BUSINESS PLAN

COLOMBIA Alluvial Gold Recovery

Areas in Choc,Colombia

FELIX A. NEGRON
Precious Metal Consultant American Precious Metal Recycling, LLC. 4121 North 10th St #129 McAllen Texas 78504 Telephone: 603-809-2851 Fax: 956-783-0036 E-Mail: sales@americanpreciousmetalrecycling.com

The Investment proposal is to secure funding to exploit reliable mining operations in Mexico, Colombia, Bolivia, Brazil, Peru, Costa Rica and Chile. The precious metals that we located in the mining sites are the following: Gold, Silver, Platinum, Iridium and other base metals like lead, copper and tin. Our selected investor will have the opportunity to exploit the rewards of the metal market. For the last 10 years the metals are moving up and it is expected that the pricing will continue to go up as the demand for tangible assets is gaining popularity in many investors (see www.kitco.com and look in to historical charts for precious metals below is gold last 10 years). Paper currency is fluctuating, stocks are falling and corporate America and banks are not as reliable as before. The right investment is PRECIOUS METALS.

Why purchase precious metals bars when you can have yours own custom made. The investor will secure precious metals as participation in the mining revenue and his investment is guarantee by the metal market performance the last 15 years. All precious metals recovered at the mining operations are going to be refined by Colt Refining, a very reputable refinery that was featured in the History Channel Series Bone yard. Their website is www.coltrefining and a short video of the program can be seen at the website. By having only one source the investor and auditors can maintain close watch to the mine production sale of precious metals. As an option the investors could have their profit share as tangible metal bars, pool account (the precious metal are kept in a metal account that can be sold as soon he fit to sell the metal as the pricing goes up or he needs cash) or cash in US dollars. Another option is to receive payments in gold coins, metals or certificate of deposit for the precious metals. The selected investors will have first option for investment in other mining operations as we move to other mining projects in Brazil and other countries. The investment will be used mainly for purchasing mining equipment, support equipment, laboratory equipment, training and start up cash to maintain the operation while the recovered metals are sold to the refinery. The expected precious metal production time for the project is 6 to 7 months from the time we order the mining equipment. American Precious Metal Recycling will be developing total of 14 sites. On Phase I Colombia 3 teams, Mexico 2 teams and Bolivia 3 Teams. Phase II Brazil 1 team and Costa Rica 1 team. Phase III is in developing Stage exploration and analysis. The ownership of the mining operation will be conducted in compliance of the country laws. The investor participation will be allocated as follows:

MINING PROJECTS:

TOTAL INVESTMENT REQUIREMENTS: 21 MILLION USD (3 MILLION per SITE) this will fund up to 7 mining sites.

The 18 Million is just to start the projects in Mexico, Colombia, and Bolivia on Phase I. The 3 million usd per mining site is to get a production of 100 ton per hour and will let them run on their own. While these projects are working investors can decide if they wish to venture in other projects. This is not a treasure hunt. We already found it. We want to work with the investor to learn the business and profit from our teamwork. As the business grows and we see new opportunities the investors will be involved.

RETURN ON INVESTMENT SAMPLE:

FOR EXAMPLE MEXICO HAS - 2 LOCATIONS VERY LARGE DEPOSITS PLATINUM AND GOLD MAIN PRODUCT IS PLATINUM Only on surface to 9 feet deep we found 50 grams per ton of Platinum up to 3 feet deep without talking about the gold and other metals. The size of the lot is 494.10 Acres/1020yd2 Having a density of 3.6, we can Project 3600 Kgs. Per Mt cu, or 3,600 X .50 = 180 gms/mt3 180/32.15= 5.6 oz 5.6 X 10000 mts= 56,000 oz X 200 hct. (494.10 Acres)= 11,200,000 oz of Platinum This is just in one meter; in a lot next to us up to 80 meters we found the same metal content.

The Colombia, Brazil, Bolivia, Peru, Mexico and Chile will have an expected return on Investment: 2.0 Millions in 12 Months after the initial production start. This is a very conservative number.

Investment will be used as follows:

80% mining equipment 20% Operations and Training

CONCEPT OF OPERATIONS: Company and Revenue: AMERICAN PRECIOUS METAL RECYCLING

LLC is incorporated in Nevada USA because of the following:

No Corporate Income Tax No Taxes on Corporate Shares No Franchise Tax No Personal Income Tax Nominal Annual Fees Nevada corporations may purchase, hold, sell or transfer shares of its own stock. Nevada corporations may issue stock for capital, services, personal property, or real estate, including leases and options. The directors may determine the value of any of these transactions, and their decision is final. No Franchise Tax on Income No Inheritance or Gift Tax No Unitary Tax No Estate Tax Competitive Sales and Property Tax Rates Minimal Employer Payroll Tax - 0.7% of gross wages with deductions for employer paid health insurance Nevada's Business Court Developed on the Delaware model, the Business Court in Nevada minimizes the time, cost and risks of commercial litigation by: o Early, comprehensive case management o Active judicial participation in settlement o Priority for hearing settings to avoid business disruption o Predictability of legal decisions in commercial matters

(visit the secretary of state of Nevada web page http://nvsos.gov/index.aspx?page=152 for more information on the benefits)
We will have external auditors and corporate control will be in USA including audit teams, special maintenance team, purchasing, trainers, engineer, laboratory tech, and project manager for each country. Quartely Reporting to Investors, progress report monthly per project and montly production reports will be provided. We will set up companies called APMR XXX COUNTRY NAME LLC ETC, in each country with the following participation

LAND OWNER (country team) APMR USA LLC

49% 51%

Revenue distribution: 49% - Land Owner 49% - AMERICAN PRECIOUS METAL RECYCLING USA. 2% LAND RECLAMATION FUND (We have to leave the ground as we started this fund will cover this cost).

Equipment Only the mining equipment is new. Support equipment will be

purchased used but in excellent mechanical conditions to save money. If we buy new our investment per mining site will be 6 million usd per mining site. We will not purchase new support equipment like excavators, dozers, etc; because we have in USA great equipment with low hours that can provide the operations hours to cover its cost, make profit and keep on going. The equipment will be refurbished to 10/20 standard or modified according to country/land requirements and a Mechanic in each site will be available. Each mining site will a spare parts on hand to avoid down time plus we will have the equipment of similar brand and year to avoid the headaches of having different model and parts on hand.

Labor Local labor is plenty and our equipment is not labor intensive. We will
train on the go and will comply with federal and local laws. The work is mostly

mechanical.

Security Each site will have its own security and special attachment in the
equipment that will allow only the manager to remove the precious metal from the equipment. The material will be inventory and log in per day basis. Monthly reports and control of the sales will be done by APMR USA. Refining reports will be available to investors and each APMR MINING COMPANY will have its own P&L.

Security on Investment: The equipment ownership belong to APMR LLC USA

It will be leased to each mining site. The equipment we will use is a proven technology that recover 99% of Precious metals under 5 microns (technical specs will be given to investors). The equipment and mining site is completely mobile and can be redeploy anywhere in the world. Precious metals prices are steady and there is more ground that machinery we could buy to recover precious metals. The Investors will have participation in APMR LLC USA in Shares according to investment and revenue will be according to the amount of shares they hold.

Political Environment The political environment and security on investment

on the countries we are working with is stable. Even Colombia has almost the same rating as Mexico in the qualification by Lloyd of London in terms of political insurance. All those countries welcome investment, job creation, environmental responsibility, teamwork, community participation and ownership by US/Local People. We will be hitting all those points. All our equipment is highly mobile and can be redeployed anywhere in the world. Even Colombia mining area is FARC FREE and secured by local people because they will be part owner with the government of Colombia 49%.

Production time table - Production by the explorer teams (10 ton per hour) will
start after 4 months because logistics takes 30- 40 days just to move the equipment by land and sea containers, 90 days to comply with equipment ordering, and support equipment search and reconditioning. Production time table for the first 100ton per hour machine will be 6 months at the most. That includes deployment, set up and operations. Then we will have one full mining operations starting every 30 days.

Explorer Team The explorer team is a self sufficient fully mobile

production/survey unit with a capacity of processing 10tons per hour. Their main objective is to collect data and report the area with best ounces per ton content to deploy the 100ton machinery. It will also produce precious metals and will continue searching for good spots. We have over 1.5 million Hectares to work with. So we have to maximize our equipment. Each team will consist of a crew chief and 3 workers. Each team will have the similar equipment that will change according to the terrain, and project requirements:. a. One Bob Cat

b. One Mini Excavator c. Mining recovery Unit trailer mounted. d. Generator e. Camping equipment. f. 1 x F 150 4X4 OFF ROAD SPECIAL TIRES AND LIFT g. 1 x F250 4x4 OFF ROAD SPECIAL TIRE AND LIFT h. Portable kitchen. i. Small mineral lab. j. 16 foot trailer.

8 Teams will be deployed. on Phase I

Finally, the mining project is something that we have been doing R&D for more than 5 years. Last 8 years we have been traveling to those countries. We also located the right mining equipment, support equipment, area and people to work with. Now is time to get to work! If you are interested let us know, we want to hear from you

Table of contents: 1. Objectives.... 1. 2. Location........ 1. 3. Geological Setting... 3. 4. Structural Geology.. 3. 5. Magmatic Intrusions...... 4. 5.1 Alto Condoto............ 4. 5.2 Viravira...... 5. 5.3 Mand Batholith....... 6. 5.4 Other magmatic and hydrothermal processes........ 7. 5.5 PGE content in rocks. 8. 5.6 Fractures......... 9. 6. Placer Deposits..... 9. 6.1 Mining site Condoto.................. 11. 6.1.1 Au and Pt in alluvial deposit .............. 12. 6.1.2 Prospect for ultramicroscopic Au ...............12. 6.2 Paleochannels................... 17. 7. Aspects for exploration......18. 7.1 Geological maps..................... 18. 7.2 Remote Sensing........................ 18. 8. Discussion and results....... 18. 8.1 Mineralized intrusions and structural context...... 18. 8.2 Alluvial placer deposits............ 19. 8.3 Exploration Aspects ............ 20. 9. Conclusions. ............ 21. 10. Recommendations...... 21. 11. References................ 22.1.

1. Objectives This report presents a revision and summary of the available geological information of the Condoto Area to date, combined with observations made during field investigations. The objective is to define the types of resources in the area, based on which exploration techniques for further investigation will be recommended. 2. Location The area of interest is located within the zones 203 Istmina and 204 Pueblo Rico (Fig.1), as defined by the technical subdivision of the mining ministry INGEOMINAS. It is situated at the western flank of the Western Cordillera proximal to the Pacific Ocean (~80km from current mining site). Exploitation is currently taking place in the village of Condoto, which also provides an airport for Civil transportation.

The Condoto area is characterized by a mean annual temperature of ~25C and intense precipitation of ~8,000mm annually (Garca, 2001). These two characteristics give rise to rich vegetation in the area. Fig.1: Location of the zones 203 Istmina and 204 Pueblo Rico in the western part of the Western Cordillera. Pacific ocean approx. 80km from the Village of Condoto. Access of the Condoto area is via waterways along the major rivers San Juan, Condoto and Rio Ir , (Fig.2). Accessibility is strongly dependent from current water levels and requires small boats with little draught. If water levels are shallow in periods of no to little rain access can be difficult (Fig.3). However, these conditions give rise to alternative methods (Fig.4). Fig.2: Impression of Condoto waterways, Rio Ir. Fig.3: Locally low water levels in Condoto (left) and
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Ir River (right, with Alto Condoto ultramafic intrusion in the background) after period of little rain posing difficulties on accessing the area. Fig.4: Truck driver using waterways of Condoto as streets during period of low water levels.

3. Geological Setting The Condoto area is part of a region that corresponds to an island-arc setting (Fig.5). The early Tertiary Dabeiba volcanic arc (Santa Cecilla- La Equis Complex) has been accreted onto the western flank of the central axis of the Western Cordillera (Caasgordas Group). The Santa Cecilla-La Equis Complex is characterized by toleiitic and calcalcaline volcanics. To the westthese lithologies are covered by a sequence of mainly Tertiary clastic sediments, forming the N-S-trending Atrato San Juan Basin. The marine Caasgordas Group mainly forms the central axis of the Western Cordillera and has been interpreted either as
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an inmature island arc or as oceanic flood basalts with associated sediments. It is here defined as Cretaceous oceanic crust.

4. Structural Geology The basin of the San Juan River and the western border of the Western Cordillera formed as a consequence of the interaction of strike slip faults in NE direction. This resulted in a depression that has been filled with sediments of terrestrial and marine origin. The most important faults are the Garrapatas fault in the south and the San Juan River fault in the north. Transpressive forces between those faults affect the oceanic sequence attached to the continent. Preliminary structural analysis corresponds to a model with shear zones limited by a strike slip fault that is located along the course of the San Juan River with direction N40E. A second fault is located in the SE along the Garrapatas River with an N20E direction, dipping east. Syntectonic secondary structures have been developed between those faults with the directions N80-85E and N45W. North of the Condoto River rocks are influenced by compressive forces in NS direction. Recent quaternary sediments and alluvial terraces rich in Au and Pt have filled th e depocentre limited by inverse faults, suggesting a half-ramp type model. 5. Magmatic Intrusions Emplacement of magmatic intrusions into the shallow crust is controlled by large transverse movements along the N-S lineament (Fig.6). Interactions of secondary NE and NWtrending faults during an extensional phase of a generally east-west compressive tectonic system promote the circulation of hot fluids, and penetration of mineralized magma
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through the crust (Tistl, 1994). The magma is derived from partial melting of the upper mantle and due to the regional tectonic framework was able to rise quickly (Muoz et al., 1990). 5.1 Alto Condoto An ultramafic intrusion is located ~60km in NE direction from Condoto. It exhibits a chemical zonation that corresponds to an Alaskan Type ultramafic complex (Fig.7). The 20Ma old intrusion is the youngest of its type in the world known to date. It has been emplaced during the compression peak of tectonic evolution. The inner core is composed of dunite, mantled by sequences of clinopyroxene dunite, wehrlite, olivine clinopyroxenite, and hornblende (magnetite)-clinopyroxenite. The dunite core consists of olivine, accessory chromite, clinopyroxene and PGM (Platin Group Minerals). Within the core a 200x300m area is anomalously enriched in PGM. The dominant PGE is Pt which mainly occurs in PtFe alloys (Pt3Fe). Single crystals exhibit sizes up to 1mm and aggregates up to 13mm. Significantly high Au concentrations are present in zones with wehrlite mineralogy (Tab.1) (Tistl, 1994). Fig.6: Radar image of the Condoto area with superimposed geological map indicating major magmatic intrusions (yellow circles) and faults (red lines).

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5.2 Viravira The high Mg basaltic complex of Viravira covers an area of ~150km2 (Fig.7). It is genetically related to the Alto Condoto source magma and is thought to represent an early stage fraction of the latter. It has been intruded in the Lower Miocene (Muoz et al., 1990; Tistl, 1994) Within the basalts PGM-bearing serpentinized peridotites (Tab.2) can be found (dunite, harzburgite, lherzolite). Enrichment of PGM in the peridotites is dominated by Pt3Fe alloys. Nuggets of several centimetres in size were found in association with chromite crystals (Muoz et al., 1990). Tab.1: Geochemical data of PGE for lithologies of zoned ultramafic intrusion in Alto Condoto (Tistl, 1994).

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5.3 Mand Batholith The intrusion is of Tertiary age and is characterized by dioritic and gabbroic composition. Areas with anomalously high concentrations of (precious) metals cover an area of 60km2 (Fig.8). In situ mineral occurrences comprise the following: 1) Vein type mineralization 2) Joint and breccia- type mineralization 3) Disseminated mineralization 4) Placer deposits Tab.2: Geochemical data of PGE for serpentinized peridotites of Viravira complex (Tistl, 1994) Fig.7: Geological map showing zoned Alaska-Type ultramafic complex Alto Condoto and serpentinized peridotites of Viravira (black dots). Course of Condoto River leads right through anomalously PGM enriched dunite core of zoned intrusion. (Tistl, 1994). The main ore mineral is pyrite which has been found accompanied by copper minerals. Argillitic

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alteration in vein type structures is characteristic and within these zones gold occurs along with pyrite.Further, copper mineralization related to (rhyo)-dacitic porphyry bodies is present. Minor associations with gold occur in stockwork and disseminated copper ore types (Feldhaus et al., 1988).

5.4 Other magmatic and hydrothermal processes Further intrusions related to the Mand Batolith have been reported (e.g. ANH -Dunia, 2005) but maps are not for public access. The intrusion La Esperanza has been investigated but does not show up in any maps. The significance of these unmapped features lies in the gold mineralization that can be expected from intrusions related to the Mand Batolith. During a field investigation in July 2010 a vast number of dioritic/quartzodioritic blocks were encountered in the stream sediments of four neighbouring creeks north of the Ir River (Fig.9). However, no intrusions are mapped despite a significant morphology with streams forming a radial shape, pointing to a common centre point. This observation gives rise to the presence of a dyke or stock intrusion. Fig.8: Preliminary map 203 Pueblo Rico showing Alto Condoto zoned intrusion (red arrow) and, Mand Batolith (blue arrow). Viravira formation does not occur in map. (Zapata and Cossio, 999).

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5.5 PGE content in rocks : In the Alto Condoto area the concentration of Pt in rocks varies. Dunites contain ~0.09ppm and clinopyroxenite ~0.12ppm. Rocks of the Viravira exhibit minor concentrations, ranging between 0.007 and 0.021ppm in serpentinized peridotites (Muoz et al.,1990). Additional data for PGE in the rocks of Alto Condoto indicate ~0.043ppm in dunites and ~0.136ppm in clinopyroxenite. The highest concentration of ferroplatinum PGM has been reported for the central dunite core (Tab.1). Analyses for concentrate samples of the Alto Condoto area revealed varying contents for Pt between 0.031ppm and 0.15ppm and for Pd beween 0.015ppm and 0.056ppm. For Au values between 0.21ppm and 0.68ppm have been reported. Concentrates of the Viravira serpentinites exhibit values of 0.47ppm for Pt and 0.48ppm for Au (Tab.2). The results of the geochemical survey revealed that along the Condoto River three distinct zones can be differentiated that are mineralized with Pt and Au: 1. The El Paso area (Fig.10) is characterized by the exclusive presence of Au. 2. The zone between the Corodo and Mestiza streams exhibits a mixed presence of Au and Pt with a proportion of 1:1. 3. From the Mestiza stream to the source area of the Condoto River PGM contents are higher than those of Au (Muoz et al., 1990). Fig.9: Blocks of dioritic/quartzodioritic composition as part of stream sediments in minor creeks, indicating the presence of a magmatic intrusion not occurring in geological maps.

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_ Business Royals, Board Directory, consortiu.

5.6 Fractures The tectonic setting of the area is very dynamic. Convergence of faults with northern direction leads to an interaction with those in NE direction. The setting is particularly favourable for the development of implosion-breccias. This dynamic process could explain the presence of intrusive bodies and dykes of quartzodioritic composition that are mineralized with Au. Further, Au mineralization related to fracture development can be found within and around ultramafic bodies.The tectonic framework of an area dominated by shear zones further gives rise to the prospect of epithermal Au deposits. 6. Placer Deposits:

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Recent alluvial deposits as well as alluvial terraces in the Condoto and Ir River area are an important source for precious metals. The minerals of the ultramafic intrusions offer little resistance to weathering. Contact with stream water leads to erosion of the complex by the break-down of these instable minerals. As a consequence the weathered host rock releases more stable mineral phases and precious metals, which are not affected by weathering. While the ultramafic host rock material is being transported relatively far from the source in a particular or dissolved state, the heavy minerals and precious metals tend to sediment quickly. The distance they are being deposited away from the source depends from the particles characteristics as well as from the energy environment of the stream. Deposition occurs where the energy of the stream drops below the minimum value required for keeping the according particle in suspension. The energy environment of a stream is not homogenous and favourable areas for heavy particle deposition are commonly related to point bars in meandering rivers or the downstream side of natural riffles (Carling et al., 2006a, Carling et al., 2006b). Gold and platinum are deposited along with other heavy minerals (e.g. magnetite, chromite) where they accumulate upon an infiltration layer by hydraulic sorting. This natural process leads to local concentrations of precious metals and the formation of alluvial placer deposits. Generally, coarser gold and platinum grains can be found in the upper reaches of channels where it is deposited along with coarser sediments. Finer fractions of the precious metals are related to finer sands. The largest PGM nuggets found in the Condoto area were found proximal to the source and had several hundred grams in weight. Platinum and gold grains from these areas often exhibit grain sizes >5mm. Gold and platinum produced from the current mining site in Condoto exhibit small sizes (<2mm) and a significant laminar shape. Grains with a low length/thickness are not common. Laminar shaped particles are in favour of distant transport due to their great surface relative to their weight. Precious metal recovered from the current mining site could be interpreted as the fraction which is in favour of distant transport and able to pass hundreds of potential trap sites between its source and eventual location of deposition. Grains that exhibit a less laminar and more common rounded nugget shape are more likely to be entrained towards the source. The highest concentrations of placer Pt and Au should be expected close to the source (Alto Condoto, Viravira, Mand Batholith). Alluvial gold and platinum, which traditionally have been exploited in the alluvial deposits and terraces of the San Juan and Condoto River, correspond to the former license area 1313. These deposits had been worked with dredgers (Fig.11) by the company Choco Pacifico at the beginning of the 20th century as well as recently by the company Mineros del Choco S.A.. In a study for reactivation of the mining activities of Mineros del Choco S.A., exploitable reserves of 16.7 tons for gold and Fig.11: Historical dredges used for exploitation of alluvial placers byChoco Pacifico and Mineros del Choco S.A.platinum were calculated for the Rivers Certegui, Quito, Bebarama, Bebara, Pune, Sipi, San Juan and Tamana, corresponding to a concentration of 0.2gr/m3 of gold and 0.3gr/m3 of platinum, and being a testimony for high grade alluvial deposits in the area (Mineralco, 1984). Given that the depth limit of dredgers lies at ~8m, it is important to consider the reserves lying in deeper zones (~20m) that are significantly richer in precious metals and have not been exploited by traditional techniques. Geological maps that fully reveal the extent of quaternary alluvial deposits in the area are not available. This especially applies to the zones proximal to the sources of Au and Pt which are expected to have the highest concentrations in precious metals.
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6.1 Mining site Condoto:

The current mining site is located near the village of Condoto and its geology corresponds to an alluvial fan (Fig.12). Exploitation takes place in an open-pit mine which is being worked with excavators and large pumps to move several hundred tons of material daily. Fig.12: Location of the mine in alluvial fan (light blue). Coordinates: Lat 50 5,6 Long 760 38,9 6.1.1 Au and Pt in alluvial deposit Open pit mines allow a detailed study of the present geological conditions (Fig.13+14). Investigation of the profiles revealed various horizons, beginning with an 810m top-part that exhibits characteristics distinct from alluvial material. This horizon bears fine sand to pebbles which is typical for alluvial material, but it is significantly matrix supported and does not show any signs of imbrication. Thus, the first 8-10 meters are interpreted as tailings from previous mining activities in the area. However, current production reveals very good results in both the recovery of Au and Pt. Beneath this zone lies a unit that varies with thickness, depending on the position of the subsequent layers. This unit is characterized by the presence of fine sand to pebbles and its appearance is quite similar to the overlying zone. However, pebbles exhibit imbrications and form a grain-supported deposit. It is thus interpreted as a virgin alluvial deposit that has not faced previous exploitation.

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At the bottom part of the unit lies a horizon that bears the same structural characteristics but is distinct in its dark grey to black coloration. The sand fraction of this horizon is significantly enriched with dark, heavy mineral particles. This bottom part is called the Cinta, which is the richest zone of the alluvial zone (including Cinta), Saprolite sequence and bedrock (Pea).Pea, Saprolite, Cinta Alluvial sediments Pt and Au bearing ancient tailing profile in terms of Au and Pt contents and other heavy minerals. The alluvial horizon is limited by the basement (Pe), which is a sedimentary rock composed of limolite and mudstone. The rock exhibits a homogeneous grey colour and is characterized by compaction rather than cementation.

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6.1.2 Prospect for ultramicroscopic Au: Locally the alluvial material has been affected by intense tropical weathering. The original structure and imbrication of grain supported pebbles have been preserved but the material has undergone a drastic compositional change. The minerals of the clasts and the surrounding matrix, depending on their original composition, have been entirely replaced by a
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variety of clay minerals. This lithology is thus termed saprolite (Fig.15). Saprolite can occur throughout the geological profile and has been discovered overlying the basement and upwardly followed by the Cinta (Fig.16). In other areas it is overlying unweathered alluvial material. Saprolitization occurs locally where alluvial channels have been temporarily abandoned and exposed to near surface weathering conditions. A kilometre scale investigation near the current mining area revealed the presence of saprolite in many sites and it is thus considered an important part of the regional geology.

Fig.15: Saprolite profile comprising unoxidized grey part and orange-brown oxidation layer on top. Locally layers of organic material divide these units. A saprolite profile taken from the mine (Fig.15) exhibits a horizon with reducing conditions (grey), overlain by an oxidized layer (orange-brown). Local anomalies in Au concentration in saprolite (formerly an Au and Pt bearing alluvial deposit) are caused in part by chemical mobility in solution during weathering. Mobility of Au is related to the formation of complexes with humic acids caused by rapid degradation of organic matter in soil (Anand, 2001). The presence of a partially preserved layer of organic matter in the profile indicates favourable conditions for redistribution of Au within the profile. Reprecipitation of Au from the solution is related to the formation of iron oxides (e.g. goethite), which is commonly observed to be associated with ultramicroscopic gold (Mann, 1984; Hong et al., 1999; Anand, 2001; Yang, 2009). Iron oxides are present within the orange -brown oxidized layer.Analyses of Au-bearing saprolite by Hong et al. (1999) revealed a significant enrichment of Auin clay minerals (75%) relatively to goethite (25%). The author attributes this to the highly adsorbing nature of clay minerals and their large crystal size and surface compared to the fine gold particles. Observations by Anand (2001) confirmed that Au is not necessarily associated with Fe-oxides, but can be concentrated in clays. Secondary gold particles adsorbed on clay and Fe -oxide minerals exhibit remarkable purities, up to a total absence of impurities (Mann, 1984; Hong,2005).

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The presence of ultrafine/ultramicoscopic gold in primary placers and in saprolitic material is significant to the exploitation process. It is assumed that it cannot be recovered by traditional methods that have been used by mining operators in the area to date (e.g. Classificador; Fig.18). Thus, ultramicroscopic gold and its association with other minerals bear great potentialfor exploitation with more sophisticated methods from (1) alluvial deposits, (2) saprolite and (3) mine tailings from previous exploitation activities.

(Fig.17). Fig.16: Yellow-brown coloured saprolite unit overlying bedrock (not in image) followed Pt and Au rich greyish Cinta on top. Cinta Saprolite Recovery of free ultrafine gold is currently under investigation by integrating a KNELSON gravity concentrator into the recovery process (Fig.19). Compositional analysis of the saprolite, alluvial material, and mine tailings
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(Fig.17) of the Condoto mining area is currently being performed as part of a research project at the University of Freiburg, Germany. Fig.17: Sampling of mine tailings in impoundment of the EXTRACON mining site. Rich in plastic and clay rich material with high potential for fine-grained free Au and Pt and associations in minerals.

NOTE: Current technology used at an open pit mine operation in the area. This equipment is not as efficient as the Helix Systems. Currently they are recovering 1 KG of Gold per day.

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Fig.18: Classificador produces concentrate of heavy minerals and metals from alluvial material by adding huge amounts of water to create a slurry. Laminar Pt and Au particles get trapped amongst other heavy particles in fibres of carpet mounted under a lattice on the inclined ramp. Fig.19: Recovery installation E200 for fine Au and Pt consisting of scrubber unit and KNELSON batch concentrator. 6.2 Paleochannels Recent alluvial deposits of the San Juan, Condoto and Ir Rivers have been documented and worked traditionally. However, there is a great possibility of detecting further ancient channels that have had a distinct course (Fig.20). The active tectonic setting of the area that corresponds to a continental margin has given rise frequent landform changes during the quaternary. Adapting to changes in morphology abandonment of river beds has led to the development of paleochannels. These alluvial deposits constitute an additional major source for Au and
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Pt, which is uried under a top layer of soil and covered by vegetation. Thus, they do not exhibit any form of surface manifestations and are yet to be discovered.

Fig.20: Alluvial profile from the Condoto River area as a schematic example for subsurface Paleochannels. 7. Aspects for exploration Following up on the initial stage of recognition a more detailed investigation of target areas will have to be performed. For this exploration phase two main issues should be considered. 7.1 Geological Maps The availability of geological maps with adequate scale that can be utilized to initiate exploration is limited. The publicly available maps published by INGEOMINAS of the zones 203 and 204 are considered preliminary. This was proven during field investigation of the area in August 2010 where these maps were proven to lack a great deal of both precision and data. In contrast to other working environments imprecision of maps cannot be easily compensated in the field due to difficult ground conditions, meaning that coordinates have to be precise. 7.2 Remote Sensing Remote Sensing is a technique that utilizes satellites to acquire multispectral data of a desired area. By manipulation of raw data it is possible to visualize certain geological features, including those that have not been discovered yet and do not have any surface manifestations. Waves of certain frequencies are able to penetrate through geological units in great depths and are thus considered a tool for remote subsurface exploration. The applicability of the Remote Sensing technique is given by its ability to detect and map aseries of features that are of major interest to this project. These features comprise (1) Paleochannels (paleoplacer deposits), (2) fault zones (association of mineralized intrusions), and (3) zones of hydrothermal alteration (e.g. vein gold deposits). The great advantage of this technique in
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respect to the problems described in the previous section is that mapping of geological features can be done without accessing the area. Further field investigation will then be undertaken for validation of maps produced by remote sensing. 8. Discussion and Results 8.1 Mineralized intrusions and structural context The Condoto area hosts several magmatic intrusions that have proven to be rich in precious metals, and different types of mineralization processes for Au and Pt have been recognized. Preliminary data is available for the Alto Condoto ultramafic complex and the related serpentinized peridotites of Viravira, as well as for the Mand Batholith. However, the structural context has not been entirely decrypted and previous studies have failed to give a detailed explanation on the presence of these intrusions, especially in respect to the Viravira complex. The area is limited by faults of regional importance. Rocks are densely fractured but the distribution of those fractures is not mapped. Interpretation of the structural dynamics is very much on a regional scale and lacks detail. Field observation suggests that geological maps lack a great deal of data and precision and that there are a number of mineralized bodies that have not been recognized yet. This observation is in accordance with the structural context, which is in favour of the presence of further intrusions contributing to the economic significance of the Condoto area. It is necessary to create geological maps with more detail in terms of precise stratigraphy of sedimentary rocks, consistent structural descriptions, and differentiation amongst the units of economic interest corresponding to magmatic and volcanic lithologies. 8.2 Alluvial placer deposits The presence of high grade placer deposits has been acknowledged for decades and historic exploitation near Condoto village was achieved by dredges. However, the depth limit of these machines is about 8m and the rich zones above the bedrock, which lie at a depth of about 25m at the mining site in Condoto could not be reached. This has been confirmed by studying an alluvial profile that shows ancient tailings in the upper part (8m-10m) and original alluvial material in the lower part, limited in its thickness by the bedrock and hosting the richest zone in respect to Au and Pt placers. However, Au and Pt is also present in the ancient mine tailings, attributed to poor recovery processes. Regarding the formation of placer deposits a unique set of conditions can be encountered in the Condoto area. The minerals of ultramafic rocks hosting significant portions of Au and Pt in the Alto Condoto area bear the lowest resistance to weathering effects amongst all known minerals. Dunite in particular is easily dissolved by water and subsequently releases stable minerals and metals that are not affected by weathering. In the Alaskan Type ultramafic complex the course of the Condoto River leads right through the anomalously Pt-enriched dunite core. Further, alluvial processes are particularly effective in the Condoto area due to one of the world-wide highest precipitations of >8,000mm annually. The Condoto area corresponds to an active continental margin, giving rise to frequent landform changes. The course of rivers is entirely dependent of the morphology of the area and as it changes riverbeds may be abandoned. This process leads to the development of paeleochannels hosting paleoplacers. A lack of knowledge regarding their position is in accordance with the preliminary work that has been conducted so far. The Ir and Condoto rivers have a meandering character and each meander presents a potential trap site for the heavy metal particles, due to low energy zones related to point bars.
31

Thus, higher contents in precious metals are expected in the alluvial material more proximal to the source. The distance between the current mining site and the Alto Condoto ultramafic intrusion is an estimated 80km following the current course of the Condoto River and yet results are very satisfying. Gold and platinum produced from the current mining site exhibit very small grain sizes and have a laminar shape. This character differs significantly from the coarser and rounder grained Au and Pt particles reported by Muoz et al. (1990) that have been found further upstream towards the mineralized intrusions. Concerning the fine character of grains recovered at the mining site there is a high potential for ultrafine gold that has not been able to be recovered yet. U ltrafine to ultramicroscopic gold is assumed to occur as primary placers as well as in saprolite profiles that have been strongly affected by weathering and undergone significant chemical changes. Saprolite profiles occur throughout the alluvial material and are an important part of quaternary deposits. Recovery of ultrafine gold and platinum is currently under investigation by integrating a KNELSON batch concentrator into the recovery process. Chemical and mineralogical analysis of alluvial material as well as high potential mine tailings is currently being performed as part of a research project at the University of Freiburg, Germany. In 1984 Mineros de Choco S.A. calculated the joint reserves for gold and platinum to be 16.4 tonnes. However, this number only refers to certain zones and do not comprise the whole alluvial system with potential for Au and Pt placers. 8.3 Exploration aspects As discussed in the previous sections there is a great demand for detailed and reliable maps. Regarding the challenging field work conditions remote techniques should be considered most time and cost effective. Remote sensing will allow creating geological maps that do not rely on field data but produce high quality images that reveal geological features corresponding to subsurface structures, alteration zones and position of paleochannels. Further, precise topography data and high quality satellite images substituting high-cost aerial photography images are essential for exploration planning purposes. Where applicable, geophysical methods such as gravimetric and magnetic methods can be used to back up remote sensing to yield a more detailed view on the geological conditions in areas of interest. Using these maps it is possible to add dimensions to the sole recognition of va rious types of metal deposits. This process will be followed up by further field investigation for validation of these data, combined with a comprehensive geochemical survey in target areas to confirm their potential. Apart from Au and PGE there are a number of metals occurring in great quantities bearing economic deposit potential comprising Ni, Co and Cr.

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9. Conclusions The tectonic framework exhibiting inclined strike-slip faults and the presence of Au/Pt mineralized rocks present a good exploration target for precious metals. Historic exploitation of Pt and Au placers in the area and the presence of hard rock deposits of Au and Pt in the Alaskan Type and further ultramafic intrusions indicate a good exploration target for precious metals. Climatic conditions with high mean annual temperatures and intense precipitation are in favour of dissolution processes and subsequent concentration of precious metals in alluvial sediments. Proof of this process is well documented in the Au and Pt rich profiles of the mining site, with higher-grade deposits expected further upstream. Superfine particles of precious metals bear great potential for alluvial material and Au/Pt bearing mine tailings. A lack of updated and reliable geological maps requires the initiation of a detailed geological survey to get clarification on the distribution of rocks. 10. Recommendations Using remote sensing to reveal the distribution of paleochannels of the major rivers Condoto and Ir and to identify their ancient courses to detect paleoplacer deposits. Differentiation of geological units by using remote sensing and a detailed geophysical survey, and further identify zones of hydrothermal alteration indicating the presence of vein type mineralization with precious metals. Detailed geophysical prospecting to determine gravimetrical and magnetic anomalies revealing limits of geological units and traces of faults that have potential for mineralization with Pt and Au. Preferably in situ analysis of element composition to define anomalies of metals and delineate bodies mineralized with Pt, Au, Ni and other metals of economic interest such as Cr and Co. Reinterpretation of the geology in the study area, taking into account that the available maps are preliminary and do not reflect the conditions observed in a recent geological field trip. 11. References Anand, R. R. (2001). Evolution, classification and use of ferruginous regolith materials in gold exploration, Yilgarn Craton, Western Australia. Geochemistry: Exploration, Environment, Analysis 1(3), 221-236. ANH-DUNIA (2005) Cartografa geolgica en el rea de la subcuenca Atrato - San Juan, Departamento del Choc. Contrato 078 de 2005 Informe de integracin e interpretacin de la informacin geolgica de campo. ANH. Carling, P.A., Orr, H., Kelsey A. (2006): The dispersion of magnetite bedload tracer across a gravel point-bar and the development of heavy-mineral placers. Ore Geology Reviews (28), 402-416. Carling, P.A., Breakspear, R.M.D. (2006): Placer formation in gravel-bedded rivers: A review. Ore Geology Reviews (28) 377-401.Feldhaus, L., Muoz, R., Salazar, G., Tistl, M. (1988): Prospeccion en semidetalle para metales preciosos asociados con metales con metales basicos. INGEOMINAS, 1-160.Hong, H. and L. Tie (2005). Characteristics of the minerals associated with gold in the hewushan supergene gold deposit, China. Clays and Clay Minerals 53(2), 162-170.

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Hong, H., Q. Wang, J.Chang (1999). Occurrence and distribution of invisible gold in theShewushan supergene gold deposit, southeastern Hubei, China. Canadian Mineralogist 37(6),1525- 1531. Mann, A.W. (1984). Mobility of gold and silver in lateritic weathering profiles: some observations from Western Australia. Economic Geology 79, 3849 Mineralco (1984): Proyecto de reactivacion de mineros del Choc S.A. Aporte 1313. Muoz, R., Salinas, R., James, M., Bergmann, H., Tistl, M. (1990): Mineralizaciones primarias de PGM y oro en lascuencas de los rios Condoto y Ir, Choc, Colombia. Bundesanstaltfr Geowissenschaften und Rohstoffe (BGR) + Instituto Nacional de Investigaciones GeolgicoMineras (lNGEOMINAS), 1-304. Tistl, M., Burgath, K.P., Hhndorf, A., Kreuzer, H., Muoz, R., Salinas, R. (1994): Origin and emplacement of Tertiary ultramafic complexes in northwest Colombia: Evidence from geochemistry and K-Ar, Sm-Nd and Rb-Sr isotopes. Earth and Planetary Science Letters (126), 41-59. Tistl, M. (1994): Geochemistry of Platinum-Group Elements of the Zoned Ultramafic Alto Condoto Complex, Northwest Colombia. Economic Geology (89), 158-167. Yang, Y., S. Liu and Z. Jin (2009). Laterization and its control to gold occurrence in Laowanchang gold deposit, Guizhou Province, Southwest of China. Journal of Geochemical Exploration 100(1), 67-74. Zapata, G., Cossio, U. (1999): Geologa de la Plancha 204 Pueblo Rico. INGEOMINAS. Zapata, G. (2001): Geologa y Geoqmica de la Plancha 204 Pueblo Rico. INGEOMINAS, 8-67. Zapata, G. (2005): Diagnostico de la Plancha 204 Pueblo Rico (Risaralda). INGEOMINAS, 142.

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35

MARKETING PLAN
Market Research We already have agreements with owners and equipment sellers to start production as soon as the investment is available and the Corporation for each mining site is created. We also have other mining ventures but we want to go one Phase at a time. The metals are already sold and we are ready for production.

Economics -

Facts about Mining Operations:

Precious Metal Market is trade in daily basis in the London Metal Exchange. There is always demand for Gold, Platinum, Palladium, Silver, Copper, Tin, and rare metals. There is no competition because there are no enough precious metals available in the market. Market Share is not a major factor. The main factor is how many tons per hour you can process to recover the precious metals and rich is the mineral ore Current demand in target market is huge. For example platinum and palladium requirements will be required for pollution controls as the Clean Act and Carbon emission agreements are enforced. Gold and silver are used in the manufacturing of electronic products, jewelry and also as secure wealth. Each mining site has two phases. Initial machinery/investment recovery in phase one and in phase II is to purchase bigger mining equipment to increase production. Mining is a business of moving dirt and processing mineral ore to recover the metals. Our main barrier are the following:
o o o

Equipment Cost and Maintenance. Training and skills. We need to train the people. Mining is not an usual trade. Compliance of Local Laws to ensure we have companies in compliance with local laws. Security is a main factor because of the price of the metals.

APMR will train the people at the mining site to ensure it is operational and will maintain spare parts on hand to ensure the equipment will continue working as per schedule. We will procure good used auxiliary equipment (low hours) like excavators, dozers, conveyors, and trucks to save money. Other Areas:
o

Change in technology Will maintain an open mind to new technologies along with training and recruiting of mining experts. 36

Change in government regulations We will maintain an attorney in our R&D department to keep up with changes in government regulations. By helping the community we work in we will maintain a good relationship with the government. Change in the economy will not affect us because the margins of operational cost versus return on investment are very wide. Our main goal is to cover the investment first. Equipment Ownership of the equipment will be with the investors until the company pay for the initial investment. This is to protect the investors.

Competition:

We need to move quickly because there are many mining operations looking to expand their reach into new mines. For example one of the mines in Mexico is of extreme interest to a Canadian firm. But he owner already has an agreement with us. . Now analyze each major competitor. In a few words, state how you think they compare. In the final column, estimate the importance of each competitive factor to the customer. 1 = critical; 5 = not very important.

Table 1: Competitive Analysis

FACTOR Products Price Quality Me 1 1 1 1 1 1 1 1 Strength 1 1 1 1 1 1 1 1 Weakness 5 5 5 5 5 5 5 5 Competitor A N/A Competitor B N/A Importance to Customer 1 5 1 5 1 1 1 1

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Selection Service

Reliability

Stability Expertise Company Reputation Location

1 1

1 1

5 5

5 5

Appearance

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FACTOR Sales Method Credit Policies Advertising

Me 5

Strength 5

Weakness 5

Competitor A

Competitor B

Importance to Customer 5

N/A N/A N/A N/A

N/A N/A N/A N/A

5 5

5 5

5 5

5 5

Image

THERE IS NO COMPETITION ON THE SELLING OF THE PRODUCTS.

Niche
Our Mining operations and resources are the key to the final product. We already have analyzed the samples and the content per ton of precious metals is very high.

Strategy
Our marketing strategy is simple.

Get it out from the ground!!

Promotion
We do not want advertising because security is an issue. The less people know about our mining operation the better it is for the security. How will you get the word out to customers? Only takes one phone call to key companies. They are always looking for product. We decided to send our products to Colt because they are reliable and I have been working with them for 4 years. What image do you want to project? How do you want customers to see you? We want our customer to see us as a reliable trustworthy supplier. We want to keep a low profile!!!.

Pricing
The pricing for our products is according to the international metal market. Do visit

www.kitco.com.

We do not control pricing but we do not want to overload the market so we will maintain a steady flow of material and we will sell as we see fit. Supply and demand is always the key factor. There is no discount in our products.

Proposed Location:
SPECIFIC DETAILS UPON REQUEST. CONFIDENTIAL INFORMATION. IT WILL BE DISCUSSED WITH REAL INVESTORS AS REQUESTED AND DEMONSTRATED CAPITAL AVAILABLE. METALS ARE MAINLY GOLD, SILVER, PLATINUM. THE METAL CONTENT PER TON IN OUR MINING SITES IS VERY GOOD!. With the mining equipment we can have a production of over 100,000 usd per week in metal. 38

Operational Plan
Each alluvial team site will have 3 people. The team leader will be active in the operation and security of the minerals. An external auditor will keep track of the production. Each day there will be a production schedule and safety meeting. The team leader will perform an equipment check before during and after the production including maintenance check and services. Every Friday is Maintenance day. Each team will maintain weekly production report along with operating maintenance schedule of each piece of equipment. We will maintain an hour log book for every machine. We will maintain spare parts at the site to ensure minimum down time. The small excavator will feed the equipment and will put the dirt back where it was taken out to ensure we reclaim the land as we recover the precious metals limiting the environmental impact in the area. Training will be extensive at the beginning and safety is critical because of the water nature and movement of equipment in the area. Weekly and Monthly reports will be shared with the Investors to ensure everyone is informed. Explain the daily operation of the business, its location, equipment, people, processes, and surrounding environment. Upon completion of the shipment we will start a tracking process for everyone involved and Colt Refining will issue the final refining report which will be maintain by lot number and results. Each investor will have the opportunity to decide what to do with their share of the metals.

Production

The production will be done by steps. Step one is set up with explorer teams. Step 2 is training, Step three is production and Step 4 is adjusting the production according to the equipment and type of material. Our target is 1 tons and hour and increase to up to 2 tons an hour x 8 hours x 5 days a week. We will not work at night for safety issues. Limited visibility and rain are a recipe for disaster. Our ore metal will be pick up by a small excavator fed to a concentrator and ship to shipped via Air to the Refinery. All the metals will be properly insured and accounted for.

Production techniques and costs: Patented Low g Technology with recovery up to 99% of the metal. Mineral Ore ground up to 100 mesh. Operating Cost $350.00 usd per day per Team plus production Bonus per month. To Be Determined (TBD). Quality control : Site supervisor will ensure production schedule and will maintain a log book of down time. Also equipment performance has to be documented. If a spare part is used a new one will be put on order immediately. Customer service Site Owner will maintain production records and American Precious Metal Recycling will maintain active follow up with Colt Refining to maintain active tracking of materials and assay exchange. Inventory control - Daily report of production and each Friday Shipping every Monday to USA. Colt Refining will maintain lot integrity and reporting.

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Refining the Plan

For Investors Funds needed short-term = 3MILLION DOLLARS/ 3 MILLION PER MINING SITE. o Funds needed in two to five years = NONE o How the company will use the funds, and what this will accomplish for growth FUNDS WILL BE USED TO PURCHASE EQUIPMENT AND SET UP THE OPERATIONS. o Estimated return on investment = 4 Million Dollar first year, 7.5 Million Second Year worst case scenario estimate. Each mining project is an mining unit. o Exit strategy for investors (buyback, sale, or IPO) = First option for buy back to other investors and American Precious Metal Recycling. Second option Land Owner. o Percent of ownership that you will give up to investors = 30% in Bolivia o Financial reporting to be provided = Monthly Production Reports upon completion of the project and weekly reports when we are in developing stage. o Involvement of investors on the board or in management Investors are considered members of the board.
o

Mining Operations. Planned production levels 39 MILLION PER YEAR IN SITE ONE AND 39 MILLION IN SITE TWO IN MEXICO. BOLIVIA OPERATIONS SITE ONE 35 MILLION DOLLARS PER YEAR AND SITE 40 MILLIONS PER YEAR.

Anticipated levels of direct production costs and indirect (overhead) costshow do these compare to industry averages (if available)? 100,000 USD PER MONTH. THIS IS MAINLY THE WEAR AND TEAR IN THE EQUIPMENT. Prices per product line COMPLETE MINING OPERATION PER SITE IS 2L5 MILLION USD AND $500,000 USD IS FOR OPERATION COST AND MAINTENANCE FUND.

Gross profit margin, overall and for each product line - EACH MINING OPERATION SHOULD HAVE A GROSS PROFIT PER SITE APROXIMATELY 39 MILLION USD PER YEAR. Production/capacity limits of planned physical plant WE WILL START THE PRODUCTION AT 30% CAPACITY AND WE WILL RUN IT AT 50% CAPACITY. IF WE SEE THAT THE OPERATION IS GOING WELL WE WILL CHANGE THE EQUIPMENT FOR A LARGER RECOVERY UNIT AND EQUIPMENT. THE OLD EQUIPMENT COULD BE USED TO BE MOVED TO OTHER MINING SITE. EACH AREA IS HUGE AND CAN ACCOMMODATE EASILY 3 OR FOUR MACHINE PER SITE. Production/capacity limits of equipment 20 TONS PER HOUR IN PHASE ONE AND 100 TONS PER HOURS IN PHASE TWO BY USING LARGER EQUIPMENT. Purchasing and inventory management procedures ALL PURCHASING AND INVENTORY MANAGEMENT WILL HAVE CHECK AND BALANCES. INVESTORS WILL NOW HOW THE MONEY IS EXPEND AND RESULTS. 40

New products under development or anticipated to come online after startup BIGGER EQUIPMENT LIKE THE MMP200 200 TONS PER HOUR. THIS IS A STEP UP. We will build a 30,000 gallon reservoir to reuse the water in the operation. The water trucks will be used as reserve just in case. Water Reservoir 29000 gallons

MINE SITE 25 IST CONCENTRATION 300 GALLON PER MIN 100 TON HOUR AGREGATE OPS\REDUCTION 100 mesh mesESHSMEX MPP

SECOND CONCENTRATION

Laboratory Fire Assay/Smelting

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MPP 25 MINING
SITE COMPLETE 100 TON PER HOUR COMPLETELY PORTABLE UNIT. SHIP IN TWO CONTAINERS

MPP 10 MINING SITE COMPLETE 10 TON PER HOUR COMPLETELY EXPLORER TEAM

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