Our Properties

THE COMPANY IS IN THE PROCESS OF DEVELOPING A QUALITY PORTFOLIO OF KEY RESOURCE PROPERTIES.

Mercedes 100 Mining Concession - Peru

The Mercedes 100 Claims are located approximately 193 miles outside of Lima, Peru’s largest and capital city. These claims cover an area of 3,111 hectares in size, and include seven concessions registered with the Peruvian Government. The concessions are located in a region that is very heavily mineralized and was an important Gold/Silver/Lead/Zinc producing resource in the country for many years leading up to the 1970’s. The mines were essentially abandoned, however, in the early 1970’s due to falling gold and silver prices.

The Peruvian government’s attitude towards mining precious resources has evolved beneficially over the last three decades. The government has made major strides towards providing a positive environment for precious metals and mineral development. Peru has been a stable, democratic country since 1978, and now has fiscal and mining legislation in place that is very similar to Canada’s.

Blower Investments, previous owners of the Mercedes 100 concessions from the 1994 thru 2003, spent over USD $3 Million on improvements at the property. They added to the existing underground structures, building over 2,000 meters of raises, addits and shafts, and constructed a road to the project site. In addition, topographic surveys were performed and ore samplings taken. About 1,000 tonnes of ore were test mined and treated by the National Engineering University of Lima in 1996 which concetrates were sold, showing extremely good grades of gold, silver, zinc and lead. Numbers as high as nearly five (5) grams of gold per ton of ore, and 425 grams of silver per ton or ore, were reported. Operations at the project site were halted by Blower in the late 1990’s, however, due to weakening gold and silver prices, as well as difficulties in obtaining financing.

Brookmount’s plans in 2009 for the Mercedes 100 are to commence apposite financing activities to support further exploration and development efforts onsite. Longer-term plans include performing–when it becomes fiscally prudent–a thorough, audited reserves assessment of the precious metals available across all seven concessions. Initial reserves identification, scheduled later this year, will be accomplished via a thorough review of existing assay information, additional mapping activities of the existing underground structure, a multiple-stage assay program, and a ground-based geophysics survey. Following these activities, Brookmount will begin secondstage development and commence mining operations.

Brookmount intends to finance the Mercedes 100 project through carefully implemented, private investor financing, mainly through the sale of unregistered (144) shares of its stock under Reg D, Rule 506 of the securities act. Considering the estimated reserves reported in the 1990’s in only the high-grade vein deposit onsite, together with the likely, exponentially greater reserves available across all seven claims, this is a significant mining project for Brookmount. It is also an economically favorable project currently, considering the existing roads and underground infrastructure already in place, the high ratio of precious metals per ton of ore taken from previous samplings, the elevated price of gold and silver in 2009, and the cost-effective and abundantly available labor force in the region.