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MBR Mining
Resources Inc.
7182 Sportsman's Drive -North
Lauderdale-FL.33038-ph-786-553-2371
Executive
Summary
Prepared by: Jarbas De Souza Jnr
November 2008
Executive Summary
MBR Mining Resources, Inc (The Company) is seeking an investment of US$300m to fully develop the
Cavala Greek Gold Mine project site. The site comprises 8,800 acres (3,562.5 ha) which is located in the
right edge of the Iririacu River, in the municipal of Luis Domingues, northwest Maranhao State, Brazil. Its
geographic coordinates are 01 30.00’ S, 46 00.00’ W. The city of Sao Luis Domingues is 20 km away, while
the nearest international airport and shipping port is 350 km by sealed road, from the mine site.
Brazil
Brazil is an industrialized country of ~180 million people. A top 10 economy with exceptional infrastructure.
The transport economy in the major centers such as Sao Paulo (or other major center) is not dissimilar to
North America - paved two-lane, four-lane, and six-lane roadways with overpasses.
It has a diversified economy / industry with abundant cheap power; 95% of it hydroelectric. It has an
established mining culture. The Brazilian economy largely tailors itself to mining which accounts for about
5% of GDP. The value added (mining related) collateral businesses pushed the figure to ~18% of GDP.
The cost basis for much of the equipment (locally manufactured), power and labour is inexpensive relative to
other mining economies like Australia. Brazil is an exceptional platform from a mining industry and business
viewpoint. Their mining industry / culture has been active for hundreds of years.
There are a number of American Gold Mining companies operating in Brazil including Amex listed minnow
Yamana; the worlds’ largest producers are Barrack (South Africa) and Newmont Mining (Australia).
Mine Potential
Cavala Creek mine was searched by our Team in the period of July/2006 through December/2006, the drill
was the principal method of investigation, and was used the Banka Drill
The studies of corrections of the Banka Drill nominal values, in the 81 executed holes had disclosed
maximum values of up to 8.18g/m3 of gold; on the other hand, the maximum content inside the gravel was
14.21g/m3.
Although the average depth of the 81 holes is 2.82 meter and the average of the 6 holes, random in 8,800
acres, done manually has reached value of 2.62 meter of depth; we will use only one value below of these, for
consideration of the reserve.
The gold met in the alluvium, elluvium and colluvium is secondary, that with the continuation studies and the
gold extract act, there is a big opportunity of finding the primary gold location that will increase the gold
reserve hundred times
We know that the particles of elluvium and colluvium are in the same place or nearness of the rock source.
The feasibility operating plan assumes a large alluvial gold mine containing proven and probable reserves of
approximately 3.5 million ounces of gold.
Complying with the rules of the Brazil’s Code of Mining, the Company, intends to continue its research to
fully determine the extent of known reserves and to properly allow the Company to choose the correct
methodology for the extraction of the auriferous deposits in the area.
The company has obtained the necessary permits to undertake this project ..see Final Research Report.
Market size
"Gold Prices may be going up. But undoubtedly, it is gold that has the global charm for huge investment
potential," he said. Quoting from a new survey from New York-based hedge fund Ospraie Management LLC,
Alukkas said gold will be among the five best commodity-investment opportunities over the next two years,
thanks to the declining production of the yellow metal.
Gold production reached 2,471 metric tonnes in 2006 according to the data from the World Gold Council.
The hedge fund said that rising costs and lack of investment have limited output in South Africa, the world's
largest gold producer, Peru and other countries. "We look at gold as a barometer of wealth in the world,"
Ospraie said, adding: "The underpinning of demand is very strong."
In the last few years, growing purchasing power in Asian countries such as India and China has spurred
demand for gold, pushing prices up 11% in the past year. Gold production growth exceeded population
growth from the 1840s to 1940s. It declined after World War II for almost 50 years, but started up again in
1989.
The Gold Price has now been rising for more than six years. It has gained 158% since 2001. That works out
to 26% per annum, which has consistently beaten most other markets. Global commodity companies believe
that Gold Prices will rise for years to come, eventually reaching at least $2000 and it will probably go even
higher. Investment experts say gold is the best commodity to invest in because it has stood the test of time.
"Gold has a 5,000-year solid track record. It is a time-tested and valuable commodity. It always has been, and
it always will be. So it is the ideal commodity to invest in these days," says Prahlad Patel, a gold investment
expert based in Mumbai. According to him, gold is real money and it has maintained its purchasing power
over the centuries. "As the Dollar continues to slide, and spending and money creation continue on their
merry way, gold will be the ultimate beneficiary," he added.
Experts have also predicted that China will become the largest gold producer in the world by 2010. Between
1997 and 2006 production of gold in China increased by 162.8 tonnes to 247.2 tonnes. While gold production
in traditional producing countries such as South Africa has declined over recent years, output from emerging
gold producing countries has increased from 17.7% to 29.8% in the last ten years. China's gold production for
the first quarter of 2007 was recently recorded at 56.183 tonnes, an increase of 15.99% on the same period
last year.
Management
The site General manager will be Jarbas De Souza Junior. The company plans to hire an experienced Mining
Engineer with at least ten years experience plus Geologists (3) and Lab Technicians (4).
Employment will peak at more than 600 operating personnel. On-Site accommodation is planned for staff and
employees.
Use of Funds
The initial cost is estimated to be US$ 300 million; the estimated time to start up the project is 6 Months.
The Funds will be used for the following:
1.
2.
3.
4.
5.
Projects:
Environmental Project, and Mine Site Project
Equipment: Excavator, Loader, Truck, Pumps, Generator, Tolls, Drill
Installations: Warehouses, Lab, Trailers, Office
Management: Geologists, Lab Technicians, General Manager, Accountant
Employees: Drivers, Machine Operators, Mechanics, Labor, Security
Projections & Assumptions
FINANCIAL PROJECTIONS
2009
2010
2011
2012
2013
Revenues
$251,250,000
Costs
$202,000,000
Gross Profit
$282,500,000
$93,750,000
$121,500,000
$303,750,000
$120,500,000
$162,000,000
$169,750,000
$425,000,000
$134,000,000
$237,500,000
$ 446,250,000
$187,500,000
$244,250,000
Assumptions
!
Gold Price ................................................ $742.00 per ounce ( on 11/06/2008 )
!
Total Operating Cost
$150 per ounce
!
Total Reserves (Proven and Probable)
Reserve)
3.5 million ounces (Refence To Evaluation Of the Gold
!
Project
$3 billion
!
Project Payback
5 years
!
Average
420,000 ounces
Present Value
Annual Production
Investment
The company is seeking a $300MM loan with the collateral backed by the mineral value of the mine. Term is
one year with rollover option
Exit Strategy
The company expects to seek a US public listing of the mine within three years
Humanitarian Aspects Of The Project
The Gold Mine site is located 20miles from the City of Sao Dominges, It is a small city with 8,000 residentes,
and the city Mayor will donate an area for us to build 200 house for the employes, and also a school (first and
second grade) and a small hospital with 70 beds,and
We are going to employe 600 people direct, and more 400 indirect ,totaling 1,000 people,
All this will bring a lot prosperity to the city, and also for all small Districts around the mine site
Company Expansion
We have more mines to be explored ,like a 4,000 acres Diamond Mine ,and 3,500 acres Copper Mine , ans
2,000acres Emerald Mine ,
The Research Work on thoses mines will start as soon as we start the Gold Mine Project