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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

M u s i G e m L im i t e d B u s in e s s P la n

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

1) DETAILS OF THE MINE


LOCATION: The mine is located at plot N 441, Emeralds Restricted Area, Kamakanga, Kalulushi District, Copperbelt Province, in the Republic of Zambia. The area of legal entitlement is 76 hectares. (Figure 1). The property lies at an elevation of 1 200 and 1 220 metres above mean sea level on gently undulating ground.

Figure 1: Location Map of Musi Gem Limited LEGAL ENTITLEMENT: Mining rights have been granted to Musi Gem Limited of the above address. Musi Gem is in possession of gemstone licence N188 issued on 23rd December 1997.

2) HISTORY and GEOLOGY


Emerald was first discovered in this part of Zambia (then Northern Rhodesia) in 1928 by the Rhodesia Congo Border Concession Company at the Miku locality in the Kafubu area. Commercial mining commenced in 1967. Zambia is second in the production of quality emeralds only to Columbia. It is estimated that 20% of the worlds current supply of emeralds comes from Zambia. REGIONAL GEOLOGY The Kafubu Emerald Area is underlain by rocks of the Muva Supergroup. The Muva Supergroup comprises quartzites and quartzose schists near the base overlain by quartz-mica schists (locally called CHIKUNDULU) interlaced with talcmagnetite schist (locally called PAIDAS). Emerald mineralisation is closely associated with tourmaline-quartz veins replaced in the talc-magnetite schist.

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

The tourmaline-quartz (Locally called FIRESTONE) veins are believed to be the source of beryllium (Be) fluids which contributed the formation of the mineral beryl while the schist is known to be the source of the chromium (Cr), the element responsible for the green colour of emerald. A dossier on emeralds is given in Appendix I. Consequently, ideal areas for emerald mineralisation are those localities underlain by the talc-magnetite schist. The schist-hosted emerald deposits have been interpreted as the result of interactions between the intruding granitic pegmatites and and/or their accompanying fluids and pre-existing mafic or ultramafic rocks or the invasion of fluids related to fertile granite or pegmatite, producing metasomatism in ultramafic/mafic rocks. The emeralds then formed as a form of contact metamorphism or metasomatism at the borders at the pegmatite or hydrothermal quartz feldspar mica veins and the surrounding mafic or ultramafic rocks. The geological maps of the area are shown in Figures 2 and 3.

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

Figure 3: Regional Geology of the area


Plot 441 is underlain by the pre-Katangan Muva sediment comprising the quartz-mica schist as the main rock unit and the talc-magnetite schist and tourmaline-quartz veins as the minor rock units. 1) Quartz-Mica Schist, also called CHIKUNDULU The Quartz-Mica Schist is a greyish cream fine-grained rock. The mineralogy of this rock comprises quartz and muscovite as the main constituents while biotite tourmaline and accessory constituents. This rock is characterised by quartz-rich and mica-rich bands running parallel to the foliation. This rock has been clearly exposed in the main pit on the property. 2) Talc-Magnetite Schist, also called PAIDAS The Talc-Magnetite schist is easily weathered rock. Its colour varies from greyish-green when it is fresh to brown when it is weathered. Mineralogically, Composition includes talc, chlorite, amphibole and magnetite. This rock has not been exposed on the plot, but a magnetic survey showed that this rock underlies both the eastern half and the central fifth of the plot.

LOCAL GEOLOGY

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

3) Tourmaline-Quartz Veins, also called FIRESTONE Several localities littered with Tourmaline and Quartz occurs on the plot. In-situ Tourmaline-Quartz veins have also been observed. These veins are coarse grained. The Quartz is generally of the smoky type while the Tourmaline is of the euhedral crystal, black type. The Tourmaline content varies from trace to about 20%. Medium to coarse-grained muscovite is an accessory mineral of this rock. 4) Structure The geology of Plot 441 is controlled by two faults. These faults are now perennial streams. The main fault cuts across the northern half of the plot in a southwest-northeast direction. This fault forms the north-western boundary of the talc-magnetite schist belt. The other fault runs southnorth. This fault is truncated to the north by the main fault. This fault forms the eastern boundary of the plot. The continuation of the TalcMagnetite schist belt across it is evidence that this fault has no horizontal/lateral effect on the geology. 5) Emerald/Beryl Mineralisation Apple-green beryl crystals have been recovered in the main pit. The beryl crystals have been recovered from the quartz and tourmalinelittered laterite capping in the main pit and surrounding area. The crystals are generally moderately fractured, with the biggest fracture-free piece having a diameter of 5 cms. Mineral samples were sampled and analysed by the Geological Surveys Department Laboratory in Lusaka. The following payable emerald yields are expected: GOOD GROUND AVERAGE GROUND POOR GROUND 1kg FROM 10 to 40 tonnes OF ORE 1 kg FROM 25 to 50 tonnes OF ORE 1 kg FROM 50 to 100 tonnes OF ORE

3) PROGRAM OF OPERATIONS
CAMP CONSTRUCTION The initial program of construction is to construct permanent shelter to accommodate 60 personnel. This will comprise 2 senior management houses, 4 junior management houses and 54 workers barracks. In addition, a kitchen, dining room and recreation room will be needed. An ore sorting shed will also be needed. Ablution block will comprise 10 toilets and 10 showers in two sections for isolation in the event of an outbreak of communicable viruses.

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

Building materials will comprise clay/hollow blocks (depending on cost benefit) and galvanised roofing sheets. A total of $450 000 is budgeted for this. A borehole for potable water supply, a 2 000 litres overhead tank and a solar powered water pump will be required to satisfy camp requirements, should the perennial streams run dry. A 500 kVA diesel generator will be purchased also to satisfy the camps electricity requirements. MINE DEVELOPMENT Three months of mine development will be required. During this time, camp construction will be undertaken. During this period, employees will live in tented accommodation. Initial mine development will entail: 1) Bush clearance. 2) Overburden stripping. 3) Box cut construction. Equipment required for mine development will be hired on contract. This will comprise one each of Bulldozer, Excavator and Dump Truck as shown in Appendix II. As cash flow improves and the volume of work increases, a cost/benefit analysis will be carried to decide when to procure our own equipment versus that of hiring. Overburden removed will be stockpiled and used for infilling the mined out area as a part of the companys land reclamation program.

PRODUCTION

Mining will be carried out in a responsible manner with due care for the environment in all aspects of the operation.

Production initially will be carried out by open pitting. It will be a pick, shovel and wheel barrow operation. Workers will work in gangs of three, one digging the pay dirt, one balancing the wheelbarrow and the third hauling the wheelbarrow out of the pit. To break the monotony, the workers will rotate every 20 minutes. There will be 30 face miners, each producing one tonne of rock per day and working six days per week. This translates to 780 tonnes of payable ore per month.

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

WORST CASE SCENARIO Using an ore yield of 1 kg of emeralds per 50 tonnes of ore, richer zones of the orebody will yield better quality pay dirt. Gives a monthly production of 15 kgs of emeralds. Assuming that all stones are low grade at a selling price of $20/g, obviously, gem grade will command a higher selling price. Gives monthly revenue of 15 000 X $20 Average operating cost, Appendix II MONTHLY OPERATING PROFIT $ 300 000 $195 113 $104 887

PAYBACK PERIOD = $1 567 324/$104 887 = 15 MONTHS EXTREME WORST CASE SCENARIO Assuming half of the payable ground yielding only 1 kg of emerald per 100 tonnes of ore, and the other half yielding 1 kg per 50 tonnes of ore, as used in the worst case scenario This gives a monthly production of 11.7 kgs of stones Assuming that all stones are low grade at a selling price of $20/g, obviously, gem grade will command a higher selling price. Gives monthly revenue of 11 700 X $20 Average operating cost, Appendix II MONTHLY OPERATING PROFIT $ 234 000 $195 113 $38 887

PAYBACK PERIOD = $1 567 324/$38 887 = 40 MONTHS IT IS EVIDENT THAT POOR GROUND CANNOT SUSTAIN A PROFITABLE MINE! HOWEVER, NOT A SINGLE PROPERTY IN THIS VICINITY HAS ENCOUNTERED PREDOMINANTLY POOR GROUND.

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng DIC, CEng, RE r c g), Eng, FIMM, MCIM MEIZ M,

Bus siness plan for Musi Ge Limited em

The mark keting of em meralds is d dominated by two geo ographical z zones. Low grade em meralds are sold to Ind Hong K dia, Kong and Ta aiwan for about $US50 0 per gram while high grade stones are exp m h ported to A Austria, Germ many, Israel, Ja apan and th United S he States of Am merica for a about $US10 per carat. 0

MARKETING

The prop posed staffing structur is shown in Appendi III. re ix In summ mary, the mi will be r by a Ch Operati Officer, someone ine run hief ing with both mining an processin qualifica h nd ng ations. There will be a Chie Executive Officer (CEO) whose task will en ef e ntail liaising g with stak keholders, t governm the ment and lo ocal leaders ship. The Chie Operating Officer (C ef g COO) will be someone with combi e ined mining/p processing d degrees to e enhance sh hareholder v value. The Mine Manager w be a qu e will ualified mining enginee er. The Mine Captain w be an ex e will xperienced miner with at least a d diploma qualificat tion, there i a plethor of such p is ra people on th Zambian he n Copperbe elt. The Mine Accountan will be an experienc account e nt n ced tant with at least a t diploma qualification q n. Catering will be don on contra ne act. Security will be done on contra with co act, ompany ope eratives infu used as decoys to safeguard sharehold o d ders interests. Preferenc will be g ce given to the local peop to fill as many of th vacancie e ple he es as possib and inv ble, volve the loc stakeho cal olders. As the mine expand facilities such as wo m ds, orkshops an planning office will nd g be established.

STAFFING

ar ran Ramouta Seecharr

MINING CONSULTA TANT

CV is sho own in Appe endix IV

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

APPENDIX I EMERALDS, A BRIEF DESCRIPTION


Emeralds are a variety of the mineral beryl (Be3Al2(SiO3)6) coloured green by trace amounts of chromium and sometimes vanadium. Beryl has a hardness of 7.58 on the 10 point Mohs scale of mineral hardness. Most emeralds are highly included, so their toughness (resistance to breakage) is classified as generally poor. Contents

1 Etymology 2 Properties determining value o 2.1 Color o 2.2 Clarity o 2.3 Treatments 3 Emerald localities 4 Synthetic emerald 5 Emerald in different cultures, and emerald lore

1: Etymology The word "Emerald" is derived (via Old French: Esmeraude and Middle English: Emeraude), from Vulgar Latin: Esmaralda/Esmaraldus, a variant of Latin Smaragdus, which originated in Greek: (smaragdos; "green gem"); its original source being either the Hebrew word izmargad meaning "emerald" or "green" or the Sanskrit word marakata meaning "green." The name could also be related to the Semitic word baraq (" ; ; lightning" or "shine") (cf. Hebrew: bareqeth and Arabic: barq "lightning"). It is the same source for the Persian ( zomorrod), Turkish (zmrt), Sanskrit (maragdam) and Russian (; izumrd) names. 2: Properties determining value

Cut emeralds 9

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

Emeralds, like all coloured gemstones, are graded using four basic parameters, the four Cs of Connoisseurship; Colour, Cut, Clarity and Crystal. The last C, crystal is simply used as a synonym that begins with C for transparency or what gemmologists call diaphaneity. Before the 20th century, jewellers used the term water as in "a gem of the finest water" to express the combination of two qualities, colour and crystal. Normally, in the grading of coloured gemstones, colour is by far the most important criterion. However, in the grading of emerald, crystal is considered a close second. Both are necessary conditions. A fine emerald must possess not only a pure verdant green hue as described below, but also a high degree of transparency to be considered a top gem. 2.1: Colour Scientifically speaking, colour is divided into three components: hue, saturation and tone. Yellow and blue, the hues found adjacent to green on the spectral colour wheel, are the normal secondary hues found in emerald. Emeralds occur in hues ranging from yellow-green to blue-green. The primary hue must, of course, be green. Only gems that are medium to dark in tone are considered emerald. Light-toned gems are known by the species name, green beryl. In addition, the hue must be bright (vivid). Gray is the normal saturation modifier or mask found in emerald. A greyish green hue is a dull green. 2.2: Clarity Emerald tends to have numerous inclusions and surface breaking fissures. Unlike diamond, where the loupe standard, i.e. 10 X magnifications, is used to grade clarity, emerald is graded by eye. Thus, if an emerald has no visible inclusions to the eye (assuming normal visual acuity) it is considered flawless. Stones that lack surface breaking fissures are extremely rare and therefore almost all emeralds are treated, "oiled", to enhance the apparent clarity. Eyeclean stones of a vivid primary green hue (as described above) with no more than 15% of any secondary hue or combination (either blue or yellow) of a medium-dark tone command the highest prices. This relative crystal nonuniformity makes emeralds more likely than other gemstones to be cut into cabochons, rather than faceted shapes. 2.3: Treatments Most emeralds are oiled as part of the post lapidary process, in order to improve their clarity. Cedar oil, having a similar refractive index, is often used in this generally accepted practice. Other liquids, including synthetic oils and polymers with refractive indexes close to that of emerald such as Opticon are also used. The U.S. Federal Trade Commission requires the disclosure of this treatment when a treated emerald is sold. 10

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

The use of oil is traditional and largely accepted by the gem trade. Other treatments, for example the use of green-tinted oil, are not acceptable in the trade. The laboratory community has recently standardized the language for grading the clarity of emeralds. Gems are graded on a four step scale; none, minor, moderate and highly enhanced. Note that these categories reflect levels of enhancement not clarity. A gem graded none on the enhancement scale may still exhibit visible inclusions. Laboratories tend to apply these criteria differently. Some gem labs consider the mere presence of oil or polymers to constitute enhancement. Others may ignore traces of oil if the presence of the material does not materially improve the look of the gemstone. Given that the vast majority of all emeralds are treated as described above, and the fact that two stones that appear to be similar in quality may actually be quite far apart in treatment level, a consumer considering a purchase of an expensive emerald is well advised to insist upon a treatment report from a reputable gemmological laboratory. All other factors being equal, a high quality emerald with an enhancement level graded moderate should cost 4050% less than an identical stone graded none. 3: Emerald localities

Spanish emerald and gold pendant exhibited at Victoria and Albert Museum, London. Emeralds in antiquity were mined by the Egyptians and in Pakistan and Austria. A rare type of emerald known as a trapiche emerald is occasionally found in the mines of Colombia. A trapiche emerald exhibits a "star" pattern; it has ray like spokes of dark carbon impurities that give the emerald a six-pointed radial pattern. Emeralds come from three main emerald mining areas in Colombia: Muzo, Coscuez, and Chivor. 11

By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

Emeralds are also found in other countries, such as Afghanistan, Australia, Austria, Brazil, Bulgaria, Canada, China, Egypt, Ethiopia, France, Germany, India, Italy, Kazakhstan, Madagascar, Mozambique, Namibia, Nigeria, Norway, Pakistan, Russia, Somalia, South Africa, Spain, Switzerland, Tanzania, United States, Zambia and Zimbabwe. In the US, emeralds have been found in Connecticut, Montana, Nevada, North Carolina and South Carolina. In 1998 emeralds were discovered in the Yukon. 4: Synthetic emerald

Emerald showing its hexagonal structure Emerald is a rare and valuable gemstone and, as such, it has provided the incentive for developing synthetic emeralds. Both hydrothermal and flux-growth synthetics have been produced, and a method has been developed for producing an emerald overgrowth on colourless beryl. The first commercially successful emerald synthesis process was that of Carroll Chatham. Because Chatham's emeralds do not have any water and contain traces of vanadate, molybdenum and vanadium, a lithium vanadate flux process is probably involved. The other large producer of flux emeralds was Pierre Gilson Sr., which has been on the market since 1964. Gilson's emeralds are usually grown on natural colourless beryl seeds which become coated on both sides. Growth occurs at the rate of 1 mm per month, a typical seven-month growth run producing emerald crystals of 7 mm of thickness. Gilson sold his production laboratory to a Japanese firm in the 1980s, but production has ceased since, so did Chatham's, after the San Francisco earthquake in 1989. Hydrothermal synthetic emeralds have been attributed to IG Farben, Nacken, Tairus, and others, but the first satisfactory commercial product was that of Johann Lechleitner of Innsbruck, Austria, which appeared on the market in the 1960s. These stones were initially sold under the names "Emerita" and "Symeralds", and they were grown as a thin layer of emerald on top of natural colourless beryl stones.

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

Although not much is known about the original process, it is assumed that Leichleitner emeralds were grown in acid conditions. Later, from 1965 to 1970, the Linde Division of Union Carbide produced completely synthetic emeralds by hydrothermal synthesis. According to their patents, acidic conditions are essential to prevent the chromium (which is used as the colorant) from precipitating. Also, it is important that the silicon-containing nutrient be kept away from the other ingredients to prevent nucleation and confine growth to the seed crystals. Growth occurs by a diffusion-reaction process, assisted by convection. The largest producer of hydrothermal emeralds today is Tairus in Russia. They have succeeded to synthesize emeralds that have similar chemical composition as emeralds in alkaline deposits in Colombia; hence they are called Colombian Created Emeralds or Tairus Created Emeralds. Luminescence in ultraviolet light is considered a supplementary test when making a natural vs. synthetic determination, as many, but not all; natural emeralds are inert to ultraviolet light. Many synthetics are also UV inert. Synthetic emeralds are often referred to as "created", as their chemical and gemmological composition is the same as their natural counterparts. The U.S. Federal Trade Commission (FTC) has very strict regulations as to what can and what cannot be called "synthetic" stone. The FTC says: " 23.23(c) It is unfair or deceptive to use the word "laboratorygrown," "laboratory-created," "[manufacturer name]-created," or "synthetic" with the name of any natural stone to describe any industry product unless such industry product has essentially the same optical, physical, and chemical properties as the stone named." Wispy veil-like inclusions are common in flux-grown synthetic emeralds. 5: Emerald in different cultures, and emerald lore

The Gachala Emerald is one of the largest gem emeralds in the world, at 858 carats (172 g). This stone was found in 1967 at La Vega de San Juan mine in Gachal, Colombia. It is housed at the National Museum of Natural History of the Smithsonian Institution in Washington, D.C.

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

Emerald is regarded as the traditional birthstone for May, as well as the traditional gemstone for the astrological signs of Taurus, Cancer and sometimes Gemini. One of the more quaint anecdotes on emeralds was by the 16th-century historian Brantome, who referred to the many impressive emeralds the Spanish under Cortez had brought back to Europe from Latin America. On one of Cortez's most notable emeralds he had the text engraved Inter Natos Mulierum non sur-rexit mayor (Among them borne of woman there hath not arisen a greater Man. XI, 11) which referred to John the Baptist. Brantome considered engraving such a beautiful and simple product of nature sacrilegious and considered this act the cause for Cortez's loss of an extremely precious pearl (to which he dedicated a work A beautiful and incomparable pearl) and even for the death of King Charles IX of France who died soon after. In some cultures, the emerald is the traditional gift for the 55th wedding anniversary. It is also used as a 20th and 35th wedding anniversary stone. The Authorized King James Version of the Bible, in Exodus 28:18 and 39:11, lists "emerald" as one of the precious stones in the breastplate of the high priest of the Jews; but modern consensus is that this is probably a mistranslation. Ireland is often referred to, especially in America, as the "Emerald Isle".In L. Frank Baum's The Wonderful Wizard of Oz, the city where the wizard rules is made of emerald, thus being called Emerald City. The sixth book in the series is named after it. Notable emeralds Emerald Origin Gachala Emerald Colombia Chalk Emerald Bahia Brazil Emerald

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

Left to right: The Indian Emerald Necklace, the Gachala Emerald crystal and the Mackay Emerald Necklace, all pieces from the National Museum of Natural History.

The Hooker Emerald The Chalk Emerald Brooch, containing a 75ring, containing a top- carat square-cut emerald, also in the quality 37-carat emerald, also in the National Museum of National Museum of Natural History. Natural History.

Emerald crystal (about 1 cm) A top-quality 5-carat in calcite matrix, Muzo, emerald from Muzo. Colombia.

A $2 000 cut and polished stone

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

APPENDIX II PROJECT COST


PROJECT COST - MUSI GEM LIMITED EQUIPMENT HIRE DOZER TRUCK EXCAVATOR SUB TOTAL $130/hr @ 10 hrs per day for 84d - 1 off $65/hr @ 8 hrs per day for 84d - 1off $130/hr @ 8 hrs per day for 84d - 1 off $109,200 $43,680 $87,360 $240,240

LABOUR CEO Local COO Expat MINE MANA Local MINE CAPT Local ACC/CLERK Local GEM GRADER local DRIVERS Local X 2 O/B STRIP Loc X 4 GEN LABOUR X 30 ORE SORTERS X 10 SECURITY Loc X 10 SUB TOTAL CONSUMABLES DIESEL OILS/GREASES OFFICE ITEMS SAFETY ATTIRE/SANITATION/MEDICINES FOOD SUB TOTAL $20,000 $3,000 $2,000 $12,000 $60,000 $97,000 $5 000/m $23 000/m $4 000/m $3 000/m $2 500/m $2 500/m $1 600/m each $2 000/m $600/m each $600/m each $750/m each $15,000 $69,000 $12,000 $9,000 $7,500 $7,500 $9,600 $24,000 $54,000 $18,000 $22,500 $248,100

TOTAL OPERATING COST 3 MONTHS

$585,340 Or $195 113 pm

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

CAPITAL

WHEELBARROWS, PICKS and SHOVELS COMPUTERS 2 X STAFF VEHICLES

PURCHASE @ $4 000 PURCHASE @ $2 000 PURCHASE @ $45 000 ea new PURCHASE @ $25 000 s/hand PURCHASE @ $1 500

$4,000 $2,000 $90, 000 $25,000 $1,500 $15,000 $12,000 $40,000 $450,000 $150,000 $50,000 $839,500

1 X UTILITY VEHICLE WATER PUMP POTABLE WATER PUMP AND OVERHEAD TANK ACCOMMODATION TENTS X 4 OFFICE BUILDING/FURNISHING ACCOMMODATION BUILDINGS/KITCHEN/DINING & REC ROOMS ENVIRONMENTAL CLEARANCE TITLE DEEDS/CHIEF'S/MINISTRY GIFTS SUB TOTAL TOTAL OPERATING and CAPITAL COSTS CONTINGENCIES @ 10% TOTAL INITIAL CAPITAL REQUIRED

$1,424,840 $142,484 $1,567,324

ANTICIPATED PRODUCTION 1t/MAN/d ====> 780t IN 28 DAYS AT A YIELD OF 1kg/50t ====> 15 000 GRAMS ANTICIPATED REVENUE FOR 15 000 GRAMS PRODUCTION AND AN AUCTION PRICE OF $20/GRAM $300 000/MONTH OPERATING PROFIT = $300 000 - $ 195 113 =$ 104 887 PAYBACK PERIOD = $1 567 324/$104 887 = 15 MONTHS

FROM THE ABOVE, THE WORST CASE SCENARIO SHOWS A PAYBACK PERIOD OF 15 MONTHS THIS WILL BE REALISED DURING THE EIGHTEENTH MONTH AFTER STARTING. THIS CATERS FOR MINE DEVELOPMENT AND TRAINING. INWARD CASH FLOW STARTS IN THE FOURTH MONTH FOOD WILL BE PROVIDED FOR ALL WORKERS IN THE CAMP TAKING AN EXTREME WORST CASE SCENARIO WHERE HALF OF THE ORE YIELDS 1 kg OF EMERALD PER 50 tonnes OF ORE AND THE OTHER HALF 1 kg OF EMERALD PER 100 tonnes OF ORE, EXPECTED

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

MONTHLY PRODUCTION IS 11 700 GRAMS ANTICIPATED REVENUE FOR 11 700 GRAMS PORDUCTION AND AN AUCTION PRICE OF $20/GRAM $234 000/MONTH OPERATING PROFIT = $234 000 - $ 195 113 =$ 38 887 PAYBACK PERIOD = $1 567 324/$38 887 = 40 MONTHS EXTREME WORST CASE SCENARIO SHOWS A PAYBACK PERIOD OF 40 MONTHS, THIS WILL BE REALISED DURING THE FORTY THIRD MONTH AFTER STARTING ONCE PRODUCTION STARTS, A BONUS SCHEME WILL BE INTRODUCED. THE BONUS PAID WILL BE ACROSS THE BOARD AND IN PROPORTION TO SALARY

APPENDIX III

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

APPENDIX IV AUTHORs CV
Resourceful and innovative minerals processing Metallurgist with 19 years hands-on experience in minerals processing, specialising in differential and sulphide/oxide flotation, ten years consulting and three years experience in aluminium hydrometallurgy. Vast plant troubleshooting, commissioning and management experience. Computer literate. Effective communicator. Extrovert. Ability to think outside the box. A creative, analytical and organised individual who adopts a motivated and proactive approach to all endeavours, solving problems and identifying appropriate and workable solutions in a pressurised environment. Excellent debottlenecking skills. Ability to extract information beyond questioning. Superb crisis management skills. Pragmatic commercial acumen. Set up quality management system in the past. A staunch believer in attention to detail, and inculcate such quality in my subordinates. Ability to multi-task with great dexterity. Studied Mining Engineering as well as Minerals Processing.

EXPERIENCE

2009 - Present Plant Superintendent. FQM, Guelb Moghrein Mine, Mauritania Producing 150 tonnes of copper and 15kgs of gold per day by a combination of froth flotation and carbon in the leach (CIL). Comminution carried out by parallel circuits comprising Autogenous Grinding (AG) and Semi-Autogenous Grinding (SAG). Regrinding carried out using verti-mills and conventional ball mills. Recently commissioned a bank of six Outotec 150m3 tank cells for copper/gold roughing and scavenging. Commenced the treatment of high-arsenic ore, which was mined and stockpiled from inception, and produced a concentrate which met market specifications. Installed and commissioned Outotecs FrothMaster2 cameras for level and air control on rougher/scavenger flotation cells. Broke copper and gold recoveries records. Process simulation using Outotecs HSC Chemistry 7.0 module. Mines production cost is 59/lb of copper at the mine gate, after gold credit. 2007 2009 - Plant Superintendent. FQM, Frontier Mine, DR Congo. In charge of spearheading the commissioning of the newly constructed Frontier plant. Employing SAG and conventional milling and treating 9.2 mtpa of sulphide copper ore by conventional flotation utilising flash flotation and large capacity flotation tank cells. Dewatering using high rate thickeners and Larox pressure filter. Process control using PLC and SCADA systems. Thermos Multi Stream Analyser (MSA). Process simulation using JK SimMet. Trained an entirely new work force, a large proportion of whom was exposed to the mining environment for the first time. Instrumental in setting up a brand new laboratory from scratch, capable of analysing 1 500 samples per day utilising Atomic Absorption Spectrometry, X-ray Fluorescence Spectrometry and wet chemical methods. Achieved 2% Cu recovery higher than designed, after 6 months of commissioning trials. Achieved peak throughput of 15% above designed after 4 months of commissioning. Reduced collector dosage by 50% after 5 months operation by implementing stage addition. Achieved 1.5 % Cu in concentrate higher than designed by starvation dosing of collector. Assisted Guelb Moghrein mine in Mauritania to improve copper and gold recoveries, and concentrate grade.

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

2004 - 2007 - Concentrator Manager. LCM, Luanshya, Zambia. In charge of re-commissioning the Baluba, polymetallic, concentrator, after refurbishment. Achieved the highest copper and cobalt recoveries in the history of the Baluba plant by introducing the concept of reagents synergy, and by the implementation of stage addition of reagents. Spearheaded the treatment of discarded Luanshya mine surface waste with above average recovery. Commenced the re-processing of old smelter slag with remarkable recoveries. Responsible for the construction and maintenance of Musi tailings dam. Controlling an annual budget of $US6.5 million. Aggressively conducted a program to multiskill all plant operators. I was awarded the highest profit sharing bonus for two of the three years I worked with LCM, (6 months salary tax free) for my metallurgical and cost contribution to the group, which included the Chambishi RLE processing plant. Headed plant safety audits to pass on vital safety information to plant personnel regarding a proactive approach to safety with a concomitant drop in accidents, and/or near miss accidents. Mines production cost was 95-115 /lb of copper at the mine gate, after cobalt credit. 1994 - 2004 - Part-time consultant. Cornwall, UK. Working closely with clients to solve their specific process and environmental problems, recommending remediation measures, and submitting reports. Consulted on SAG milling operations in Guyana and Papua New Guinea. Conducted energy audit at Linmine in Guyana. Constructed an artificial wetland in Trinidad to clean up plant effluent. Documented photographically, the devastating El Nio drought which hit northern South America and the Caribbean in 1998 for a world renowned journal. Carried out bankable study for the Kasempa Mining Companys open pit mine in North Western Zambia. 1993 - 1994 - Concentrator Superintendent. ZCCM, Konkola, Zambia. In charge of operation and maintenance of the Konkola concentrator. Producing copper concentrates using sulphide/oxide flotation. Increased total copper recovery by 1.5% through in-plant modifications. Commissioned column flotation cells. Installed the first modern in-stream analyser (Amdels) on the Zambian Copperbelt. Annual operating budget of $US6 million and labour force of 400. Prepared final submission for ISO9000 accreditation for the ZCCM group, in conjunction with colleagues from other disciplines. In charge of construction and maintenance of the divisions tailings dam. Converted the Lubengele tailings dam to an artificial wetland and used it for cleaning up the plants effluent prior to discharge into the river system. Reduced the concentrators production cost from 8.5 to 7 /lb of copper through my innovativeness. 1989 - 1992 - Concentrator Superintendent. ZCCM, Luanshya, Zambia. In charge of operation and maintenance of the Luanshya and Baluba concentrators, handling a combined throughput of 20 000 tonnes per day. Producing, polymetallic, copper and cobalt concentrates from sulphide ore on Baluba using differential flotation. Modified Luanshya flotation circuit to produce separate copper and pyrite concentrates by differential flotation. Started groundwork preparations for ISO9000, quality assurance, accreditation for the ZCCM group, focusing on the 8 concentrator operations. Headed the clean up operation of nine tonnes of sodium cyanide at Chumbwe gold mine in Zambia. Member of the design team for the mine backfill (hydraulic fill) plant. Annual operating budget of $US10 million and a labour force of 450. Held statutory appointment for all effluent discharge for the division. Acted as smelter superintendent. Assiduously pursued re-vegetation of old mines tailings dumps. In charge of construction and maintenance of the Divisions four tailings dams. Combined concentrators production cost of 6/lb of copper, after cobalt credit. 1987 - 1989 - Assistant Concentrator Superintendent. ZCCM, Luanshya, Zambia. Responsible for the operational aspects of the Luanshya and Baluba concentrators. Headed the commissioning team for the Baluba plant grinding section extension. In charge of all aspects of training for the department. Chaired the staff development panel.

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

1983 - 1987 - Plant Metallurgist. Concentrator. ZCCM, Luanshya, Zambia. Responsible for initiating and implementing projects on the Luanshya and Baluba concentrators to improve process efficiency and products quality. Member of the commissioning team for the new Baluba crushing plant equipped with Allen Bradley PLC. Prepared training manuals for all sections of the plants. Headed the commissioning team for the installation of an Outokumpu Courier 13 channel on-stream analyser and Proscon process control computer. 1981 - 1983 - Metallurgical Engineer. Concentrator. ZCCM, Luanshya, Zambia. Initiated and conducted laboratory and pilot-plant test work to improve plant efficiency and product quality in the various unit operations of the concentrators. Dispensed with the use of flocculant by modifying the feed wells to the tailings and concentrates thickeners. Member of the commissioning team for the new Nampundwe copper/pyrite concentrator. Trained operators on process technicalities. Acted as General Foreman on the Luanshya and Baluba plants for leave coverage. Commissioned the first personal computer on the Zambian copperbelt mines (Apple Europlus II) in February 1982. 1977 - 1980 - Process Engineer. Alumina Refinery. GUYMINE, Guyana. Accountable for the technical supervision of the precipitation and calcination sections of a 900 tpd Bayer process alumina refinery, hydrometallurgy. Produced a cleaner and drier filtered hydrate feed to the calciners by the introduction of heating of the pulp prior to filtration on horizontal pan filters. This contributed to reduced soda loss and improved calcination fuel efficiency. Member of the commissioning team for the Lurgi fluid bed calciner and associated filtration plant. Responsible for technical aspects of operator training. 1973 -1974 - Mining Engineering Trainee. Ministry of Energy and Natural Resources, Guyana. Carried out projects on enhancing gold and diamond recoveries from small-scale alluvial mining operations and recommended methods for recovery improvement and environmental protection. Improvised by using old car tyres to make Humphreys spirals. 1972 - 1973 - High School Teacher. Berbice High School, Guyana. Taught mathematics, physics and photography at a co-educational school. Taught adult education mathematics in the evening. Mounted a national photographic exhibition entitled Development must be seen and felt, in 1973. Was freelance photographer for the weekly Berbice Times and New Nation newspapers from 1971 to 1973. Being able to process my own monochrome images, I was able to beat editorial deadlines ahead of my competitors.

EDUCATION
1980 - 1981 1974 - 1977

- Imperial College, Royal School of Mines, London, UK. MSc(Eng) Mineral Process Design, DIC Mineral Processing - Camborne School of Mines, Redruth, Cornwall, UK. BSc(Hons)2:1 Mining/Mineral Processing, ACSM Mining Engineering

FURTHER SKILLS
Word, Excel, PowerPoint, Internet, Lotus Smart Suite, Adobe Photoshop, Adobe Acrobat, Basic Programming, Web Design, Microsoft Project Research methodologies, Risk Management Analysis Numerate and Analytical Ability, Scientific Data Analysis Skills Life member of the International Freelance Photographers Organisation. (IFPO)

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By Ramoutar Seecharran BSc (Hons) Mining, ACSM, MSc (Eng), DIC, CEng, REng, FIMM, MCIM, MEIZ

Business plan for Musi Gem Limited

PROFESSIONAL INSTITUTIONS
The Engineers Registration Board of Zambia, Zambia The Engineering Institution of Zambia, Zambia, The International Freelance Photographers Organisation The Institution of Mining and Metallurgy, UK, The Engineering Council of UK, UK The Canadian Institute of Mining, Met and Petro, Canada, REng 2005 MEMBER 2004 MEMBER 2000 FELLOW 1994 CEng 1992 MEMBER 1988

CONFERENCE PUBLICATION
Presented a paper on The use of forged mill balls in SAG milling operations at the Engineers Without Borders conference in Livingstone, Zambia in October 2008

PERSONAL
Date of birth Address Phones E-mail Web page Alumnus: Languages Nationality Hobbies Referees - 22 November 1953 - 105 Trelowarren Street, Camborne, Cornwall TR14 8AW - Mobile/Land +44 75 0303 4457 or +44 1209 712151 or +222 2144 368 - kseech@hotmail.com, - http://www.scribd.com/kseech5023 - http://www.graduates.com/vg.aspx?i=2577998 - Native English, Working Pidgin, Working Chibemba, Working French - British - Photography, Ornithology, Auto mechanics and championing Environmental causes. - Can be supplied on request

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