Lima, January 03, 2024.
Sirs:
MINING INVESTORS
Present.-
SUBJECT: General information about Jireh Mine Project
Buldibuyo – Pataz- La Libertad.
Dear investors:
Through this communication, I am very pleased to address you to extend my cordial greetings and make available to you the Executive Summary of the concessions and information of the Jireh Mining Unit:
BUSINESS PHILOSOPHY
GCI MINING GROUP SAC, has as a priority to develop its activities in a context of sustainability and innovation, in that sense, it prioritizes the conservation of the environment, the rational use of natural resources, excellent relations with all interested parties, mainly with the community ; full compliance with its legal obligations and those assumed voluntarily, protection of the safety and health of its workers, ethical business behavior, efficient work practices and the use of modern management tools.
JIREH MINE LOCATION
This mining project is located 815 km from the city of Lima – Peru; specifically in the district of Buldibuyo, province of Pataz, in the south – east of the department of La Libertad, in the gold belt of the Batolito de Pataz.
Around 4,500 meters of tunnels have been developed, with an approximate investment of US$ 1.5 million. This investment was made by Mr. Manuel Cabrera (I attach detail as a summary of monthly-annual progress between the years 2000 and 2004).
In 2004, the Canadian company Merendon del Perú S.A. entered the company. As a partner, the purpose of this income was to explore and cube larger reserves, therefore, the vein working was paralyzed in March 2004.
The tunnels were for exploration, preparation, development and exploitation. Between:
The main veins explored and prepared are: Patricia, San Juan, Patricia Dos, San Juan Dos, Los Hornos, etc.
Construction of trenches, motorized trails (4 kilometers) for construction of drilling platforms.
From April to August 2007, five drill holes were drilled, making a total of 1,452.05 meters. The company MDH SAC was in charge of carrying out said work.
In 2008, the company VDG del Perú SAC was hired to do three kilometers of Geophysics between MAG and IP.
In January 2009, an Environmental Impact Statement (DIA) was presented for the expansion of exploration in the LOS HORNOS project.
In March 2010, the company Merendon del Perú SA began negotiations for the transfer of mining concessions to GCI MINING GROUP SAC, signing said transfer on May 10, 2010. The investment in exploration is around 1.2 million american dollars.
The estimated investment in permit management to date is around US$200,000.
The current benefit plant has a capacity of 25 tons/day, of cyanidation and carbon in pulp (CIP), in this area an approximate investment of US$ 200,000 is considered.
It consists of three kilometers of 22.9 KV transmission line from the C.H. from Tarabamba to the S.E Pilot Plant. The estimated investment in this area is almost US$100,000.
This item is included by the following buildings:
Module 1 (Staff Camp).- Pavilion with 10 rooms in prefabricated material, 8 bedrooms, 2 bathrooms and circulation area, covers an area of 130 m2.
Module 2 (Staff Camp).- Pavilion with 03 rooms in prefabricated material, 02 bedrooms, 01 bathroom and circulation area, covers an area of 34 m2.
Module 3 (Staff Camp).- Management House with 05 rooms on two levels in prefabricated material, 02 bedrooms on the first level, 01 bedroom on the loft, 2 bathrooms and living room – dining room, covers an area of 72 m2.
Module 4 (Staff Camp).- SAUNA of 01 room in prefabricated material, lined internally with wood and benches of the same material, covers an area of 8 m2.
The cost of these environments amounts to approximately 61 thousand american dollars.
A used front loader, Ford A-66 brand.
A Caterpillar brand D6 crawler tractor.
Foundations, containers, machinery, equipment, furniture stores, etc.
These assets have an approximate investment of US$300,000.
Summary of the investment made in assets: approximately US$ 3.5 million.
ITEM TWO: MINING RESOURCES
Current vein reserves are 282,150 tonnes, with an average grade of 10 g Au/t making a total of 90,000 ounces. These minerals are easy to treat, the average recovery would be 90%, through cyanidation and carbon in pulp processes.
Net income after taxes would be US$61.5 million.
The necessary investments would be around US$ 20.114 million.
This investment would be recovering the maximum in 15 months, with the production of 25,000 ounces of gold.
The Net Present Value (NPV) would be around US$ 35,787,072 and the Internal Rate of Return (IRR) would be 60.45%.
It is necessary to indicate that our potential in veins is 500,000 ounces of gold and in the Stockwork-type dissemination, potentially about two million ounces of gold are expected.
ITEM THREE: SCHEDULED INVESTMENTS
ITEM FOUR: INVESTMENT IMPLEMENTATION SCHEDULE
The estimated implementation time of the necessary investments (in months) to start operations will be twelve months.
CURRENT STATE OF MANAGEMENTS
GCI MINING GROUP SAC, in compliance with the mining laws of the Peruvian State, is taking advantage of the Comprehensive Registry of Mining Formalization (REINFO), which allows the mine to be exploited while the other corresponding permits are being processed.
The CORRECTIVE AND PREVENTIVE IGAFOM of the mine and the benefit plant are currently being processed by the Regional Mining Management of La Libertad in the city of Trujillo.
Waiting for your questions, I remain at your disposal.
Sincerely,
