 2021. This TRS is to fulfill 17 Code of Federal Regulations ("CFR") § 229, "Standard Instructions for Filing Forms Under Securities Act of 1933, Securities Exchange Act of 1934 and Energy Policy and Conservation Act of 1975 – Regulation S-K," subsection 1300, "Disclosure by Registrants Engaged in Mining Operations." The mineral resource and reserve estimates presented herein are classified according to 17 CFR § 229.1300 Definitions.
The QP prepared this TRS with information from various sources with detailed data about the historical and current mining operations, including individuals who are experts in an appropriate technical field.
The quality of information, conclusions, and estimates contained herein are based on i) information available at the time of preparation and ii) the assumptions, conditions, and qualifications outlined in this TRS.
Unless stated otherwise, all volumes and grades are in U.S. customary units, and currencies are expressed in 2023 U.S. dollars. Distances are described in U.S. standard units.
2.3 | Sources of Information |
This TRS is based upon engineering data, financial and technical information developed and maintained by ACT or USLM personnel, work undertaken by third-party contractors and consultants on behalf of the mine, and public data sourced from the United States Geological Survey, Arkansas Geological Survey, internal ACT technical reports, previous technical studies, maps, ACT letters and memoranda, and public information as cited throughout this TRS and listed in Section 24. Table 2.3 is a list of the terms used in this TRS.
The 2021 TRS was prepared by Keith V. Vickers, BSGeol, MSGeol, TXPG #3938, and CPetG #6152. Detailed
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discussions with the following were held during the preparation of the TRS:
Mr. Timothy W. Byrne, President, and CEO of USLM, Dallas, Texas
Mr. Michael L. Wiedemer, Vice President, CFO USLM, Dallas, Texas
Mr. Russell R. Riggs, Vice President, Production, USLM, Dallas, Texas
Mr. M. Michael Owens, Corporate Treasurer, USLM, Dallas, Texas
Mr. Jason Nutzman, Director of Legal and Compliance, USLM, Dallas, Texas
Mr. Wendell Smith, Director of Environmental, USLM, Dallas, Texas
Mr. Nate O'Neill, Vice President and Plant Manager, ACT Holdings, Inc./ALC, Batesville, Arkansas
Mr. Tim Zuroweste, Mining and Projects Manager, ALC, Batesville, Arkansas
Mr. David Cox, Safety and Quality Control Manager, ALC, Batesville, Arkansas
Mr. Peter McKenzie, Mine Manager, Texas Lime Company, Cleburne, Texas
Mr. Keith Vickers, SYB Group, USLM Consulting Geologist, Crowley, Texas
Discussions with the following were held for the preparation of this updated TRS:
Mr. Timothy W. Byrne, President, CEO, USLM, Dallas, Texas
Mr. Michael L. Wiedemer, Vice President, CFO, USLM, Dallas, Texas
Mr. M. Michael Owens, Corporate Treasurer, USLM, Dallas, Texas
Mr. Jason Nutzman, Director of Legal and Compliance, USLM, Dallas, Texas
Mr. Nate O'Neill, USLM Operations, Vice President, Dallas, Texas
Mr. Dane Werner, Vice President and Plant Manager, ALC, Batesville, Arkansas
Mr. Tim Zuroweste, Mining and Projects Manager, ALC, Batesville, Arkansas
Mr. Marty Fulbright, Accounting Manager, ALC, Batesville, Arkansas
Mr. Peter McKenzie, Mining Engineer, Texas Lime Company, Cleburne, Texas
Mr. Keith Vickers, SYB Group, USLM Consulting Geologist, Crowley, Texas
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Table 2.3 Glossary of Terms and Abbreviations
Term | Definition |
AAPG | American Association of Professional Geologists |
AASHTO | American Association of State Highway and Transportation Officials |
ACT | ACT Holdings Company, Inc. |
ADEQ | Arkansas Department of Environmental Quality |
AGS | Arkansas Geological Survey |
ALC | Arkansas Lime Company |
ASTM | American Society for Testing and Materials |
CaCO3 | Calcium Carbonate |
CEO | Chief Executive Officer |
CFO | Chief Financial Officer |
CFR | Code of Federal Regulations |
DTM | Digital Terrain Model |
E | East |
F. | Fahrenheit |
Fig. | Figure |
ft. | Feet |
GLONASS | Global Navigation Satellite System |
GPS | Global Positioning System |
LiDAR | Light Detection and Ranging |
LST | Limestone |
N | North |
NAD | North American Datum |
NPV | Net Present Value |
P.E. | Professional Engineer |
PG | Professional Geologist |
QP | Qualified Person |
QC/QA | Quality Control/Quality Assurance |
S | South |
SOFR | Secured Overnight Financing Rate |
SST | Sandstone |
TRS | Technical Report Summary |
TLC | Texas Lime Company |
U.S. | United States |
USGS | United States Geological Survey |
USLM | United States Lime and Minerals, Inc. |
WAAS | Wide Area Augmentation System |
W | West |
XRF | X-Ray Fluorescence |
2.4 | Personal Inspection |
The QP, who has been a consulting geologist for USLM for over 20 years, is familiar with ACT's mine geology and operations. In addition, the QP conducted onsite visits to review data, confirm protocols, and gather specific information required for the TRS not previously available to him.
On October 3, 2021, the QP met in the ALC office to review the drill hole and surface sample database and discuss what data were available and needed for the TRS. The QP inspected the mine and discussed the core storage methods. Core logging and sampling procedures were verified. The QP discussed quality control and quality assurance with the ALC QC/QA laboratory manager. A review of the core sawing methods and sample preparation for analytical tests occurred also.
The QP was updated on the current mine status and reviewed a report checklist with ACT and ALC management and personnel.
Topics covered in the update were the resource areas, grade controls, and production hole sampling and surveying procedures. The QP also inspected several locations in the mine area. The existing geologic model and mine design were reviewed. The QP met with the QC/QA laboratory manager to obtain laboratory and XRF standard certifications and instrument service/care contracts. Table 2.4 is a partial list of dates the QP has visited the mine.
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Table 2.4 Visits Made by QP to ACT
Date | Reason |
2005 | Supervised Exploration Drilling |
2006 | Supervised Exploration Drilling |
2015 | Geologic Mapping for Permitting |
2017 | Assisted in Mine Planning for Permitting |
2019 | Supervised and Served as Hole Site Geologist for Development Drilling |
3 | Property Description |
3.1 | Property Description and Location |
ACT's operations (35053'27.13" N, - 91052'30.96" W, Fig. 3.1 GoogleEarth 2021) are located in Izard County, Arkansas, 5 miles east of Guion, Arkansas and 15 miles from Batesville, Arkansas.
3.2 | Mineral Rights |
The ACT Company owns approximately 2,500 acres in fee with all surface and subsurface mineral rights. Information furnished by ACT. (AcreValue website, 2021) (USLM Internal Report, 2005).
3.3 | Significant Encumbrances or Risks to Performing Work on the Property |
There are no significant issues or risks to work on the properties outside of those generally related to mining operations.
3.4 | Lease Agreements and Royalties |
ACT does not receive any royalties as it is not the lessor for any mineral rights on its properties.
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4 | Accessibility, Climate, Local Resources, Infrastructure, and Physiography |
4.1 | Topography, Vegetation, and Physiography |
The ACT area is located in the Ozark Plateaus physiographic province, which is part of the Interior Highlands Physiographic region. Fig. 6.1-1 shows the regions and provinces with the ACT approximate location.
The province's topography is comprised of narrow valleys with steep-sided ridges. These valleys generally connect to major river drainages. The elevations range from 750 ft. to 290 ft. The valleys are covered with thick alluvial sediments, and the ridges have moderate soil cover on top but little to no soil on the sides.
The tree types consist predominately of upland forests consisting of oak and hickory trees (Foti, 1979). The limited area of the flat valley floor is agricultural land or small real estate tracts.
4.2 | Accessibility and Local Resources |
Primary access to the operation is by County Road 2 to County Road 5, then to Collietown Road into the town of Cushman, Arkansas. From Cushman, State Highway 69 runs through the city of Batesville, Arkansas. The nearest community, Guion, Arkansas, does not have an airport. Batesville is served by a regional airport, and commercial airline travel is through Little Rock, Arkansas (95 miles). County roads are gravel and paved.
4.3 | Climate and Operating Season |
The average rainfall for Izard County, Arkansas, is 48 inches of rain per year. The County averages six inches of snow per year. On average, there are 220 sunny days per year in Izard County. The County averages 98 days of precipitation per year. Precipitation is rain, snow, sleet, or hail that falls to the ground. The average temperature ranges from a high in July of 90 degrees F. to a low of 25 degrees F. in January. There are infrequent winter storms that may make operations pause for a short period but nothing long-term. The above conditions make year-round mine operation possible with little weather-related lost time (www.bestplaces.net/climate, 2021).
4.4 | Infrastructure |
4.4.1 | Water |
There are no issues with the water supply. Mine is located next to the White River.
4.4.2 | Energy Supply |
ACT's mining operations are conducted by a contract miner who is responsible for their own fuel. Electricity is available at the property.
4.4.3 | Personnel |
The contractor mining ACT is responsible for providing the contractor.
4.4.4 | Supplies |
All supplies needed are furnished by the contractor as stipulated in the mining contract.
5 | History |
5.1 | Prior Company Ownership |
ACT purchased two adjoining properties formerly known as the ALCOA property and Reynolds property in 2005, which together consisted of approximately 2,500 acres in Izard County, Arkansas. Both properties produced high-quality limestone for about 30 years before ceasing operations in the 1980s. Information was provided by USLM.
5.2Exploration and Development History
Table 5.2 Historical Exploration and Development Drilling
| ||||
Year | Company | Purpose | Summary of Work | Comment |
2005 | ACT/Longyear Drilling | Exploration | 5 Hole Project | Confirm Platting Present and Quality |
2006 | ACT/Longyear Drilling | Exploration | 48 Hole Project | Confirm Extent Across Property |
2019 | ACT/3D Drilling | Development | Drilling in Old Surface Mines 24 Hole Project | Quality and Mining Thickness Plattin |
Note:A detailed discussion of all drilling and results is in Section 7.1.
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6Geologic Setting, Mineralization, and Deposit
6.1 | Regional Geology |
The state of Arkansas is divided into five geologic provinces (Fig. 6.1-1). These provinces were designated according to unique geology and topography. ACT is located in the Ozark Plateaus province. The target ore formation at the ACT mine is the Plattin limestone of the Middle Ordovician age. Described below is the regional geologic history with emphasis on this age and formation. Please refer to Fig. 6.1-2 for the stratigraphic period and formation order. The Ozark Plateaus province began to form in the early Ordovician when the first uplift of the region occurred. These uplift events occurred throughout geologic time until the Tertiary age. This last event and significant erosion left the current structural feature seen today. Between the Cambrian age and the present day, there were repetitive erosional events. There were a total of 17 events caused by either uplift with erosion or erosion because of receding seas. These are depositional hiatuses or erosional unconformities. They are important because they produce a high degree of variability in thickness. The Lower Ordovician age is characterized by the deposition of dolomites until the Middle Ordovician age with the deposition of the Joachim formation. From the Plattin formation until the Chattanooga shale at the end of the Devonian age, limestone deposition was the dominant rock type. The rock types of this period represent deposition in a shallow marine environment, which existed for a long period of time until deep water marine environment conditions produced shale deposition (McFarland, 1998.)
Structurally, the region is one of flat-lying strata (low dip angle), and faulting is generally the normal type with the downthrown part on the south side. There are gentle folds present and they are very low amplitude (height). Fig. 6.1-2 is the geologic map of the eastern part of the Ozark Plateaus province.
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6.2 | Local and ACT Property Geology |
The local and ACT mine site geology are microcosms of the regional geologic events. The age range for the formations outcropping in the ACT area is Middle Ordovician to Mississippian age. Fig. 6.4-1 is a stratigraphic column with complete descriptions of the formations present in the ACT area. At the ACT mine site drilling revealed a transitional interval between the Kimmswick Formation above and the Upper Plattin Formation below. The interval consists of very fine crystalline limestone and dolomitic limestone with very fine quartz sand. This interval's thickness is highly variable, with a range from 0 ft. to 35 ft. Drilling and surface mapping have not found any faults in the area, but mapping in other nearby areas has encountered normal faults with displacements of 20 ft. or less. Similar to the regional structural fabric, there are a few gentle low-angle folds.
There are erosional surfaces present at every formational contact, which has produced variation in formation thicknesses. These are hiatuses in the depositional record called unconformities. This partial rock record poses some challenges in mapping and correlation because these events vary in length and magnitude. Table 6.4 contains typical ranges for formation thicknesses in the local area.
Karsting or limestone dissolution by meteoric water occurs all over northern Arkansas as the result of the large amount of rainfall the region receives. Typically, the more porous the rock, the greater the dissolution effect. Formations like the Fernvale or Kimmswick (coarse crystalline) are more affected than less porous formations such as the Upper Plattin formation (very fine crystalline).
6.3 | Mineralization |
Unlike other industrial minerals or metal deposits, high calcium limestones are the product of unique depositional environments only, not by subsurface alteration or enhancement. The CaCO3 content is the product of reef organisms that build their exoskeletons out of CaCO3 derived from the marine environment. The reef area has very limited or no exposure to sources of non-carbonate materials, such as clay, silica, and iron that reduce the CaCO3 content. No subsurface mineralization has occurred to create or enhance the CaCO3 content in this deposit.
6.4 | Stratigraphy and Mineralogy |
Fig. 6.4-1 is a stratigraphic column with detailed descriptions covering the local area around the ACT mine site. Fig. 6.4-2 is a cross-section through the center of the property. The section displays the variable nature of the interburden interval between the Kimmswick Formation and the Upper Plattin Formation. Table 6.4 is a listing of the mine site stratigraphy and the range of formation thicknesses that occur locally. (Rains and Hutto, 2012)
The Upper Plattin Formation is a very fine crystalline limestone that is composed of almost pure CaCO3 mud. This type of lithology is deposited in clear water, in a shallow sheltered bay or lagoon, which has a limited source of open water, mostly at high tide.
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Table 6.4 ACT Property Stratigraphy
| | |
Stratigraphic Unit | Thickness Approximate Range | Primary Lithology |
Alluvium | Variable | Recent Soils and Gravels (Chert) |
Boone Formation | 0 ft. to 200 ft.* | Cherty, Coarse to Fine Crystalline LST |
St Joe Formation | 0 ft. to 100 ft.* | Coarse Crystalline, Bioclastic LST |
Sylamore Formation | 0 ft. to 20 ft.* | Well Rounded, Medium Grained, SST |
Lafferty Formation | 5 ft. to 20 ft.* | Very Fine to Fine Crystalline, Clayey, LST |
St Clair Formation | 0 ft. to 100 ft.* | Very Coarse Crystalline, Fossiliferous LST |
Cason Formation | 0 ft. to 10 ft.* | Sandy, Calcareous, Shale Containing SST in areas |
Fernvale Formation | 60 ft. to 120 ft.* | Coarse Crystalline, Fossiliferous, LST |
Kimmswick Formation | 12 ft. to 55 ft.* | Coarse to Fine Crystalline, Surgery Texture, LST |
Plattin Top Marker Bed | 0 ft. to 35 ft. | Very Fine Crystalline, "Lime Green" Dolomitic LST |
Plattin Formation | 105 ft. to 240 ft.* | Upper Very Fine Crystalline, Clear Calcite Grains, LST |
Joachim Formation | 20 ft. to 150 ft.* | Very Fine Granular, Calcite Grains and Veins, Dolomite |
St Peter Formation | 120 ft. to 200 ft.* | Well Sorted and Rounded Grains, White, Friable, SST |
Everton Formation | 0 ft. to 600 ft.* | Thin Bedded, Interbedded SST, and Dolomite |
Note: *Multiple Sources AGS.
7 | Exploration |
The ACT sample consists of 76 core holes. Previous owners conducted drilling programs and mined the Fernvale Formation and Kimmswick Formation (open pit and underground mine). Their drilling information was not available.
7.1 | Drilling Programs |
A summary of all drilling projects on the ACT property is in Table 7.1-1. These projects include exploration and development drilling by diamond rotary bit method. Fig. 7.1-1 is a location map of all core holes utilized in the geologic model with the resource area outlined. A list of the holes in the model database containing the hole name and XY coordinates can be found in Appendix A.
These drilling projects followed USLM protocols for drilling and analysis of the cores. The procedures for the projects were:
● | Contract geologists selected core drilling locations with the approval of sites and drilling budget by USLM management. |
● | Core drilling was conducted directly under the supervision of contract geologists. All core was logged by SYB or an approved USLM contract geologist using a protocol modified from the Shell Sample Examination Manual (Swanson, 1981) that was modified by SYB and approved by USLM. |
● | After final selection, hole locations were surveyed by hand GPS (WAAS and GLONASS capable). |
● | Immediately upon retrieval, the core was placed on a V-shaped trough. All core pieces were fitted together and labeled with a permanent marker in one-ft. intervals. |
● | Characteristics related to the suitability of the limestone products for customers and geology were recorded. |
● | These items are stratigraphy, key marker lenses/layers, lithology characteristics, visual identification of ore top and bottom, and structural disturbance. |
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● | The core from each drill hole was placed into cardboard boxes in two ft. intervals totaling 10 ft. at the drill site. The boxes were labeled with a box number, company information, hole number, core runs, and depths marked on each box. The boxes were then delivered to the ALC core processing area. Then, they were prepped for transport to the ALC core storage center. |
● | The contract geologists were responsible for examining the core and compiling a detailed interval list for XRF analysis. This list was later entered into Excel to build an analysis database. The analysis intervals were chosen on two ft. lengths, and intervals of six ft. to ten ft. above and below the lithologically identified ore zone were chosen. This excess was so the top and bottom of the ore could be chemically defined. |
● | Once the cores were at the ALC core storage area, the core intervals were diamond-sawed into two-thirds to one-third splits. The interval's one-third split was then bagged in a plastic bag and labeled with the depth interval to be analyzed. The two-thirds split was placed back in the box for reference. |
● | The bagged intervals are kept in plastic labeled buckets or boxes in separate groups by the hole and then submitted to the ALC QC/QA laboratory for XRF analysis. Any portions of samples not destroyed during the testing process are still stored at the ALC core storage facility. |
The ALC QC/QA laboratory performed the XRF analysis on these cores using the USLM laboratory protocols (discussed in Section 8).
Table 7.1-1 All ACT Drilling Projects
Year | Company | Purpose | Summary of Work | Comment |
2005 | ACT/Longyear Drilling | Exploration | 5 Hole Project | Confirm Platting Present and Quality |
2006 | ACT/Longyear Drilling | Exploration | 48 Hole Project | Confirm Extent Across Property |
2019 | ACT/3D Drilling | Development | Drilling in Old Surface Mines 24 Hole Project | Quality and Mining Thickness Plattin |
ACT purchased the properties located in Izard County, Arkansas, in 2005, and as part of the due diligence, five exploratory core holes were drilled across the properties. These holes were wide-spaced and drilled to a depth below the Upper Plattin formation limestone target to preliminarily evaluate the area's stratigraphy and the Upper Plattin formation's quality. The exploration data indicated that the formation was present across the property with the quality and continuity needed to justify more development drilling. The results from this project are in Table 7.1-2 below.
Table 7.1-2 Summary of 2005 Exploration Drilling
Number of Holes | Average LST Thickness (Ft.) | Average CaCO3 Percentage (%) |
5 | 29 | 97.1 |
Note: From 2005 SYB Group Drilling Report.
Based on the previous project, a 48-core hole exploration project was undertaken to prove with reasonable certainty the continuity and quality of the Upper Plattin formation was present across the property. During drilling, at some locations, karsting was encountered in the limestone formations above and a few in the Upper Plattin formation. This issue, at times, presented a risk of losing the drill string, so that location was abandoned, and drilling was done at an alternate location. The results of the project are listed below.
Table 7.1-3 Summary of 2006 Exploration Drilling
Number of Holes | Average LST Thickness (Ft.) | Average CaCO3 Percentage (%) |
48 | 31 | 97.1 |
Note: From 2006 SYB Group Drilling Report.
The average CaCO3 percentage results in 2006 were consistent with the drilling results from the 2005 drilling project. Both projects' data confirm a nearly flat-lying formation with a low dip range from two to five degrees to the southwest.
In 2019, a development project was approved for drilling around the two open pit mines. The goal was to provide detailed information for mine planning. The project followed the protocols utilized in the previous two drilling projects. The results from this project are provided in Table 7.1-4 below.
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Table 7.1-4 Summary of 2019 Development Drilling
Number of Holes | Average LST Thickness (Ft.) | Average CaCO3 Percentage (%) |
24 | 38 | 97.5 |
Note: From 2019 SYB Group Drilling Report.
The drilling results prove the Upper Plattin formation ore interval has a reasonable continuous thickness across the entire property. The CaCO3 quality surpasses the minimum needed by the ALC operation. The zone has a mineable average thickness across the property both for open pit mining and for underground mining. Table 7.1-5 lists the average thickness and CaCO3 percentage of all the holes.
Table 7.1-5 Summary of All ACT Drilling
Number of Holes | Average LST Thickness (Ft.) | Average CaCO3 Percentage (%) |
77 | 32 | 97.2 |
Fig. 7.1-2 is an example of the core logs produced from the core description log and chemical analysis. These composite logs are used for correlation, determining ore intercepts, and a visual record of the core data.
7.2 | Surface Mapping and Sampling |
The AGS had measured several stratigraphic sections (Halbrook, 1950) locally and on ACT property in the past. The QP has examined a representative number of the sections in the field.
7.3 | Hydrogeology Information |
No hydrogeological studies have been conducted at the ACT property, and the State of Arkansas does not require ACT to do so.
7.4 | Geotechnical Information |
The State of Arkansas does not require geotechnical studies to be performed.
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8 | Sample Preparation, Analyses, and Security |
8.1 | Sample Preparation and XRF Analysis |
The ALC operation produces many products that are under strict quality parameters for chemical and physical quality. The ALC QC/QA laboratory was established many years ago and has been upgraded as required to meet the increasing demands of the customer base. In addition, customer quality control labs test ALC product shipments frequently.
XRF is one of the primary methods for determining the chemical content of limestone. The ALC QC/QA laboratory has been responsible for conducting XRF analysis on plant products and all limestone samples from stockpiles, belt feed samples, and drilling, to hand samples collected for outcrop identification. The five significant oxides are analyzed. CaO is most important because of the plant's raw limestone requirement above 96.0% CaCO3.
XRF sample preparation, whether core or cuttings, the entire sample is crushed to -10 mesh. The sample is separated and reduced by a ruffle to 250 grams then drying and pulverizing a representative split to -150 mesh. The samples are analyzed for oxides CaO, MgO, Fe2O3, Al2O3, and SiO2, following USLM's XRF analytical method for limestone analysis. The technique involves pressing the powder into a pellet using a wax binder to hold the shape. The sample trays are loaded into the instrument with samples, a copper standard, and a certified control standard. The analytical procedure and protocol information was provided by ALC QC/QA personnel.
8.2 | Quality Control/Quality Assurance |
The unknown samples are analyzed twice in a run to provide data to confirm repeatability. All sample preparation equipment is cleaned after preparing each sample and before the subsequent preparation. The instrument is cleaned and calibrated each year by the manufacturer and is under a service contract. Whenever the device becomes dirty and registers out of calibration or out of specification for the standards, the manufacturer comes out to clean, recalibrate, and repair it if necessary.
The oxide results of each sample are totaled to determine if the data is within an acceptable error range of around 100%. The sample analysis is rerun if the total oxide percentage exceeds the acceptable error limits. Sample preparation and a newly prepped sample correct the problem in many cases. The laboratory has a set of certified limestone standards to cover the content range of the major oxides that can occur in limestones. The appropriate standard is run concurrently with the unknown samples. The standard results are compared from run to run to ensure the instrument operates correctly.
USLM has a total of five QC/QA labs among its wholly-owned subsidiaries. These labs can perform many of the same analyses, specifically XRF. ACT samples are analyzed by the ALC QC/QA laboratory.
The ALC QC/QA laboratory is certified by
● | The Food and Drug Administration |
● | Underwriters Laboratory. |
The laboratory follows procedures and protocols set forth by:
● | ASTM Methods: C-25, 50. 51, 110, 977; |
● | AASHTO Methods: M216-05, 219; and |
● | USLM protocols for testing whole-rock samples. |
The laboratory utilizes certified limestone samples to verify the accuracy and calibration of its instrumentation. These are:
● | Euronorm MRC 701-1; |
● | China National Analysis Center; |
◾ | -NC DC 60107a; |
◾ | -NCS DC 14147a; |
◾ | -NCS DC 70307; and |
◾ | -NCS DC 70304. |
The security for limestone geological samples is not required as compared to the procedures needed for precious metals (gold, silver, etc.). Core or other samples are, immediately after drilling, taken to the core storage area by the contract geologist, member of the drill crew, or the collector of limestone samples. They are logged in and then processed by ALC QC/QA laboratory personnel. The change of possession is limited to two or three people who can be identified and held accountable for the locations of the samples before delivery to the laboratory. This information was provided by ALC QC/QA laboratory personnel.
8.3 | Opinion of the Qualified Person on Adequacy of Sample Preparation |
The QP examined the adherence to preparation and analytical procedure protocols by the ALC QC/QA laboratory personnel. The analysis of geologic samples is conducted with attention to detail given as the ALC QC/QA testing for the ALC products. The opinion is that the analytical program and laboratory provide reasonably accurate data for determining resource estimates.
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9 | Data Verification |
9.1 | Source Material |
The QP worked with ALC personnel to obtain databases and raw data. There was an ongoing interface with ALC personnel while reviewing and verifying the data needed to model the deposit. For this TRS, the hard copy data was compared with the digital database for correctness and thoroughness. The data from the drilling programs were validated as reasonably as possible by comparing lithology and depths from each hole. Hole ore intercepts were cross-checked with the USGS LiDAR survey and GPS data to verify and confirm hole collar data. The logging of the core followed drill-site protocol, and all data was collected and written on a formatted log sheet.
The QP met with the QC/QA laboratory manager to validate that the QC/QA protocol was followed for the geologic samples and the instrument's status records. The sources for this data are the ALC QC/QA laboratory and contract geologists.
The topography used in the model was obtained from the most recent LIDAR scans, either from federal government or private LIDAR data sources. The scans were reviewed for recent surface disturbances to make sure there was not an issue.
9.2 | Opinion of the Qualified Person on Data Adequacy |
After contacting ACT personnel and subcontractors and reviewing the material for verification, the QP is satisfied the drill hole database and chemical analysis data are reasonably valid. The QP's opinion is the data has been analyzed and collected appropriately and reasonably, and the data was adequate for the resource interpretation and estimation.
10 | Mineral Processing and Metallurgical Testing |
The Plattin limestone mined at the ACT property is sedimentary without alteration due to metamorphic or igneous geologic processes. The uniqueness and suitability of the raw stone for making products are based on the percent of CaCO3 content in the limestone. There is no metal content in the ore and no need to perform metallurgical testing. The mined stone is processed through a conventional crushing circuit without any mineral or chemical processing before stockpiling. ALC personnel furnished the preceding information.
11 | Mineral Resource Estimates |
11.1 | Definitions |
A mineral resource is an estimate of mineralization by considering relevant factors such as cutoff grade, likely mining dimensions, location, or continuity that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. Mineral resources are categorized based on the level of confidence in the geologic evidence. According to 17 CFR § 229.1301 (2021), the following definitions of mineral resource categories are included for reference:
An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. An inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for the evaluation of economic viability. An inferred mineral resource, therefore, may not be converted to a mineral reserve.
An indicated mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. An indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource and may only be converted to a probable mineral reserve. As used in this subpart, the term adequate geological evidence means evidence that is sufficient to establish geological and grade or quality continuity with reasonable certainty.
A measured mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. As used in this subpart, the term conclusive geological evidence means evidence that is sufficient to test and confirm geological and grade or quality continuity.
11.2 | Key Assumptions, Parameters, and Methods |
11.2.1 | Resource Classification Criteria |
Geologic and analytical data from local drilling have proven that the Upper Plattin formation limestone has a consistently high percentage of CaCO3 content (above 96.0%) and a small range of thickness (30 ft. to 25 ft.) across the entire ACT property. These analytical results from more than 70 drill holes are sufficient to establish reasonable certainty of geological presence, grade and quality continuity on the property. The geologic confidence is high because of the abundance of verified drilling results. Classifying these resources in the measured category is appropriate.
11.2.2 | Market Price |
The ACT mine is a supplier of crushed limestone to the ALC operations and customers. After the ACT crushing circuit, the crushed limestone is available for sale or usage by the ALC operation. There are several limestone products for sale. These products are differentiated by size, with all having common chemical properties.
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A market survey for crushed limestone is conducted by the USGS each year. The publication is titled "USGS Mineral Commodity Summaries 2023." Their database comprises sources from the entire United States and considers such material issues as regional price differences, weather effects, production issues, and decreased demand from downstream users. USGS reported an average value price of $14.00 of crushed limestone per metric ton, which converts to $12.70 per short ton. After consulting with USLM, this source provides a reasonable value for the range of crushed limestone products sold by the Company.
11.2.3 | Fixed Cutoff Grade |
The ACT mine supplies crushed limestone to the ALC operation and for sale to end-user markets. The ALC operation must be provided with a limestone source that consistently exceeds an average CaCO3 threshold for customer needs. No matter the product, the raw limestone must exceed a minimum average content above 96.0% CaCO3. The percentage of CaCO3 can be higher but not lower to meet the quality requirements. Mining the limestone at a significantly higher average CaCO3 percentage results in the deposit being high-graded, which shortens the mine's life. Lowering the grade is unacceptable because of quality requirements.
A primary XRF analysis quality control check is to total all the oxides to determine how close the total is to 100%. CaO is the primary oxide of the sample analyzed, and the remainder is comprised of MgO, Fe2O3, Al2O3, and SiO2 (refer to section 8).
Since the mine operates on a fixed cutoff grade, there are no specific economic criteria for changing the cutoff grade. Any cost factors that increase the mining cost of limestone at this fixed grade would be offset by appropriate downstream price increases in sales of the products.
11.2.4 | Summary of Parameters |
Modifying factors are the fixed cutoff grade, the final pit shell area, and the property line offset. Key assumptions and parameters applied to estimate mineral resources are in Table 11.2-4.
Table 11.2-4 Resource Parameter Assumptions
Modifying Factor | Parameter |
Fixed Grade Cutoff | Above 96.0% CaCO3 |
Estimated Final Pit Shell | Pit Shell Outline |
Property Offset | 100 ft. |
Karsting | 100 ft. Set Back from Top of Plattin Outcrop |
Slope of High Wall | 70 Degrees |
Mineability | Reasonably Expected to be Feasible to Mine |
11.3 | Resource Model |
The resource model database consists of all drill holes listed in Appendix A. The QP confirmed and verified the database contained appropriate data for the TRS resource estimates. Table 11.3 lists the number of holes in the database and the data type. A final review was conducted to ensure no data entry errors existed.
The mine is surveyed every year to document the mining face advance during the year. The existing mine map is updated with the newly surveyed mined areas and oriented to the mine grid. The current surface survey, dated December 21, 2023, was used to determine the resource areas for the TRS resource estimate. The most current USGS LiDAR topography was downloaded (USGS Mapview, 2021). The topography was edited using Global MapperTM software to select only the local area around the ACT property. The coordinate system for the maps in this report is State Plane NAD 83 ft.
The ore body consists of a single limestone bed defined by top and bottom surfaces. The top and the bottom ore intercepts were created from total hole composites. The average CaCO3 percentage is composited at 96.0% or higher in each hole. If any hole's composite were significantly below 96.0%, that area would be excluded from the resource estimate. This situation did not occur. Next, the hole ore intercepts were utilized to produce top and bottom three-dimensional structural surfaces or contour maps based on the fixed cutoff grade composites.
The method chosen to model the deposit structure was gridding using SURFERTM software, and Kriging was selected from twelve other algorithms. The selection process involved four steps:
● | Rough hand contour data for trend and structure estimate; |
● | Run the gridding script with basic inputs to compare gridding methods and produce a rough structure map; |
● | Select grid method(s), then refine with specific inputs; |
● | Run a residual test to see which grid method closely matches the hole intercepts data value. |
These two surfaces were then truncated against the new topography to account for erosional effects. This truncation is done because the ore bed position is not below the floor of the valleys. Fig. 11.3 is a map of the top ore structure with the resource area outlined.
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Next, ore, overburden thickness, and overburden stripping ratio maps were constructed. These maps were compared to a block model created in Surpac TM using the two ore structure surfaces. These surfaces were used to determine, validate, and confirm the conformity of the block model. The block model was then utilized to determine mine limits for resource and reserve estimates. The methods employed using Surpac are discussed below.
The resources were estimated using Geovia SurpacTM software. Contours of the top and bottom of the ore were imported into Surpac in AutoCAD format exported from SURFER. Surpac DTM surfaces were created using these contours. The USGS National Map service LIDAR database was imported into Surpac. Block models were developed for the entire resource area. The block dimensions were 20 ft. northing by 20 ft. easting and two ft. thick. The blocks were coded above or below the topography, above the ore bottom surface, and below the top ore surface to ensure that only blocks containing ore were included in the resource estimate. Blocks were also coded as being inside of a karst and weathered zone to prevent these volumes from being included in the resource. Open pit and underground mining are appropriate for different parts of the resource area. The resource estimate employed both designs where necessary. Mine pits were designed using a 70-degree slope angle. The crests of the pits were offset 100 ft. from any external property boundaries.
Table 11.3 Summary of the Drill Hole Database for the Model
Data Type | Number of Records |
Total Holes | 76 |
Lithology | 76 |
Chemical Analyses | 76 |
Hole Composites | 76 |
11.4 | Mineral Resources |
11.4.1 | Estimate of Mineral Resources |
The estimate of measured and indicated in-place limestone resources for ACT, effective December 31, 2023, were estimated from applying the resource parameters to the geologic model and are set forth in Table 11.4-1. There are no indicated nor inferred mineral resources.
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Table 11.4-1 ACT Holding Company, Inc. – Summary of Limestone Mineral Resources as of December 31, 2023, Based On $12.70 Crushed Limestone 1, 2
Resource Category | In Place (tons) | Cutoff Grade (% X) | Processing Recovery (%)3 |
Total Mineral Resources 4 | 115,428,000 | Above 96.0 (CaCO3) | N/A |
Measured Mineral Resources5 | 10,392,000 | Above 96.0 (CaCO3) | N/A |
Indicated Mineral Resources | - | - | N/A |
Total Measured and Indicated Resources | 10,392,000 | Above 96.0 (CaCO3) | N/A |
Notes: 1 Price Source from USGS Mineral Commodity Summaries 2023.
2 Crushed limestone through the crushing circuit.
3 N/A: Not Applicable because estimated resources are in place.
4 Inclusive of Limestone Mineral Reserves.
5 Exclusive of Mineral Reserves.
11.4.2 | Geologic Confidence and Uncertainty |
Any geologic uncertainty associated with the limestone deposits is tied to the variability of the quality, continuity, and thickness of the bed or interval. Drilling was conducted on separate ridges, which were thousands of ft. apart, and encountered limestone with the mentioned properties being very consistent. The conclusion can be made that, over a large area, drilling results have shown the Upper Plattin formation, with reasonable certainty, to have consistent quality and thickness of limestone. Based on the drilling results, there is high confidence in the definition of the ore zone limits, and the quality is constantly above the CaCO3 cutoff.
11.5 | Opinion of the Qualified Person |
There are no factors onsite that will impact the extraction of this ore body. After reviewing the resource model and supporting data, the QP is confident the Upper Plattin formation outcrops over the entire ACT property with consistent quality and a minable section. It appears ACT will economically extract stone through different mining methods above the quality cutoff for the foreseeable future.
The QP's opinion is that the following technical and economic factors could influence the economic extraction of the resource, but the ALC plant insulates most of them from the mine. However, if quicklime production becomes unfeasible, the ALC plant would no longer require limestone from the ACT mine to produce quicklime.
● | Regional supply and demand – Due to the shipping cost of crushed stone and quicklime, sales are limited to a regional footprint of the ALC operations. The business is insulated from global import and export market changes, as sales are domestic and regional. |
● | Any increases in mining costs by the contract miner would likely be offset by product sales pricing. |
● | Environmental Matters: |
▪ | Federal or State regulations/legislation regarding greenhouse gas emission |
▪ | Air and water quality standards |
12 | Mineral Reserve Estimates |
Mineral resources were converted to reserves using a 75% recovery factor for underground mining and a 95% recovery factor for open-pit mining. The property boundary offsets, karsted and weathered areas, and pit slopes were included in the resource estimate. For underground mining, 17% of the ore is lost to pillars, and 8% is lost to the roof, the floor, spillage, and dust. For open pit mining, 5% of the ore is not recovered due to ore being left in the pit floor or walls, dust, and spillage. Dilution volume is minimal and was not estimated.
As discussed in Section 13.2, the average waste-to-ore ratio for the reserves is two tons of stripping per ton of limestone for open-pit mining. The ore body outcrops on the side of ridges. The stripping ratio and ore-to-waste ratio increase as mining progresses into the ridges. The open pit mining generally targeted a stripping ratio of less than 2:1. When combined with the back slope of the pits, the recovery factor, and the karsted and weathered limestone where the ore body outcrops the open pit mining waste to ore ratio averaged 2:1. Underground mining becomes increasingly more economic towards the interior of the ridge despite the lower ore recovery and higher costs.
12.1 | Definitions |
Mineral reserve is an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted (Dorsey, 2019).
Probable mineral reserve is the economically mineable part of an indicated and, in some cases, a measured mineral
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resource. For a probable mineral reserve, the qualified person's confidence in the results obtained from the application of the modifying factors and in the estimates of tonnage and grade or quality is lower than what is sufficient for a classification as a proven mineral reserve, but is still sufficient to demonstrate that, at the time of reporting, extraction of the mineral reserve is economically viable under reasonable investment and market assumptions (Dorsey, 2019).
Proven mineral reserve is the economically mineable part of a measured mineral resource. For a proven mineral reserve, the qualified person has a high degree of confidence in the results obtained from the application of the modifying factors and in the estimates of tonnage and grade or quality. Proven mineral reserve is the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource (Dorsey, 2019).
12.2 | Market Price |
As stated in Section 11.2.2, the ACT mine is a supplier of limestone to ALC operations. After processing by the crushing circuit, the crushed limestone is available for sale to customers or ALC operations usage. There are several limestone products for sale. These products are differentiated by size, with all having common chemical properties.
A market survey for crushed limestone is conducted by the USGS each year. The publication is titled "USGS Mineral Commodity Summaries 2023." Their database comprises sources from the entire United States and considers such material issues as regional price differences, weather effects, production issues, and decreased demand from downstream users. USGS reported an average value price of $14.00 of crushed limestone per metric ton, which converts to $12.70 per short ton. After consulting with USLM, this source provides a reasonable value for the range of crushed limestone products sold by the Company.
12.3 | Costs |
Limestone mining and crushing costs for the ACT mine were estimated from the contract with its contractor. Contract mining and crushing costs are estimated at $6.75 per ton of limestone ore and $1.75 per ton for overburden. Underground contract limestone mining and crushing costs are estimated at $7.75 per ton. Since all mining is to be performed by a contractor, there are no capital costs.
12.4 | Reserve Estimates |
The estimate of proven and probable limestone reserves for the ACT operation effective December 31, 2023, are estimated from applying the reserve parameters to the geologic model, are in Table 12.4.
Table 12.4 ACT Holding Company, Inc. – Summary of Limestone Mineral Reserves as of December 31, 2023, Based On $12.70 Crushed Limestone 1, 2
Reserve Category | Extractable (tons) | Cutoff Grade (% X) | Mining Recovery (%)3 |
Probable Reserves | 21,047,000 | Above 96.0 (CaCO3) | 95.0/75.0 |
Proven Reserves | 68,176,000 | Above 96.0 (CaCO3) | 95.0/75.0 |
Total Mineral Reserves | 89,223,000 | Above 96.0 (CaCO3) | 95.0/75.0 |
Notes:1 Price Source from USGS Mineral Commodity Summaries 2023.
2 Crushed limestone delivered through the crushing circuit.
3 Mining recovery is listed as open pit/underground recovery.
12.4.1 | Reconciliation with Previous Estimates |
Comparing ACT's high calcium limestone reserves as of December 31, 2023, with the estimates presented for December 31, 2021, a decrease of 265,000 tons occurred, which is the result of routine mine production.
12.5 | Opinion of the Qualified Person |
Given the similarity of the geology and ore chemical qualities to other properties operated by USLM, the current open pit method and proposed underground mining methods are and should be performed according to plans. Significant increases in the cost of mining coupled with large decreases in the selling price of limestone would be required to make mining uneconomic. Historically, USLM has been able to increase sales prices in line with cost increases. The limestone and the overburden are consistent across the reserves and allow for stable operating requirements from year to year.
13 | Mining Methods |
13.1 | Geotechnical and Hydrologic Considerations |
The State of Arkansas does not require geotechnical or hydrology modeling in mining operations, and no geotechnical or hydrological studies have been completed.
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13.2 | Mine Operating Parameters |
The ACT mine plans to produce 500,000 to 1,000,000 tons per year during the life of the mine. The expected life of mine is approximately 80 years. Mining is conducted by a mining contractor. Site development and mining utilize diesel-powered earth-moving equipment as necessary.
The deposit is being mined by conventional open pit mining, and in the future, as mining progresses, room and pillar underground mining will be employed in high-overburden areas. The average waste-to-ore ratio for the open pit mine portion of the mine is two tons of stripping per ton of limestone. As the amount of waste that is required to be moved to expose ore increases, underground mining becomes more economically attractive. For these reasons, areas with lower overburden thicknesses were targeted for open-pit mining. The mining recovery is estimated to be 95% for open pit mining and 75 % for underground mining. Fig. 13.2 shows the estimated final mine limits.
13.3 | Mining Plan |
ACT's mine plan will include both open pit and underground mining methods. Open pit mining extraction utilizes typical quarrying techniques of vertical drill and blast overburden removal and routine diesel-powered mine haulage equipment such as bulldozers, excavators, wheel loaders, and haul trucks. Overburden is generally targeted at a 2:1 stripping ratio with the non-ore materials being placed within the property. Limestone ore is recovered with vertical drill and blast, single pass bench mining, and typical mining diesel-powered mine haulage equipment such as wheel loaders, excavators, and haul trucks.
The underground mine plan calls for pillars to be 35 ft. by 35 ft. on 85 ft. centers, yielding an extraction ratio of 75%. Mining will be done by horizontal drilling and blasting. Ground control will be maintained with mine scaling machines. Haulage will be via conventional underground mine equipment.
13.4 | Mine Plant, Equipment, and Personnel |
The mining contractor provides the personnel and equipment they deem necessary to meet required production demands.
14 | Processing and Recovery Methods |
14.1 | Crushing Circuit and Description |
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The ACT mine delivers mined limestone to the crushing circuit for processing and stockpiling. Afterward, the crushed limestone is sold or processed by ALC operations to create higher-valued quicklime or limestone products.
There is no history of any interruptions, outages, shortages, or failures related to the crushing circuit which have materially affected the operation. The QP believes the risk of such events significantly affecting the estimates of limestone mineral reserves documented here is low. ALC personnel are the sources for this section.
14.2 | Crushing Circuit Throughputs and Design |
The limestone is blasted and loaded into haul trucks by a loader in the pit and then hauled to the jaw crusher. The crusher is more than sufficient size to handle the daily mine production. The jaw crusher has been set up to maximize production for the size range required to be sold or delivered to the ALC operation. The circuit after the crusher consists of delivery by a conveyor belt to the ALC rail load out or stockpiles. This equipment is very similar to those installed at many aggregate plants throughout the United States.
14.3 | Crushing Circuit Operational Requirements |
The crushing equipment is owned by the contract miner. Day-to-day operation and maintenance are managed by the contractor. The contractor provides equipment deemed necessary to meet required production demands.
14.4 | Application of Novel or Unproven Technology |
Mining operations at the site follow standard open pit methods for extracting limestone formations. The crushing system is comprised of readily available stone processing equipment. There has not been any application of novel or unproven technologies or techniques.
15 | Infrastructure |
The ACT property is accessible by rail, county roads, and the mine operation by gravel roads and haul roads maintained by the contract mine personnel. The mine site is landlocked with no port facilities. The rail is served by the Missouri and North Arkansas rail lines. Three-phase electric power is provided to the site via above-ground utility lines. Water for dust control at the mine is obtained from the nearby White River, which flows year-round. All mine facilities are located on mine property. Maintenance facilities and the crusher equipment are furnished by the contract mining company. Fig. 15.1 shows the topography of the mine area and significant infrastructure features.
16 | Market Studies |
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16.1 | Market Outlook and Forecast |
Crushed limestone produced at the ACT mine is for customers and to source ALC. The ALC facilities have been in existence for over 80 years. Its products are delivered to customers by either freight or rail. Demand for crushed limestone for the ALC operations has averaged approximately 1,000,000 tons per year over the previous five years, which has been previously sourced exclusively from a mine owned by ALC. However, in 2022, ALC began to source a portion of its crushed limestone from the ACT mine. In future years the ALC operations are expected to source approximately 500,000 tons of crushed limestone from ACT (the period of time the mine owned by ALC is expected to remain in production). Afterward, the ACT mine is expected to be ALC's exclusive crushed limestone supplier and is estimated to produce approximately 1,000,000 tons of limestone annually for delivery to the ALC operation.
Primary demand for quicklime and crushed limestone products from ALC's production facilities is from stable markets, including the steel industry, the construction industry, paper and glass manufacturers, municipal sanitation and water treatment facilities, roof shingle manufacturers, and poultry and cattle feed producers. Current market conditions for these customers should result in continued steady demand for quicklime and crushed limestone products in ALC's market areas for the foreseeable future.
16.2 | Material Contracts |
There are no material contracts with outside purchasers.
17 | Environmental Studies, Permitting, and Plans, Negotiations, or Agreements with Local Individuals or Groups |
17.1 | Environmental Studies and Permitting Requirements |
The ADEQ regulates industrial activities and their potential impacts on the environment. Open pit mining and reclamation are regulated in both the Coal and Non-Coal Programs, including soil, clay, shale, gravel, stone, limestone, sand, gypsum, bauxite, and novaculite under the Arkansas Pollution Control and Ecology Commission Regulation 15, Act 827 of 1991 and Act 1166 of 1997.
In addition to open pit mining and reclamation, the ADEQ is also a delegated authority under the Clean Air Act and Clean Water Act, established by the Environmental Protection Agency, to protect the ambient air quality and water quality within the State of Arkansas. ACT has furnished the environmental permit information provided in Table 17.1 below. This information was provided by USLM.
Table 17.1 Mining and Environmental Permits
| ||||
Permit Number Issue Date | Issuer | Purpose | Expiration Date | Status |
0129-MQ January 9, 2018 | ADEQ | Authorization to Quarry | May 31, 2028 | In Place, Active |
1916-AGP-149 August 12, 2021 | ADEQ | General Air Permit for Rock Crusher Plant | N/A | In Place, Active |
ARR000000 (Final Permit No. TBD) July 1, 2019 | ADEQ | Storm Water | June 30, 2024 | Notice of Intent Submitted to ADEQ |
ACT is authorized under Permit No. 0129-MQ to mine high-quality limestone. As required by ADEQ, a Five-Year Plan was developed for ACT's operations and includes estimations for the removal of topsoil, overburden, and production of limestone. Upon expiration of the permit, ACT will calculate area and volume estimations based on future limestone production. Actual volumes may vary depending on market and geological conditions.
ACT has contracted a third-party miner with a portable rock-crushing operation to extract high-grade limestone from the ACT mine. The portable rock crushing operations are authorized under the General Air Permit for Rock Crusher Plants Permit No. 1916- AGP-149.
Industrial Storm Water Permit No. ARR000000 (Final Permit No. TBD) is a general permit authorizing the discharge of stormwater that has commingled with the mining activities off-property to a nearby receiving water body. This information was provided by USLM.
17.2 | Overburden, Site Monitoring, and Water Management |
ACT produces and manages non-production material, which consists of overburden and a trace amount of unusable rock from the blasting process at the ACT open pit mine. When open-pit mine operations remove overburden, the material is utilized to backfill active pits to the extent where the material is available.
Water management at the open pit mine consists of use for dust control and managing stormwater run-off by way of pre-existing natural erosion pathways. Because the ACT open pit mine is situated above the natural water table, there is no requirement or need for groundwater monitoring. This information was provided by USLM.
17.3 | Post-Mining Land Use and Reclamation |
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A Financial Plan for Reclamation was developed as part of the Five-Year Plan submitted to the State of Arkansas. The Financial Plan outlines the non-ore materials to be stockpiled within the mine, topsoil management as part of the stripping process, and the final reclamation process. A surety bond and an estimated acreage of land affected over the life of the mine are submitted as part of the Five-Year Plan.
17.4 | Local or Community Engagement and Agreements |
The operation is relatively new, and at this time, there are no engagements or agreements. This information was provided by USLM.
17.5 | Opinion of the Qualified Person |
Arkansas is a heavily regulated state of environmental laws and regulations and has numerous permits that require ongoing compliance and oversight from the ADEQ. ACT and USLM personnel are well-trained and stay up-to-date on all environmental regulations. In the QP's opinion, there are no current or outstanding issues in environmental governance.
18 | Capital and Operating Costs |
The ACT mine has a contract in place for producing crushed limestone with a regional company that has the equipment and skilled personnel for performing this work.
18.1 | Capital Costs |
Since all mining, crushing, and overburden removal is performed by a contractor, there are no capital costs.
18.2 | Operating Costs |
Table 18.2 Operating Costs
Operating Cost Estimate | Cost |
Contractor Open Pit Mining and Crushing Cost Per Ton | $6.75 |
Contractor Overburden Mining Cost Per Stripping Ton | $1.75 |
Contractor Underground Mining and Crushing Cost Per Ton | $7.75 |
18.3 | Accuracy of Operating Cost Estimates |
The production and unit cost estimates are based on actual past performance and the customary internal budget review and approvals process. Operating volumes are well-defined and understood, as are mining and processing productivities. The operating cost accuracy and contingency factors were estimated by comparing the past five years of costs to budgeted amounts. The operating cost accuracy estimation is +/- 15% and the contingency factor is </= 10%. The operation and related facilities are fully developed and should not require any near-term major capital investment to maintain full commercial production.
19 | Economic Analysis |
The block model was used to estimate overburden and limestone ore volumes for open pit and underground mining. Limestone volumes are converted to tons for cost and revenue estimation using a density factor of 169 pounds per cubic foot. The ore thickness is generally uniform in each area. All mining is performed by a contractor.
19.1 | Key Parameters and Assumptions |
The discount rate used in the economic analysis is 6.43%. This rate is ACT's incremental borrowing cost. Per the current debt agreement and ACT’s current leverage ratio, ACT's borrowing rate is 6.43% (calculated from the December 2023 SOFR of 5.34%).
The tax was estimated using ACT's current effective income tax rate calculated as of September 30, 2023. In reviewing the September 30, 2023, tax provision, the effective tax rate contained no material non-recurring permanent items that would influence the rate, so it is considered appropriate for future periods. Demand for limestone is projected to be approximately 500,000 to 1,000,000 tons per year for the life of the mine. The sales price per ton is estimated using the USGS Mineral Commodity Summaries 2023.
19.2 | Economic Viability |
ACT has positive cash flow, and the current mine plan does not require capital expenditure; therefore, payback and return on investment calculations are irrelevant. The NPV of the life of mine plan is $24.6 million. The annual cash flows are in Appendix B.
19.3 | Sensitivity Analysis |
Sensitivity analysis was performed on the discount rate, contractor open pit mining and crushing costs, contractor overburden removal costs, contractor underground mining and crushing costs, and crushed limestone selling price.
Page 28 of 37
Table 19.3-1 Sensitivity Analysis: Varying Discount Rate
Discount Rate | NPV (thousands) |
0% | $232,864 |
1% | $144,264 |
2% | $93,809 |
5% | $34,507 |
10% | $13,828 |
15% | $8,767 |
20% | $6,565 |
Table 19.3-2 Sensitivity Analysis: Varying Contractor Open Pit Mining and Crushing Costs
Contractor Open Pit Mining Costs Per Ton | NPV (thousands) |
$5.75 | $29,403 |
$6.75 | $24,587 |
$7.75 | $19,771 |
$8.75 | $14,955 |
Page 29 of 37
Table 19.3-3 Sensitivity Analysis: Varying Contractor Overburden Mining Costs
Contractor Overburden Mining Cost Per Ton | NPV (thousands) |
$1.75 | $24,587 |
$2.75 | $16,191 |
$3.75 | $7,794 |
$4.75 | $(602) |
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Table 19.3-4 Sensitivity Analysis: Varying Contractor Underground Mining and Crushing Costs
Contractor Underground Mining and Crushing Cost Per Ton | NPV (thousands) |
$6.75 | $27,527 |
$7.75 | $24,587 |
$8.75 | $21,647 |
$9.75 | $18,707 |
Page 30 of 37
Table 19.3-5 Sensitivity Analysis: Varying Limestone Price
Selling Price Change (%) | NPV (thousands) |
-20% | $5,673 |
-10% | $15,130 |
0% | $24,587 |
10% | $34,045 |
20% | $43,502 |
20 | Adjacent Properties |
The QP utilized published academic, professional, or government publications about the local area in creating this report. The QP has no material knowledge pertaining to the adjacent properties.
21 | Other Relevant Data and Information |
All data relevant to the supporting studies and estimates of mineral resources and reserves have been included in the sections of this TRS. No additional information or explanation is necessary to make this TRS understandable and not misleading.
22 | Interpretation and Conclusions |
22.1 | Interpretations and Conclusions |
This limestone deposit is reasonably flat-lying and continuous across the ACT property. The quality is very consistent and exceeds the fixed ore grade needed to supply the ALC operation. Because of the simple geology, the application of mining methods is straightforward and consists of uncomplicated open pit or underground mining. The mining method will be determined by economics, geology, and/or the terrain. The economic analysis and significant quantity of reserves indicate the mine reasonably has approximately 80 years of estimated mine life at current production levels.
22.2 | Risks and Uncertainties |
Internal to the mining operation, risks and uncertainties are minimal because of the uncomplicated geology and the employment of standard mining methods. Governmental, legal, and regulatory risks, such as greenhouse gases, could adversely affect the ALC operation's market, for which the ACT mine is the crushed limestone supplier.
23 | Recommendations |
The operation has more than enough resources to last beyond the foreseeable future. In the opinion of the QP, the implementation of a sound mine design(s) and the use of the appropriate equipment suite have the mine currently operating well within the cost estimates projected in the economic analysis. Further analysis of the mine designs for surface versus underground mining methods should be performed after a reasonable operational time period to ensure the optimum economic choice is made when transitioning from surface to underground methods.
Page 31 of 37
24 | References |
AcreValue.com. 2021. [Accessed 2021] .https://www.acrevalue.com/map/?lat=40.628229&lng=-90.5&zoom=4 Bestplaces.com. 2021. Marble City, Oklahoma Weather. [Accessed 2021]. www.bestplaces.net/climate
Dorsey. 2019. How will the new rules affect the definitions of mineral reserves, probable mineral reserves, and proven mineral reserves? [Accessed 2020]
Foti TL. 1978. The Natural Divisions of Arkansas. ANHC. 76 pgs.
Halbrook DF. 1950. Investigation of High-Calcium Limestone Deposits Along White River. Izard County, Arkansas.AGS.16 pgs. McFarland JD. 1998. Stratigraphic Summary of Arkansas. IC-36. AGS. 44 pgs.
Rains D and Hutto RS. 2012, Geology Map of the Sylamore Quadrangle, Izard and Stone Counties, Arkansas.DGM-AR-00844 AGS. 1 pg.
Swanson RG. 1981. Shell Sample Examination Manual. MIES1. AAPG. 102 pgs. USLM. 2005 Property Records, Executive Summary. Company Internal Report. 23 pgs.
US Geological Survey. 2021. MapView Website. [Accessed 2021]. https://ngmdb.usgs.gov/mapview/?center=-97,39.6& zoom=4.
US Geological Survey. 2021. Mineral Commodity Summaries 2021. Stone (Crushed). pg. 154. USGS. 200 pgs.
25 | Reliance on Information Provided by the Registrant |
The QP has relied upon information and data from ACT, ALC, and USLM personnel and records in completing this TRS. This material included written reports and statements of other individuals and companies with whom it does business. The material also includes permits, licenses, historical exploration data, production records, equipment lists, geologic and ore body resource and reserve information, mine modeling data, financial data and summaries, mine equipment specifications, and summaries, records, and equipment lists. The QP believes that the basic assumptions were factual and accurate and that the interpretations were reasonable. This material has been relied upon in the mine planning, capital and cost planning, and audited. USLM mining engineers assisted the QP in reviewing these materials and performed the final reserve block modeling and economic analysis under the direction of the QP. There is no apparent reason to believe that any material facts have been withheld or misstated. In his professional judgment, the QP has taken all appropriate steps to ensure that the information or advice from ACT, ALC, and USLM personnel, company records, and outside entities is accurate. The QP does not disclaim any responsibility for this TRS.
Page 32 of 37
Appendix A: List of Data Included in the Geologic Model
Page 33 of 37
Appendix B: Annual Cash Flow Analysis
| ||||||||
ACT – Discounted Cash Flow In Thousands Discount Factor 1.09% NPV $144,884 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 |
Tons Limestone Sold | 500 | 500 | 500 | 500 | 500 | 500 | 500 | 500 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 |
-Operating Costs | (4,638) | (4,638) | (4,638) | (4,735) | (4,735) | (4,735) | (4,735) | (4,735) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | 1,713 | 1,713 | 1,713 | 1,615 | 1,615 | 1,615 | 1,615 | 1,615 |
-Tax | (343) | (343) | (343) | (324) | (324) | (324) | (324) | (324) |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | 1,369 | 1,369 | 1,369 | 1,291 | 1,291 | 1,291 | 1,291 | 1,291 |
ACT – Discounted Cash Flow In Thousands | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 |
Tons Limestone Sold | 500 | 500 | 500 | 500 | 500 | 500 | 500 | 500 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 |
-Operating Costs | (4,735) | (4,735) | (4,735) | (4,735) | (4,735) | (4,735) | (4,735) | (4,735) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | 1,615 | 1,615 | 1,615 | 1,615 | 1,615 | 1,615 | 1,615 | 1,615 |
-Tax | (324) | (324) | (324) | (324) | (324) | (324) | (324) | (324) |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | 1,291 | 1,291 | 1,291 | 1,291 | 1,291 | 1,291 | 1,291 | 1,291 |
ACT – Discounted Cash Flow In Thousands | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 |
Tons Limestone Sold | 500 | 500 | 500 | 500 | 500 | 500 | 500 | 500 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 | 6,350 |
-Operating Costs | (4,735) | (4,735) | (4,886) | (4,886) | (4,886) | (6,436) | (8,761) | (8,761) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | 1,615 | 1,615 | 1,464 | 1,464 | 1,464 | (86) | (2,411) | (2,411) |
-Tax | (324) | (324) | (294) | (294) | (294) | 17 | 483 | 483 |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | 1,291 | 1,291 | 1,170 | 1,170 | 1,170 | (69) | (1,928) | (1,928) |
Page 34 of 37
| | | | | | | | |
ACT – Discounted Cash Flow In Thousands | | | | | | | | |
| 2048 | 2049 | 2050 | 2051 | 2052 | 2053 | 2054 | 2055 |
Tons Limestone Sold | 500 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 6,350 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 |
-Operating Costs | (8,761) | (8,761) | (8,761) | (8,761) | (8,761) | (8,761) | (8,761) | (8,761) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | (2,411) | 3,939 | 3,939 | 3,939 | 3,939 | 3,939 | 3,939 | 3,939 |
-Tax | 483 | (790) | (790) | (790) | (790) | (790) | (790) | (790) |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | (1,928) | 3,150 | 3,150 | 3,150 | 3,150 | 3,150 | 3,150 | 3,150 |
ACT – Discounted Cash Flow In Thousands | 2056 | 2057 | 2058 | 2059 | 2060 | 2061 | 2062 | 2063 |
Tons Limestone Sold | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 |
-Operating Costs | (8,761) | (8,761) | (8,761) | (8,761) | (8,761) | (8,761) | (7,550) | (7,550) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | 3,939 | 3,939 | 3,939 | 3,939 | 3,939 | 3,939 | 5,151 | 5,151 |
-Tax | (790) | (790) | (790) | (790) | (790) | (790) | (1,033) | (1,033) |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | 3,150 | 3,150 | 3,150 | 3,150 | 3,150 | 3,150 | 4,118 | 4,118 |
ACT – Discounted Cash Flow In Thousands | 2064 | 2065 | 2066 | 2067 | 2068 | 2069 | 2070 | 2071 |
Tons Limestone Sold | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 |
-Operating Costs | (7,550) | (7,627) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | 5,151 | 5,074 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 |
-Tax | (1,033) | (1,017) | (993) | (993) | (993) | (993) | (993) | (993) |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | 4,118 | 4,057 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 |
Page 35 of 37
| | | | | | | | |
ACT – Discounted Cash Flow In Thousands | | | | | | | | |
| 2072 | 2073 | 2074 | 2075 | 2076 | 2077 | 2078 | 2079 |
Tons Limestone Sold | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 |
-Operating Costs | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 |
-Tax | (993) | (993) | (993) | (993) | (993) | (993) | (993) | (993) |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 |
ACT – Discounted Cash Flow In Thousands | 2080 | 2081 | 2082 | 2083 | 2084 | 2085 | 2086 | 2087 |
Tons Limestone Sold | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 |
-Operating Costs | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 |
-Tax | (993) | (993) | (993) | (993) | (993) | (993) | (993) | (993) |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 |
ACT – Discounted Cash Flow In Thousands | 2088 | 2089 | 2090 | 2091 | 2092 | 2093 | 2094 | 2095 |
Tons Limestone Sold | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 |
-Operating Costs | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 |
-Tax | (993) | (993) | (993) | (993) | (993) | (993) | (993) | (993) |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 |
Page 36 of 37
| | | | | | | | |
ACT – Discounted Cash Flow In Thousands | | | | | | | | |
| 2096 | 2097 | 2098 | 2099 | 2100 | 2101 | 2102 | 2103 |
Tons Limestone Sold | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
Sales Price/Ton | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 | 12.70 |
Revenue | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 | 12,701 |
-Operating Costs | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) | (7,750) |
-Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Taxable Income | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 | 4,951 |
-Tax | (993) | (993) | (993) | (993) | (993) | (993) | (993) | (993) |
+Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
-Capital Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Free Cash Flow | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 | 3,958 |
| |
ACT – Discounted Cash Flow In Thousands | |
| 2104 |
Tons Limestone Sold | 1,000 |
Sales Price/Ton | 12.70 |
Revenue | 12,701 |
-Operating Costs | (7,750) |
-Depreciation | 0 |
Taxable Income | 4,951 |
-Tax | (993) |
+Depreciation | 0 |
-Capital Expenses | 0 |
Free Cash Flow | 3,958 |
Page 37 of 37