“Silver Cascade”
Mining-Project Share-Investment Evaluation ESGPV4eng “Silver Cascade” Mining-Project Banner Mine In 1864, first explora�ons led to the founda�on of the Silver Mountain Mining District northeast of Boise, Idaho / USA. The discovery of several forma�ons with high grades of silver and gold soon a�racted more than 200 prospectors. In 1866, an entrepreneur from London/England financed the development of Silver Mountain City and from 1868 onwards, the produc�on was mainly accomplished in mills, mel�ng furnaces, and alloys were produced. Most of the ore was processed in the forma�ons that were later known as Panamint, Crown Point, Banner and Golden Gate. In 1868, the name of the city and district was changed to Banner. ESGPV4eng Page 1 “Silver Cascade” Mining-Project ESGPV4eng Boise Basin The development of the Boise Basin started in Idaho/USA in 1862. 5.000 USD in gold, proudly presented to the inhabitants by the prospectors, started one of the greatest gold rushes the world had ever seen. It is es�mated that more than 250 million USD (more than 3,000,000 ounces or 90 tons) of precious metals were produced in the region over the two decades following its discovery – more than during the 1849 gold rush in California and in Klondike, Alaska. Page 2 “Silver Cascade” Mining-Project ESGPV4eng The Silver Cascade Project has been owned by the same family for the past 130 years. Con�nuous explora�ons could therefore be conducted during this period. Only in the past 40 years more than 50 different silver veins have been discovered in the centre of the claims and during further explora�ons in the vicinity. A series of geological reports suggest that this district has the best possible requirements to become a world-­‐class silver produc�on site. Various tes�ng and developing measures such as test drilling, geo-­‐chemical tes�ng, digging and tunnelling have already started to be taken. Page 3 “Silver Cascade” Mining-Project Silver mining has con�nuously developed and expanded in Idaho and has given this State the status of a „Silver State“. There were also great gold discoveries in the region north of Boise, such as the famous Westend Mine, which is only 100 kilometres away from the Banner mine. It is a joint venture of Superior Oil (today ExxonMobil) and the Canadian mining corpora�ons TRV Minerals Corp and Pioneer Metals Corp., which used to be situated in Vancouver, Canada, and succeeded among the first in the 1980s in producing gold and silver in extreme heights and under cold temperatures by means of the chemical “Heap-­‐Leaching” process. Today the Westend Mine is part of the successful Canadian mining company Midas Gold Corp., which works adjacent to the Eurogas Silver & Gold‘s „Silver Cascade“ Project and is listed on the Toronto Stock Exchange under the symbol MAX-­‐T. ESGPV4eng Page 4 “Silver Cascade” Mining-Project EuroGas Silver & Gold, Inc. (a 100% subsidiary of ZB Capital Inc.) owns the rights of the ini�ally patented claims and of the se�lement and produc�on site Silver Cascade with a size of 150 hectares of land. These claims include the historic Panamint-­‐, Crown Point-­‐, Banner-­‐ and Golden Gate-­‐
Mines. Another 210 claims covering more than 4,200 hectares of land, that are currently being registered, have also been secured. ESGPV4eng Page 5 “Silver Cascade” Mining-Project Recent tests have shown grade results of 18 to 1,115 ounces of silver and up to 1 ounce of gold per ton. The structure of the discovered ore veins is massive -­‐ they are 3 to 10 meters thick and occur in a distance of 3 to 4 meters. Veins directly underneath the surface have more than 45 ounces of silver grade; in a depth of 30 metres for instance, ore grades of 293 ounces have been found. The geological condi�on of the area indicates the existence of epithermal, widely branched and high-­‐
grade precious metal ore veins in the depths and therefore offers enormous poten�al for further explora�on. ESGPV4eng Page 6 “Silver Cascade” Mining-Project %# %!"$ '&%#'"$" $#!!" "# #,
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Page 8 “Silver Cascade” Mining-Project Explora�on and Produc�on During the first full business year, ac�vi�es shall be concentrated on the produc�on of minerals from crude ore, which shall be processed from the rock of several exis�ng ore bodies. Some of these ore bodies have already been found in low depths about 120 years ago. The exis�ng infrastructure must be adapted accordingly; required technical equipment must be renewed and reac�vated. Furthermore, five old mining dumps have been tested and tests have shown that they contain more than 600,000 ounces of silver and an addi�onal, quite considerable grade of gold. These tailings are mixed with the waste rock of the ore bodies and crushed and grinded to mill material with a high grade of ore. By means of the flota�on process, a silver grade of 30 ounces and a gold grade of 0.05 ounces per ton can be reached. In a newly erected furnace, the exploitable silver and gold is then being separated. The Forest Service of the United States Department of Agriculture (USDA) in Idaho has granted the concession for this produc�on process. The concession is valid un�l 2018. Thus the en�re tailings can be processed – they are es�mated at 500,000 tons. This way, around 25 million USD gross earnings can be reached in the course of the first two business years, calculated depending on the amount of processed rock in tons. ESGPV4eng Page 9 “Silver Cascade” Mining-Project Explora�on and Produc�on from 2014 onwards A�er having completed the produc�on process from the tailings, two new mines shall be established. Between 1968 and 2010, around 2 million USD had been invested into the explora�on of further ore deposits, resul�ng in several promising new discoveries. Old reports as well as new studies show many well defined structures with fan-­‐shaped, parallel northeast trending veins. At least twenty of these structures have commercial value. One of the newest discoveries is an ore body 80 meters long, with a thickness of 12 meters and a depth to top of 150 meters. The ore grades and data measured on its surface are extraordinarily high. An ore body in an area about 300 meters away has recently produced high-­‐grade ore exceeding 400 ounces of silver and 0.25 ounces of gold per ton. Recent tests have shown that the new ore body contains a minimum of 500,000 tons of high-­‐grade materials and an average grade of 300 ounces silver and 1.10 ounces of gold per ton. The life of this mine is es�mated to be more than 20 years. Please find below an intermediate-­‐term prognosis of its profitability during the first years of business. It is based on the key data of its acquisi�on, the three-­‐year shareholding of the original owner family and the following budget: ESGPV4eng Page 10 “Silver Cascade” Mining-Project Grafik 1 The costs during the first year of business (2012) are primarily the expenses for the investment as such and the costs for the processing of the tailings. Depending on the weather, the second half of 2012 can already be used for gold and silver produc�on. ESGPV4eng Page 11 “Silver Cascade” Mining-Projekt Grafik 2 The beginning of the silver produc�on during the second half of 2012 results in a quick turnover and leads to reaching the break-­‐even point in the second half of the year. ESGPV4eng Page 12 “Silver Cascade” Mining-Project Grafik 3 The third, fourth and fi�h business year (2014-­‐2016) will focus on the developments of new mines and bring forth significant turnover from the investments of the years before. ESGPV4eng Page 13 “Silver Cascade” Mining-Project Grafik 4 The extraordinarily high grade of silver, gold and other precious metals guarantees an excellent ra�o of revenues and expenditures from the very beginning and results in constantly high cash flow. ESGPV4eng Page14 “Silver Cascade” Mining-Project Grafik 5 This shows clearly that this project is highly profitable, par�cularly due to the increasing prices on the gold and silver market – the price of silver has risen during the past years from less than 4 USD per ounce to around 50 USD per ounce and – with 30 USD per ounce – is listed even today 10 �mes higher than five years ago. ESGPV4eng Page 15