GPGI Update as of September 3rd, 2008
9-3-2008
From the desk of Russell Twiford, Vice President in charge of Research.
To our stockholders and interested parties: The most important news is that we have significantly increased the average gold recovery from around 1 ounce to 1.6 ounces gold, (49.8 grams), processing 50 tanks with each tank containing 20 gallons of aquifer water, for a total of 1000 gallons. Our purity tests on recovered gold shows 99.8% pure. Next week we will be processing 40 gallons of water in each tank thereby using only 25 tanks to equal 1000 gallons instead of having to process 50 tanks per 1000 gallons. Obviously the bigger the tank, the more economical the process, and the only reason we are not processing 1000 gallon tanks at this time is quite simply the lack of funding needed to purchase the much larger amount of gold inquart needed to process the bigger tanks.
Our reserves: We estimate the gallons of mineralized water contained in our aquifer, based on drill holes and well depths, to be around 1,406,250,000 gallons (keep in mind this is an estimate: further drilling would be required to know the exact volume of the aquifer), and it could well be double these figures. This would enable us to process 1,406,250 tanks with each tank containing 1000 gallons of water (the water after processing can be returned to the aquifer). Assuming that our recent recovery rate of 1.6 ounces per 1000 gallons persists the aquifer could contain something in the order of 2,250,000 ounces of gold. Again, keep in mind that these figures are very rough estimates, and we won’t know for sure what our reserves actually are until we have had a chance to analyze more thoroughly the extent of the aquifer and have been in production long enough to feel confident that the recovery rate (equivalent to grade in a traditional mine) is for real.
We have run water samples from a number of other sources, (a large aquifer in eastern Arizona and ocean water from the west coast) in the lab, and the results have been very positive, so apparently we are not limited to one particular area.
Our costs: Here we have much better data, as the cost of labor and materials (mostly chemicals – the gold inquart used, of course, is not a cost item as it gets recovered and reused) on what we are currently processing is very low by mining standards, something in the order of $100 per ounce recovery. This figure could be a lot lower as we process larger volumes and/or automate the process.
In comparison Newmont Mining’s Yanacocha mine in Peru – one of the best traditional mines in the world- has proven and probable reserves of 3 million ounces with an average grade of 9.9 grams (a third of an ounce) and recovery costs of around $400 per ounce.
The point that I am trying to make to you, the stockholder, is that our company has potentially the equivalent of a medium sized gold mine in terms of reserves, but our costs of recovery per ounce are much lower. It could be extremely profitable with the proper funding and we are working with a group from Canada that has a similar project in Arizona whom I feel can produce the funding that is needed to make your company a major producer of precious metals.
This communication to shareholders and the public contain certain forward looking statements. Actual results may vary materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding estimated reserves, estimated future production, and the value thereof, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. |
