Silver_Refining_SOW-_DRAFT.pdf

SECTION C

STATEMENT OF WORK/SPECIFICATIONS

C.1 GENERAL INFORMATION

The U.S. Mint will deliver to the Contractor’s facility, at no expense to the Contractor, Government silver in the form of bars varying in weight from 100 to 1,000 troy ounces each and varying in fineness from .250 to .999+ for refining. Silver may also be provided in the form of condemned and/or rejected coins and blanks.

The Mint shall accept the Contractor’s bar weights and after melt assays, provided they equal or exceed Mint bar weight times bar assays, all to the nearest 0.01 fine troy ounce.

The Contractor shall assay all silver received from the Mint to an accuracy of 0.1 parts per thousand. In the event there is any discrepancy between weights times assays as stated by the Mint and the results obtained by the Contractor’s assay, the U.S. Mint shall be immediately notified in writing. Any silver containing a discrepancy, shall not be processed until the discrepancy has been mutually resolved. In the event a discrepancy cannot be resolved, the Mint will pick up any disputed silver at its expense.

Contractor agrees to use the Government’s silver only in connection with this contract, assume the risk of loss or damage at all times and shall return the Government’s silver to the Mint as refined silver bars which each meet the specifications below.

C.2 SPECIFICATIONS FOR REFINED SILVER

C.2.1 The contractor shall return to the Mint, F.O.B. Origin, 99.9% of the fine troy ounces of silver contained in the Mint Furnished Property (MFP) metal provided by the Mint and refined by the Contractor, as calculated above. The Mint may allow the balance of 0.1%, of the fine troy ounces of silver contained in the MFP metal provided by the Mint, to be considered an allowable loss due to the refining operation. The returned .999 silver shall meet or exceed COMEX good delivery standards and shall meet or exceed ASTM B 413 – 97a Standard Specification for Refined Silver For Grade 99.9. Each returned .999 fine silver bar delivered shall weigh approximately 1,000 troy ounces with no more than 10 parts per million (PPM) of Lead, no more than 10 PPM of Bismuth, no more than 400 (PPM) Copper and no more than 20 (PPM) Iron. Each delivery order will specify the quantity of .999 to be returned to the Mint.

C.2.2 All refined silver bars shall conform to acceptable ASTM and COMEX specifications (as specified above) with the exception that one bar may be underweight with silver shot in order to facilitate the return of all the Mint’s silver in bar form. The Contractor will return silver bars with a recognized hallmark and weights to the nearest 0.05 ounces and purity to the nearest 0.01 fine troy ounces. Accountability will be silver content (weight of bars times assays), to the nearest 0.01 fine troy ounce.