OPERATIONS
Colombia is a country quickly moving into the 21st Century. The economy is growing, exports are at all time highs, and foreign investment is booming. The Country's major problems; drugs and Marxist rebel actions, are being acted upon with great success.
The area of WMC's mineral rights, having a regional military base, has become an increasingly secure mining area over the last two to three years. This greatly improved area and regional security has now made it possible for the Company to establish itself onto the gold mineral right properties without making substantial upfront security and infrastructure investments. In taking advantage of this improvement in conditions, WMC is implementing a 12 - 15 tons per hour pilot plant operation on the proven Hojas de Maiz gold deposit. This pilot operation will establish us on our properties, confirm our ability to implement the gold mining operations and confirm the alluvial gold values of the deposit. The pilot plant operation is projected to produce over six troy ounces of gold dore' per day, resulting in the operation being profitable.
The Company is also proceeding with timber reserve surveys of the trees on the Company's mineral rights. Upon completion of the surveys, logging and reforestation operations will be commenced.
After successful pilot plant operations have commenced, the
Company will commence the building and startup of its commercial mining
operations on the Hojas de Maiz gold deposit with a 210 tons per hour mining
and processing facility. This commercial operation is projected to average an
annual gold production of 51,500 troy ounces of gold dore' at a cost of less
than $70 per ounce. World Mining Corporation plans to open several additional
alluvial mines on the mineral rights after the initial commercial startup.
Basic infrastructure for the start-up operations are in place having the
Company's town of over 1,250 people, Liberia, providing a ready pool of
operating personnel and basic needs. Supply logistics will be by river
transportation from Zaragosa, a city of over 20,000 people and El Bagre, a city
of over 50,000 people, via the Rio Nechi'. El Bagre hosts a regional airport
having daily commercial service from several cities including Medellin.
Environmentally; owning the Mineral Rights provides the Company with an exemption to the requirements for environmental permitting. However, WMC plans to mine and reclaim its properties in an environmentally responsible manner.