Business Plan

SMALL SCALE MINING PROJECT (50-100 TPD)

XYZ MINERAL DEPOSIT CANCAHORAO, BALENO MASBATE PROVINCE

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

CPA Chief Financial Officer : GEORGE FAUSTINO S.1.0 Brief Company Description Pearl Asian Mining Industries. Mining. a mining company duly registered with the Securities and Exchange Commission of the Philippines is engaged in Mineral Exploration. Development. Chief Executive Officer : JOSE PANGILINAN. Processing. On Site XYZ Field Liaison 2. Province of Masbate Philippines . Contact Person/s : DATU MAMADBAD Vice-Chairman : MARI LOU COLOSO. Cancahorao. CARPIO JR. and Marketing of Products. Property Acquisition. Municipality of Baleno. (PEARL).0 Name and Location of the Project: BALENO GOLD PROJECT-XYZ Mineral Deposit Bgy.. Inc.

The High grade Zone or Block of Mineable resource of 326. 5. 1 at elevation 220 m. It is situated in the boundary of Bgy. Province of Masbate. Cancahorao while the processing plant occupying a land area of approximately 1. Abandoned Tunnels 3 and 4 are included in the projected high grade Zone. The 400 m. Mapina.24 g/t-Ag. Municipality of Baleno.14 g/t-Silver (Table 2).0000 Hectares (incl. with a strike length of 400 meters.5 hectares will be located in Bgy.50 g/t-Ag and the High grade source of about 326. strike length was projected downward until elevation 160 m. Island of Masbate in the eastern side of Bicol Region and south most position of Luzon Island. the former could be mined for heap leaching process and the latter for the conventional method.0000 Hectares 72.04 g/t-Gold and 19.0 Project Site Location The XYZ Gold prospect is located in Bgy. . Diatance from Masbate City and by 2 hrs travel on foot through a undulating topography at elevation of about 300 m above sea level.807.4773 Hectares 4. the present Geologic Resource of XYZ mine is about 1.000 tons at a grade of 1. Gangao of Baleno Municipality. Mapina of Masbate City nd Bgy.96 g/t-Silver (Table 1). Canjunday and Bgy. The Mineable resource are categorized into Low grade source of about 120. 1 is situated. 4 at elevation 300 m. up to Trench no.0 Recent Exploration Activities: Referring to the Geological report of the Geologist.84 g/t-Au.13 g/t-Gold and 31. The mining area of approximately 20 hectares is located at the hinterland of Bgy. Our interpretation or projection as to Mineable Resource (Projected to be mined or extracted) is about 446. 14. It is a accessible by air via regular commercial flight from Manila to Masbate City and then by land to Bgy. approximately 350 meters away from the community proper and the provincial hi-way. Mapina approximately 24 kms.5 Million tons at a grade of 3. 37.34 g/t-Au.592 tons at a grade of 6.0 Current Tenement Portfolio-Masbate.592 tons using interpolation started from Trench no. Cancahorao.3. SSMP) 1.592 tons at a grade of 5. Philippines: Small Scale Mining Permit Mineral Production Sharing Agreement Exploration Permit Application (EPA) - 20. where abandoned Tunnel no.

10 14.200 6.500 263. Table 1. were derived from the surface and from Tunnels 3 and 4 samples.82 3.02 Total (Meas + Ind) Total Resource 303.27 25.224.69 Table 2. Geologic Resource/Reserve Reserve Category Measured Indicated Tons 40.04 9.528. The Block grades were projections and will be confirmed once the Tunnels are rehabilitated and sampled.The Average Grade of the block of 6.24 Ppm Cu 33.98 29.48 5.08 Inferred 1. Mineable Resource/Reserve (Measured + Indicated Only) .250 g/t Au 18.96 12.71 30.04 19.24 g/t-Ag.750 1.34 g/t-Au.450 2.04 40. 37.02 g/t Ag 103.

Geologic Mapping.000.13 g/t Ag 44.00 US $ 100. JR. For Geophysics. 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. incl. the XYZ Mineral deposit is an epithermal vein type deposit.000.96 14.337 216.675 120.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 Tons 14.34 30. INC.14 Ppm Cu 13.580 95.00 US $ 300. Diamond Drilling. EPA included d.67 5. GOLD MAPPER CEO/ PRESIDENT US $ 50.84 5.000 446.00 . 5.800 hectares EPA c.50 31. CARPIO..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.59 9. 7.000.73 8.00 US $ 180. the 1.41 11. For Rehabilitation-Exploration of Each Tunnel b. EPA included 6.89 50.90 15.0 Cost Estimate for further Exploration: a.0 Remarks for Geological Reserve: Basing on the initial Exploration results.0 Prepared for : By PEARL ASIAN MINING INDUSTRIES.592 g/t Au 7.000.22 1. : GEORGE FAUSTINO S.

.

Municipality of Baleno. 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. 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. Pearl Asian Mining Industries. 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. topographic mapping. copper including titanium is noticeably abound. 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. measured. silver. The resource estimate was further refined and a mineable reserve was produced using geologic reserve interpellation. From these geological findings. Province of Masbate. Masbate Island. These interesting results have encouraged the company to the point that a second exploration program was made. 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. Philippines is considered a widely mineralized area and identified as a major deposit of gold and silver and reasonable copper. to initially start geological investigation and to be able to start a modest operation until such time that the MPSA is granted. indicated and inferred (see attached table 1). EXPLORATORY MINING Summary The XYZ Mineral Deposit which is located in Barangay Cancahorao. a local mining company that operates the Masbate Gold Operations in Aroroy.I. 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. 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. 4 tunnels were found which were partly inspected while 5 old trenches were also uncovered. (ACMDC). A more detailed Geological Report can be made available for reference. The first mining plan that was envisaged was the inception of a small-scale operation between . Masbate during the 80’s and 90’s whose mining site is further north of the claim area and by the RP-JICA. These geological activities include only a semidetailed geologic mapping. Two more tunnels and six more old trenches were found. It has been explored by several known mining and geological institutions such as the Atlas Consolidated Mining Development Co. 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. 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). During the conduct of the exploration.

34 gpt Au and 37. Mining method applicable would be a combination of selective open cast/trenching method and sub-level caving method. This project is quite robust. 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.50 to 100 tpd of gold ore using a conventional cyanidation process from a mineable resource of 327.24 gpt Ag. economically viable and showed interesting return of investment with a Net Income after tax of $2. This gave a Capital requirement of $300 million dollars using second hand equipments.5 million after the three years of operations.000 tonnes (measured + indicated resource) grading at 6. .

Upland Farming introducing SALT technology propagating high value crops 6. property acquisition. PEARL Asian’s 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. 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 . General Company Description PEARL Asian Mining Industries. Several livelihood projects have been envisioned more particularly once the Main Project proceeds and this would include as follows: 1. Lime & Material for erosion control using local material sources. 7. 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. Revolutionizing of an Agri-Farm projects. Cooperative Development Projects 5. Fresh Water Fish Culture using ponds. Reforestation/USUFRUC Projects 4. Development of mining supplies such as Activated Carbon. Training development programs If financing deals is somehow perfected. development. (PEARL) is a mining company engaged in exploration. Development of cottage industry 8.II. 9. gold and silver with bullion bars as the finished product. 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. mining. Inc. The ex-plant product that will be shipped to refineries will have a purity of 60 % Au and 36 % Ag. this becomes the first PEARL Asian Mining Large Scale Gold Mining Company to be engaged on the extraction and production of precious metals. processing. 3. beneficiation of small-scale mining operations and revitalization of old and abandoned mining properties into profit generating business in collaboration with the Philippine Government. marketing of products. Livestock/Goat Raising Project 2.

This could then bolster the price of precious minerals which perceive to have continued at unprecedented level. In the other hand. . 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.Philippines would remain this business highly active and attractive for investment. The company’s 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 company’s mineral reserve potential. the indication of healthy deposit of gold and silver minerals in the area makes the project attractive to mining companies both local and foreign.

Operations will be 8 to 10 hours daily. The material will be crushed down to ½” sizes.III. also allows PEARL an ample time to continue with the sourcing of financing for the main project. . The near surface vein system will be sampled and coordinates recorded.7 m3 excavator and a rock breaker unit. Mining & Crushing The known near surface good resource of 327.5 million before Tax can also be utilized as starter money in the development of the main project. Mined ore will be trammed using a 10 tonne dump truck units to the crushing facility. Operational Plan The strategy of the company is to first mine and process the ores under lying within the surface zones in the XYZ mineral deposit using the Small Scale Mining Permit for the 20 hectares while pursuing further exploration program of the 72 hectares area of the MPSA. Mining or trenching operations will be contracted to a local mining and construction companies.34 gpt Au and 37. Several vein systems were uncovered during the two exploration activities in December 2004 and April 2005 notably the Gil and Andrew veins that intersect laterally between east to west direction. This entail rehabilitation of the tunnels for the purpose of determining the extent of mineralization at depth as well as raise confidence level of inferred resource into measured and indicated category. Whilst at the same time.000 tons which contains 6. These vein mineral deposits are noticeable at surface and projects at depth at an angle of 80 degrees and varies in width between 1 to 5 meters.24 gpt Ag can be mined using a 0. Trenching according to the width of the vein following the lateral direction can be developed. This small project which could likely generate PEARL a net income of $2.

3 Samplers/survey aid.responsible in the supervision of the entire operations both the Mining & Crushing/Agglomeration and the continuous 24 hour Heap Leach Operations. a Staff cook and a helper. Electrician. an Environmental sampler and 5 Agency Security Guards. Surveyor. 3. Similarly. Security Officer – responsible of the project security administration and operations. 4. 5. Bookkeeper – responsible in the administration and recording of accounts and the payroll of personnel. 2. Reports directly to the Site Supervisor and indirectly responsible to the Accounts Manager stationed in Manila. Site Supervisor . As at present.IV. Management and Organization Site operations will be supervised by an expert professional Metallurgist or a Mining Engineer backed by two Manila Executives who visits site on a twice monthly basis. There will be a total of 35 project employees including 5 agency hired security guards. 6. 3 Heap and 4 Recovery Plant Operators and 4 Helpers. only very limited mining companies are in operations where a number of expert and experienced mining personnel are still seeking for the lost jobs. service and truck drivers. . Reporting directly to the Site supervisor and indirectly to VP on Community Relations. Philippines and in particular the Bicol and Masbate regions is known for its mining business industry in the late 80’s producing virtually highly skilled workers and professional engineers. an Environmental technician will be hired to monitor the environmental protection facility installed in the area. At the same time. 2 maintenance personnel provide maintenance support to operations. 3 Heavy Equipment checker. Personnel at this level are almost everywhere in the country and can be readily available. Reporting directly to the Bookkeeper and indirectly to the Materials and Contracts Manager stationed in Manila Head Office for the supplies movement and stock inventory of the needed supplies and material of the project. a cook and a helper. The site organization will be composed of the following: 1. Community Relations Officer – responsible of the social and community aspect. Mechanic. Administration will be manned by a bookkeeper and warehouse clerk together with a service driver. Reporting directly to the Site Supervisor. Warehouse Clerk – in charge in the administration of the small material supplies of the project.

Independent Chief Financial Officer / CPA . Gils Salutim .President and Chief Executive Officer Eng. Carpio Jr. .Professional and Advisory Support Management Organization as follows: • • • • Datu Mamadbad – Vice-Chairman George Faustino S.– Chief Operating Officer / Gold Processing Plant Director Mari Lou Coloso.

V.000 $255.000 $405.000 $ 90. diamond drilling and metallurgical test.000 $30.000 $35. etc Process Equipments Building Infra Structures Office Equipments & Furnishings Total $130. road construction.000 $80.000 $20.000 . Startup Expenses and Capitalization 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. equipment (second hand) and contract sourcing. 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 $25. permitting.000 Estimated Capital Cost: Access Road Construction Vehicles – Tractors.000 $100.000 $ 5.000 $ 80. pad preparation and construction of Recovery Plant. mining and crushing on contract.000 $50.

. Financial Estimates & Statements PEARL Asian’s financial plan is consists of a 12-month profit and loss projection. 3-Year Production Estimates & Assumptions See attached spreadsheet. Production Schedule and Operating Cost Estimate and a break-even calculation.Year Profit & Loss Projections See attached Spreadsheet. 3.VI. Projected Cash Flow. Capital and Return of Investment.

Excerpts from the frequently asked questions (FAQ). Graph of the gold price . 4. and 5.VII. 2. March 11. Understanding gold mining. An illustration of the modern trackless underground mining. 2008 Jason’s Homel Report regarding gold and silver market. Appendices 1. 3.

Sign up to vote on this title
UsefulNot useful