Pearl Asian Mining Industries ''Operation Gold Finger'' April, 2005 Reports: XYZ Gold Project Showed an Estimated Ore Reserve of over 2.4 Million Metric Tons of Gold & Silver.
Pearl Asian Mining Industries, Inc. (OTC:PAIM) reports: The XYZ Gold Project (Town of Baleno) is located in Barangay Concahorao, Baleno, Province of Masbate. The area is app. 25 miles southeast of the known Masbate Gold Operations of the former Atlas Consolidated Mining and Development Corporation in Aroroy, Masbate Island. The Masbate Island is approximately 2,530 square miles and is populated by Small Scale Miners in every part of its territory with a total production of 6 to 8 kilos (estimated 257.21 ounces) of gold per day equivalent @ $500 / ounce = $128,605.00 USD daily.
This is a Pre-World War II Gold Mining Area with numerous gold vein tunnels that assay shows average of 15 grams to a high of 90.37 grams per ton of gold and 533.6 grams per ton of silver, plus other minerals like molybdenum and zinc. The initial exploration showed an estimated 1.5 million metric tons of gold & silver reserves. The Baleno XYZ Gold Project workings indicate a good potential of the area, thus continuous exploration was made by private mining companies during the 1970's and the 1980's including the RP-JICA Project in 1988.
Pearl Asian Mining hired Mayon Geotech and Geo-Environmental Services which have conducted a geological survey of the area last December, 2004, and semi-detailed to detailed exploration survey last April, 2005. The semi-detailed to detailed exploration survey works included rehabilitation of old tunnels, rehabilitation of old and new trenches. Series of quartz veins from 100 mm up to 2,500mm were prominent in the area. The April, 2005 Geological & Exploration Report performed by the MGGS for Pearl Asian Mining showed an estimated ore reserve of over 2.4 million metric tons of gold & silver.
Processing at an average of 15 grams per ton of gold ore to produce an estimated 3,750 grams of gold = est. 120.57 ounces per day @ $500 / ounce is estimated equal to $60,285.00 per day in production.
US $60,285 per day X 360 days per year operation = $21,702,600.00 estimated annual gross revenue.
Viability: The XYZ Gold property indicates potential viability, using above data and applying a 0.5 safety factor for the concerned assay. Using conservative figures for Pearl Asian's profit and loss projection, the XYZ Gold Project showed positive net income after taxes on the second year of operation utilizing the following assumptions: (A) Milling rate @ 50,000 metric tons per year small scale production; (B) Metal price of gold @ US$460/ounce (US$561.60/ounce as of this writing); (C) Silver price @ US$7/ounce; (D) Capital cost needed @ US$3.0 million; (E) Conservative operating cost (subject to further modifications once available information is completed).
Further exploration and rehabilitation of the existing tunnels are already planned and continuously ongoing this year 2006. Investors should not be concerned of any immediate reverse split for six (6) months or after one (1) year update. The Philippine Government had released and lifted up the emergency government alert. Mining in the Philippines has an ideal legal atmosphere, is conducive for most mining explorations and productions. The Philippine Mining Law is one of the best as it protects not only its people but also its environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding the Company's projections regarding gold production in future periods. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks; the risk of commodity price fluctuations; political and regulatory risks; risks of obtaining required operating permits and other risks and uncertainties. Penny Stocks are very highly speculative and may be unsuitable for all but very aggressive investors. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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|Date:||Mar 7, 2006|
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