By Jack Caldwell

Green mining is proposed in Arizona. Sounds good in a state that is mainly brown and dominated by John McCain and his ilk. Here is what the article announcing green mining says:

“Green Planet Group, Inc. (OTCBB:GNPG) announced today that its wholly-owned subsidiary, Green Mining Technologies, Inc. (GMT) has signed an agreement with Earth Explorations, LLC, to acquire its first gold mine. GMT’s investment to acquire the mining property and own 50% of the mine’s ongoing net profit is $800,000 cash to be paid from initial operating profits within the first twelve months, 4.4 million shares of restricted common stock, and 50% of the ongoing royalty income and revenues generated by Green Mining Technologies. The agreement is scheduled to close on January 31, 2010. Located in Northwestern Arizona, this mine has estimated reserves of 1.44 million ounces of gold and 1.73 million ounces of silver, as reported in an independent third-party analysis conducted in August of 2009 by W M Engineering. Based on current precious metal values, the mine’s total reserves have been valued at $1.59 billion. Mining operations are expected to begin within 90 days from closing. Initial monthly revenue projections are $272,000, increasing to $510,000 over the first 6 months. After processing all of the existing surface material, underground operations are projected to begin yielding monthly revenues of approximately $10 million.”

I wondered just what specific activities or approaches would constitute green mining? Here is a list of the partners and the skills they will bring to this green mining venture:

  • American Soil Technology (OTCBB: “SOYL”) with its patented soil enhancers that retain moisture at the root zone of plants thereby reducing both water and fertilizer use while protecting the aquifer. (see http://www.americansoiltech.com)
  • Bio-Flora, a world-leading innovator in the development of new organic fertilizers and substantial agriculture technologies will provide the “fuel” to re-grow native plants in mined areas. (see http://www.bioflora.com)
  • Green Power Resource Management, the maker of multi-patented solar powered air conditioners that will act as a natural coolant for all of the structures utilized throughout the mining process, as well as provide the water treatment solutions to reclaim all waste water. (see http://www.greenprm.com); and
  • Lumea Staffing Inc., a wholly owned subsidiary of Green Planet Group, will provide qualified green collar employees for mining operations. Additional services will include OSHA inspections, risk management, health and medical services as well as workman’s compensation insurance. (see http://www.greenplanetgroup.com)

I am intrigued by the idea of “green collar employees.” No blue collar or white collar prejudices here, note.

As an investor, I cannot help but wonder whence comes the skill to actually operate a green mine. I grant the potential benefits of green collar folk, solar-powered air conditioners, organic fertilizers, and root-zone enhancers, but somehow you still have to dig up the ore, process it, send the tailings to the impoundment, and market the product. Does Green Planet Group Inc. have the necessary skills? I find nothing on their website about people who have the background in mining that would make me buy in the faith that they can bring a mine to production. If you know more please let me know.

The company is headed by this fellow:

"Edmond Lonergan is the CEO of Green Planet Group, Inc., and is responsible for GNPG’s overall performance and growth strategy. Mr. Lonergan has founded and operated numerous high-tech corporations, including Electric Technology Group, Inc., which was honored by Inc. magazine for becoming the 28th fastest-growing high-tech company in 1992. Mr. Lonergan has the distinction of serving on the White House Small Business Committee during the Carter Administration.”

I tired searching for W M Engineering, their consultants, on the web, but I could not find a company specializing in mining of that name. There are links to many W M Engineering companies: a car-parts dealer, a civil engineering group in central New York, a British company, and a listing of a company in Las Vegas with no further information accessible. It may be that I am just not looking in the right places, but surely if Green Planet is sincere about launching a new approach to mining, they should make it easier for the eager investor to get information sufficient to persuade them that green mining can be done, and not just cooled by solar power. How else to attract the green back?