capital gold resources inc

Capital Gold Mining Resources Inc. Inc.Presents

Cruces de Caceres

A Golden Opportunity

GOLD

HistoryThere are several reasons why GOLD has created fascinationover mankind since primitive ages. Maybe is because of itsshine or its various applications that it has been adored, andused as exchange. Its was the material that embellished facesand enlightened temples, used by goldsmiths, that forcenturies have been part of diferent cultures, in places soapart with each other, such as Cuzco, El Cairo or Bangkok.

When we look at modern times, we see that GOLD has been thebase of the economic development of civilization, established asthe standard of value and the best wealth holder in humanhistory.

Capital Gold Mining Resources Inc. Copyright © 2010.

GOLD

World MarketThe gold world market moves around 4.000 tons a year:

World minig production with 2.500 t/year, central banks 500

t/year, companies 200 t/year and recycling around 800 t/year.

Between october 2008 and september 2010 gold price has gone from U$

680/oz to almost U$1.300/oz.

The bull market that started in 2003 has not reached its full potential yet, that’s why even if

prices don’t break the resistance level of US$1.300/oz in the near future, we still think that

GOLD has the best to come .

Jewellery has the biggest demand for

GOLD, it consumes 2.700 t/year.

Besides, there is a great demand for

industrial

applications, dentistry, treasury and

investment.


Year U$/oz

1849 18,93

1920 20,68

1972 58,42

1974 154,00

1980 615,00

1982 376,15

2003 363,38

06/2008 998,74

10/2008 680,46

09/2009 1.018,98

Karats(Purity)

Parts per 1.000(Fineness)

24 1.000

22 916,67

20 833,33

18 750

16 666,67

14 583,33

12 500

PURITY

Term used in jewellery. One karat

represents 1/24 (4,167%).

FINENESS

Term used in metallurgy and

industrial applications. One part

represents 1/1000 (0,10 %).

GOLDThe value of gold is estimated from the quantity

of this metal, inside the total mass, in the alloy

that composes a piece. For example: 18k means

that from 24 fractions (100%) 18 are gold and 6 of

other metals; it is to say 75% of concentration or

750 parts of gold per thousand parts.

Quality of Gold

Historic Prices


Gold is a metallic rare element with a point of merge of 1.064 º C and a point of boiling of

2.808 º C. Its chemical symbol - Au - is an abbreviation of the Latin word "Aurum", which

literally means “dawn that shines intensely".

It seems that the word gold comes from a derivation of "yellow", used for the Indo-

European civilizations, reflecting one of the most obvious properties of the gold. This is

reflected in the similarities of the word in several languages: Gold (English), (German)

Gold, (Danish) Guld, (Dutch) Gulden, Goud (afrikaaner), (Norwegian) Gull and (Finnish)

Kulta.

The last estimations, 2001, indicated that all the exploited and available gold on the

terrestrial surface was coming to 145.000 tons

From ancient times, for commercial operations in the Mediterranean Sea and the Middle

East, the carat began to be in use as a measure of the purity of the auriferous alloys.

The carat was originally a unit of weight based on the seed of the carob-tree, and used by

the former merchants of Middle East. The Romans, were using the name Siliqua Graeca

(Keration in Greek; Qirat in Arab; and now carat in the modern times) to name the above

mentioned seed. The carat is still used to weight the precious stones or gems (a carat is

the equivalent to approximately 200 grams).

GOLD


COLOMBIA

Cruces de

Caceres

Mining Potential yet to be

Discovered

The potential of Colombia has been confirmed by a recent report of the Fraser

Institute in which Colombia appears as the country of Latin America with the

second major mining potential of the region after Brazil, if the problems for the

exploitation were corrected. This qualification confirmed what the specialists

already knew … Colombia is today one of the borders of opportunity in the

mining business worldwide

Mining CountryThe mining Colombian industry is one of the

most dynamic and promissory sectors of the

country, since in only one year the investments

have reached 2.000 million dollars and the short

term trend do not seem to end.

Antioquia Region


Antioquia represents 30% of the mining licenses in Colombia.

Gold represents 5% of Colombian exports and Antioquia produces 75%

of the Colombian production.

Antioquia has the biggest gold production in the country..


Annual Production in the Region of Antioquia

It is constituted by Amalfi, Anorí, Caceres, Caucasia, El

Bagre, Nechi, Remedios, San

Roque, Segovia, Tarazá, Yolombó, Vegachi and

Zaragoza, municipalities of the subregions of the North-

east and Bajo Cauca of Antioquia.

The territory of the Mining District presents a great

diversity of geography, culture and environmental

characteristics.

With a population superior to 400.000 inhabitants, socially

it presents a great diversity of cultures, that started with the

great migration, originated by the fever for gold.

Its tourist potential constitutes an attractive region, having

special interest in the development of the mining

tourism, showing the world the traditional exploitation of

gold for more than 500 years.

Gold Producing Regions

DISTRITO MINERO

NORDESTE ANTIOQUEÑO

ANTIOQUIA


Its area is 8.485 Km2, which is 13.5 %

of Antioquia.

98 % of the territory is of thermal hot

floors and 2 % is of average floors.

It is in the Central Mountain

chain, between the mountainous

counties of Ayapel and San Lucas, on

the basin it goes down the rivers Cauca

and Nechí.

It is one of the most ancient territories of

Antioquia, tied to the existence of rich

auriferous deposits.

In 1584, four cities were registered for

the government of Antioquia, three of

them located in this territory: Caceres

(1576), Saragoza (1581) and San

Jerónimo (1583).Mina

CRUCES DE CACERES

Capital Gold Mining Resources Inc.. Copyright © 2010.

Regional Information

Map

Mining Potential

The Bajo Cauca and North-east Antioquia are the zones with

more potential for gold extraction in the department, according to

the Government of Antioquia and Ingeominas.


SUSTAINABLE

MiningThe mining industry is a sector with a high level

of industrialization that defines specific technical

parameters for the application of appropriate

technologies, according to the mining

project, and its location, in search of the

environmental sustainability, to minimize the

generated negative effects, specially on the water

and the soil, associated with the areas of

exploitation, operation and storage.


Medellín 1857 - Panamá 1921

Father of ex president Mariano Ospina. He was principal of the Universidad

de Antioquia (1905 – 1911), founder of the Colombian History

Academy, founder of the Mining School in 1888 and its principal (1911 –

1921).

He helped in the exploitation of the

coffee, the manufacture of

bricks, beer and the work of the gold.

He wrote, between others:

Geological review of Antioquia

(1911). It outlines on the Geology of

Colombia and specially the

Department of Antioquia (1911).

It was during the exploration that gave origin to these books, that Don Tulio

delimited, in person, the zone that nowadays is known by Mina Cruces de

Caceres, of which he was the first concessionaire.


History of the Cruces de Caceres Mine

MINE

The original mining company exploited

the zone from 1976 to 1987 after

which, due to problems of political

stability, they were forced to suspend

the operation.

During this time, the production gave

excellent results and the geological

studies demonstrated that the great

potential of this zone is still to be

discovered.

Capital Gold Mining Resources Inc. and

Exploration has taken over this region

for continued mining and development.

Área: 3.993,1250 Has.

1. 7º 25” 57.85 N · 75º 5” 40.20 W

2. 7º 24” 10.07 N · 75º 8” 22.97 W

3. 7º 25” 24.80 N · 75º 9” 15.32 W

4. 7º 25” 34.60 N · 75º 9” 2.30 W

5. 7º 27” 2.34 N · 75º 9” 56.31 W

6. 7º 26” 16.61 N · 75º 11” 1.41 W

7. 7º 27” 8.60 N · 75º 11” 37.40 W

8. 7º 28” 28.65 N · 75º 9” 32.07 W

9. 7º 28” 28.74 N · 75º 8” 52.94 W

10. 7º 27” 9.14 N · 75º 7” 54.05 W

11. 7º 27” 43.47 N · 75º 6” 48.92 W

DATUM: 42 BOGOTÁ OBS


Map

Mina

CRUCES

DE CACERES

BAJO CAUCA

ANTIOQUEÑOAnyone can go by land, water or air.

It is necessary to to take the Coast Highway from

Medellin, up to Caceres. There it is necessary to take

the road to Zaragoza and in the KM 32, do a detour

in the southern part.

Also it is possible to take the road up to Zaragoza

from Medellin, via Segovia. Then take a craft in the

Rio Nechí, up to the Corregimiento of El Pato. From

there it is necessary to go to the Fertile plaines of

Segovia and then cross the Natural Reservation Bajo

Cauca - Nechí up to the mine.

Finally, it is possible to take a helicopter and land

directly in the mine, since there exists sufficient clear

spots in the area of concession.


Access to the Site

Base Line

Mina

CRUCES DE CACERES

CAUCASIA

CÁCERES

ZARAGOZA

GOLD

The mine is on the second zone with

more concentration of gold in

Antioquia, which turns the Bajo Cauca

into a mega geochemical province of

gold, since it overcomes the national

average.

This district is the major producer of

gold in the department.

The mine is on alluvial terraces of the

quaternary; ancient and recent type.

BAJO CAUCA

ANTIOQUEÑO


Prime Location for the Site

CAUCASIA

CÁCERES

ZARAGOZA

Mina

CRUCES DE

CACERES

The mine is crossed by the Stock La Tinta, which predominant rock is a

diorita with wide variations of textures and composition, especially the

quartz diorita. There is no radiometric age for this body, but for its

geographical and tectonic location and for its litológic similarity, is

considered to be related genetically with the Batolito of Segovia, which has

been assigned to the Jurassic.

BAJO CAUCA

ANTIOQUEÑO

Capital Gold Mining Resources Inc.. Copyright © 2010.

Age of the Cruces de Caceres Region

The prospectings in the low and medium parts will have a network of perforation

with percussion drill of 4 " to 6 " of diameter, the samplings will be taken every meter

of perforation, up to coming to rock.

The network of perforation will be of triangles with sides of 50 meters. The

calculation will be of every triangle separately and then they will be divided equally

to have a total result.

In the hillside there will be opened apiques of 2x2 meters and trenches of 1 meter

of width or 1.5 meters by lengths of 10 or 15 meters. The samples will be taken

every 2 meters in the trenches and normally to the direction of the banks and the

floor. In the trenches the prospecting will be done by channels in the banks by

width of 2 " and depth of 3 " or 4 ".

The calculation will be given on the auriferous alluvium rejecting the material of

descapote. The unit of measure for the calculation of reservations will be the

milligram for m3.


Mining SiteConditions

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