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 area 3,111 hectares in size, and include six 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 political unrest in Peru and 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, owners of the Mercedes 100 concessions from the 1994 thru 2004, 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 constructing a road to the project site. In addition, topographic surveys were performed and ore samplings taken. About 1,000 tonnes of ore were sampled by the National Engineering University of Lima in 1996, 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 Blowers in the late 1990’s, however, due to weakening gold and silver prices, as well as difficulties in obtaining financing.
Brookmount’s plans in 2008 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 six 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 six 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 2008, and the cost-effective and abundantly available labor force in the region.
Rock Creek Prospect – Rock Creek, British Columbia
The Company’s most recent acquisitions were made of mining concessions situated approximately six miles southeast of Rock Creek, British Columbia; a project area approximately 38,000 acres in size located in the Greenwood Mining Division known as the Rock Creek Property. The southern property boundary of the projectproperty corresponds to a portion of the U.S.-Canada border that is centered about six miles northwest of the well-known Crown Jewel open pit gold deposit in the state of Washington.
The Crown Jewel, as it is known, has an estimated 1.4 million ounces of gold, and is currently a non-producing resource currently owned by Kinross Corp. (NYSE: KGC). The Crown Jewel was purchased by Kinross when it absorbed an emerging gold company known as Crown Resources, Inc. In fact, it was mainly this resource that had elevated Crown Resource’s asset value to the point where it became an attractive acquisition candidate to the majors (major gold producers). It was Kinross that jumped on the opportunity, and for shareholders of Crown Resources, the rest is history.
An assortment of mapping, assessment reports, silt and soil geochemistry, air and ground geophysics, with several programs of shallow drilling have yielded significant and outstanding values on the Rock Creek prospect. The management of Brookmount feels strongly, based on research of the site by its geologists and its proximity to the Crown Jewel, that the Rock Creek property could yield gold and silver reserves comparable to the Crown Jewel.
