CA3123401A1 - Method of trading in minerals - Google Patents

Abstract

There is describe a method of trading in minerals. The method involves securing rights to exploit a mine, wherein the mine comprises a predetermined three-dimensional area mapped in three dimensions for unearthed minerals. The three-dimensional area is divided into a plurality of cubic units corresponding to a predetermined cubic unit of measurement. The method involves labelling for identification purposes each of the cubic units within the three-dimensional area and calculating the type and amount of the unearthed minerals within each of the cubic units. The method involves recording in a computer database each of the cubic units and the unearthed minerals contained in each of the cubic units and assigning ownership to each of the cubic units. The method involves brokering trading in the form of purchase or sale of each of the cubic units, with ownership of each of the cubic units being updated as trades occur.

Description

TITLE
[0001] Method of Trading in Minerals FIELD

[0002] There is described a method of trading in minerals, such as gold.
BACKGROUND

[0003] Minerals have been used for centuries as tradeable currency. A
prime example of this is gold. Presently, approximately 30% of the total global gold production is for investment purposes.

[0004] Such mineral deposits are exploited by digging them up, processing them, and then distributing them. The exploitation of such mineral resources is extremely damaging to the environment. For example, the processing and refining of gold requires the use of mercury and cyanide. The tailings for such processing need to be treated very carefully in order to prevent long term environmental damage and health related issues for workers and the local population located near the gold mines and processing plants.

[0005] Gold mined for investment purposes is typically stored in a secure location, such as a vault in a bank or government institution.
SUMMARY

[0006] There is provided a method of trading in minerals. The method involves securing rights to exploit a mine, wherein the mine comprises a predetermined three-dimensional area mapped in three dimensions for unearthed minerals. The method involves dividing the three-dimensional area into a plurality of cubic units corresponding to a predetermined cubic unit of measurement. The method involves labelling for identification purposes each of the cubic units within the three-dimensional area. The method involves calculating the type and amount of the unearthed minerals within each of the cubic units. The method involves recording in a computer database each of the cubic units and the unearthed minerals contained in each of the cubic units. The method involves assigning ownership to each of the cubic units. The method involves brokering trading in the form of purchase or sale of each of the cubic units, with Date Recue/Date Received 2021-06-28 ownership of each of the cubic units being updated.

[0007] The rationale behind the above described method is that an investor wishing to acquire a specific number of grams of gold for investment purposes is only concerned that the gold is held at a secure location. With the above described method, the existence of the gold is verified, but the gold remains in the ground. This saves the investor from having to pay for secure storage of the gold. This saves society from all of the environmental costs associated with extracting from the ground gold that is solely for investment purposes and is just going to be stored.

[0008] Most mines are not exclusively gold mines but contain other minerals along with the gold. This will result in the cubic unit the investor purchases containing more than one type of mineral.

[0009] In the detailed description that follows the preferred form of cubic unit will be described as a cubic ton. It will be understood that this is arbitrary, and any other cubic unit could used.

[0010] In the detailed description that follows the preferred form of unit used to measure the amount of the unearthed minerals is described as being grams or milligrams. It will again be understood that this is arbitrary, and any other convenient unit of measurement could be used.

[0011] In some jurisdictions, "carbon credits" are given. Where there is a forest located at a site of the mine, it may be possible to claim such carbon credits with a forest density being used to calculate potential CO2 sequestration.
BRIEF DESCRIPTION OF THE DRAWINGS

[0012] These and other features will become more apparent from the following description in which reference is made to the appended drawings, the drawings are for the purpose of illustration only and are not intended to be in any way limiting, wherein:

Date Recue/Date Received 2021-06-28

[0013] FIG. 1 is a flow chart of steps in accordance with the method of trading in minerals.

[0014] FIG. 2 is a flow chart which is a continuation of the flow chart of FIG. 1.

[0015] FIG. 3 is a three dimensional model of mineral mapping.

[0016] FIG. 4 is a diagram showing a grid.

[0017] FIG. 5A is a flow chart of how to determine unearthed mineral resources.

[0018] FIG. 5B is a flow chart relating to grid creation.

[0019] FIG. 6 is a diagram of a two dimensional grid.

[0020] FIG. 7 is a flow chart which is a continuation of the flow chart of FIG. 5B.

[0021] FIG. 8 is a diagram of a three dimensional grid.

[0022] FIG. 9 is a diagram of an expanded three dimensional grid.

[0023] FIG. 10 is a diagram of a three dimensional grid superimposed upon a topographical map.

[0024] FIG. 11 is a table of a geological report.

[0025] FIG. 12 is flow chart of trading in minerals.

[0026] FIG. 13 is a schematic diagram of an application programming interface (API).

[0027] FIG. 14 is a flow diagram of calculating mine carbon emissions.

[0028] FIG. 15 is a schematic diagram illustrating principles behind carbon offsets.

[0029] FIG. 16 is a flow diagram of calculating carbon offsets.
DETAILED DESCRIPTION

[0030] A method of trading in minerals will now be described with reference to FIG. 1 through FIG. 16.
Structure and Relationship of Parts:

[0031] FIG. 1 shows a flowchart describing a method to virtually mine unearthed natural resources. We propose to attach a corresponding trade value to the geologically certified mineral resource and leave it in the ground for a predetermined amount of time, i.e. 99 years.
The currency of the investment can still hold value, but the gold stays in the ground, thus protecting the environment. Additionally, this would help solve other problems related to the global fintech industries and the virtual currency markets, i.e.
cryptocurrencies like bitcoin which do not have an underlying basis for value. By fixing a corresponding trade value to a Date Recue/Date Received 2021-06-28 predetermined unit of measurement, i.e. a gram of geologically proven mineral in the ground, it gives a potential value to the virtual currency or token to be based on.

[0032] Mineral resources have globally recognized geological resource confirmation standards such as: 43-101 (Canada), JORC(Australia), SMAREC (South Africa).
These standards are based on a scientific methodology to accurately estimate the amount of mineral resources in the ground and the ability to economically exploit them. One familiar with the art will appreciate that geological modelling software is used to determine the geological resource confirmation. Gold deposits, for example, will have detailed 3 dimensional in the ground deposit models based on exploration activities. We attach an exact location to every gram of the mineral deposit in this 3-dimensional model to a record with a corresponding trade value.
One familiar with the art will appreciate that this process can then be used as the basis of a virtual currency based on the mineral value in the ground. This could be used for gold, silver, platinum, nickel, and other types of unearthed mineral deposits. The unearthed minerals then can be left in the ground and therefore, the environment is not being damaged.
They can still hold value and be used as the basis for a tradeable goods such as digital currency and in other instances as in the form of a coin or token.

[0033] Geological modelling software facilitates the mineral resource estimation which is used to determine and define the ore tonnage and grade of a geological deposit, from the developed block model. There are different estimation methods used for different scenarios dependent upon the ore boundaries, geological deposit geometry, grade variability and the amount of time and money available. A typical resource estimation involves the construction of a geological and resource model with data from various sources. Depending on the nature of the information and whether the data is hard copy or computerized, the principal steps of computer resource estimation are:

[0034] Creation, standardization and validation of the database.

[0035] Section plotting and interactive geological modelling.

[0036] Geostatisti cal analysis.

[0037] Block modelling and block estimation.

Date Recue/Date Received 2021-06-28

[0038] An orebody model serves as the geological basis of all resource estimation, an orebody modelling project starts with a critical review of existing drill hole and surface or underground sample data as well as maps and plans with current geological interpretation. Drill hole and/or sample databases are set up to suit all the quantitative and qualitative information necessary to build a resource model. The creation of a geological model may include the following steps:

[0039] Computer-based 3D orebody modelling

[0040] Sectional, longitudinal, 3D and multi-seam modelling

[0041] Geostatistical analysis, variographic analysis of composite spatial continuity

[0042] The flowchart process comprising:

[0043] FIG. 1

[0044] Step 11 securing the rights to exploit a mine, wherein the mine comprises a predetermined area that has been mapped for unearthed natural resources, in which the unearthed resources comprise one or more from the group of minerals (as shown in FIG. 3),

[0045] Step 12 mapping in 3D the location of the unearthed resources, wherein each three dimensional area is divided into cubic areas corresponding to a predetermined cubic unit of measurement. In a different embodiment of the invention the predetermined unit of measurement is a cubic ton (as shown in FIG. 3),

[0046] Step 13 labelling each predetermined cubic unit,

[0047] Step 14 identifying the type of unearthed natural resources within each cubic unit, Date Recue/Date Received 2021-06-28

[0048] Step 15 measuring the amount of each natural resource within each cubic unit,

[0049] Step 16 dividing the amount of each natural resource into an unearthed unit, wherein the unearthed unit is one or more from the group of gram, milligram, cubic area,

[0050] Step 17 recording the X, Y, Z location of the unearthed natural resources within each labelled cubic unit in an unearthed resources database, wherein the unearthed resources database is local or remote.

[0051] Step 18 dividing the unearthed natural resources from each cubic unit into individual assets and assigning them a reference value,

[0052] FIG. 2 is a flowchart and is a continuation of FIG. 1.

[0053] Step 21 - recording the reference value in the unearthed resources database,

[0054] Step 22 - assigning an owner to each individual asset in the unearthed resources database.

[0055] One familiar with the art will appreciate that our differentiating factor is leaving the mineral resources in the ground rather than exploiting them, while creating a trade value for an asset. By using a 3-dimensional model, produced by using globally recognized geological standards, we can attach a corresponding trade value to a specific location and weight of a mineral deposit without having to extract it from the ground.

[0056] FIG. 3 shows a perspective view of a three dimensional model of a typical mineral deposit which comprises a predetermined area, wherein the predetermined area has been mapped for unearthed natural resources. A typical mineral deposit is explored using various methods such as drilling and seismic. When combined with a geochemical review and labs, a detailed 3 dimensional model of the underground mineral deposit can be created. The geological model will be used as the basis by globally recognized and certified geological Date Recue/Date Received 2021-06-28 certification experts to issue a report on the size of the mineral deposit.
Based on these reports and the 3-dimensional model, we will attribute a corresponding trade value to a specific weight and volume of the mineral deposit.

[0057] Using a grid created in the 3-dimensional model we assign an exact location in the mineral deposit using the x, y, and z axis. This location will then have a specific mass and volume based on the mineral in each deposit. This precise 3-dimensional location will be attached to a corresponding trade value that is recorded in an unearthed resources database.

[0058] One familiar with the art will appreciate that the process described above can be integrated with current virtual currency applications and systems, that are commonly used on smart contract technologies and as the basis for offering a token or cryptocurrency.

[0059] FIG. 4 shows the first embodiment of the invention, showing the process to create a 1 square meter grid on a mine property and assign a value to each unit in that grid.

[0060] Grid 1: This grid is to be used on properties that only have Indicated Mineral Resource or an Inferred Mineral Resource. Each property will be broken down into a grid of X, Y, and Z coordinates. The X, Y and Z will be divided into 1 meter by 1 meter by 1 meter .. square, which is a cubic meter (m3). In the example above, the yellow section is 1 km by 1 km, and it would contain 1,000,000 cubes.

[0061] FIG. 5A shows a diagram with a different embodiment of the algorithm of our invention, wherein the algorithm assigns an asset count to a specified cubic area of the land .. based on the data gathered by the geological modelling software.

[0062] Step 51 the computer running the software with the algorithm of our invention receives the data from the data gathered by the geological modelling software.

[0063] Step 52 the algorithm divides the area mapped by the geological modelling software by a predetermined cubic size allocating coordinates X, Y, and Z

Date Recue/Date Received 2021-06-28

[0064] Step 53 based on the geological modelling software mapping, the algorithm calculates the amount of unearthed resources or assets a predetermined cubic amount of land contains.

[0065] Step 54 the algorithm sends this data back to the database.

[0066] FIG.
5B shows a flowchart with a different embodiment of the invention describing the process to create a 1 square meter grid on a mine property and assign a value to each unit in that grid.

[0067] Step 56: Input the number of acres and convert to Square Kilometres at a ratio of 1: 0.0040468564224. Round to the nearest meter. This will give you the Square Kilometres of the mine. Set this value to S.

[0068] Step 57: Find the X, Y coordinates for the property centre of the mine, and place a marker at this location. This is Marker A. Take the Value of the square kilometres of the mine and divide by 2. Assign this value the letter B.

[0069] Step 58: Using marker A as a starting location, and ensuing that the map is aligned North place 4 markers on the map as follows:

[0070]
Marker C: Directly North of Marker A at a distance of Value B.

[0071] Marker D:
Directly East of Marker A at a distance of Value B.

[0072]
Marker E: Directly South of Marker A at a distance of Value B.

[0073]
Market F: Directly West of Marker A at a distance of Value B.

[0074] Step 59: On the map, draw the following lines:

[0075] Line 1: From Marker C draw a line with a total distance of Value B, that is directly Date Recue/Date Received 2021-06-28 West.

[0076] Line 2: From Marker C draw a line with a total distance of Value B, that is directly East.

[0077] Line 3: From Market D draw a line with a total distance of Value B, that is directly North.

[0078] Line 4: From Market D draw a line with a total distance of Value B, that is directly South.

[0079] Line 5: From Marker E draw a line with a total distance of Value B, that is directly West.

[0080] Line 6: From Marker E draw a line with a total distance of Value B, that is directly East.

[0081] Line 7: From Market F draw a line with a total distance of Value B, that is directly North.

[0082] Line 8: From Market F draw a line with a total distance of Value B, that is directly South.

[0083] This will produce a square that represents the Square Kilometres of the property.

[0084] Give the upper left comer of the square the value G.

[0085] Give the upper right comer of the square the value H.

[0086] Give the lower right comer of the square the value I.

[0087] Give the lower left comer of the squire the value of J.

[0088] Step 510: Divide into Blocks.

[0089] Multiply value S by le + 6 to get the number of square meters.
Give value a label of SM.

[0090] Starting in the upper left of the grid (G), mark a one meter cube as L1R1C1, directly to the right of L1R1C1, create another meter cube and mark it as L1R1C2.
Continue this until you reach value H.

[0091] After reaching Value H, go back to Cube L1R1C1 and mark a one meter cube directly south of it. Name this new cube L1R2C1.

[0092] FIG. 6 shows a two dimensional grid as an example of the process described in Date Recue/Date Received 2021-06-28 FIG. 5, showing an example of a map that is 6 square meters.

[0093] FIG. 7 shows a flowchart, that is a continuation of FIG. 5B, where it shows the depth calculations and the assignment of value to each block.

[0094] Step 71: Depth Calculations.

[0095] Once all the square meter blocks have been created, add 3 more layers, named L2, L3, L4 (as shown in FIG. 8)

[0096] Step 72: Assign a value to each block.

[0097] To assign a gold in grams value to each block, take the total number of blocks (SM
* 4) and divide by the Indicated Mineral Resource of gold in Grams. The end result will be the creation of a grid that is broken down into square meters, with each square meter having a unique identifier, as well as a gold in grams value (as shown in FIG. 9)

[0098] FIG. 8 shows a three dimensional representation of how each block is assigned labels.

[0099] FIG. 9 shows a 3-dimensional grid of the second embodiment of the invention where the grid is to be used for properties that have Measured Mineral Resource.

[00100] Step 1: Using the geological map that was generated from the data, a definable mass of gold producing ore will have been identified. Determine the volume of this mass.

[00101] Step 2: Using the volume of the mass from step 1, divide it evenly into square meters. This will create X number of square meter units, referred to as blocks.

[00102] Step 3: Give each block a unique identifier that will reference the coordinates and depth of that specific block.

[00103] Step 4: Using the Measured Mineral Resource in gold grams, divide into the number of blocks to give each block an AU Grams Value.

[00104] The result will be a diagram that shows the gold producing ore, broken down into square meters, and each square meter given a unique identifier and a gold in grams value. As Date Recue/Date Received 2021-06-28 shown in FIG. 10

[00105] FIG. 10 shows a three dimensional grid similar to the ones representing a graphic representation of the Geological modelling software as described in FIG. 1.

[00106] FIG. 11 shows a chart table as a representation of the Geological modelling software report described in FIG. 1.

[00107] FIG. 12 is a flowchart that shows how the software application operates. The software application can run on one or more devices including the following: a computer, a server, a smart gadget, a mobile phone or similar device.

[00108] Following the steps described above on FIG. 9, the method is then paired with a software application for the brokerage of individual assets.

[00109] Step 121 accessing the unearthed resources database where the information for individual assets is. To access such information a computer or smart gadget must run the software application and connect to a local or remote server and then access the resources database.

[00110] Step 122 View the list of individual assets. Once an individual accesses the resources database, the information is displayed.

[00111] Step 123: Select an individual asset, wherein an individual asset has different information to show.

[00112] Step 124: Display a list of the individual asset features including the mine location, the X, Y, and Z coordinates, the reference value and the owner of the individual asset. One familiar with the art will appreciate that the individual asset is co-related to a specific natural resource unearthed.

Date Recue/Date Received 2021-06-28

[00113] Step 125: Brokering a transaction to sell or buy an individual asset. One can buy that asset or sell an asset to another person via the same application or by connecting to other applications such as banks, online financial portals, cyber currency portals to name a few.

[00114] Step 126: recording the transaction into the resources database.

[00115] FIG. 13 shows how the application software (13100), from the process described in FIG. 12, comprises an application programming interface (API) (13101) that integrates with one or more from the group of external databases (13102), cyber currency (13103), smart contracts (13104), blockchain (13105), financial technology services (13106).

[00116] FIG. 14 shows a flowchart describing how the application software calculates the outputs of CO2 and other emissions of the mine's predetermined area if that mine was to be exploited.

[00117] Step 141: Calculating the mine's emission's outputs using traditional methodology.
The output CO2 and other emissions of the mine's predetermined area can be calculated, as if that mine was to be exploited. There are several well-known technologies and methodologies to make these calculations. The output of a mine includes a mineral, along with outputs of CO1 and other emissions. A person familiar with the art will appreciate that the mining industry generates between 1.9 and 5.1 gigatons of CO2 equivalent (CO2 e) of GHG
emissions annually. The majority of emissions in this sector originate from fugitive coal-bed methane that is released during coal mining (1.5 to 4.6 gigatons), mainly at underground operations.
Power consumption in the mining industry contributes 0.4 gigaton of CO2 e.
Further down the value chain¨what could be considered Scope 3 emissions¨the metal industry contributes roughly 4.2 gigatons, mainly through steel and aluminum production. Coal combustion for the power sector contributes up to roughly ten gigatons of CO2. Any serious effort to implement the Paris Agreement goals would require a major contribution from the entire value chain. To stay on track for a global 2 C scenario, all sectors would need to reduce CO2 emissions from 2010 levels by at least 50 percent by 2050. To limit warming to 1.5 C, a reduction of at least 85 percent would likely be needed. Mining companies' published emission targets tend to be Date Recue/Date Received 2021-06-28 more modest than that, setting low targets, not setting targets beyond the early 2020s, or focusing on emission intensity rather than absolute numbers.

[00118] Step 142: Dividing the outputs CO2 and other emissions by the total number of individual assets in the unearthed resources database, this way each individual record has a monetary value set by the methodology described above and a "sustainability"
metric that generates a value perceived by the owner of the individual asset.

[00119] Step 143: Recording at the individual asset entry the corresponding CO2 and other emission amounts.

[00120] FIG. 15 shows a diagram on how the carbon offset credits work. A
carbon offset is a reduction in emissions of carbon dioxide or other greenhouse gases in order to compensate for emissions made elsewhere. Offsets are measured in tonnes of carbon dioxide equivalent (CO2e). One tonne of carbon offset represents the reduction of one tonne of carbon dioxide or its equivalent in other greenhouse gases.

[00121] FIG. 16 is a flowchart describing how the application software manages the metrics for carbon offset credits equivalents.

[00122] Step 161: Calculating the total CO2 sequestration of the mine's predetermined area to calculate a carbon credit equivalent. A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas (tCO2e).

[00123] Carbon credits and carbon markets are a component of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs).
One carbon credit is equal to one tonne of carbon dioxide, or in some markets, carbon dioxide equivalent gases. Carbon trading is an application of an emissions trading approach.
Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources.

Date Recue/Date Received 2021-06-28

[00124] The goal is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less carbon intensive approaches, than those used when there is no cost to emitting carbon dioxide and other GHGs into the atmosphere. Since .. GHG mitigation projects generate credits, this approach can be used to finance carbon reduction schemes between trading partners and around the world.

[00125] Step 162: Dividing the calculated CO2 sequestration by the total number of individual assets.

[00126] Step 163: Recording the individual asset entry and the corresponding CO2 sequestration amounts.

[00127] In this patent document, the word "comprising" is used in its non-limiting sense to mean that items following the word are included, but items not specifically mentioned are not excluded. A reference to an element by the indefinite article "a" does not exclude the possibility that more than one of the elements is present, unless the context clearly requires that there be one and only one of the elements.

[00128] The scope of the claims should not be limited by the illustrated embodiments set forth as examples, but should be given the broadest interpretation consistent with a purposive construction of the claims in view of the description as a whole.

Date Recue/Date Received 2021-06-28

Claims (5)

What is Claimed is:

1. A method of trading in minerals, comprising:
securing rights to exploit a mine, wherein the mine comprises a predetermined three-dimensional area mapped in three dimensions for unearthed minerals;
dividing the three-dimensional area into a plurality of cubic units corresponding to a predetermined cubic unit of measurement;
labelling for identification purposes each of the cubic units within the three-dimensional area;
calculating the type and amount of the unearthed minerals within each of the cubic units;
recording in a computer database each of the cubic units and the unearthed minerals contained in each of the cubic units;
assigning ownership to each of the cubic units; and brokering trading in the form of purchase or sale of each of the cubic units, with ownership of each of the cubic units being updated.

2. The method of Claim 1, wherein the unearthed minerals comprise more than one type of mineral.

3. The method of Claim 1, wherein each of the cubic units is a cubic ton.

4. The method of Claim 1, wherein a unit used to measure the amount of the unearthed minerals is selected from one of grams or milligrams.

5. The method of Claim 1, wherein there is a forest located at a site of the mine and a forest density is measured to calculate potential CO2 sequestration.
Date Recue/Date Received 2021-06-28