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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
A. TABLE OF CONTENTS
3.0 PRODUCTS 10
10.0 FINANCIALS 51
10.1 Underlying Assumptions 51
10.2 General Assumptions 51
10.3 Sensitivity Analysis 51
10.4 Financial Summary 52
10.5 Financing Programme 52
10.6 Expected Results 53
10.7 Cash Flow Present Value 54
12.0 CONCLUSIONS 58
10 Product Value 37
11 Operating Costs 37
12 Operating Margin 38
13 Calculation of EBITDA 38
14 General Assumptions 51
E. LIST OF APPENDICES
The purpose of this business plan is to raise a total capital investment of US$ 50,000 for
the acquisition of a highly-sophisticated 3D Ground Scanner eXp 5000 Metal Detector
for use in exploration and prospecting for high value gold and gemstones deposits
located in Uganda, the Republic South Sudan and the DR Congo. This same piece of
prospecting equipment will also be applied in hunting for deep-buried treasure caches
and hoards in areas around the Ruwenzori mountain range on either side of the
Uganda-DR Congo border that is known to have a high occurrence of such depth
treasure caches and hoards in various locations. The business plan also showcases the
expected financials and operations over the next three years based on exploitation of the
prospected gold deposits using this kind of prospecting equipment. OOLITE MINING
COMPANY LIMITED (―the Company‖) is a Ugandan-based corporation that will
excavate gold and other high-value minerals from leased mines within Uganda, South
Sudan and the DR Congo. The Company was founded by Mr. Kasirye Mohammed and
Mr. Opio Moses and five other directors.
1.1 Introduction
The founders and pioneers of OOLITE MINING COMPANY LIMITED are committed
to a culture of partnership and the values underpinning such a culture: trust,
transparency, shared responsibility and accountability, and a sense of emotional and
financial ownership.
This culture has also nurtured a powerful operating model. Right from the start,
OOLITE MINING COMPANY LIMITED is a lean and nimble mining enterprise, with
minimal bureaucracy. The Company’s core business strategy centres on operating a
small head office for routine business management with a balance of
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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
entrepreneurialism and prudence, focusing on only a few core activities: defining and
implementing strategy, allocating human and financial capital, and fulfilling the
obligations required of a private company. Leaders at the field operational level will
have to have greater autonomy, responsibility, and accountability, functioning as
business owners. Free from bureaucracy and middle management, they will focus on
maximizing free cash flow, while the head office will focus on allocating that cash flow
to maximize shareholder returns.
This is the vision that we all share for OOLITE MINING COMPANY LIMITED today.
The Company intends to acquire land leases on properties known to have gold and
other high-value mineral deposits. The business will then explore and prospect for the
gold and other high-value mineral commodity mines on these properties with the intent
to extract, smelt, and package the gold into bars for sale onto the open market. The
initial investment capital of US$ 50,000 being sought in this business plan will allow the
business to acquire the basic exploration and prospecting equipment needed to
prospect for gold and other high-value minerals (including deeply-buried treasure
caches and hoards) deposits before extracting them out and promptly selling them to
the existing high-value mineral global markets. It should be noted that at all times, the
business will comply with all applicable national, and local laws (including
environment, health and safety regulations) in order to ensure the safety of all
employees working at the Company site(s).
OOLITE MINING COMPANY LIMITED proposes to prospect and mine gold and
gemstones in Uganda, the newly-created Republic of South Sudan, as well the eastern
part of the Democratic Republic of the Congo – which have proven to be extensive but
still unexploited lodes/veins of alluvial gold deposits whose quality and quantities
rank among some of the highest on the African continent.
At this time, the Company is seeking a financial capital investment input of US$
50,000.00 of private funds to enable the Company carry out intensive mineral
It is expected and projected that Capitalization would be paid back in 24 months or less
from initial discovery and extraction of the gold and other high-value minerals and that
the Company’s debt would be nil by then. Sales revenue would reach more than US$
2.819 million by December 2017 (end of Year 2). Profits are presented below to further
understand the business opportunity and how as an investor generally able to capitalize
and capture a higher Return on Investment (ROI).
The Company was founded by Mr. Kasirye Mohammed and Mr. Opio Moses and five
other directors with a combined mining industry experience more than 15 years–
mostly gathered in small-scale artisanal mining (ASM) operations in Uganda. Through
their expertise, the Company shareholders will be able to bring the operations of the
business to profitability within its first year of operations.
The Company expects a strong rate of growth at the start of operations. Presented
below in Table 1 are the expected financials over the next three years.
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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
Table 1: Projected 3-Year Profit and Loss (In US Dollars)
Year PY 1 PY 2 PY 3
Sales 1,409,789 2,819,578 2,819,578
Operating Costs 789,349 1,448,717 1,448,832
EBITDA 620,440 1,370,861 1,370,746
Taxes, Interest and Depreciation 196,632 419,518 417,104
Net Profit 423,808 951,343 953,642
3,000,000
2,500,000
2,000,000
US$
1,500,000
1,000,000
500,000
0
PY 1 PY 2 PY 3
The Company expects that the business will aggressively expand during the first three
years of operation. As the business becomes profitable it will make substantial
reinvestments into the Company’s gold mining and treasure-hunting infrastructure.
Additionally, the Company may seek to acquire additional land leases on proven
grounds for gold and other high-value mineral mining.
For the nervous amongst us, looking at the headlines of the leading newspapers in
Uganda and elsewhere can be a form of torture, what with high oil prices, global
instability, trade imbalances, and worldwide financial crisis. But optimists should take
cheer from the upward trends that favour the precious metal, gold has become the most
secure investment in the world and the best backing of capital invested.
The worldwide metal industry goes through an expansion period and the gold and
copper are not an exception. Companies that shape this economic sector focus its efforts
in making systems, products and more effective value chains.
The value chain talks about the value that acquires the mineral resources since they are
extracted until they are processed. The minerals acquire an added value at each stage of
the productive process and in the process generate linkages 1 between the diverse
productive sectors of the economy, by creating job opportunities, saving of hard
currency, generating economies of scales, and facilitating improvements in the
distribution of wealth, among other benefits.
The value chain shows how the activity is developed in a company. A gold and high-
value mineral ores mining company is exposed to cost and margin links that are
1In the value chain the linkages exist backwards (that are the supplier of supplies and equipment) and
towards ahead or the sides (towards the industries processors and user as well as to services and
activities closely related). All activity this linked with others. The linkages depend as much on the factors
of the demand (derived from supplies and factors) like of their relation with technological and productive
factors.
Source: http://www.innovamineria.cl/contenidos.phtml?contenido=167&seccion=28
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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
organized through wealth generation. This situation demands permanent strategic
monitoring; so that the plans are carried out according to predetermined analysis and
forecasts.
OOLITE MINING COMPANY LIMITED, through its value chain efficiency in the
performed operations, provides excellent portfolio management and market share,
when a cost-benefit analysis is made. This offers not only solid experience but also a
good projection of the enterprise’s business potential in the medium- to long-term
perspective.
Also, the mining sector operations and its value-chain outputs contribute significant
benefits to the country and the economy at large by positively impacting on the
development of the areas of intervention, the sector workers, the mining industry
infrastructure, the corporate social responsibility aspects, as well as other productive
sectors of the economy, in spite of the existence of some areas of conflict between
mining operations and other industrial value-chain actors. These mining industry
results and outcomes are now being assumed by the government and the private sector
mining companies in Uganda.
OOLITE MINING COMPANY LIMITED has the commitment to develop the projects,
according to the expected results and the conditions estimated.
We therefore aim either to find, or to acquire and develop, gold and other high-
value mineral prospects and deep-buried treasure assets in Uganda, the Republic
of South Sudan, and the DR Congo.
According to the phase in which the projects are, the explorations and
prospecting will be optimized with the permanent search of better mining zones
with higher gold and other high-value mineral ore grades and the application of
better extraction possibilities to deliver lasting benefits and deal with any
adverse social or environmental impacts. We find ways to lift all aspects of the
company performance so that it stands out by setting or reflecting best practice
and by contributing to the global transition to sustainable development.
The project development will create resources to link other local and external
projects, to diversify the company products portfolio. The company will
Business Plan Corporate Document
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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
continuously seek to find new internal and out-of-the-country mining
concessions that could be acquired, especially with proven mineral resources, to
assure more lasting benefits for the organization. In this way, not only will the
Company be able to diversify its products portfolio but will also guarantee the
continuity and permanence of its activities and other mineral wealth generation
sources.
Financing the projects and assuring the enterprise’s permanence also involves
the investment portfolio, diversifying it with financial instruments to entail risk
coverage (price). The company will strive to create strategic alliances with
suppliers of fuel, lubricants, transportation, food, security and other service
suppliers, in order to reduce costs, time and assure clients’ satisfaction.
The total project cost for acquisition of a sophisticated precious metal and treasure
cache prospecting and detection equipment is estimated at US$ 50,000. This is the only
asset that the Company so far needs at the moment to initiate its mineral prospecting
operations while the successive operational aspects of mining including extraction,
refining and marketing will be taken care of by the already-identified high-value
mineral commodity buyers based in Kenya.
Competition will be present without a doubt, but with the existing waiting period time
of one (1) month or more before any gold ore from the other small scale miners can be
processed, OOLITE MINING COMPANY LIMITED will have more than enough to
process and will definitely have a clear head start advantage the majority of the existing
players. The demand is so high that our annual production goal of 1,680MT minimum
would hardly touch the current backlog time and overall market in general.
The focus of the policy that the government has adopted is to ensure that a number of
sectoral constraints are addressed in order to enable Uganda’s mineral sector to be
attractive to investment.
The government accords a high priority to development of the mineral sector and has
put in place the Mineral Policy of 2001.
MINERAL LEGISLATION
Before 2003, when a new Mining Act was put in place, the 1964 Mining Act was the
basic mining legislation in Uganda.
However, changes in the international mining scene necessitated its revision with
participation of relevant stakeholders, including mining-sector regulators, civil society,
local government authorities, mining investors and academia resulting in the current
Mining Act 2003.
The licensing regime: has various types of mineral rights (Prospecting Licence,
Exploration Licence, Retention Licence, Location Licence and Mining Lease) as well as
other licences do deal in minerals. The Mineral Legislation is summarized in Table 2
below.
Royalties:
All minerals obtained from any mineral right are subjected to royalty payment – for
example: precious stones 10% of the gross value, precious metals; 5% on the gross
value, base metals and ores; 5% of the gross value, and industrial minerals vary from
USh500/ton toUSh10,000/ton.
Adequate compensation:
The law provides for fair compensation on disturbance of surface rights of land-owner
or lawful occupier.
Mineral agreements:
The law requires the investor and government sign agreements relating to operations to
stabilize legal, social and economic obligations of either party.
Environment:
The law has provision on environment protection peculiar to mining operations.
Mining regulations:
These cover the following:
Mineral licensing Regulations;
Beacons, boundaries and surveys;
Registration of licences;
Protection of environment;
Movement of minerals; and
Financial provisions (fees).
Uganda lies within the African Plate which is a continental crust. Precambrian rocks
ranging from Achaean, Lower Proterozoic to Middle Proterozoic (4500 - 600 Million
Years) dominate the geology. Close to the eastern border with Kenya, lies a number of
Cretaceous to Miocene (145.5 - 5.3 Million Years) intrusive alkaline carbonatite
complexes. The Rift Valley contains Cenozoic (65 - 0.01 Million Years) to Recent
sediments up to 4000 metres thick. These rocks are endowed with a wide variety of
minerals as evidenced by past mining records and the numerous mineral occurrences in
many parts of the country.
Table 3: Uganda GDP by economic activity at current prices (Shs in Billions); Shs, fiscal
year
Year 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Mining and quarrying 73 81 106 134 175 186 204
Source: UBOS Statistical Abstract 2012
The airborne geophysical survey, done in ....estimates that there are over 27 types of
minerals in significant commercial viable reserves.
15
Growth Rates
10
Mining Growth Rates
GDP Growth Rates
5 Mining as % of GDP
0
2009/10 2010/11 2011/12 2012/13 2013/14
-5
Fiscal Years
Although companies holding mining leases may be considered ―large scale‖ in Uganda
(both in terms of the legal framework and relative scale of activities), internationally
these activities are considered to be comparatively small operations. As a simple
comparison of ―scale‖, large scale mines around the World are increasingly processing
ore at rates of up to 100,000 tonnes per day, while the extraction rate on some Uganda
mining leases is on the order of 1,200 tonnes per day
(ii) Exploration;
Most active exploration in Uganda involves smaller Ugandan and/or foreign venture
capital funded companies that are working at a much smaller scale. Although an
Many other companies seem to be speculators, holding exploration licenses with the
intent of selling them to larger exploration investors. In addition to these companies, in
Uganda (as in most countries), companies holding licenses to mine are also exploring
with the intent of extending their mine life (by proving more reserves) or identifying
new resources for development.
Since artisanal and small scale mining is largely informal and unlicensed (and in many
cases undertaken seasonally to supplement agricultural livelihoods), contributions to
mineral production and local economies are rarely captured by official statistics and
men and women miners are often invisible to the mainstream or, in some cases,
regarded as criminals.
Consequently, they rarely receive adequate, if any, support to formalize and improve
their activities in order to realize full development potential. In most countries where
ASM is taking place, miners face major challenges in formalizing and licensing their
activities, largely due to challenges related to bureaucracy, cost, and literacy, among
others. Exploration companies often use the presence of artisanal miners as an
indication of mineral potential and, therefore, availability of ―free‖ areas for licensing
poses an additional challenge.
Each of the above groups is subject to different licensing provisions under the mining
legislation.
At the beginning of 2010, a total of 611 mineral prospecting and exploration licenses
were issued. Of these, 99 were Prospecting Licenses (PL), 66 Exploration Licenses (EL),
32 Location Licenses (LL), 33 Mineral Dealers Licenses (MDL), 2 Blasters Certificates
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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
(BL) and 2 Goldsmith’s Licenses (GL), while 15 Exploration (ELs), and 5 Location
Licenses (LLs) were renewed.
Demand Drivers
Demand for industrial minerals such as copper and Iron Ore is driven by global
economic growth. Sustained growth in China and India is the main cause of
increased demand for industrial minerals. Coltan, a mineral found in several
locations across Uganda is used in making mobile phones and electronic devices.
Demand for Coltan is fuelled by the demand for mobile phones.
Gold is held in reserve by governments. The global economic crisis has led to an
increase in demand for Gold as governments stockpile it to boost their reserves
instead of holding currencies like the US$ and Euro.
High demand for precious stones, rare minerals including Gold and Diamonds is
driven by increase in the personal wealth of individuals who use the gems as
jewels.
Since the government put recent interventions in the sector, the country has
experienced an upward growth in exploration and production for various minerals.
For example in 2003, one year before the Sustainable Management of Mineral Resources
Project (SMMRP) was implemented, there were 100 mineral licences. By the end of 2012,
the total number of mineral licences has increased to 726. Some of the companies
currently in mining in the country are:
Busitema Mining Company Ltd undertakes underground and open gold mining at Tira
mine, (Figure 3) near the border town of Busia, Busia district. Gold appears in quartz
veins in the greenstones and banded iron formation of Archaean age.
The company has so far acquired heavy machinery including excavators, dump trucks,
bulldozers and cranes to be utilized in processing of both alluvial and hard rock
material. In addition, the company has put in place access roads to site, water and
power plants and buildings for administration, servicing machinery, accommodation
and the plant itself.
Kasese Cobalt Company Ltd (KCCL) with an installed 1,000t/y cobalt cathode plant
processes the cobalt-sulphide concentrate at Kasese produced from the Kilembe Cu-Co
Mine.
Gulf Resources operates a vermiculite mine at Namekara since September 2009. This
mine was previously operated by Rio Tinto Exploration that changed its name to East
African Vermiculite in August 2009.
Rio Tinto Exploration had bought the mine in April 2007 from Canmin Resources, a
subsidiary of International Business Initiative of Canada (IBI), which started operations
in 2003.
The new operators have installed a new ball mill with production capacity of 80t/day,
however, the current production is 50-60t/day (Figure 5).
From 2002 to 2004, there was no iron-ore production because no mining licence was
issued, while for cobalt there was no production from 2002 to 2003 as a result of the
temporary closure of the KCCL plant.
Mineral production in 2004 was almost double that in 2003 due to strong world prices
for vermiculite, gold and cobalt. Canmin Resources (U), which acquired a mining
licence for vermiculite in the previous year, increased production due to the global
demand. Gold production rose as Busitema Mining Cie started open-pit mining. Cobalt
production increased, because a plant re-opened in February that was able to process
259t of cobalt by the end of the year.
In 2005, production of limestone, pozzolana, and gypsum increased due to demand for
cement. However, the production of cobalt decreased due to lower prices that
consequently led the production to be suspended in the middle of the year. Production
of wolfram fell as the major wolfram mine went into receivership.
The production of cobalt and vermiculite rose in 2006 compared with the previous year
due to higher prices of these commodities.
In 2009, mineral production increased compared with 2008 due to increased production
of limestone (Figure 6) and pozzolanic materials to meet cement demand. Gold
production declined as a consequence of non-production by Busitema Mining Cie,
which was locked in a conflict with artisanal miners in Busia.
Additionally, Kisita Gold Mining Co was not operational most of the year and also
Gold Location Licences (LLs), which mines most of the gold in the country, reported
very low production. Production of cobalt reduced also because of the low price.
On the other hand, limestone output notably increased during 2011 (up to 930,000t) in
comparison to the earlier levels (see Table 4).
Total
Source of Information: Annual Reports of the Ministry of Energy and Mineral Development
Mineral exports from 2002 to 2010 (Tables 5 and 6) in terms of tonnages and Uganda
shillings are explained below as follows:
In 2003, revenue from mineral exports declined compared with 2002 as gold exports
dropped by 3.4 tons (Table 5) and there were no exports of cobalt as the Kasese plant
was still closed.
However, in 2004 mineral exports picked up once again due to higher gold exports and
there-opening of the cobalt plant early in the year.
In 2005, fewer minerals were exported compared with the previous year, yet the export
value was higher due to improved commodity prices, especially for gold.
In 2007, the value of mineral exports dropped from the previous year due to the drastic
drop of vermiculite exports, which subsequently led to the eventual transfer of the
mineral right to M/S Rio Tinto Exploration. The closure of both the Busitema gold mine
and Kitaka lead-gold mine in the same year contributed to the low export value.
In 2008, there was decline in mineral production due to the persistent low price of
vermiculite. However, the value of mineral exports increased as cobalt prices picked up,
resulting in the export of some stockpiled material.
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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
The year 2009 showed very low mineral production, but because of re-exporting the
imported gold, the revenues were very high compared with those of the previous year.
Tantalite
Grand 131,921 89,002 156,713 175,980.4 125,405,219 88,076,179 89,271,150 30,107,951 36,077,775
Total
Source of Information: Annual Reports of the Ministry of Energy and Mineral Development
The Government of Uganda has identified the development of the country’s mineral
resources as a major economic priority and has put in place an extensive plan to bring
this to fruition. Investment in mineral exploration is projected to increase from the
current US$3 million to over US$50 million annually over the next five years. It is
projected that the industry will be the major driver in employment creation and GDP
growth over time. In addition, the lifeline industries will spur growth in the
manufacturing, infrastructure development, agriculture and ICT industries.
Business Plan Corporate Document
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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
Figure 7, below shows the trend of licenses issued between 1999 and 2010 where the
numbers grew from 66 licenses in 1999 to 611 in 2010 – an impressive growth.
600 611
400 402
The favourable investment climate created by the current NRM government since 1986
has contributed to development of the mineral sector to date.
Total investment in mineral exploration for example since the Sustainable Management
of Mineral Resources Project (SMMRP) started in 2004 increased from US$5 million to a
cumulative US$340 by end of 2011 (Table 7).
This situation has led to expansion of the national economy, thus benefiting the
population.
Also since the implementation of the project, there has been a cumulative increase in
licence fees and royalties from US$0.5 million in 2003 to US$14.6 million by the end of
2011 (Table 7) and increment in non-tax rates per annum will increase after new rates
were put in place by December 2011.
FUTURE OUTLOOK
The general improvement in the country’s macro-economic conditions coupled with the
improving infrastructure will likely increase mineral investment confidence in the
country.
The recently concluded SMMRP led to the acquisition of adequate geo-scientific data
that, when properly followed up on the ground, is expected to lead to the discovery of
new mineral deposits.
Prospecting
Mineral prospecting
Exploration
Mineral exploration
Value Addition
Production of gold, copper, Iron & steel, and fertilizers
Production of columbium and tantalum for export
Cement manufacturing for local consumption and export
Mining and use of Uranium for electricity generation
Prior to the onset of operations, the Company will develop ongoing purchase order
relationships (based on market prices) with national and international gold and other high-
value mineral dealers and wholesalers that will acquire the Company’s inventory of mined gold
and other high-value minerals. In order to complete this aspect of OOLITE MINING
COMPANY LIMITED marketing operations, the Company’s business executives will directly
contact well known gold and other high-value mineral wholesalers. As these buyers are
constantly searching for new gold and other high-value mineral sources, developing these
relationships will not be an issue. Additionally, the Company will make its presence known
among individual mineral land property holders and real estate agents that specialize in the
sale and placement of leases for land that is known to carry precious metal/mineral deposits.
Much like with the gold and other high-value minerals wholesalers/dealers, the Company’s
business executives will directly contact these individuals/real estate companies in order to
develop mutually sustainable and enduring working relationships.
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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
6.0 MANAGEMENT AND ORGANIZATIONAL PLAN
The management and organization of the Company is defined by two (2) structures: the
corporate organization structure (Figure 8) at the top and the field operations unit
management structure (Figure 9).
Board of Directors
Directors
Senior Management
Administrative
Sub-Project
Management
Sub-Project
Management
7.1 Location
In the Republic of South Sudan, the Company considers acquiring concessions and
concentrating its mining activities in Western Equatoria province in such places that
include but are not limited to areas around Yei, Maridi and Yambio where the
Company expects to mine for gold, diamonds, green garnet, and other gemstones.
Accessibility
The Kilembe area mining concession is located approximately 380 km (5 hours’ drive)
west of Kampala, the capital city of Uganda through the Kampala – Fort Portal main
road, and approximately 435 km (5 hours 40 minutes’ drive)from Kampala using the
Kampala – Mbarara – Kasese route. Access to the site using either of the two routes is
by paved road. The DR Congo border is about 66 km (56 minutes’ drive) to the west.
Right now, there are not any available mineral processing plants in the Kasese-Kilembe
area to process the Mining district gold and high value mineral ore production, besides
the Kasese Cobalt Company Ltd (KCCL) cobalt mining and process plant near Kasese
town.
For this project, investments in explorations and development of the mines, as well as
the acquisition of equipment for the mine operation and the improvement of the
processing plant up to a capacity of 10 MTD, have been projected to guarantee the
proper operation of the mining business. The production levels are considered in: 5
MTD and 10 MTD during the first year and the second year respectively.
Figures 11 and 12 below are flow chart views of the gold mining and beneficiation
processes respectively that are common in the gold segment of the mining industry.
The price for this German-made high-precision ground scanning and metal detector is
US$ 50,000 and its specifications are provided in the next Section 8.0 of this business
plan.
The operating margin by metric tonne (MT) differs in the bought mineral from the own
mineral, as the conditions of commercialization, as well as the operating costs change.
(I) Production
The production considers the bought mineral and own mineral treatment.
MINERALS BOUGHT
MTD 5 5 10 10
MTA 1,680 1,680 3,360 3,360
TOTAL PRODUCTION
MTD 0.5 1.0 2.0 2.0
MTA 1,680 3,360 6,720 6,720
Legend:
MTD: Metric Tons/Day
MTA: Metric Tons/Annum
The unit value by MT of bought mineral, own mineral and the annual turnover
generated are:
Unit costs (variable & fixed) by MT of mineral and the total annual costs are:
BOUGHT MINERAL
Sale value (US$/MT) 419.58 419.58 419.58 419.58
Operation cost (US$/MT) 344.2 327.5 308.1 308.1
Operating margin (US$/MT) 75.43 92.13 111.51 111.48
Operating margin (%) 17.98% 21.96% 26.58% 26.57%
The Earth Imagers are the stars of our "FS - Future Serie". They can represent graphical
measuring results without using any additional computer. The large number of
optional accessories makes them our most individually adaptable devices. Every
customer can purchase only that what he needs for his purposes.
eXp 5000 main unit with video eyeglasses during operation in Russia
A metal detector helps you to locate objects which are buried under the ground. It is
used to find targets under the surface of the ground without the need to dig. A metal
detector can locate all type of metals like gold, silver, copper, aluminium, iron targets
and other valuable targets. The indication of a detected object can be via acoustical
signal, a digital display, an analog display, a signal lamp or an image or curve. The
metal detector eXp 5000 is a measuring instrument
Beschreibung 1 Beschreibung 2
The Earth Imager are high technology metal detectors with graphical representation of
the searched underground. The Earth Imager eXp 5000 includes an easily removable
control unit which makes it easier to use in different areas. With its compact equipment
the device is also easy to handle in terrains which are difficult to access.
The device allows measurements in brilliant resolutions. All recorded data is processed
immediately through the integrated pc-module and becomes visible through the video
eyeglasses. The size of any measurement is almost indefinite and only limited by the
storage capacity of 256 MB. All collected measured data can be transferred afterwards
to a laptop or personal computer to analyse the results professionally with the help of
the software program Visualizer 3D. Besides the measuring values additional
information like:
The geophysical instrument and metal detector eXp 5000 supports different operating
modes which can be used for specific underground investigations. According to your
personal requirements one of the following operating modes comes into operation:
Magnetometer
Ground Scan
Ground Scan is the operating mode where the searcher is able to receive a 3d image of
the underground by scanning an area. The searcher has to walk over the ground with
an antenna to scan an area. So it is possible to visualize the underground and its
anomalies. In the mode Ground Scan it is also possible to measure the position, depth
and size of underground objects or voids. Ground Scan (create colored representations
of the underground in 3D).
Discrimination
Metal discrimination is the possibility to find out the type of metal which is buried
under the ground. There is a regulator on the antenna or device, which can be adjusted
on a specific type of metal like gold, silver, iron or aluminium. The metal detector filters
out all materials which you don’t like to detect. This feature prevents the treasure
hunter who is only searching for precious metals from useless digging. Some antennas
can discriminate between ferrous and nonferrous metals and other antennas can tell
you the exact type of metal. (metal discrimination : precious metals / base metals)
Metal Detector
A metal detector helps you to locate objects which are buried under the ground. It is
used to find targets under the surface of the ground without the need to dig. A metal
detector can locate all type of metals like gold, silver, copper, aluminium, iron targets
and other valuable targets. The indication of a detected object can be via acoustical
signal, a digital display, an analog display, a signal lamp or an image or curve.
Metal discrimination is the possibility to find out the type of metal which is buried
under the ground. There is a regulator on the antenna or device, which can be adjusted
on a specific type of metal like gold, silver, iron or aluminium. The metal detector filters
out all materials which you don’t like to detect. This feature prevents the treasure
hunter who is only searching for precious metals from useless digging. Some antennas
can discriminate between ferrous and nonferrous metals and other antennas can tell
you the exact type of metal. (metal discrimination : gold, silver, iron and aluminium)
Beschreibung 1 Beschreibung 2
With different antennas the metal detector eXp 5000 can be optimized on special
purposes:
Beschreibung 1 Beschreibung 2
VLF emitter
By positioning the 4 VLF emitters onto the ground the search for metallic objects will be
optimised. In that way the scan images of the underground looks much better and
hidden objects are much easier to find.
Livestream Sensor
The Livestream Sensor shows hidden objects immediately. As soon as you move the
antenna over an object it will be shown in the video eyeglasses of the Earth Imager eXp
5000.
Beschreibung 1 Beschreibung 2
Beschreibung 1 Beschreibung 2
Gemstones are highly collectible minerals. Many people use them for jewelry; others
assemble them in a display case. Only crystalline gemstones are considered minerals
(an inorganic naturally occurring substance with distinct chemistry). While a metal
detector itself won’t target gemstones, an entire category of detectors is designated for
gold prospecting. Gold is often found with other precious and metal-bearing minerals,
including iron. These are called indicator minerals. Among the indicator minerals likely
to be encountered with gold are Quartz, Magnetite, Garnet, Corundum (Sapphire),
Emerald and (happily) Diamonds. So, it is indirectly that your metal detector will lead
you to gemstones.
With the right tools and knowledge, a gold and gemstones prospector like OOLITE
MINING COMPANY LTD. can find gold pieces, gold veins, gold shavings and gold
nuggets. With the rising price of gold today, people can make a career out of
prospecting gold with a metal detector and selling their finds.
The first step on any treasure hunt is to try and separate truth from folklore. Many
rumors and legends about underground treasure caches, or hoards, are based on some
factual details. Throughout history, people have buried their valuables out of greed or
in fear of advancing armies and other marauders, hoping to someday return and
reclaim their treasure. Even today, this practice is not uncommon.
So, before you invest in equipment or travel great distances, do as much research as
possible beforehand. Look for any clues that may have been written down or passed
down verbally from generation to generation. Keep a record of even small details; they
may come in handy later.
The second step is to determine, based on field research, how far down the treasure is
located. Frequently, individuals bury treasure far beneath the earth in large containers.
Some of the largest hoards recovered to date have been found using deep penetrating
metal detectors.
If searching for gold or other precious metals that are buried deeper than one meter, a 2-
box metal detector is needed. Unlike traditional coin detectors, which are made to find
smaller individual items, a ground two-box metal detector can penetrate the earth using
special search coils that transmit signals. Once the signal reaches the treasure, it bounces
back to the metal detector, which pinpoints the location.
Until recently, deep-detecting metal detectors could not identify the type of buried
metal. However, with the advent of newer technologies, such as the OKM brand 3D
Ground Scanner eXp 5000 Metal Detector, it is now possible to identify the type of
metal in the ground.
Step 3: Pick the Right Deep Seeking, 2-Box Metal Detector for You
When it comes to picking out a deep-searching, 2-box metal detector, take the time to
select the best unit you can afford. This investment can provide big returns. A basic unit
of the high-tech 3D Ground Scanner eXp 5000 Metal Detector goes for US$ 50,000.
Treasure chests, caches and hoards of gold… are they really out there? Can they
actually be found? Movies such as National Treasure can inspire any enthusiast to take
off on an adventure to locate a buried war chest or hoard of gold coins. But the reality
and logistics behind actually locating a hidden treasure cache can take the wind out of
anyone’s sail. With greater rewards come greater difficulty and the necessity to have
more sophisticated metal detecting equipment. But, if you have your heart set on cache
hunting—you’ve picked the right time to embark upon this hobby. Today’s advanced
metal detectors are capable of finding deep caches that went undetected by the best
treasure hunters decades ago.
When you think about it, it makes sense that people buried their valuables. There were
no banks hundreds of years ago, and it was unsafe to leave money or gold lying
around. Some cultures buried heirlooms as an "offering." Others, like an Indian tribe
that resided in the Rocky Mountains, were uprooted and forced to leave their
homeland. They left behind caches of coins and other treasures which they planned to
recover later.
Some historians and detectorists say there are treasure caches hidden throughout the
world. These caches come in many forms: iron boxes filled with gold or jewels, jars
filled with silver coins, a tobacco tin filled with bills, any type of container stashed with
valuables or just a big hole hastily dug to hide loot from a robbery. Remember—
anything is possible. There are many reasons people stashed their money and
belongings. Rumor has it that in some parts of East Africa: the colonialists (especially
the Germans) hid treasures like the German Duss Cooking Stove, Ironing Boxes and
other items containing substantial quantities of the very highly priced red mercury
material in hard-to-reach caves and mountain hide-outs for safe-keeping. It was meant
to be left for future generations and to preserve the items. Now, after more than a
century some of these caves and mountain hide-outs are being discovered. They are
ripe for the picking with a highly-sophisticated and sensitive ground scanner/metal
detector. Renowned author, metal detector designer and expert detectorist Charles
Garrett says, "There are literally millions of dollars stashed in the ground waiting to be
found. If you persist, sooner or later you will hit a cache. It may only be a few hundred
dollars (e.g. gold coins). Then again, some treasure hunters have become quite wealthy
from pursuing treasure caches."
Hunting for a treasure cache is much different than searching for individual coins,
jewelry or relics. Not only does it require the use of different equipment and techniques,
there is need to know where to look! Finding a deeply buried container doesn’t usually
just happen on a leisurely afternoon hunt. Cache hunters conduct extensive research
before they decide which equipment to use or where to begin their search. If you’ve
ever seen a treasure map before, you’ve noticed landmarks and terrain markers. Even
geo-cachers have GPS coordinates to go by.
Other factors to consider for the successful recovery of a buried treasure cache or hoard
include:
Some cache hunters spend years compiling information before they set out in search of
the prospective treasure. Others have the means and the knowledge to launch their
search within just weeks or months of acquiring a solid lead. Regardless of the
inspiration behind the treasure hunt, it is necessary to spend as much time as possible
researching and preparing, so that the search will be successful.
The Company seeks US$ 50,000 in funding from a local mining investment
partner to develop the business.
The required US$ 50,000 will be used to kick-start the business by acquiring a
sophisticated ground scanning metal detector to pinpoint with high accuracy and
precision the location of gold deposits and treasure caches/hoards/boxes in the
Company prospecting area.
OOLITE MINING COMPANY LIMITED will have an annual revenue growth
rate of 100% in Year 1 and Year 2 and then remains even for Year of the business
plan.
In the event of an economic downturn, the business may have a decline in its revenues.
In an economic recession, the demand for gold decreases as people will have less
discretionary income. However, in today’s economic climate, inflation has become a
serious concern, and investors have driven up the per ounce price of gold substantially
as a safe investment to hedge against inflationary risks. As such, the business should
have very few issues regarding top line income.
The mining project will seek a mining investment partner to partner with or a capital
financier to facilitate 100% of the required capital funding.
The period of execution of the investment is of 10 months, canceling the interests of the
loan during the period of investment.
The conditions of financing are as follows:
- Debt: US$ 50,000.00
- Interest Rate: 20% annual
- Time: 3 years
The charges that the mining project is subject to, as current debt, are displayed in Table
16 below:
The projected results that show the economic capacity of the project are reflected in the
generation of revenue and availability of funds in Table 17 below.
Economic Impact Assessments in mining deal with the evaluation of potential impacts
of a particular project on the economic environment of the receiving area. It analyses
potential changes in production output, Gross Value Added, and employment during
all relevant life-cycle phases of the proposed mining project (i.e. construction,
operations, closure, land-use after mining). More specifically, EIA assesses the way in
which the direct benefits and costs of a proposed project affect the local, regional, or
national economy.
Positive can include the creation of additional jobs, generation of business sales
and value-added, improved quality of life, increase in disposable income, and
growth of government revenue in the form of taxes and royalties.
Negative, through the loss of foregone alternative livelihoods/business activities
(e.g. change in land-use from agriculture to mining, loss of future tourism
potential) and negative social and environmental externalities2.
An intervention into an economy (on any scale) not only creates direct benefits to the
investor, but has spill-over effects on the other economic agents. These spill-over effects
could be positive or negative. As illustrated in Figure 13 below, three types of economic
impacts are generally assessed:
2Ineconomics, an externality is a cost or benefit which affects a party who did not choose to incur that
cost or benefit.
Economy-wide impacts refer to the sum of the direct, indirect and induced effects.
3Direct impacts include initial and first round impacts. Initial impact: This is the change in a final demand
component which occurs or is assumed, for example, a USD1 billion capital investment in a project, or
additional operational expenditure on a sectors output. First round effects (also referred to as first order
effects): These effects are the changes in business activity and production occurring as a direct
consequence of a project (initial impact). These include the impact of sectors required to produce more to
meet the demand from the project. For example, constructing a mining plant will create a need for brick,
mortar, steel, machinery and so on, so the other sectors in the economy need to supply these materials.
Business Plan Corporate Document
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PROSPECTING FOR PRECIOUS MINERALS & TREASURE-HUNTING BY OOLITE MINING CO. LTD.
Figure 13: Impact of capital investment and operational expenditures
Direct impact
Equipment, supplies,
services, etc. Household goods