Jovita - Regional Overview

PROPERTY DESCRIPTION:

The Jovita Mine encompasses a 250 hectare mineral concession and production facility located in the Mexican state of Michoacan. The current production capacity of the mine is 40 tons per day (TPD) and is projected to be producing 1,000 TPD within less than two years or by the end of 2014. The current mill operation allows for ore to be processed onsite into copper concentrate for shipment to foreign buyers. Michoacan is a historic mining region in Western Mexico with a large deep-sea port located along the Pacific coastline that is well situated for transport and the supply of Western US, Asian and other Pacific Rim markets.

PROPERTY LOCATION:

Jovita property is 250 hectares Located in the municipality of Vialla Madero, Michoacan and 150 meters east of the town La Carpinteria. Coordinates (UTM) 02,56,719 East and 21,32,971 North, and only 47 km from the city of Morelia Michoacan. The main access to the property is from highway number 14 that comes from Morelia, Michoacan going to Patzcuaro, Michoacan.

 

MINE PLAN

Mining operations are currently ongoing and are processing 40 tons per day (TPD) on Amarium's 250 hectare concession.

The soon to be upgraded mining operations will have a capacity of 150 yards per hour and a theoretical daily capacity, with maintenance time to through-put of 1,500 cubic yards or 2,000 TPD based on a 10 hour operating day. For the short term from now to June 30 2013 operations will run at 500 TPD and then for the medium term between June 30, 2014 and December 31, 2014 term Amarium Minerals has planned production of 1,000 TPD. After 2014 Amarium will increase production capacity to theoretical capacity levels of 2,000 TPD and further expand production capacity in 2015 and beyond the expanded operation of 500TPD can be up and running within 60-90 days from the existing 40 TPD operation. A total mining production staff of 12 will operate in two separate shifts of six crew members working a 12 hour shift.

The Jovita Mine and immediately surrounding area has the following resource estimate:

  • Non 43-101 compliant based upon management testing
  • Inclusive of pending mining claims to increase Jovita property footprint from it current 250 hectares to 2,800 hectares (approx.)
  • 45 million tonnes of ore
  • Average grade of 0.80 lbs per tonne (cut-off grade of 0.2 lbs per tonne)
  • 36,000,000 tonnes or 792,000,000 lbs. Cu.

Contract processing ore purchasing

  • AMMG to purchase high grade ore from regional artisan mines
  • Minimum grade of 2% per tonne
  • Average cost per lb. Cu is $1
  • AMMG has contract agreements in place to secure high grade feedstock

The initial 250 hectare parcel is currently viewed to contain the following assumptions:

  • 70,875,000 lbs of copper concentrate for every 250 hectares
  • Net revenue per 250 hectares sector  of approximately $3.20-$1.10=2.10 *70,875,000= $141,750,000 USD

Please see production volume assumptions for Amarium's Jovita Mine:

Modeling has made the grade analysis, based on extensive surface sampling, trenching, mini-bulk samples and a third party independent site visit where samples were taken across the stockpiles currently in situ on surface.

The current mine plan is to purchase and install the following equipment:

  • 3 X 50 yd. per hour trommel and sluce portable units $105,000
  • 3X John Deere 710 backhoe $150,000
  • 3 X 10 yd. dump trucks $75,000

A small mine site office/operations building will be erected on site and the current estimate of hard capital costs to construct the facilities is $100,000 not including equipment acquired in operating leases.

The main objective is to deplete the ore body as quickly as possible. This will be achieved by establishing initial daily production rates of 500 tons being processed up to June 30, 2014. The facility can be easily upgraded to larger processing equipment up to 150 cubic yard per hour. In addition to the increases in daily production, mining efficiency will be constantly improved upon to ensure that there are no fewer than 360 days of production per year.