alluvial diamonds project requires investors in dr congo

8/15/2019 Alluvial Diamonds project requires investors in DR Congo

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Mauled Resources (Pty) Ltd

Incorporating Zimbabwe Exploration Geologist Contractors

48 Atlanta Complex, Mulder Street

The Reeds, Centurion

0157

South Africa

Email : [email protected]

Cell / Whatsapp: + 27 71 980 1399

Project Seeking Investors

Mineral Commodity: Alluvial Diamonds_ Licence 3XXX

Country : Democratic Republic of Congo

Date: 15/05/2016

in association with Ensign Energia Ltd

2016/05/19

Strictly Confidential: MauledResources (Pty) Ltd. Cell: + 27 71

980 1399 1

mailto:[email protected]:[email protected]:[email protected]


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Executive Summary

Mauled Resources (Pty) Limited, incorporating Zimbabwe Exploration Geologists (ZEGC) wererequested by Ensign Energia Ltd (representing “the Client” to conduct a review on the alluvialdiamond exploration licence number PE 3XXX (the actual licence number will be availed to investors) issued by theMinistry of Mines, Democratic Republic of Congo.

Licence PE 3XXX, is owned by the Client and is located in the vicinity of other operating alluvialdiamond mines in Kasai Occidental Province. It gives the exclusive right from 01/23/2015 to01/22/2045 to conduct exploration/research works, development and exploitation of diamondsinside the area covered by the licence.

It presents excellent potential blue sky opportunity as it is located in a geologically favorable zonedominated by sediments and a pronounced fluvial system.

This report is an initial presentation of the project and will be followed by a more detailed desktopstudy report that will follow a reconnaissance trip to the license area.

An initial exploration budget of approximately USD400 000 to USD 600 000 is estimated for theproject. However, this figure will be adjusted upwards or downwards after the reconnaissance trip.The exploration budget and the relevant exploration phases will be outlined in a desktop studyreport.

The Client is seeking for a Joint Venture partner to invest into the project in order to explore, developa semi-mechanised mining operation, mine/ recover and sell alluvial diamonds from the project.

Strictly Confidential: Mauled Resources (Pty) Ltd. Cell: + 27 71 980 1399 2016/05/19 2


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Project Location

Kasai Occidental Province

69km NE of Tshikapa

46km WSW of Kikwit

686km ESE of Kinshasa

Number of Tenements : 1

Size of Tenement : 344 Hectares

Licence 3XXX Alluvial Diamonds area

2016/05/19Strictly Confidential: Mauled Resources (Pty) Ltd. Cell: + 27 71 980 13993


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Tenure Documentation

Licence Type Exploration

Date Granted 23/01/2015

Expiry Date 22/01/2045

2016/05/19Strictly Confidential: Mauled Resources (Pty) Ltd. Cell: + 27 71 980 1399 4


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Project Location



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Project Location In Relation to Other Known Alluvial

Diamond Operations

Licence 3XXX lies in more or less the centre of a number of alluvial diamond mininglocations.



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Project Location In Relation to Other Known Alluvial

Diamond Operations

The nearest alluvial diamond mining locations lie within a radius ranging from 9km to16km in relation to licence 3XXX.



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Regional Geology Map

Diamond Licence 3XXX

Licence 3XXX lies in an area dominated by sediments. The cretaceous diamondiferous sediments

are bounded by migmatite to the north, east, south and south west. About 7 known alluvial

diamond operations are found near the licence area. Areas of charnokite and granulite as well as

patches of sediments lie south east of the licence area.



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Local Geology Map

The local geology is dominated by sediments. Sediments form a favourable environment for alluvial

diamonds. In the nearby Tshikapa area , diamonds occur in the lower part of the Bokungu formation.

Most of the diamonds in Tshikapa are small but are mainly of gem quality.

Diamonds in yellow

ground weathered Kimberlites) can be washed into streams to eventually wind up in alluvial

deposits.



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Drainage on Licence 3XXX and other nearby projects

Licence 3XXX lies near the confluence of the Bubulungula river and Kabambaie river. The eastern onethird portion of the licence lies across the eastern flank of the Bubulungula riverThe rivers in the area generally flow in a NNW direction.

Licence 3XXX lies in a zone almost midway from diamond locations of Baie Kamoshi in the ENE and

Tumba Sumbula in the WSW. Other diamond mining locations south west of Licence 3XXX includeTumba Mpoie, Kabeya-Kalala annd Katengebe. In the NE of the licence lies Kata Mushinda, BaieKamoshi, Kayende Kumbu whilst Mukanga, Dambo-Mukanga, Tshibangu and Tshingambo are other

diamond mining areas in the SE and SSW of the licence respectively.



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Artisanal Miners : Alluvial Diamonds D.R. Congo

Acknowledged Source: www.sites.psu.edu Acknowledged source: Congo metals.com

Acknowledged source: google search images Acknowledged source: google search images



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Artisanal Operations On Alluvial Diamonds In DRC



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Pictures of Semi-Mechanised Operations On Alluvial Diamond Mines

Acknowledged source: google search2016/05/19Strictly Confidential: Mauled Resources (Pty) Ltd. Cell: + 27 71 980 1399

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Proposed Exploration Program Considerations

Reconnaissance:• Traversing • Sampling • Data collection

Exploration:• Geological Mapping• Surveying • Planning and

CoordinatingGeophysical work (Ground Geophysics )

Method Selection.• Sampling and Orientation;

Survey control;• Data acquiring;• Analysis• Geologic Evaluation of

Data; Target Selection

Geophysics ( to choose from)• Magnetics • Gravimetric • Electro-magnetic • Radiometric • IR/Resistivity • Audio Frequency

Magnetic • Ground Penetrating

Radar • Nuclear Activation • Seismic

Geochemicalprospecting• Soil,• Stream Sediment• Sample analysis• Statistical treatment• Geologic Evaluation

of Data• Target Investigation

Interpretation

Trenching and sampling Drilling program Methodselection :- Auger, Core andSpecialized; Drill-HolePatterns and Sequences;Logging of Data; Maps,Sections and Profiles;Comprehensive Reports.

Sampling and MappingBulk sampling

Grade and TonnageResource EstimationsGeological BlockModelling andIllustrating

Technical reports

“Alluvial diamond deposits are typically heterogeneous and low-grade. Any assumption on grade continuity must besupported by a deep understanding of their geology –sedimentology, stratigraphy, depositional environment andmorphotectonic evolution. Detailed levels of sampling and drilling are critical to resource estimation for alluvial diamonddeposits.” source: Rockwell Diamonds ltd The steps mentioned below are a guide to the steps to be followed in the execution of proper technical approach for the

exploration of alluvial diamonds.



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Summary Exploration Processes Up To Reserve Estimation

Exploration grids will be used in order to identify potential target zones within the licence area. Themaps below show exploration grids ranging from a 100m x 100m to a 50m x 50m grid.

According to Rockwell Diamonds alluvial diamond deposits are not characterised by the presence of any

“indicator” minerals, such as heavy minerals or micro-diamonds. There are no associated geochemicalsignatures that may be used for determining the distribution of mineralisation in an alluvial diamonddeposit. Taking smaller samples of other minerals is not an option.

A sampling programme needs to sample the actual diamonds within the deposit”. The image belowshows a guideline of the steps to be followed in a proper technical exploration program for diamonds.

Source: Rockwell Diamonds2016/05/19Strictly Confidential: Mauled Resources (Pty) Ltd. Cell: + 27 71 980 1399 15


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Geological Work , Pre-feasibility and Feasibility Studies in Alluvial

Diamonds

Geological work for the achievement of alluvial diamond mining is an absolute requirement forsuccess. Adding to this, diamond value management is needed to ensure successful extraction.Diamond value management is achieved by making sure that every single diamond you wish toextract is economically extracted from a deposit. To do this, companies must have a resource

plan, which should be supported by a mine plan.

The right mixture of technologies should also be used in the processing plant to ensure that alldiamonds are extracted. Companies are constantly thinking of new ways to reduce the potentialfor diamond theft, which is a very serious threat for every diamond mining company.” (Source:http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/)

Pre-Feasibility and Feasibility Studies typically determine the extent to which the estimates of

Mineral Resources may be mined economically.

Such studies also look at how the impact of various environmental, legal, financial, socio-economic, and marketing issues (together known as the modifying factors”) materially affect thecommerciality of the deposit.

The different alluvial deposits have distinct geological characteristics and diamond populations- these populations can be easily characterized in respect of diamond size frequency studies.

• The average sales prices obtained for the different deposits and mines relate directly to the size frequency characteristics.


http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/http://www.mining-recruitment-jobs.com/africa-jobs/is-alluvial-diamond-mining-risky/


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100m x 100m Sampling Grid Proposed for Licence 3XXX

Approximate number of Sampling points in the 100m x 100m grid is 360.

Confidential: Mauled Resources (Pty) Ltd, South Africa. Cell: + 27 71 980 1399


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50m x 50m Infill Sampling Grid Proposed for Licence 3XXX

Approximate number of Sampling points in the 50m x 50m grid is 1314.




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Historical Diamond Production Statistics

“Historically, diamonds were found only in alluvial deposits in Guntur and Krishna district of theKrishna River delta in Southern India. India led the world in diamond production from the timeof their discovery in approximately the 9th century BC to the mid-18th century AD, but thecommercial potential of these sources had been exhausted by the late 18th century and at thattime India was eclipsed by Brazil where the first non-Indian diamonds were found in 1725.

Currently, one of the most prominent Indian mines is located at Panna.

Today, most commercially viable diamond deposits are in Russia (mostly in Sakha Republic, forexample Mir pipe and Udachnaya pipe), Botswana, Australia (Northern and Western Australia)and the Democratic Republic of the Congo. In 2005, Russia produced almost one-fifth of theglobal diamond output, according to the British Geological Survey.

Australia boasts the richest diamantiferous pipe, with production from the Argyle diamond minereaching peak levels of 42 metric tons per year in the 1990s. There are also commercial depositsbeing actively mined in the Northwest Territories of Canada and Brazil. Diamond prospectorscontinue to search the globe for diamond-bearing kimberlite and lamproite pipes.”



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Historical Diamond Production Statistics




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CONCLUSIONS AND RECOMMENDATIONS

• The project presents Blue sky opportunity by virtue of its being located in a geologically favourablesedimentary environment for alluvial diamond occurrence.

• Whilst it is prudent to cover all the various geochemical sampling grids (from 100m x 100m to a

50m x 50m) in order to generate an exploration target, it is hereby proposed to engage in bulks mpling nd processing in order to generate revenue that will be “pumped” back into the operationin order to fund the rest of the project.

• Bulk sampling and Processing will reduce the need of having to send samples to laboratories.However, initial geological sampling and possible geophysical investigations can not be avoided inorder to generate possible target zones or blocks on the licence area .

• Unlike artisanal operations, semi-mechanisation is proposed for licence 3XXX project in order tomaximise on diamond recoveries.

• No exploration work has been done on Licence 3XXX at the moment. The project owners are seeking Joint Venture Partners for the exploration.

• At this stage it is too early for give an estimate of diamond resources/reserves in the licence areauntil some exploration work has been carried out. However, the project area lies in a geologicallyfavourable area for alluvial diamond mining. The area is also more-or-less surrounded by nearby

alluvial diamond operations. Therefore it is recommended to be explored.

• Some of the proposed exploration activities for Licence 3XXX will be run concurrently in order toshorten the exploration program.

• Water sources close to the project will need to be located. If no water is found nearby, thenboreholes to supply water to the project will need to be drilled.



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Provisional Project Schedule from May 2016 to June 2017

Tag

Task

2016 2017

January February March April May June July August September October November December January February March April May June

1 Desktop Study and data search

2Reconnaissance:

Traversing

Ini tial Sampling

Data collection 3Exploration:

4Camp Construction, Geological Mapping and

Surveying

Plannin g and Coordinating Geophysical work

(Ground and Airborne Geophysics): Method

Selection; Sampling and Orientation; Survey

control; Data acquiring; Analysis and Geologic

Evaluation of Data; Target Selection

5Geophysical Methods:

6Trenching and sampling

7

Dril ling program (Method selection - Auger,

Drill-Hole Patterns and Sequences; Logging of

Data; Maps, Sections and Profiles;

Comprehensive Reports)

8M ineralogical, petrologic, ore studies

9Sampling and Mapping of M ine Workings

10Bulk sampling (& Feasibilty Studies)

11Geologic Data Compilation and Database

Management

12Grade and Tonnage Resour ce Estim ations

13Mining

Development and implementation of GIS

integrated database for land management

Geologic Drafting and Illustrating

14Technical reports



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.

All operations, agreements will be governed by the laws of the Democratic Republic of Congo which is the hoststate.The agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation(including non-contractual disputes or claims) shall be governed by and construed in accordance with thestipulated laws.

A copy of the 2002 mining code in English is available at http://mines-rdc.cd/fr/documents/codeminier_eng.pdf

The legal system of the host state is based on the French legal system (Napoleonic code). To know andanticipate the law (and the overall context / environment) of the project, due diligence is to be carried out on;Mining titles (Exploration, Exploitation, Concessions, Chain of titles) which equates to “Security of tenure” • Mining agreements (Stability – arbitrability)• Infrastructure• Company law• Security law• Laws of "Public Interest" (labour, tax, expropriation, etc.)

Key Issues The main reason for embarking on a mining project is for profitability. Bankability requires all conditions(geology, prices, political, legal, etc.) for minerals in the ground to be:• Explored• Mined• Processed• Transformed• Transported• Exported• Sold

Applicable Laws of the Project


http://mines-rdc.cd/fr/documents/codeminier_eng.pdfhttp://mines-rdc.cd/fr/documents/codeminier_eng.pdfhttp://mines-rdc.cd/fr/documents/codeminier_eng.pdfhttp://mines-rdc.cd/fr/documents/codeminier_eng.pdfhttp://mines-rdc.cd/fr/documents/codeminier_eng.pdf


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DEAL TERMS

• The owners of the project are looking for joint venture partners to help explore,develop and mine alluvial diamonds in Licence 3XXX .

As permitted by the laws governing mining operations in the Democratic Republic ofCongo, there are 3 types of partnerships.

• Amodiation (Lease of Permit/Mining Title).• Hypotheque (Mortgage agreement).• Joint Venture.

All options are subject to ratification from the governing mining authority. The best fit

option for both parties will be decided upon evidence of reserves and a profitablemeans of extraction and revenue generation from proceeds.



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Contact Details

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alluvial diamonds project requires investors in dr congo

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