Quad mining english pp

● 2 COLUMN SYSTEM - The Quad Mining combines 1.) Gold claim proving process + 2.) Patented mining technology comprised of 4 plant units connected together under one administrative central plant.

● Patented technology - Developed after careful evaluation of the MO of gold mines in general, from the research phase to the final exploration phase.

● Overcome flaws in the gold mining process● Reduces the time span between the

research phase to the exploration phase by 80%.

● Reversing the mining process on its head.

Proving the claim

● Costly - at least $3M to $10M to get NI43101or JORCBecause o the operating + administrative cost spread over 3-5 years.● Long maturity time span - The process takes 3-5 years to reach a “proven reserve status”.● It is a risky proposition and many public companies fold during the process because of its ongoing cost. ● Even if successful it is still prone due to technical delays., If the company manages to successfully get a “proven reserve NI43101 status”, it still may take years until the project is sold or the company finds an additional $10M to start mining the project.

1. Locate a probable gold claim with excellent surface indicators2. Negotiate with its owner an option agreement, (minimum 51% - 49%) 3. Pledge the site into the Public company’s assets base.4. Public company will raise capital needed to conduct a geophysical research

JORC or 43-1015. After some results are reached the Public company will issue a press

release and announce the results. 6. If results are promising, the research is continued. If not, it is dumped. 7. The public company continue its research, until its conclusion when it

announces the proven reserve figures. Then the public company try to monetize the asset with X ounces @ $Y.

Factors to consider

Normal Modus Operandi for Gold Mining projects with 43-101

Quad Mining for gold claims

Initiation time Require 8-12 years of preparation 3-4 months research + 4 months for installation

Project cost $3M - $10M to reach 43-101 or JORC Basic Research cost over 3-6 month $60,000

Cost of surface rights There is a need to buy surface rights or pay royalties to owner

All included in the Royalties

Asset ownership The company must own at least 51% of the asset Company may lease or own 100% of the project.

Cash generation Negative to non - only after plant is deployed. Immediate cash generation.

Flexibility Non, chose which projects to dump & cut losses. Flexible, can move operation elsewhere

Research cost Research cost over 3-6 years $3- $10M A 3 step self correcting research $60,000

Risk High risk because of its initial cost Low risk because the process is self correcting!

● Brazil has tremendous gold reserve spread throughout its territory.

● Public companies as a rule, look for large deposits to conduct their mining research.

● Many mining sites with small deposits each (2-10 tons) 50,000-200,000 are left untouched since their reserve is too small to be considered a good asset.

● All these gold claims are there for the taking. And I am talking about millions of ounces laying out there!

PHASE 1: Locating and prooving a specific site

PHASE 2: Deployment of 1 Quad (4 plants) in the designated location.

PHASE 3: Repeated and indefinite expansion

PHASE 1: Locating and prooving a specific site

PRELIMINARY WORK:● Locate a gold claim with excellent surface indicators ● There are dozens of sites to choose from. These sites are

usually “green field” type (no data, no plant).● Make an option agreement with the site claim owner either for

outright purchase OR for royalties (no more than 10%). ● The outright purchase for sites without data, the price may vary

from $50K to $300K● Once the option agreement is signed, our company will go in and

conduct a 3 step shallow research.

PHASE 1: 3 step, self correcting research process:

Step 1: Technical Visit: Qualifying the site’s licenses, logistics, (water, access, electrical energy), purchase and analyse satellite mining data. Identify main targets, also the main veins and their content (gram per ton). Sample collection. If qualified, proceed to phase 2. If not,stop here and choose another project.

Step 2: Trenching/Shallow Drilling Trenching will take place to aid in identifying the main veins. Shallow drillings in the alluvial plains should take place as well. These drillings can be conducted by a small team and cost about $30,000. If the mobile plant is already available, a mobile plant can be brought to the site. Mining the site will be in itself the main test.

Step 3: Information analysis from SGS Data analysis and conclusion. Some target volume can be calculated although it will not be a JORC report nor a NI43-101, it is still a valuable indicator for the project success with a 90% probability. If all goes well, the site will be qualified for mining experience. If not, the site will be dropped and another site will be looked at.

PHASE 2: Deployment of 1st Quad in the gold claim

Electrowinning unit

Jig table used to purify the gold coming from the oxidized plants

The Quad Plant has several essential features:● Advanced Communication technology - The Central plant will integrate the information from the

other 3 plants of the Quad model and will feature them as well in real time.● The plants are secured by special advance loss prevention technology (An Israeli technology used

in the diamond industry).● Totally modular. This means easy maintenance and low downtime. ● Adaptability and Mobility Plant and it components are mounted on skids and are easily movable. ● Processing capacity of 300 - 450 tons of ore per day x 4 plants = 1200 tons/day ● High recovery rate of 91% because it processes Oxidized and Sulphatized ore ● Low operation cost. Plants operational cost run at about 15%-25% of gold production. Since they

dont use a ball mill, energy cost is far low as well. This is unheard of in the gold mining industry. Each oxidized plant requires 2 workers. The Central plant requires 5 persons per shift including excavator and truck operator.

● Low start up cost - Unlike gold mining plants which process oxidized and sulphatized ore, at a cost of $6 to $10M, the Quad equipment requires only about $600,000 plus excavating equipment = $750,000 - $1M

● Total boot-strapping - A 2 months production of 15 kilos (total of 30 kilos) will suffice to pay for the second Quad

● Low lead production time- It takes about 3 months to fill the order and an additional month for transport and deployment. This is unheard of in the big plants model used today by many mining companies, which require over a year to make their plant operable.

Only the central plant will processSulphatized ore which comes fromThe 4 sites in a form of concentrated ore

Central plant for Sulphatized Ore

Oxidized Ore Mobile plant 2

Oxidized Ore Mobile plant 1

CENTRAL PLANT FOR LOGISTICS & ADMINISTRATION

Oxidized Ore Mobile plant 3

Oxidized Ore Mobile plant 4

Gold extracted from plants 2,3 and 4 will go to the central plant

PHASE 3: Repeated and indefinite expansionBecause its installation cost is low enough, (about 600K per Quad unit) in comparison to the high cost of a single mine, it makes more sense to use a Quad