Mining Investment Colombia

7/31/2019 Mining Investment Colombia

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BUSINESS PLAN

COLOMBIA Alluvial Gold

Recovery

Areas in Choc,Colombia

FELIX A. NEGRON

Precious Metal ConsultantAmerican Precious Metal Recycling, LLC.4121 North 10th St #129McAllen Texas 78504Telephone: 603-809-2851

Fax: 956-783-0036

E-Mail: [email protected]


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The Investment proposal is to secure funding to exploit reliable mining operations in

Mexico, Colombia, Bolivia, Brazil, Peru, Costa Rica and Chile. The precious metals that we

located in the mining sites are the following: Gold, Silver, Platinum, Iridium and other

base metals like lead, copper and tin. Our selected investor will have the opportunity to

exploit the rewards of the metal market. For the last 10 years the metals are moving up

and it is expected that the pricing will continue to go up as the demand for tangible assets is

gaining popularity in many investors (see www.kitco.com and look in to historical charts for

precious metals below is gold last 10 years). Paper currency is fluctuating, stocks are falling

and corporate America and banks are not as reliable as before. The right investment is

PRECIOUS METALS.


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Why purchase precious metals bars when you can have yours own custom made. Theinvestor will secure precious metals as participation in the mining revenue and his investmentis guarantee by the metal market performance the last 15 years. All precious metalsrecovered at the mining operations are going to be refined by Colt Refining, a very reputablerefinery that was featured in the History Channel Series Bone yard. Their website iswww.coltrefining and a short video of the program can be seen at the website. By havingonly one source the investor and auditors can maintain close watch to the mine productionsale of precious metals. As an option the investors could have their profit share as tangiblemetal bars, pool account (the precious metal are kept in a metal account that can be sold assoon he fit to sell the metal as the pricing goes up or he needs cash) or cash in US dollars.

Another option is to receive payments in gold coins, metals or certificate of deposit for theprecious metals.

The selected investors will have first option for investment in other mining operations as wemove to other mining projects in Brazil and other countries. The investment will be usedmainly for purchasing mining equipment, support equipment, laboratory equipment, trainingand start up cash to maintain the operation while the recovered metals are sold to therefinery. The expected precious metal production time for the project is 6 to 7 monthsfrom the time we order the mining equipment.

American Precious Metal Recycling will be developing total of 14 sites. On Phase I

Colombia 3 teams, Mexico 2 teams and Bolivia 3 Teams. Phase II Brazil 1

team and Costa Rica 1 team. Phase III is in developing Stage exploration and

analysis. The ownership of the mining operation will be conducted in compliance of the

country laws. The investor participation will be allocated as follows:


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MINING PROJECTS:

TOTAL INVESTMENT REQUIREMENTS:21 MILLION USD (3 MILLION per SITE)

this will fund up to 7 mining sites.

The 18 Million is just to start the projects in Mexico, Colombia, and Bolivia on Phase I.

The 3 million usd per mining site is to get a production of 100 ton per hour and will let

them run on their own. While these projects are working investors can decide if they

wish to venture in other projects. This is not a treasure hunt. We already found it.

We want to work with the investor to learn the business and profit from our

teamwork. As the business grows and we see new opportunities the investors will be

involved.

RETURN ON INVESTMENT SAMPLE:

FOR EXAMPLE MEXICO HAS - 2 LOCATIONS VERY LARGE DEPOSITS

PLATINUM AND GOLD MAIN PRODUCT IS

PLATINUM

Only on surface to 9 feet deep we found 50 grams per ton ofPlatinum up to 3 feet deep

without talking about the gold and other metals. The size ofthe lot is 494.10

Acres/1020yd2

Having a density of3.6, we can Project 3600 Kgs. Per Mt cu, or

3,600 X .50 = 180 gms/mt3

180/32.15= 5.6 oz

5.6 X 10000 mts= 56,000 oz

X 200 hct. (494.10 Acres)= 11,200,000 oz ofPlatinum

This is just in one meter; in a lot next to us up to 80 meters we found the same metal content.

The Colombia, Brazil, Bolivia, Peru, Mexico and Chile will have an expected return on

Investment: 2.0 Millions in 12 Months after the initial production start.This is a very conservative number.


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Investment will be used as follows:

80% mining equipment20% Operations and Training

CONCEPT OF OPERATIONS:

Company and Revenue: AMERICAN PRECIOUS METAL RECYCLING

LLC is incorporated in Nevada USA because of the following:

No Corporate Income Tax No Taxes on Corporate Shares No Franchise Tax No Personal Income Tax Nominal Annual Fees Nevada corporations may purchase, hold, sell or transfer shares of

its own stock.

Nevada corporations may issue stock for capital, services, personalproperty, or real estate, including leases and options. The directorsmay determine the value of any of these transactions, and their

decision is final.

No Franchise Tax on Income No Inheritance or Gift Tax No Unitary Tax No Estate Tax Competitive Sales and Property Tax Rates Minimal Employer Payroll Tax - 0.7% of gross wages with

deductions for employer paid health insurance Nevada's Business Court Developed on the Delaware model, the Business Court in Nevada

minimizes the time, cost and risks of commercial litigation by:

o Early, comprehensive case managemento Active judicial participation in settlemento Priority for hearing settings to avoid business disruptiono Predictability of legal decisions in commercial matters


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(visit the secretary of state of Nevada web page

http://nvsos.gov/index.aspx?page=152 for more information on the

benefits)

We will have external auditors and corporate control will be in USA including auditteams, special maintenance team, purchasing, trainers, engineer, laboratory tech, andproject manager for each country. Quartely Reporting to Investors, progress reportmonthly per project and montly production reports will be provided.

We will set up companies called APMR XXX COUNTRY NAME LLC ETC, in

each country with the following participation

LAND OWNER (country team) 49%

APMR USA LLC 51%

Revenue distribution:

49% - Land Owner

49% - AMERICAN PRECIOUS METAL RECYCLING USA.

2% - LAND RECLAMATION FUND (We have to leave the ground aswe started this fund will cover this cost).

Equipment Only the mining equipment is new. Support equipment will bepurchased used but in excellent mechanical conditions to save money. If we buy new

our investment per mining site will be 6 million usd per mining site. We will notpurchase new support equipment like excavators, dozers, etc; because we have in

USA great equipment with low hours that can provide the operations hours to coverits cost, make profit and keep on going. The equipment will be refurbished to 10/20standard or modified according to country/land requirements and a Mechanic in eachsite will be available. Each mining site will a spare parts on hand to avoid down timeplus we will have the equipment of similar brand and year to avoid the headaches ofhaving different model and parts on hand.

Labor Local labor is plenty and our equipment is not labor intensive. We willtrain on the go and will comply with federal and local laws. The work is mostly


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mechanical.

Security Each site will have its own security and special attachment in the

equipment that will allow only the manager to remove the precious metal from theequipment. The material will be inventory and log in per day basis. Monthly reportsand control of the sales will be done by APMR USA. Refining reports will beavailable to investors and each APMR MINING COMPANY will have its own P&L.

Security on Investment:The equipment ownership belong to APMR LLC USA It will be leased to each mining site. The equipment we will use is a proventechnology that recover 99% of Precious metals under 5 microns (technical specs willbe given to investors). The equipment and mining site is completely mobile and can

be redeploy anywhere in the world. Precious metals prices are steady and there is

more ground that machinery we could buy to recover precious metals. The Investorswill have participation in APMR LLC USA in Shares according to investment andrevenue will be according to the amount of shares they hold.

Political Environment The political environment and security on investmenton the countries we are working with is stable. Even Colombia has almost the samerating as Mexico in the qualification by Lloyd of London in terms of politicalinsurance. All those countries welcome investment, job creation, environmentalresponsibility, teamwork, community participation and ownership by US/LocalPeople. We will be hitting all those points. All our equipment is highly mobile andcan be redeployed anywhere in the world. Even Colombia mining area is FARC

FREE and secured by local people because they will be part owner with thegovernment of Colombia 49%.

Production time table - Production by the explorer teams (10 ton per hour) willstart after 4 months because logistics takes 30- 40 days just to move the equipment byland and sea containers, 90 days to comply with equipment ordering, and supportequipment search and reconditioning. Production time table for the first 100ton perhour machine will be 6 months at the most. That includes deployment, set up andoperations. Then we will have one full mining operations starting every 30 days.

Explorer Team The explorer team is a self sufficient fully mobileproduction/survey unit with a capacity of processing 10tons per hour. Their mainobjective is to collect data and report the area with best ounces per ton content todeploy the 100ton machinery. It will also produce precious metals and will continuesearching for good spots. We have over 1.5 million Hectares to work with. So wehave to maximize our equipment. Each team will consist of a crew chief and 3workers. Each team will have the similar equipment that will change according tothe terrain, and project requirements:.

a. One Bob Cat


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b. One Mini Excavator

c. Mining recovery Unit trailer mounted.

d. Generator

e. Camping equipment.

f. 1 x F 150 4X4 OFF ROAD SPECIAL TIRES AND LIFT

g. 1 x F250 4x4 OFF ROAD SPECIAL TIRE AND LIFT

h. Portable kitchen.

i. Small mineral lab.

j. 16 foot trailer.

8 Teams will be deployed. on Phase I

Finally, the mining project is something that we have been doing R&D for more than 5

years. Last 8 years we have been traveling to those countries. We also located the

right mining equipment, support equipment, area and people to work with. Now is

time to get to work! If you are interested let us know, we want to hear from you


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Table of contents:

1. Objectives.... 1.

2. Location........ 1.3. Geological Setting... 3.4. Structural Geology.. 3.5. Magmatic Intrusions...... 4.5.1 Alto Condoto............ 4.5.2 Viravira...... 5.5.3 Mand Batholith....... 6.5.4 Other magmatic and hydrothermal processes........ 7.5.5 PGE content in rocks. 8.

5.6 Fractures......... 9.6. Placer Deposits..... 9.6.1 Mining site Condoto.................. 11.6.1.1 Au and Pt in alluvial deposit ........ ...... 12.6.1.2 Prospect for ultramicroscopic Au ...............12.6.2 Paleochannels................... 17.7. Aspects for exploration......18.7.1 Geological maps.................... . 18.7.2 Remote Sensing........................ 18.8. Discussion and results....... 18.

8.1 Mineralized intrusions and structural context...... 18.8.2 Alluvial placer deposits............ 19.8.3 Exploration Aspects ............ 20.9. Conclusions. .......... .. 21.10. Recommendations...... 21.11. References................ 22.1.


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1. ObjectivesThis report presents a revision and summary of the available geological informationof the Condoto Area to date, combined with observations made during field

investigations.The objective is to define the types of resources in the area, based on which explorationtechniques for further investigation will be recommended.

2. LocationThe area of interest is located within the zones 203 Istmina and 204 Pueblo Rico (Fig.1),

as defined by the technical subdivision of the mining ministry INGEOMINAS. It is situated atthe western flank of the Western Cordillera proximal to the Pacific Ocean (~80kmfrom current mining site). Exploitation is currently taking place in the village of Condoto, whichalso provides an airport for Civil transportation.

The Condoto area is characterized by a mean annual temperature of ~25C andintense precipitation of ~8,000mm annually (Garca, 2001). These two characteristics giverise to rich vegetation in the area.Fig.1: Location of the zones 203 Istmina and 204 Pueblo Rico in the western partof theWestern Cordillera. Pacific ocean approx. 80km from the Village of Condoto. Accessof the Condoto area is via waterways along the major rivers San Juan, Condoto and Rio Ir ,(Fig.2). Accessibility is strongly dependent from current water levels and requires small boatswith little draught. If water levels are shallow in periods of no to little rain access can bedifficult (Fig.3). However, these conditions give rise to alternative methods (Fig.4). Fig.2:

Impression of Condoto waterways, Rio Ir. Fig.3: Locally low water levels in Condoto (left) and


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Ir River (right, with Alto Condoto ultramafic intrusion in the background) after period of littlerain posing difficulties on accessing the area. Fig.4: Truck driver using waterways of Condotoas streets during period of low water levels.

3. Geological SettingThe Condoto area is part of a region that corresponds to an island-arc setting (Fig.5). The earlyTertiary Dabeiba volcanic arc (Santa Cecilla- La Equis Complex) has been accreted onto thewestern flank of the central axis of the Western Cordillera (Caasgordas Group). TheSanta Cecilla-La Equis Complex is characterized by toleiitic and calcalcaline volcanics. Tothe westthese lithologies are covered by a sequence of mainly Tertiary clastic sediments,forming the N-S-trending Atrato San Juan Basin. The marine Caasgordas Groupmainly forms the central axis of the Western Cordillera and has been interpreted either as


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an inmature island arc or as oceanic flood basalts with associated sediments. It is here definedas Cretaceous oceanic crust.

4. Structural GeologyThe basin of the San Juan River and the western border of the Western Cordillera formed as aconsequence of the interaction of strike slip faults in NE direction. This resulted in a depressionthat has been filled with sediments of terrestrial and marine origin.The most important faults are the Garrapatas fault in the south and the San Juan River fault inthe north. Transpressive forces between those faults affect the oceanic sequence attached to

the continent. Preliminary structural analysis corresponds to a model with shear zones limitedby a strike slip fault that is located along the course of the San Juan River with direction N40E.A second fault is located in the SE along the Garrapatas River with an N20E direction, dipping

east. Syntectonic secondary structures have been developed between those faultswith the directions N80-85E and N45W. North of the Condoto River rocks are influenced bycompressive forces in NS direction.

Recent quaternary sediments and alluvial terraces rich in Au and Pt have filled th e depocentrelimited by inverse faults, suggesting a half-ramp type model.

5. Magmatic IntrusionsEmplacement of magmatic intrusions into the shallow crust is controlled by large transversemovements along the N-S lineament (Fig.6). Interactions of secondary NE and NW-trending faults during an extensional phase of a generally east-west compressivetectonic system promote the circulation of hot fluids, and penetration of mineralized magma


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through the crust (Tistl, 1994). The magma is derived from partial melting of the uppermantle and due to the regional tectonic framework was able to rise quickly (Muoz et al., 1990).

5.1 Alto Condoto

An ultramafic intrusion is located ~60km in NE direction from Condoto. It exhibits a chemicalzonation that corresponds to an Alaskan Type ultramafic complex (Fig.7). The20Ma old intrusion is the youngest of its type in the world known to date. It has been emplacedduring the compression peak of tectonic evolution.

The inner core is composed of dunite, mantled by sequences of clinopyroxene dunite, wehrlite,olivine clinopyroxenite, and hornblende (magnetite)-clinopyroxenite.The dunite core consists of olivine, accessory chromite, clinopyroxene and PGM (Platin GroupMinerals). Within the core a 200x300m area is anomalously enriched in PGM. The dominantPGE is Pt which mainly occurs in PtFe alloys (Pt3Fe). Single crystals exhibit sizes up to 1mmand aggregates up to 13mm. Significantly high Au concentrations are present in zoneswith wehrlite mineralogy (Tab.1) (Tistl, 1994).

Fig.6: Radar image of the Condoto area with superimposed geological map indicating majormagmatic intrusions (yellow circles) and faults (red lines).


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5.2 Viravira

The high Mg basaltic complex of Viravira covers an area of ~150km2 (Fig.7). It is geneticallyrelated to the Alto Condoto source magma and is thought to represent an early stage fraction ofthe latter. It has been intruded in the Lower Miocene (Muoz et al., 1990; Tistl, 1994)Within the basalts PGM-bearing serpentinized peridotites (Tab.2) can be found

(dunite, harzburgite, lherzolite). Enrichment of PGM in the peridotites is dominated byPt3Fe alloys. Nuggets of several centimetres in size were found in association with chromitecrystals (Muozet al., 1990).Tab.1: Geochemical data of PGE for lithologies of zoned ultramafic intrusion in Alto Condoto(Tistl, 1994).


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5.3 Mand BatholithThe intrusion is of Tertiary age and is characterized by dioritic and gabbroic composition. Areaswith anomalously high concentrations of (precious) metals cover an area of 60km2 (Fig.8).In situ mineral occurrences comprise the following:

1) Vein type mineralization2) Joint and breccia- type mineralization3) Disseminated mineralization4) Placer deposits

Tab.2: Geochemical data of PGE for serpentinized peridotites of Viravira complex (Tistl, 1994)Fig.7: Geological map showing zoned Alaska-Type ultramafic complex Alto Condotoand serpentinized peridotites of Viravira (black dots). Course of Condoto River leads right throughanomalously PGM enriched dunite core of zoned intrusion. (Tistl, 1994).The main ore mineral is pyrite which has been found accompanied by copper minerals. Argillitic


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alteration in vein type structures is characteristic and within these zones gold occurs along withpyrite.Further, copper mineralization related to (rhyo)-dacitic porphyry bodies is present.Minor associations with gold occur in stockwork and disseminated copper ore types (Feldhaus et al.,1988).

5.4 Other magmatic and hydrothermal processes

Further intrusions related to the Mand Batolith have been reported (e.g. ANH -Dunia, 2005) but mapsare not for public access. The intrusion La Esperanza has been investigated but doesnot show up in any maps. The significance of these unmapped features lies in thegold mineralization that can be expected from intrusions related to the Mand Batolith.During a field investigation in July 2010 a vast number of dioritic/quartzodioritic blocks wereencountered in the stream sediments of four neighbouring creeks north of the Ir River (Fig.9).However, no intrusions are mapped despite a significant morphology with streams forming aradial shape, pointing to a common centre point. This observation gives rise to the presence ofa dyke or stock intrusion.Fig.8: Preliminary map 203 Pueblo Rico showing Alto Condoto zoned intrusion (red arrow) and,Mand Batolith (blue arrow). Viravira formation does not occur in map. (Zapata and Cossio,

999).


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5.5 PGE content in rocks : In the Alto Condoto area the concentration of Pt in rocks varies.

Dunites contain ~0.09ppm and clinopyroxenite ~0.12ppm. Rocks of the Viravira exhibitminor concentrations, ranging between 0.007 and 0.021ppm in serpentinized peridotites (Muozet al.,1990).Additional data for PGE in the rocks of Alto Condoto indicate ~0.043ppm in dunitesand ~0.136ppm in clinopyroxenite. The highest concentration of ferroplatinum PGM hasbeen reported for the central dunite core (Tab.1). Analyses for concentrate samples of

the Alto Condoto area revealed varying contents for Pt between 0.031ppm and 0.15ppmand for Pd beween 0.015ppm and 0.056ppm. For Au values between 0.21ppm and 0.68ppmhave been reported. Concentrates of the Viravira serpentinites exhibit values of 0.47ppmfor Pt and 0.48ppm for Au (Tab.2).The results of the geochemical survey revealed that along the Condoto River threedistinct zones can be differentiated that are mineralized with Pt and Au:1. The El Paso area (Fig.10) is characterized by the exclusive presence of Au.2. The zone between the Corodo and Mestiza streams exhibits a mixed presence of Au and Ptwith a proportion of 1:1.3. From the Mestiza stream to the source area of the Condoto River PGM contents are higherthan those of Au (Muoz et al., 1990).

Fig.9: Blocks of dioritic/quartzodioritic composition as part of stream sediments in minor creeks,indicating the presence of a magmatic intrusion not occurring in geological maps.


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_BusinessRoyals,BoardDirectory,consortiu.

5.6 FracturesThe tectonic setting of the area is very dynamic. Convergence of faults with northern directionleads to an interaction with those in NE direction. The setting is particularly favourable for thedevelopment of implosion-breccias. This dynamic process could explain the presence ofintrusive bodies and dykes of quartzodioritic composition that are mineralized with Au. Further,

Au mineralization related to fracture development can be found within and aroundultramafic bodies.The tectonic framework of an area dominated by shear zones further gives riseto the prospect of epithermal Au deposits.

6. Placer Deposits:


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Recent alluvial deposits as well as alluvial terraces in the Condoto and Ir River area are animportant source for precious metals. The minerals of the ultramafic intrusions offer little

resistance to weathering. Contact with stream water leads to erosion of the complexby the break-down of these instable minerals. As a consequence the weathered host rock

releases more stable mineral phases and precious metals, which are not affected byweathering. While the ultramafic host rock material is being transported relatively far fromthe source in a particular or dissolved state, the heavy minerals and precious metals tend tosediment quickly. The distance they are being deposited away from the sourcedepends from the particles characteristics as well as from the energy environment of thestream. Deposition occurs where the energy of the stream drops below the minimum valuerequired for keeping the according particle in suspension. The energy environment of astream is not homogenous and favourable areas for heavy particle deposition are commonlyrelated to point bars in meandering rivers or the downstream side of natural riffles (Carling etal., 2006a, Carling et al., 2006b). Gold and platinum are deposited along with otherheavy minerals (e.g. magnetite, chromite) where they accumulate upon an infiltration layer

by hydraulic sorting. This natural process leads to local concentrations of precious metals andthe formation of alluvial placer deposits. Generally, coarser gold and platinum grains canbe found in the upper reaches of channels where it is deposited along with coarsersediments. Finer fractions of the precious metals are related to finer sands. The largest PGMnuggets found in the Condoto area were found proximal to the source and had severalhundred grams in weight. Platinum and gold grains from these areas often exhibit grain sizes>5mm. Gold and platinum produced from the current mining site in Condoto exhibit small sizes(


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6.1 Mining site Condoto:

The current mining site is located near the village of Condoto and its geology corresponds to analluvial fan (Fig.12). Exploitation takes place in an open-pit mine which is being worked withexcavators and large pumps to move several hundred tons of material daily. Fig.12: Location ofthe mine in alluvial fan (light blue). Coordinates: Lat 50 5,6 Long 760 38,9

6.1.1 Au and Pt in alluvial deposit Open pit mines allow a detailed study of the present geological conditions(Fig.13+14). Investigation of the profiles revealed various horizons, beginning with an 8-10m top-part that exhibits characteristics distinct from alluvial material. This horizon bearsfine sand to pebbles which is typical for alluvial material, but it is significantly matrixsupported and does not show any signs of imbrication. Thus, the first 8-10 meters areinterpreted as tailings from previous mining activities in the area. However, current

production reveals very good results in both the recovery of Au and Pt. Beneath this zone lies aunit that varies with thickness, depending on the position of the subsequent layers. Thisunit is characterized by the presence of fine sand to pebbles and its appearance isquite similar to the overlying zone.

However, pebbles exhibit imbrications and form a grain-supported deposit. It is thus interpretedas a virgin alluvial deposit that has not faced previous exploitation.


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At the bottom part of the unit lies a horizon that bears the same structural characteristics but isdistinct in its dark grey to black coloration. The sand fraction of this horizon issignificantly enriched with dark, heavy mineral particles. This bottom part is called the Cinta,which is the richest zone of the alluvial zone (including Cinta), Saprolite

sequence and bedrock (Pea).Pea, Saprolite, Cinta Alluvial sediments Pt and Aubearing ancient tailing profile in terms of Au and Pt contents and other heavy minerals.The alluvial horizon is limited by the basement (Pe), which is a sedimentary rock composedof limolite and mudstone. The rock exhibits a homogeneous grey colour and is characterized bycompaction rather than cementation.


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6.1.2 Prospect for ultramicroscopic Au:

Locally the alluvial material has been affected by intense tropical weathering. Theoriginal structure and imbrication of grain supported pebbles have been preserved but the materialhas undergone a drastic compositional change. The minerals of the clasts and thesurrounding matrix, depending on their original composition, have been entirely replaced by a


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variety of clay minerals. This lithology is thus termed saprolite (Fig.15). Saprolite can occurthroughout the geological profile and has been discovered overlying the basement andupwardly followed by the Cinta (Fig.16). In other areas it is overlyingunweathered alluvial material. Saprolitization occurs locally where alluvial channels havebeen temporarily abandoned and exposed to near surface weathering conditions. A kilometrescale investigation near the current mining area revealed the presence of saprolite inmany sites and it is thus considered an important part of the regional geology.

Fig.15: Saprolite profile comprising unoxidized grey part and orange-brown oxidation layer ontop. Locally layers of organic material divide these units.

A saprolite profile taken from the mine (Fig.15) exhibits a horizon with reducingconditions (grey), overlain by an oxidized layer (orange-brown). Local anomalies in Auconcentration in saprolite (formerly an Au and Pt bearing alluvial deposit) are caused in part bychemical mobility in solution during weathering. Mobility of Au is related to the formation ofcomplexes with humic acids caused by rapid degradation of organic matter in soil (Anand,2001). The presence of a partially preserved layer of organic matter in the profileindicates favourable conditions for redistribution of Au within the profile.

Reprecipitation of Au from the solution is related to the formation of iron oxides (e.g. goethite),

which is commonly observed to be associated with ultramicroscopic gold (Mann, 1984; Hong etal., 1999; Anand, 2001; Yang, 2009). Iron oxides are present within the orange -brown oxidizedlayer.Analyses of Au-bearing saprolite by Hong et al. (1999) revealed a significant enrichment ofAuin clay minerals (75%) relatively to goethite (25%). The author attributes this tothe highly adsorbing nature of clay minerals and their large crystal size and surface compared tothe fine gold particles. Observations by Anand (2001) confirmed that Au is not necessarilyassociated with Fe-oxides, but can be concentrated in clays. Secondary gold particlesadsorbed on clay and Fe -oxide minerals exhibit remarkable purities, up to a totalabsence of impurities (Mann, 1984; Hong,2005).


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The presence of ultrafine/ultramicoscopic gold in primary placers and in saproliticmaterial is significant to the exploitation process. It is assumed that it cannot be recoveredby traditional methods that have been used by mining operators in the area todate (e.g. Classificador; Fig.18). Thus, ultramicroscopic gold and its association with other

minerals bear great potentialfor exploitation with more sophisticated methods from (1) alluvialdeposits, (2) saprolite and (3) mine tailings from previous exploitation activities.

(Fig.17). Fig.16: Yellow-brown coloured saprolite unit overlying bedrock (not in image) followedPt and Au rich greyish Cinta on top. Cinta Saprolite

Recovery of free ultrafine gold is currently under investigation byintegrating a KNELSON gravity concentrator into the recovery process (Fig.19).Compositional analysis of the saprolite, alluvial material, and mine tailings


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(Fig.17) of the Condoto mining area is currently being performed as partof a research project at the University of Freiburg, Germany.Fig.17: Sampling of mine tailings in impoundment of the EXTRACON mining site. Richin plastic and clay rich material with high potential for fine-grained free Au

and Pt and associations in minerals.

NOTE:Current technology used at an open pit mine operation in the area.This equipment is not as efficient as the Helix Systems. Currently they arerecovering 1 KG of Gold per day.


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assificador produces concentrate of heavy minerals and metals from alluuge amounts of water to create a slurry. Laminar Pt and Au particles

Fig.18: Cl vial materialby adding h get trappedamongst other heavy particles in fibres of carpet mounted under a lattice on the inclined ramp.

Fig.19: Recovery installation E200 for fine Au and Pt consisting of scrubber unit and KNELSONbatch concentrator.

6.2 PaleochannelsRecent alluvial deposits of the San Juan, Condoto and Ir Rivers have been documented andworked traditionally. However, there is a great possibility of detecting further ancient channelsthat have had a distinct course (Fig.20). The active tectonic setting of the area that corresponds

to a continental margin has given rise frequent landform changes during the quaternary.

Adapting to changes in morphology abandonment of river beds has led to the development ofpaleochannels. These alluvial deposits constitute an additional major source for Au and


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Pt, which is uried under a top layer of soil and covered by vegetation. Thus, they do notexhibit any form of surface manifestations and are yet to be discovered.

Fig.20: Alluvial profile from the Condoto River area as a schematic example forsubsurface Paleochannels.

7. Aspects for explorationFollowing up on the initial stage of recognition a more detailed investigation of target areas willhave to be performed. For this exploration phase two main issues should be considered.

7.1 Geological Maps

The availability of geological maps with adequate scale that can be utilized to initiate explorationis limited. The publicly available maps published by INGEOMINAS of the zones 203 and 204are considered preliminary. This was proven during field investigation of the area inAugust 2010 where these maps were proven to lack a great deal of both precision and data.In contrast to other working environments imprecision of maps cannot be easily compensated inthe field due to difficult ground conditions, meaning that coordinates have to be precise.

7.2 Remote SensingRemote Sensing is a technique that utilizes satellites to acquire multispectral data of a desiredarea. By manipulation of raw data it is possible to visualize certain geological features, includingthose that have not been discovered yet and do not have any surface manifestations. Waves ofcertain frequencies are able to penetrate through geological units in great depths and are thusconsidered a tool for remote subsurface exploration. The applicability of the Remote Sensingtechnique is given by its ability to detect and map aseries of features that are of majorinterest to this project. These features comprise (1) Paleochannels (paleoplacerdeposits), (2) fault zones (association of mineralized intrusions), and (3) zones ofhydrothermal alteration (e.g. vein gold deposits). The great advantage of this technique in


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respect to the problems described in the previous section is that mapping of geologicalfeatures can be done without accessing the area. Further field investigation will then beundertaken for validation of maps produced by remote sensing.

8. Discussion and Results

8.1 Mineralized intrusions and structural contextThe Condoto area hosts several magmatic intrusions that have proven to be rich inprecious metals, and different types of mineralization processes for Au and Pt have beenrecognized. Preliminary data is available for the Alto Condoto ultramaficcomplex and the related serpentinized peridotites of Viravira, as well as for the MandBatholith. However, the structural context has not been entirely decrypted and previousstudies have failed to give a detailed explanation on the presence of these intrusions,especially in respect to the Viravira complex.

The area is limited by faults of regional importance. Rocks are densely fractured

but the distribution of those fractures is not mapped. Interpretation of the structural

dynamics is very much on a regional scale and lacks detail. Field observation suggests thatgeological maps lack a great deal of data and precision and that there are a number of mineralizedbodies that have not been recognized yet. This observation is in accordance with the structuralcontext, which is in favour of the presence of further intrusions contributing to the economic

significance of the Condoto area. It is necessary to create geological maps with more detail interms of precise stratigraphy of sedimentary rocks, consistent structural descriptions, anddifferentiation amongst the units of economic interest corresponding to magmatic and volcaniclithologies.

8.2 Alluvial placer depositsThe presence of high grade placer deposits has been acknowledged for decades and historic

exploitation near Condoto village was achieved by dredges. However, the depth limit of thesemachines is about 8m and the rich zones above the bedrock, which lie at a depth of about 25mat the mining site in Condoto could not be reached. This has been confirmed by studying analluvial profile that shows ancient tailings in the upper part (8m-10m) andoriginal alluvial material in the lower part, limited in its thickness by the bedrock and hostingthe richest zone in respect to Au and Pt placers. However, Au and Pt is also present in theancient mine tailings, attributed to poor recovery processes.Regarding the formation of placer deposits a unique set of conditions can be encountered in theCondoto area. The minerals of ultramafic rocks hosting significant portions of Au and Pt in theAlto Condoto area bear the lowest resistance to weathering effects amongst all known minerals.Dunite in particular is easily dissolved by water and subsequently releases stable minerals and

metals that are not affected by weathering. In the Alaskan Type ultramafic complex the courseof the Condoto River leads right through the anomalously Pt-enriched dunite core.Further, alluvial processes are particularly effective in the Condoto area due to one of theworld-wide highest precipitations of >8,000mm annually.The Condoto area corresponds to an active continental margin, giving rise to frequent landformchanges. The course of rivers is entirely dependent of the morphology of the areaand as it changes riverbeds may be abandoned. This process leads to thedevelopment of paeleochannels hosting paleoplacers. A lack of knowledge regarding theirposition is in accordance with the preliminary work that has been conducted so far. The Ir

and Condoto rivers have a meandering character and each meander presents apotential trap site for the heavy metal particles, due to low energy zones related to point bars.


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Thus, higher contents in precious metals are expected in the alluvial material more proximal tothe source. The distance between the current mining site and the Alto Condotoultramafic intrusion is an estimated 80km following the current course of the Condoto River andyet results are very satisfying.Gold and platinum produced from the current mining site exhibit very small grain sizes and have

a laminar shape. This character differs significantly from the coarser and rounder grained Au

and Pt particles reported by Muoz et al. (1990) that have been found further upstream towardsthe mineralized intrusions. Concerning the fine character of grains recovered at the mining sitethere is a high potential for ultrafine gold that has not been able to berecovered yet. U ltrafine to ultramicroscopic gold is assumed to occur as primary placers aswell as in saprolite profiles that have been strongly affected by weathering andundergone significant chemical changes. Saprolite profiles occur throughout the alluvialmaterial and are an important part of quaternary deposits. Recovery of ultrafine gold and platinumis currently under investigation by integrating a KNELSON batch concentrator into the recoveryprocess. Chemical and mineralogical analysis of alluvial material as well as high potential minetailings is currently being performed as part of a research project at the University of Freiburg,Germany. In 1984 Mineros de Choco S.A. calculated the joint reserves for gold and platinum to

be 16.4 tonnes. However, this number only refers to certain zones and do notcomprise the whole alluvial system with potential for Au and Pt placers.

8.3 Exploration aspectsAs discussed in the previous sections there is a great demand for detailed and reliable maps.Regarding the challenging field work conditions remote techniques should be considered mosttime and cost effective. Remote sensing will allow creating geological maps that do not rely onfield data but produce high quality images that reveal geological featurescorresponding to subsurface structures, alteration zones and position of

paleochannels. Further, precise topography data and high quality satellite imagessubstituting high-cost aerial photography images are essential for exploration planning

purposes. Where applicable, geophysical methods such as gravimetric and magneticmethods can be used to back up remote sensing to yield a more detailed view on thegeological conditions in areas of interest. Using these maps it is possible to add dimensionsto the sole recognition of va rious types of metal deposits. This process will be followed upby further field investigation for validation of these data, combined with a comprehensivegeochemical survey in target areas to confirm their potential. Apart from Au and PGE thereare a number of metals occurring in great quantities bearing economic deposit potentialcomprising Ni, Co and Cr.


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9. ConclusionsThe tectonic framework exhibiting inclined strike-slip faults and the presence of Au/Ptmineralized rocks present a good exploration target for precious metals.Historic exploitation of Pt and Au placers in the area and the presence of hard rock deposits ofAu and Pt in the Alaskan Type and further ultramafic intrusions indicate a good exploration

target for precious metals. Climatic conditions with high mean annual temperatures andintense precipitation are in favour of dissolution processes and subsequent concentration ofprecious metals in alluvial sediments. Proof of this process is well documented in the Au andPt rich profiles of the mining site, with higher-grade deposits expected further upstream.Superfine particles of precious metals bear great potential for alluvial material and Au/Pt

bearing mine tailings. A lack of updated and reliable geological maps requires the initiationof a detailed geological survey to get clarification on the distribution of rocks.

10. RecommendationsUsing remote sensing to reveal the distribution of paleochannels of the major rivers Condotoand Ir and to identify their ancient courses to detect paleoplacer deposits.Differentiation of geological units by using remote sensing and a detailed geophysical survey,

and further identify zones of hydrothermal alteration indicating the presence of vein typemineralization with precious metals. Detailed geophysical prospecting to determine

gravimetrical and magnetic anomalies revealing limits of geological units and traces offaults that have potential for mineralization with Pt and Au. Preferably in situ analysis ofelement composition to define anomalies of metals and delineate bodies mineralized withPt, Au, Ni and other metals of economic interest such as Cr and Co. Reinterpretation ofthe geology in the study area, taking into account that the available mapsare preliminary and do not reflect the conditions observed in a recent geological field trip.

11. ReferencesAnand, R. R. (2001). Evolution, classification and use of ferruginous regolith materials in goldexploration, Yilgarn Craton, Western Australia. Geochemistry: Exploration, Environment,Analysis 1(3), 221-236.ANH-DUNIA (2005) Cartografa geolgica en el rea de la subcuenca Atrato - San Juan,Departamento del Choc. Contrato 078 de 2005 Informe de integracin e interpretacin de lainformacin geolgica de campo. ANH.Carling, P.A., Orr, H., Kelsey A. (2006): The dispersion of magnetite bedload tracer across agravel point-bar and the development of heavy-mineral placers. Ore Geology Reviews(28), 402-416. Carling, P.A., Breakspear, R.M.D. (2006): Placer formation in gravel-beddedrivers: A review. Ore Geology Reviews (28) 377-401.Feldhaus, L., Muoz, R., Salazar, G., Tistl, M.(1988): Prospeccion en semidetalle para metales preciosos asociados con metales con metalesbasicos. INGEOMINAS, 1-160.Hong, H. and L. Tie (2005). Characteristics of the mineralsassociated with gold in the hewushan supergene gold deposit, China. Clays and ClayMinerals 53(2), 162-170.


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Hong, H., Q. Wang, J.Chang (1999). Occurrence and distribution of invisible goldin theShewushan supergene gold deposit, southeastern Hubei, China. Canadian Mineralogist37(6),1525- 1531.Mann, A.W. (1984). Mobility of gold and silver in lateritic weathering profiles: some observationsfrom Western Australia. Economic Geology79, 3849

Mineralco (1984): Proyecto de reactivacion de mineros del Choc S.A. Aporte 1313.Muoz, R., Salinas, R., James, M., Bergmann, H., Tistl, M. (1990): Mineralizaciones primariasde PGM y oro en lascuencas de los rios Condoto y Ir, Choc, Colombia. Bundesanstaltfr

Geowissenschaften und Rohstoffe (BGR) + Instituto Nacional de Investigaciones Geolgico-Mineras (lNGEOMINAS), 1-304.Tistl, M., Burgath, K.P., Hhndorf, A., Kreuzer, H., Muoz, R., Salinas, R. (1994): Origin andemplacement of Tertiary ultramafic complexes in northwest Colombia: Evidence fromgeochemistry and K-Ar, Sm-Nd and Rb-Sr isotopes. Earth and Planetary Science Letters (126),41-59.Tistl, M. (1994): Geochemistry of Platinum-Group Elements of the Zoned UltramaficAlto Condoto Complex, Northwest Colombia. Economic Geology(89), 158-167.

Yang, Y., S. Liu and Z. Jin (2009). Laterization and its control to goldoccurrence in Laowanchang gold deposit, Guizhou Province, Southwest of China.Journal of Geochemical Exploration 100(1), 67-74.Zapata, G., Cossio, U. (1999): Geologa de la Plancha 204 Pueblo Rico. INGEOMINAS.Zapata, G. (2001): Geologa y Geoqmica de la Plancha 204 Pueblo Rico. INGEOMINAS, 8-67.Zapata, G. (2005): Diagnostico de la Plancha 204 Pueblo Rico (Risaralda). INGEOMINAS, 1-

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MARKETING PLAN

Market Research -

We already have agreements with owners and equipment sellers to start production as soon as the

investment is available and the Corporation for each mining site is created. We also have other

mining ventures but we want to go one Phase at a time. The metals are already sold and we are

ready for production.

Economics -

Facts about Mining Operations:

Precious Metal Market is trade in daily basis in the London Metal Exchange. There isalways demand for Gold, Platinum, Palladium, Silver, Copper, Tin, and rare metals. Thereis no competition because there are no enough precious metals available in the market.

Market Share is not a major factor. The main factor is how many tons per hour you canprocess to recover the precious metals and rich is the mineral ore

Current demand in target market is huge. For example platinum and palladiumrequirements will be required for pollution controls as the Clean Act and Carbon emissionagreements are enforced.

Gold and silver are used in the manufacturing of electronic products, jewelry and also assecure wealth.

Each mining site has two phases. Initial machinery/investment recovery in phase one and inphase II is to purchase bigger mining equipment to increase production. Mining is abusiness of moving dirt and processing mineral ore to recover the metals.

Our main barrier are the following:o Equipment Cost and Maintenance.o Training and skills. We need to train the people. Mining is not an usual trade.o Compliance of Local Laws to ensure we have companies in compliance with local

laws.

o Security is a main factor because of the price of the metals. APMR will train the people at the mining site to ensure it is operational and will maintain

spare parts on hand to ensure the equipment will continue working as per schedule. We willprocure good used auxiliary equipment (low hours) like excavators, dozers, conveyors, andtrucks to save money.

Other Areas:o Change in technology Will maintain an open mind to new technologies along with

training and recruiting of mining experts.


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o Change in government regulations We will maintain an attorney in our R&Ddepartment to keep up with changes in government regulations. By helping thecommunity we work in we will maintain a good relationship with the government.

o Change in the economy will not affect us because the margins of operational costversus return on investment are very wide. Our main goal is to cover theinvestment first.

o Equipment Ownership of the equipment will be with the investors until thecompany pay for the initial investment. This is to protect the investors.

Competition:

We need to move quickly because there are many mining operations looking to expand their reach

into new mines. For example one of the mines in Mexico is of extreme interest to a Canadian firm.

But he owner already has an agreement with us. .

Now analyze each major competitor. In a few words, state how you think they compare.

In the final column, estimate the importance of each competitive factor to the customer. 1 = critical;5 = not very important.

Table 1: Competitive Analysis

FACTOR Me Strength Weakness Competitor A Competitor BImportance to

Customer

Products 1 1 5 N/A N/A 1

Price 1 1 5

N/A N/A5

Quality 1 1 5N/A N/A

1

Selection 1 1 5N/A N/A

5

Service 1 1 5N/A N/A

1

Reliability 1 1 5N/A N/A

1

Stability 1 1 5N/A N/A

1

Expertise 1 1 5N/A N/A

1

CompanyReputation

1 1 5N/A N/A

1

Location 1 1 5N/A N/A

5

Appearance 1 1 5N/A N/A

5


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FACTOR Me Strength Weakness Competitor A Competitor BImportance to

Customer

Sales Method 5 5 5N/A N/A

5

CreditPolicies

5 5 5N/A N/A

5

Advertising 5 5 5N/A N/A

5

Image 5 5 5N/A N/A

5

THERE IS NO COMPETITION ON THE SELLING OF THE PRODUCTS.

Niche

Our Mining operations and resources are the key to the final product. We already have analyzed thesamples and the content per ton of precious metals is very high.

Strategy

Our marketing strategy is simple. Get it out from the ground!!

PromotionWe do not want advertising because security is an issue. The less people know about our miningoperation the better it is for the security.

How will you get the word out to customers? Only takes one phone call to key companies. They arealways looking for product. We decided to send our products to Colt because they are reliable and Ihave been working with them for 4 years.

What image do you want to project? How do you want customers to see you? We want our customerto see us as a reliable trustworthy supplier.We want to keep a low profile!!!.

Pricing

The pricing for our products is according to the international metal market. Do visit

www.kitco.com. We do not control pricing but we do not want to overload the market so wewill maintain a steady flow of material and we will sell as we see fit. Supply and demand is always

the key factor. There is no discount in our products.

Proposed Location:

SPECIFIC DETAILS UPON REQUEST. CONFIDENTIAL INFORMATION. IT WILL BEDISCUSSED WITH REAL INVESTORS AS REQUESTED AND DEMONSTRATED CAPITALAVAILABLE. METALS ARE MAINLY GOLD, SILVER, PLATINUM.

THE METAL CONTENT PER TON IN OUR MINING SITES IS VERY GOOD!. With themining equipment we can have a production of over 100,000 usd per week in metal.


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Operational Plan

Each alluvial team site will have 3 people. The team leader will be active in the operation and

security of the minerals. An external auditor will keep track of the production. Each day there will

be a production schedule and safety meeting. The team leader will perform an equipment check

before during and after the production including maintenance check and services. Every Friday is

Maintenance day. Each team will maintain weekly production report along with operating

maintenance schedule of each piece of equipment. We will maintain an hour log book for every

machine. We will maintain spare parts at the site to ensure minimum down time. The small

excavator will feed the equipment and will put the dirt back where it was taken out to ensure we

reclaim the land as we recover the precious metals limiting the environmental impact in the area.

Training will be extensive at the beginning and safety is critical because of the water nature and

movement of equipment in the area. Weekly and Monthly reports will be shared with the Investors

to ensure everyone is informed. Explain the daily operation of the business, its location, equipment,

people, processes, and surrounding environment. Upon completion of the shipment we will start atracking process for everyone involved and Colt Refining will issue the final refining report which

will be maintain by lot number and results. Each investor will have the opportunity to decide what

to do with their share of the metals.

Production

The production will be done by steps. Step one is set up with explorer teams. Step 2 is training,

Step three is production and Step 4 is adjusting the production according to the equipment and

type of material. Our target is 1 tons and hour and increase to up to 2 tons an hour x 8 hours x 5

days a week. We will not work at night for safety issues. Limited visibility and rain are a recipe

for disaster.

Our ore metal will be pick up by a small excavator fed to a concentrator and ship to shipped via Air

to the Refinery. All the metals will be properly insured and accounted for.

Production techniques and costs: Patented Low g Technology with recovery up to 99% ofthe metal. Mineral Ore ground up to 100 mesh. Operating Cost $350.00 usd per day perTeam plus production Bonus per month. To Be Determined (TBD).

Quality control : Site supervisor will ensure production schedule and will maintain a logbook of down time. Also equipment performance has to be documented. If a spare part isused a new one will be put on order immediately.

Customer service Site Owner will maintain production records and American PreciousMetal Recycling will maintain active follow up with Colt Refining to maintain activetracking of materials and assay exchange.

Inventory control - Daily report of production and each Friday Shipping every Monday toUSA. Colt Refining will maintain lot integrity and reporting.


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Refining the Plan

For Investors

o Funds needed short-term = 3MILLION DOLLARS/ 3 MILLION PER MININGSITE.

o Funds needed in two to five years = NONEo How the company will use the funds, and what this will accomplish for growth

FUNDS WILL BE USED TO PURCHASE EQUIPMENT AND SET UP THEOPERATIONS.

o Estimated return on investment = 4 Million Dollar first year, 7.5 MillionSecond Year worst case scenario estimate. Each mining project is an mining

unit.o Exit strategy for investors (buyback, sale, or IPO) = First option for buy back to

other investors and American Precious Metal Recycling. Second option LandOwner.

o Percent of ownership that you will give up to investors = 30% in Boliviao Financial reporting to be provided = Monthly Production Reports upon completion

of the project and weekly reports when we are in developing stage.o Involvement of investors on the board or in management Investors are considered

members of the board.

Mining Operations.

Planned production levels 39 MILLION PER YEAR IN SITE ONE AND 39 MILLION INSITE TWO IN MEXICO. BOLIVIA OPERATIONS SITE ONE 35 MILLIONDOLLARS PER YEAR AND SITE 40 MILLIONS PER YEAR.

Anticipated levels of direct production costs and indirect (overhead) costshow do thesecompare to industry averages (if available)? 100,000 USD PER MONTH. THIS ISMAINLY THE WEAR AND TEAR IN THE EQUIPMENT.

Prices per product line COMPLETE MINING OPERATION PER SITE IS 2L5MILLION USD

AND $500,000 USD IS FOR OPERATION COST AND MAINTENANCE FUND.

Gross profit margin, overall and for each product line - EACH MINING OPERATIONSHOULD HAVE A GROSS PROFIT PER SITE APROXIMATELY 39 MILLION USDPER YEAR.

Production/capacity limits of planned physical plant WE WILL START THEPRODUCTION AT 30% CAPACITY AND WE WILL RUN IT AT 50% CAPACITY. IF

WE SEE THAT THE OPERATION IS GOING WELL WE WILL CHANGE THEEQUIPMENT FOR A LARGER RECOVERY UNIT AND EQUIPMENT. THE OLDEQUIPMENT COULD BE USED TO BE MOVED TO OTHER MINING SITE. EACHAREA IS HUGE AND CAN ACCOMMODATE EASILY 3 OR FOUR MACHINE PERSITE.

Production/capacity limits of equipment 20 TONS PER HOUR IN PHASE ONE AND 100TONS PER HOURS IN PHASE TWO BY USING LARGER EQUIPMENT.

Purchasing and inventory management procedures ALL PURCHASING ANDINVENTORY MANAGEMENT WILL HAVE CHECK AND BALANCES. INVESTORSWILL NOW HOW THE MONEY IS EXPEND AND RESULTS.


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New products under development or anticipated to come online after startup BIGGEREQUIPMENT LIKE THE MMP200 200 TONS PER HOUR. THIS IS A STEP UP.

We will build a 30,000 gallon reservoir to reuse the water in the operation. The watertrucks will be used as reserve just in case.

Water Reservoir

29000 gallons

Laboratory Fire

Assay/Smelting

AGREGATE OPS\REDUCTION 100

mesh mesESHSMEX

MPP 25 IST CONCENTRATION

300 GALLON PER MIN

100 TON HOUR

SECOND

CONCENTRATION


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MPP 25 MINING

SITE

COMPLETE 100

TON PER HOUR

COMPLETELY

PORTABLE UNIT.

SHIP IN TWO

CONTAINERS

MPP 10 MININGSITE

COMPLETE 10 TO

PER HOUR

COMPLETELY

EXPLORER TEAM


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Documents

Mining Investment Colombia