Start Your Own Gold Mine with target to process 1,000,000 tonnes of tailings

The Tanzanian Mining Act allows Tanzanians to obtain Primary Mining Licenses for purposes of small scale mining. Small scale mining may also mean production of 10 kilograms of gold and more. It means that there are not so many people employed, number of people employed is usually 50 to 200 people while in large scale there are 3000-10000 people employed. Smaller type of equipment is used in small scale mining, while large scale uses huge machines. Small scale mining is usually financed by clients and their partners or partner banks, while large scale mining are usually companies on the public market that are financed by public sales of shares in companies.

Primary Mining License have been introduced to us by one of our associates. Our company Start Your Own Gold Mine knows and have indirect connection to all kinds of people skilled in mining. In Tanzania we know more than 2000 people.

License has been issued in 2018 and is valid for 7 years. If production is conducted on such license, it can be continued indefinitely and extended for further 7 years.

Close distance to the Lake Victoria enables water source to be used for special gravitational processing and usage of equipment meant for recovery of fine gold. It is not larger than 10 hectares or 24.71 acres.

Previous known history of the gold production on land relates to mining of lode ores or mother lodes which are rocks that contain original gold. There is current production of gold out of rock mining methods in a small scale.

The licensed area have been used to collect tailings or remnant ores that have been already processed and which still contain gold that can be recovered. Our company is specialized for tailings processing so to recover up to 98% of gold particles. The estimated size of tailings is up to 3 million tonnes.

Current reports show average of 2-4 grams of gold per tonne and principals are already conducting cyanidation processing and receiving good profits out of it.

Their rate of production is slow. We can improve the rate even 10 times more.

Available resources on the mining land are gold cyanidation plant, and standard mining equipment such as crushers, winches, compressors, generators, for rock mining.

Our intention is to upgrade the mining site so that both rock mining and tailings processing may be conducted.

On October 10th, 2019, we have conducted negotiations with license holders. Present was our director from Kenya due to the fact that he spoke the local language known to certain tribe. Present were all other relevant people and partners.

First negotiation have been concluded in such manner that our side, our company or our clients would receive 60% from rock mining and 40% from tailings for the reason that partners have invested much money into tailings and that they would not like losing values.

However, we said that minimum shall be 50% and we remained until the next site visit is conducted.

We have pre-negotiated 60% for our side, 40% for partners' side in Tanzania, as they are the party which invested into the tailings. On the same site there is rock mining, we have pre-negotiated 60% for our side and 40% for their side.

With the equipment on ground and commitment to start the work, we may negotiate 50% for our side.

In general, the possible yield is so much more than the investment amount and we do not need to be picky with the negotations.

The establishment stage is first 4 months as that is the time necessary to purchase, manufacture, transport available equipment and setup legal agreements with the minining sites.

After the establishment stage comes production stage. With 10 sluices and 10 hours of work per day and gold grade of 0.40 we can make 2400 grams of gold, equivalent to US $127447 per month. We estimate production to 20-50 kilograms per year in the first stage and then due to available mining sites to 50-100 kilogram per month in the second stage.

Until we finalize the Preliminary Site Assessment and Inspection and conduct Sampling Tailings project, we are downplaying the current known information that tailings volume or the volume of the ore dump is 1 million tonnes, instead of 3 million tonnes.

Even though that current gold grade is known to be over 2 grams, we are downplaying the gold grade to 0.50 grams, to be sure that our calculations and estimates will have good practical impact.

Thus for the volume of 1 million of tonnes of tailings multiplied by some average of 0.50 grams per tonne, we are expecting the yield of 500000 grams or 500 kilograms.

Considering that current value of gold is , then the value of 500 kilograms of gold shall be .

Considering that we would be retaining minimum of 40% of that amount, and that taxes are 30% and that expenses of processing shall be estimated to be about 10% of the amount, we may put the values into the table for better thinking.

Time required to accomplish the project is 1-3 years, provided that continous upgrades of grinding and processing equipment is conducted on the mining site.

With 10 sluices and 24 hours of work per day and gold grade of 0.50 we can make 7200.00 grams of gold, equivalent to US $265680.00 per month. Increasing the number of sluices and grinding capacity, we can speed up the execution of this project.

This report will get more accurate estimate of the opportunity after the finalization of the Preliminary Site Assessment and Inspection and Tailings Sampling project.

A locally registered Tanzanian company need not be the main bearer of the business. When foreign company is main investor, the money may be invested with the purpose to deliver gold with discount. This means that a tax structure may be devised that UAE company or other offshore company regularly orders gold with discount. Because companies are from the same investor, the discount may be even 70%. Investor could pay 30000 dollars to get 100000 dollars. If Tanzanian company has spent 15000 dollars to produce gold of 100000 dollars, it would pay only 4500 dollars in taxes instead of 30000 dollars in taxes.

Thus tax minimization may be made down to 5% effectively by using foreign companies.

It is possible to negotiate with tax authority in Tanzania and minimize taxes even down to 5% of what should be 30%, that requires understanding of doing business. When a company produces millions of dollars, this subject becomes very important.