Mine in Peru

by Jose Remar
(Lima, Peru)

EXECUTIVE SUMMARY
MINING PROJECT PERU

GENERAL CHARACTERISTICS
The project includes in the first phase, after receiving the US $ 500 million fund, in the first phase (first year) will use US$ 100 million to start the extraction of 5,000 MT/day of mineral ore mining with commercial value of US$ 200 per MT.
In the second phase, will use US$ 400 million during 4 years, for the construction and installation of a plant for processing of minerals to produce copper concentrates and, as by-products, gold, silver, lead and zinc. The initial capacity of the plant is 10,000 MT/ day.
Moreover, in view of its strategic location, the project will produce its own electricity through the construction of the hydroelectric plant that will ensure total supply of clean energy for its mining operations, and significantly reduce energy costs. Additionally, we can sell energy to other nearby mining projects, as well as the national grid. The Project is located in the Andean mountains of Peru.
The mine is located 420 km from Lima.

INFRASTRUCTURE AND LOGISTICS
The project is privileged, because it is very close to sources of water and energy, as well as roads and seaport.
In the area there is no agricultural activity and the community has authorized our company for the development of mining activities.

GEOLOGY
The geology of the area shows Jurassic volcanic rocks, consisting of andesites and slightly porfidoides metaandesites with dark green and gray colorations, intruded by dikes and processes of very isolated microdiorite. In the central and south and north flanks emerges a series of auriferous quartz structures emplaced in volcanic rocks, developing halos argilization to the boxes of structures. Quartz structures are arranged in two preferential systems facing north with subvertical dips and variable powers between 0.30-1.5 meters. The values obtained in laboratory tests show significant concentrations of gold (up to 17g / TM) in NE orientation veins discovered in the trenches of the eastern flank of the mine. Project in southern sector laboratory results of the samples collected in the copper veins indicate values with very high content of this element and lead, silver and zinc. It is estimated that the reserves of the deposit are considerable, since only 5% has been explored.


ENVIRONMENTAL AND SOCIAL IMPACT
The project will not cause any significant environmental impact. In addition enjoys the support of the community in the scope of the project. It does not involve the relocation of any people or affect grazing land.
THE USE OF THE FUNDS
The implementation of the project in its first phase will require US$ 100 million. The total investment required for the second phase of the Project will be defined in next months.
The 1st phase US$ 100 million funds will be used as follows:
US$ millions
1. Geophysics studies 3
2. Adamantine perforations 20
3. Equipment and Concentration Plant 60
4. Construction 8
5. Security 2
6. Communities and social management 2
7. Operational costs and general expenses 5
TOTAL US$ 100

The execution of operations in its first phase, will enable the extraction ore of market commercial value in 6 months from the receipt of the loan.
In the second phase the funds needed are for the construction and installation of a concentration plant, the capacity will be defined in the next 12 months.
The Project is an entirely private initiative.
THE PARTICIPANTS
-The mining company that owns the mining concession is the responsible of the operation of the Project.
- The mining exploration company has been developing since 2003, together with the participation of a world-renowned companies, which carried out geological and geophysical works, having identified work aims to develop diamond drilling within mineral properties.


BENEFITS GENERATED BY THE PROJECT
It is expected that once implemented, the project will generate a series of social and economic benefits, including but not limited to the following:
- In its first phase 100 direct jobs and 300 indirect jobs will be generated.
- In the second phase it is estimated to generate minimum 2,000 direct and indirect jobs during the implementation phase of the project, most of which will be for residents of the nearby community to the project, which live in poverty and extreme poverty.
- Construction of new roads and improving existing ones.
- Significant economic Income from mining royalties for the region.
- Facilitate access to electricity to the population within the project boundary that does not have access to energy.
- Access to quality health programs for the population within the project boundary that does not enjoy this benefit.
- Access to quality education for school-age children within the project.

OVERVIEW OF BUSINESS IN THE FIRST PHASE
. Extraction and marketing of commercial minerals
Extraction and marketing from the sixth month of 5,000 MT / day of commercial minerals, with an estimated value of US $ 200 per MT. This represents a monthly extraction with a value of US$ 30 million, and annual US$ 360 million as the first stage of the concentration plant is built. The operation in the first phase (first 4 years) will generate net profits of 50% of revenues.

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