Colorado Mining Companies LLP, Partner Update
April 10, 2022
This report will be provided to you by the 10th of each month to keep you informed of Procurement Gap Exceptions (PGE) to monthly distributions. Of course, initially as we get electrical infrastructure ordered and put in place, we anticipate PGE to monthly distributions until about August. As a rule though when we start mining and the 25% reinvestment of monthly revenues kicks in, this will create a permanent PGE; so, this monthly partner update will become a permanent communication device for our partners and will be posted to the private partner login section of our website (not yet configured).
Electricity
We had a meeting with the electric company, the electric company’s installer, the inspector, our Electrical Engineer and Electrician, and the property owner at our mining site to discuss and plan the installation of the electric companies’ main transformer. A new power pole will be installed, and a hole will be bored from the pole to the location of the transformer. The bored hole was increased in size to prepare for and accommodate expansion to 12 million watts later. A list of site preparation items was created, and we have already made progress to complete those items, so the site is ready for installation.
All the RVs have been cleared. The Surveyor Staked the easement. On Monday April 18th all of the equipment locations will be marked (containers, main and secondary transformers, and the 17 foot long meter and fuse cabinet). Then, the two weeks of construction will begin to install the main transformer.
Timelines
Due to a change in supplier and in the delivery date for the meter and fuse cabinet, we now expect to begin mining in August (a two month schedule slip).
The original supplier slipped their delivery schedule from 20 some weeks to 50 weeks due to the unavailability of high voltage breakers. This led us to seek out a new supplier. Our new supplier produces a cabinet that uses fuses instead of breakers (there is an industry wide shortage of breakers due to Covid supply chain issues). This new meter and fuse cabinet is 17 x 4 feet, so a new site plan had to be created and has already been approved by the electric company.
Over the next few weeks, we will approach the supplier and offer to pay for weekend overtime to see if we can speedup the delivery of the meter and fuse cabinet. This approach will only work if the supplier has immediate access to the parts they need to build the cabinet.
Our secondary transformers are still on schedule and other parts like conduit and cables have already started to arrive.
Miners
After vetting many suppliers, we placed a test order with a US based supplier that ultimately shipped us miners from China. The miner model is the Bitmain Antminer S17+ 73TH. These are used miners. We are aware that the S17+ miners have a flaw that requires correcting by replacing all the heat sinks on the ASIC chips, which this supplier does.
We received two miners and promptly disassembled them to assess their condition. The heat sink work was very well done. We have been testing the operation of the miners and they have performed very well.
We have now placed a larger order, first of course negotiating a volume discount.
Container of Immersion Tanks
We are still under a None Disclosure Agreement (NDA) with our immersion cooling supplier due to the details of the container not yet being made public (we placed our order in Sept 2021). We learned last week that we are one of three startup mining companies that have orders placed with this supplier and that they no longer are accepting orders from startups. Because we placed our order when we did, we are an established customer and can continue to order from this supplier. The supplier, moving forward, will only accept orders from established industrial scale miners. The supplier was genuinely excited for us as a startup to have access to their containers as we are now part of a small exclusive group that has a tremendous advantage with access to this product. Demand for these immersion containers from the industrial scale miners has been very strong, a great validation that we chose a great immersion cooling product.
This supplier also recently announced their expansion into a much larger assembly facility to meet growing demand.
Site Preparation
Due to the weight of the immersion tank shipping container with immersion tanks full of fluid and miners, 36,000 pounds, traditional concrete piers may be prone to settling which would cause to container to not be level.
A better solution are helical piles. Check out this website to learn more.
We got a quote, and this looks like it will be both sturdy and cost effective.
First Annual Partnership Meeting
We held our first annual Partnership Meeting on Saturday the 26th of March at 2:00PM Mountain Time on Google Meet. The meeting was recorded and will soon be made available in the private partner login section of our website.
Regards,
Mark, Maria, and Leland
Managing Partners
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