The Van Deemen Mine property consists of five unpatented lode mining claims totaling approximately 100 acres acquired through a lease agreement with La Cuesta International, Inc. in April 2011. The Company has also located 48 unpatented lode claims in the area surrounding the Van Deemen Mine, which have been staked and recorded with the U.S. Bureau of Land Management and the Mohave County Recorder.
Lists of the unpatented mining claim names, claim numbers, and locations reported by the BLM are attached. (Appendix A). The unpatented mining claims have not been surveyed. The location notices indicate the claims are approximately under 20 acres each (roughly the maximum size of a lode claim, 1500 feet by 600 feet), with the exception of several claims that were reported to be partially invalid as they overlap existing claim boundaries.
The located mineral claims (Figure 4.2-1) were staked as lode claims on public lands administered by the United States Department of the Interior Bureau of Land Management (BLM) in accordance with BLM regulations which are documented at http://www.blm.gov/az/mines/requirements.htm. The located claims are registered in the name of Intl. Star Inc. All claims are available for viewing at the Mohave County Land Registry Office, Kingman, Arizona. A detailed statement of the BLM claims is shown in Appendix A and can be viewed at http://www.blm.gov/landandresourcesreports/rptapp/menu.cfm?appCd=2
Effective October 1, 2013, on BLM land, claims can be staked and recorded for a fee of $194 per claim, which includes a $34 location fee, $140 maintenance fee, and $20 processing fee. On or before September 1 of each year, the Company must file a maintenance fee payment of $140 for every 20 acres or portion thereof, or a wavier which states the Company will perform the labor for the next year. There are no fees to file the waiver. The Company must file either a Notice of Intent to Hold or an Affidavit of Assessment Work each year with the county recorder’s office on or before September 30 and with the BLM on or before December 30. The location of this office will always be in the county seat of the county in which the claims are situated.
To locate a mining claim, one must be a United States citizen (or have declared an intent to become a citizen) or a corporation authorized to do business in the United States. All mining claims are initiated by erecting a conspicuous monument at the place of discovery and posting thereon a Notice of Location. Mining claims must be distinctly marked on the ground so that their boundaries can be readily traced.
Unpatented mining claims starting with “LCI” are currently owned and held by La Cuesta International, Inc. The “LCI” claims are listed as “active” in the BLM’s database, and annual maintenance fees were paid in 2013. The unpatented mining claim “IS” series was located by Intl Star Inc in 2009 thru 2010; in 2010 “ISCG1” thru “ISCG4”, “GSTAR1”, “GSTAR2”, “MSTAR1” thru “MSTAR6” and “VSTAR1” thru “VSTAR4” were located; in 2011 “VSTAR5” thru “VSTAR13” were located. Annual maintenance fees of $140 per unpatented mining claim are due to BLM on or before September 1 each year to maintain the claims. The next annual maintenance fees are due by September 1, 2014.
Access to the unpatented mining claims will be by existing public roads and existing roads located on BLM lands. Use of roads across BLM lands is governed by BLM rules and policies under the Federal Land Policy and Management Act (“FLPMA”). BLM’s applicable regulations are at 43 Code of Federal Regulations (“C.F.R.”) Groups 3700 and 3800. The Van Deemen project falls within a Designated Area of Critical Environmental Concern (ACEC) as designated by the BLM Exploration on the unpatented mining claims held by the Company would require a Mining Plan of Operation from the Bureau of Land Management (“BLM”) if there is to be any mechanized equipment used. BLM reviews such notices and may require additional review under federal laws (e.g. National Environmental Policy Act, National Historic Preservation Act, Endangered Species Act) prior to concurring with the planned exploration activities. Water supply infrastructure may require a separate right-of-way grant from BLM. Mining on unpatented mining claims is subject to future changes in federal law.