Blockchain solutions are beginning to find real-life use cases in the last few years; from logistics to healthcare, governance, finance, entertainment, amongst others. The obvious fact is that this nascent technology is disrupting how business is being done, and ORETis trying to tap into the decentralized nature of the space to raise funds for its gold mining operations.
Here’s the back story…
Paso Yobai is known for being a gold-rich region. Locals in the region were able to successfully negotiate the handover of 83.36 hectares of land with Latin American Minerals Inc. The said portion also includes the Paso Yobai gold-rich area defined by 8000 meters by 300 meters gold soil anomaly. The landmass has an average of 7.5 g/t of gold.
The locals went a step further by forming an association of miners (Asociación de Pequeños Mineros). As expected, local miners had little to no experience in mining, and they settled for makeshift gold recovery plants. With this, they were only able to recover about 30% of the gold. Put differently, about 70% of the gold ended up in their tailings. Additionally, this option was “economically viable to a depth of about 15 meters.” Deeper depths meant the cost of mining rose higher than the revenue gotten, making it unprofitable for local miners to continue working.
Once mining became unprofitable using makeshift gold recovery plants, locals decided to start leasing out their land to investors. Some of these investors came in with better equipment that could reach depths of 40 meters. Sadly, there were several barriers and variables such as lack of experience, wrong gold recovery systems for the area, and lack of planning on how to best extract the gold. As a result of this, some investors were losing up to 50% of gold in tailings.
ORET aims to efficiently mine the gold on these sites. According to their website, “our goal is to create a cryptocurrency that will be entirely backed by a company dedicated to the extraction of precious minerals such as gold.”
ORET comprises of an experienced team that is backed by a licensed company, Paraguay Mineral Mining SA - (PMMSA). The CEO of the team, Nicolaas Spangeberg is a knowledgeable Gold Mine Manager with over 8 years of experience. Juan Villalba who is also a member of the team has extensive experience in extraction and chemical recovery of gold.
The ORET team has performed geological surveys and drilling analysis on the land they want to acquire, and tests have proven that the area is rich in gold. The ORET token has been created to raise funds for the acquisition of land, concessions, and machines for extraction. The company has revealed that 45% of the net profits will be distributed to token holders weekly.
Mining of gold will never go out of fashion since it is a precious metal. The ORET team has revealed that their proposed mining site will be able to produce gold worth $2,517,500 monthly, 45% of which will go to token holders (this is equivalent to $1,132,875).
To an extent, the company is trying to decentralize mining investment. By adoption a tokenized model, investors from all over to world can invest in their desired mineral or location, without being limited by barriers that are otherwise there.
The strength of ORET lies in its experienced team. The team comprises of professional spanning across all the necessary industries required to pull this off; from mining to marketing, logistics and blockchain.
ORET has a total token supply of 12,500,000. In general, 96% of the tokens will be sold during ICO, while 4% will be used for airdrops. It is worth noting that no tokens will be distributed to team members or those connect to PMMSA. 10% of the funds raised will however be kept in a safety net to handle any unexpected costs.