It is profitable to mine gold in Guinea, because through the territory of Guinea lies the so-called gold ore belt of Faleme. It runs from northwest Africa to the southeast and includes rich gold deposits. The main gold deposits in Guinea are located in the north-east of the country.
The main gold mining in the country was started in the 80s. The volume of gold mined is small relative to other countries, but there are huge reserves of gold.
Today Guinea gives from 8 to 11% of world gold production. Very low tax of 3% and good investment climate in the country.
We have all needed permissions and licenses for gold mining and export. The artisan mining is already done. The project needs additional machinery and equipment for the transition from artesian to industrial gold mining.
Mobile Placer Plant
“Move the plant to the ore, not the ore to the plant”
For alluvial applications anywhere in the world, these plants are completely self-contained with onboard diesel power, suited for both stationary mining or “on the fly” excavating and exploring. Plants incorporate our Horizontal Centrifuge for primary recovery.
MPP-100 160 tons/hour
Low-G Horizontal Centrifuge
For primary concentration of classified alluvial ore and milled hard-rock ore. Known for high volume, zero loss fine gold recovery. Adaptable to any mine operation, replaces sluices and jigs. Runs on turbid water — perfect for recycle / settling ponds.
30” Primary Concentrator — up to 40 tons / hour
On the basis of joint venture agreement, Guinea Gold Plc, cooperates with the TConnet Group SARL in Guinea. TConnet has all the necessary licenses for gold mining and export.
On the concession areas, alluvial gold reserves are 15-20 g / ton. Geological exploration data are obtained. TConnet SARL already leads the artisan production.
Guinea Gold Plc need to invest in the purchase of machines and equipment $ 3M.
Mobile placer plant processes 40 tons of rock per hour. Mining is conducted in an open way.
When working at 10 hours a day, 40 tons x 10 hours = 400 tons of rock will be processed.
With a minimum gold content of 10 grams, 400 tons x 0.01 kg = 4 kg of gold will be produced per day.
The average value of gold (Bloomberg) is $ 43 / gram.
For 1 working day, gold will be produced worth $ 43,000 x 4 kg = $ 172,000
The cost of production (machinery, machinery, fuel, wages, local taxes is $20/gram.
Net profit of $43 — $20 = $23/gram.
Net profit per day $ 23,000 x 4 kg = $ 92,000
Transportation to the Central Bank of Guinea for melting in bars of 23 carats — $ 100 / kg.
Delivery to the refinery in Europe is $ 150 / kg.
Refining — $ 15 / kg.
Unexpected expenses — 10%
Net balance: $ 23,000 — $ 100 — $ 150 — $ 15 — $ 2300 = $ 20,435 / kg
Net income of $ 20,435 x 4 kg = $ 81,740.00
Minimum 200 working days per year. 200 days x $ 81,740 = 16,348,000.00
Funds return to options holders — $3M.
Net profit — in the first year — $13,3M.
50% of the profit will be paid to the investors and 50% will be directed to additional equipment modules purchase. This allow to extract 10 kg or more of gold per day and increase the profitability of the project by 5 times.
The shareholder of TConnet Group is a local businessman, whom has been successfully cooperating with us for 5 years already.
Guinea Gold PLC received investment funds by selling Gold Certificates.
— The proposed area has a large established resource potential (the gold-bearing horst fully explored).
— No large companies in our district. Only artesian mining.
— Our market share of the proposed capacity is no more than 15%.
— There are three large ore sites in the region with a large concentration of rich ore.
— The legislative base allows to conduct the proposed business without restrictions.
— The payback period of the project is less than 6 months.