An Eco-friendly Gold Leaching Reagent and An Innovative Gold Leaching Technology for SSM (Small Scale Mining) Gold Mine operations,

Presented to

Senegal Government

By John Guo (P. Geo. Ph D),

Geoconsulting & Technical Services

March 9, 2016

Project Objectives

• Introduce eco-friendly gold leaching reagent to replace the toxic cyanide and mercury in artisanal and Small Scale mining (SSM) gold mining in Senegal,

• Introduce an effective VAT(Pool)-leaching gold mining method to improve gold recovery,

• Training local artisanal and SSM miners how to build an effective Pool leaching facility for gold extraction,

• Training local artisanal/SSM miners how to do gold leaching and improve gold recovery with a simple way,

• Convert artisanal/SSM mining operations from out-of-date operation to a green and sustainable economic activity in the 21 century .

Significances • Get rid of the toxic cyanide and mercury from gold

mining operations,

• Ensure a safe and eco-friendly gold mining activity in Senegal and expend this work ethic to its neighboring countries in west Africa,

• Significantly improve gold recovery and local workers’ family income,

• Increase Senegal’s national gold production by its own citizens not by foreign gold mining companies.

Environmental Problems caused by cyanide and Mercury

Dead fish in local river Poisoned by leaking cyanide solution in Zimbabwe

Cattle dead after drinking cyanide contaminated water

In Tanzania

In Guatemala

Health Problem Caused by Cyanide and Mercury in Artisanal Mining

Eco-Goldex Reagent

• 100% eco-friendly! Easier and quicker approval for project permitting!

• No environmental contamination risks, easier community acceptance and

support of your project!

• 100% replacement of cyanide in gold leaching operations!

• Simple system, same as cyanidation, No change on existing ore process

flowsheet!

• Low-toxic, treated as ordinary chemical; Simple logistics significantly

reduce your project operation costs!

• Proven success in commercial gold mine operations in China, SE Asia and

African countries.

• Unique business model minimize your project risk; Your project is under

your control!

Product web site: Eco-goldex.com Product user forum website: eco-friendly-gold-leaching.com

Poor Gold Recovery Rate is a common problem in Artisanal and SSM mining in Africa

Usually, gold recovery rate is about 40-50 %

Tailing materials usually contains Au:~1-2 g/t, many of them as high as 10-13 g/t

Sampling in tailing materials to check Au grades

Tailing Samples are ready for assay in Lab

Tailing Material Assay Results indicate a lot of gold still not recovered in the rejects

Artisanal /SSM Gold Ore Pool Leaching Flowsheet

An Innovative Pool Leaching System can improve gold recovery rate up to 90%

Pool Leaching Process Description Ores/Tailing materials are transported to process site;

Materials are crushed (if necessary) using hammer crusher;

Crushed materials are loaded into leaching pool with loader;

Material is leached in pool for about 10 days; leaching solution is cycled three times in the whole process before discharge the material out of the pool;

Pregnant solution is pumped into CIC; diluted solution is pumped back to dilute solution pool for recycling.

Gold bearing carbon will be burned and gold will be recovered through refinery;

Leached ores in pool are discharged by excavator and reload new ores into the pool for next leaching process.

Pool Leaching Advantages • Simple system: loader, excavator, generator, water pump, Eco-

goldex reagent, activated carbon,

• Low capital investment requirement. A SSM operation needs only about 100K-150K USD to start,

• Portable and scalable, n x1000 tonnes – 100K tonnes materials are workable with pool leaching method,

• Safe, green and environmentally clean, easy to operate,

• Leaching solutions are in a closed system and recycled, processed materials no de-toxic process because they contain no contamination chemicals (actually can be used as fertilizer).

How VAT Leaching Process

The most commonly used VAT leaching facilities in developing / undeveloped countries have their innate technical drawback which causes Poor Permeability and circulation of leaching solution and low gold leaching rate and recovery rate.

Ore loaded in VAT

Ore in leaching

Prepare VAT

Ore discharged after leaching is done

An innovative VAT leaching facility with a special designed grid and geometry layout significantly improves leaching solution permeability and circulation in the VAT and accordingly improves gold leaching and recovery rate by 20% compared with what the most SSM miners are using in the market.

Front-Loader to Load Material into VAT

Tailing Material Re-processing Cost and Profit

Item Amount/t unit unit cost($/t) Eco-Goldex reagent 0.6 kg/t (ore) 2.4

Fuel +Power 1.2

water 0.15 t/t 0.75

Equipment cost 1.5

Manpower cost 1.55

Administration 0.85

Refinery 1.5

contingency 2.5

total 12.25

Assume 1 tonne material with average Au grade of 3 gram and 80% recovery, Au price: 1200$/Oz, 1 tone material value is: 3*80%/31*1200$/Oz = 93$. After deducting operation cost, 1 tone material net profit is: 80$

Pilot Project Capital Investment Budget • Wheel Loader: 30K USD

• Excavator: 35K USD

• Truck: 25K USD

• Eco-goldex reagent: 6.5K USD

• 25KW Generator: 12K USD

• Geomembrane: 4.8K USD

• Activated Carbon: 5K USD

• Water Pump, Pipes: 5K USD

• Test agents and consumable Materials: 2K USD

______________________________________________

Total budget: 125K USD

If some of the equipment are available, the start up budget can be further lowered to a minimum 50K USD.

Time Table of the Pilot Project April May June July August

Fund raising

Project partnership

Equipment lead

Site preparation

Operation

Site training

We expect to process about 5000 tonnes of tailing materials (average Au grade 3 g/t, average recovery rate 80%, gold price 1200$/Oz), and the total revenue will be: 460K USD. The 5000 tonnes of material process time will be about 65 days.

Project Partners

• Mine Department of Senegal government

• Geoconsulting and Technical Services (GTS)

• UN Senegal Office, UN Development Program(possible fund source