Escolar Documentos
Profissional Documentos
Cultura Documentos
Pearl Asian Mining Industries, Inc. Brgy. Manlauyan, Gango, Libona Bukidnon, Mindanao Island, Philippines Telephone : +(888) 558-1288 Fax : +(888)-588-0854 E-Mail : pearlmining@gmail.com
Pearl Asian Mining Industries, Inc. (PEARL), a mining company duly registered with the Securities and Exchange Commission of the Philippines is engaged in Mineral Exploration, Development, Mining, Processing, Property Acquisition, and Marketing of Products.
Contact Person/s
BALENO GOLD PROJECT-XYZ Mineral Deposit Bgy. Cancahorao, Municipality of Baleno, Province of Masbate Philippines
Small Scale Mining Permit Mineral Production Sharing Agreement Exploration Permit Application (EPA)
Referring to the Geological report of the Geologist, the present Geologic Resource of XYZ mine is about 1.5 Million tons at a grade of 3.04 g/t-Gold and 19.96 g/t-Silver (Table 1). Our interpretation or projection as to Mineable Resource (Projected to be mined or extracted) is about 446,592 tons at a grade of 5.13 g/t-Gold and 31.14 g/t-Silver (Table 2). The Mineable resource are categorized into Low grade source of about 120,000 tons at a grade of 1.84 g/t-Au; 14.50 g/t-Ag and the High grade source of about 326,592 tons at a grade of 6.34 g/t-Au; 37.24 g/t-Ag, the former could be mined for heap leaching process and the latter for the conventional method. Abandoned Tunnels 3 and 4 are included in the projected high grade Zone. The High grade Zone or Block of Mineable resource of 326,592 tons using interpolation started from Trench no. 1 at elevation 220 m. up to Trench no. 4 at elevation 300 m. with a strike length of 400 meters. The 400 m. strike length was projected downward until elevation 160 m. where abandoned Tunnel no. 1 is situated.
The Average Grade of the block of 6.34 g/t-Au; 37.24 g/t-Ag, were derived from the surface and from Tunnels 3 and 4 samples. The Block grades were projections and will be confirmed once the Tunnels are rehabilitated and sampled.
Table 1. Geologic Resource/Reserve Reserve Category Measured Indicated Tons 40,500 263,250 g/t Au 18.48 5.02 g/t Ag 103.71 30.24 Ppm Cu 33.04 9.08
Inferred
1,224,450
2.10
14.98
29.02
303,750 1,528,200
6.82 3.04
40.04 19.96
12.27 25.69
Mining Phase Phase 1(Trenching) Phase 2 (Sub-level Caving) Phase 3 (Decline & Sublevel Stoping) *Low Grade Resource (Trenching) for Heap Leach Operations Total Resource
11.41
* Estimate is based on projections derived from Trench 1 down to Tunnel 1 and possibly beyond tunnel 1 extending east and is subject for field investigation.
5.0 Cost Estimate for further Exploration: a. For Rehabilitation-Exploration of Each Tunnel b. For Geophysics, incl. the 1,800 hectares EPA c. Diamond Drilling, EPA included d. Geologic Mapping, EPA included 6.0 Remarks for Geological Reserve: Basing on the initial Exploration results, the XYZ Mineral deposit is an epithermal vein type deposit. Extent of the deposit at depth must be further studied through rehabilitation of old tunnels and core drilling to acquire more geological data and increase resource potential. 7.0 Prepared for : By PEARL ASIAN MINING INDUSTRIES, INC. : GEORGE FAUSTINO S. CARPIO, JR., GOLD MAPPER CEO/ PRESIDENT US $ 50,000.00 US $ 180,000.00 US $ 300,000.00 US $ 100,000.00
I.
The XYZ Mineral Deposit which is located in Barangay Cancahorao, Municipality of Baleno, Province of Masbate, Masbate Island, Philippines is considered a widely mineralized area and identified as a major deposit of gold and silver and reasonable copper. It has been explored by several known mining and geological institutions such as the Atlas Consolidated Mining Development Co. (ACMDC), a local mining company that operates the Masbate Gold Operations in Aroroy, Masbate during the 80s and 90s whose mining site is further north of the claim area and by the RP-JICA, a joint Philippine-Japan Geological Institution which indicated the area to be highly altered and well mineralized and presence of precious metals such as gold, silver, copper including titanium is noticeably abound. The area was known to have been mined by coyote or rough method during the pre-war time as evidenced by a number of working tunnels uncovered in the area and past historical data gathered from local residents. Pearl Asian Mining Industries, Inc (PEARL) a wholly owned Filipino mining company became interested of the mining area in year 2004 and filed a Mineral Production Sharing Agreement (MPSA) application covering an area of 72 hectares on the XYZ Mineral Deposit whose application is now nearing approval by the Department of Environment and Natural Resources-Mines and Geosciences Bureau (DENR-MGB). A Small Scale Mining Permit issued by the Provincial government covering 20 hectares inside the 72 hectares application was granted for the purpose of assuring the hold of the company, to initially start geological investigation and to be able to start a modest operation until such time that the MPSA is granted. Two Exploration Permit applications (EPA) at the north-northeast of the same mineral area were also applied thus increasing the tenement portfolio of the company at 2,000 hectares. PEARL Asian Mining conducted two field geological investigations over the 20 hectares area of the MPSA application and a total of 123 samples at surface and outcrops were collected. During the conduct of the exploration, 4 tunnels were found which were partly inspected while 5 old trenches were also uncovered. From the surface and outcrop samples collected a grade up to 94 grams gold per ton of ore and up to 608 grams silver per ton of ore were analyzed. These interesting results have encouraged the company to the point that a second exploration program was made. Two more tunnels and six more old trenches were found. These geological activities include only a semidetailed geologic mapping, topographic mapping, trenching and channel sampling and plan has been programmed to rehabilitate and explore the uncovered tunnels whose entrance is difficult to access due to collapsed portals. A more detailed Geological Report can be made available for reference. From these geological findings, a resource/reserve estimate was calculated and finally a more realistic data was obtained using polygon approach and with several considerations taken hence defining the estimate on the basis of three (3) categories, measured, indicated and inferred (see attached table 1). The resource estimate was further refined and a mineable reserve was produced using geologic reserve interpellation. The first mining plan that was envisaged was the inception of a small-scale operation between
50 to 100 tpd of gold ore using a conventional cyanidation process from a mineable resource of 327,000 tonnes (measured + indicated resource) grading at 6.34 gpt Au and 37.24 gpt Ag. Mining method applicable would be a combination of selective open cast/trenching method and sub-level caving method. This gave a Capital requirement of $300 million dollars using second hand equipments. This project is quite robust, economically viable and showed interesting return of investment with a Net Income after tax of $2.5 million after the three years of operations. The Philosophy of the company is to commence mining whatever viable reserve is available and continue with exploration which would be financed internally to increase the resource since the potential of the area is overwhelming. The project can be implemented over a 5 months period of construction and development upon firm availability of Capital.
II.
PEARL Asian Mining Industries, Inc. (PEARL) is a mining company engaged in exploration, development, mining, processing, property acquisition, marketing of products, beneficiation of small-scale mining operations and revitalization of old and abandoned mining properties into profit generating business in collaboration with the Philippine Government. PEARL Asians vision and mission for the development of the mining industry is to partner with the Philippine Government in order to acquire abandoned mines with known and proven reserves left for centuries. Similarly, develop an environmentally friendly and sustainable operation adopting the best mining practice projecting low Capital Cost projects yet income generating Business Company with optimization in the extraction of valuable minerals while at the same time aiming to provide community upliftment by strengthening local governance and enhancement of the living standards of the employee and community as a whole into sustainable economic growth. The Small Scale Mining Project would be a catalyst into providing initial investment for the development of the main mining operations and serve as the engine for growth in the establishment of the community social services in support to the 10 point legacy program of the GMA government. Several livelihood projects have been envisioned more particularly once the Main Project proceeds and this would include as follows: 1. Livestock/Goat Raising Project 2. Fresh Water Fish Culture using ponds. 3. Reforestation/USUFRUC Projects 4. Cooperative Development Projects 5. Upland Farming introducing SALT technology propagating high value crops 6. Revolutionizing of an Agri-Farm projects. 7. Development of cottage industry 8. Development of mining supplies such as Activated Carbon, Lime & Material for erosion control using local material sources. 9. Training development programs If financing deals is somehow perfected, this becomes the first PEARL Asian Mining Large Scale Gold Mining Company to be engaged on the extraction and production of precious metals, gold and silver with bullion bars as the finished product. The ex-plant product that will be shipped to refineries will have a purity of 60 % Au and 36 % Ag. The high demands for metals particularly with the continuing economic boom in China and India as well as the open policy of GMA government following the revitalization of mining in the
Philippines would remain this business highly active and attractive for investment. This could then bolster the price of precious minerals which perceive to have continued at unprecedented level. In the other hand, the indication of healthy deposit of gold and silver minerals in the area makes the project attractive to mining companies both local and foreign. The companys tenement application of 2,000 hectares in the Masbate Island with notably known world class deposits of gold and silver provides big opportunity for ZNXT / PEARL Asian to undertake field exploration that could generate meaningful results and likely increase the companys mineral reserve potential. The company has engaged the services of seasoned mining experts and several support professionals who have good experience in the business and implementation of mining operations internationally.
Datu Mamadbad Vice-Chairman George Faustino S. Carpio Jr. - President and Chief Executive Officer Eng. Gils Salutim - Chief Operating Officer / Gold Processing Plant Director Mari Lou Coloso- Independent Chief Financial Officer / CPA
V.
A pre-development and post exploration period of five (5) months has been considered for this project and this include Feasibility Study with field investigation, diamond drilling and metallurgical test, permitting, equipment (second hand) and contract sourcing, road construction, mining and crushing on contract, pad preparation and construction of Recovery Plant. Estimated Pre-Start-up Monthly Expenses are as follows: Site Pre-operating Expense Head Office Overhead Mining Contract Permits (MPSA) Land Settlement Metallurgical Test Pre-Operating Supplies Total $15,000 $30,000 $80,000 $50,000 $20,000 $25,000 $35,000 $255,000
Estimated Capital Cost: Access Road Construction Vehicles Tractors, etc Process Equipments Building Infra Structures Office Equipments & Furnishings Total $130,000 $100,000 $ 80,000 $ 90,000 $ 5,000 $405,000
VII. Appendices
1. Excerpts from the frequently asked questions (FAQ); 2. March 11, 2008 Jasons Homel Report regarding gold and silver market; 3. An illustration of the modern trackless underground mining; 4. Understanding gold mining; and 5. Graph of the gold price