3. First Woman-owned company in the refining industry
Introducing green, self-contained technology
Bringing knowledge & education of industry operations
Creating MINERAL-AIRES
Bringing mine production back through Joint Ventures
Providing dory equipment throughout the world
Reshaping the humanitarian aspect of mining with the
non-profit branch of HGFS Metals
Creating jobs
HGFSMetals.com 775 - 376 - 7100
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4. HGFS Metals was established in 2006 to address regulatory climate
changes concerning the mining industry in the State of Nevada.
Since that time HGFS has expanded its operations to include
Arizona, Utah, and Montana.
Primary areas of expertise:
– Systems Design;
– Fabrication;
– Set Up;
– Operations.
HGFS is also involved in:
– Small scale extraction and refining of precious metals.
– Wholesale and retail sales of precious metals.
HGFSMetals.com 775 - 376 - 7100
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5. HGFS in association with AMRO Metals, provides extraction
and refining services for small-scale mine owners.
Extraction products consist of gold, silver and platinum group
concentrates and base metals.
Refined products consist of .999 purity -- or better -- gold and
silver ingots or bars.
AMRO accepts dory, high grade conc, first run head ore (black
sands) as well as quarter minus ore for refining.
HGFSMetals.com 775 - 376 - 7100
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8. A few moments
in time, captured,
to demonstrate
the months of
labor to get to
the elusive ingot.
HGFSMetals.com 775 - 376 - 7100
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9. The journey for gold begins in the ground
Gold tends to occur amongst the oldest rock formations on Earth.
These are referred to as Archaean rocks.
HGFSMetals.com 775 - 376 - 7100
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10. Big rocks are transformed into little rocks.
“I have a rock the size of a car… Now What?” 10
13. Inside one ton of
materials, we may
have two grams
of gold. We only
accept .25 ounces
per ton as the
minimum allowable
gold percentage.
The gold refining
process begins
here, with removal
from the ground.
HGFSMetals.com 775 - 376 - 7100
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15. Refiners must separate the scrap to meet karat standards.
Saleable materials in buckets are sorted mechanically, then
chemically into a liquid state
Chlorides are
the silver that is
removed in the
refining process
and falls into
separation buckets.
15
18. Gold backed Exchange Traded Funds (ETFs) are securities designed
accurately to track the gold price.
ETF COMPANIES simply allow private individuals to buy gold bullion and
own it directly - as personal property - storing it in high-security accredited
vaults in London, Zurich or New York. The problem with this is that they
hold your purchase, as they are cross-collateralizing it and
“platforming” it. Usually a bank-to-bank transaction and Letter of
Credit or other instruments that are not normally used for owning
physical gold, are accepted.
Both have been very successful at increasing gold bullion investment
HGFSMetals.com 775 - 376 - 7100
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20. You can purchase a saleable form of gold on
several levels of production:
– Free Gold i.e.., nuggets, dust
– Dore (Dory) – mechanically processed material breaking
down the purity level. Normal purity is 40-60% GOLD.
– Concentrates – processed materials, mechanical and may
include chemical. This is part of the dory process as well.
– Chlorides – heated materials turned to a liquid state
HGFSMetals.com 775 - 376 - 7100
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21. The choice is yours of course so long as you have a source.
Private purchases through HGFS Metals MINERAL-AIRES Program
HGFS Metals requires you accept .999 ingots and bars.
No purchase of finished bars at a discount – unless materials pre-refined
Purchase up to 1000 ounces-- spot paid as the deposit (at full rate for 1000
ounces)
Delivery date is always subject to mine conditions. No dates for
delivery set in advance. Discounted price for gold is for your patience
in the process.
NO LOC, LOI, SCO, FCO or other instruments will be accepted
HGFSMetals.com 775 - 376 - 7100
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22. Demand is up and supply is down worldwide.
HGFS is not the only refinery with a list for wait.
We do not provide delivery of coins,
Account holders are:
– Required to select level of participation in MINERAL-AIRES program
– Placed in line as they arrive; Assigned a personal Account Specialist
– Required to sign a contract
– Required to present Government-issued identification; and
– Responsible for pick up, shipping and hallmarking, as desired.
HGFSMetals.com 775 - 376 - 7100
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Editor's Notes
07/16/12
07/16/12
Welcome Greeting
Place mines are above ground surface mine. There are two types of ore conditions in a mine. Sulfide and Oxide. Sulfides are typical of load mines. Sulfides take longer processing as they have to be roasted. Once put into an oxide form they are then placed into mechanical production and onto the chemical and final refining stages. HGFS Metals owns placer claims and has JV opportunities with miners who have been put into low or no production du to the Mercury Laws. The mercury laws took effect in 2006 under the EPA. Mercury emissions are a jail-able offense carrying 10 years. Miners will from time to time bootleg in a garage. HGFS Metals has devised the solution for the miner and adjunct to this opened opportunities to partnerships via JV, purchases of PRE-PRODUCTION on the ore discounted from premium. The metal is contained in this ground. Your vault is the ground. This is an areal photo of acres.
You tube JBurnsLLC 07/16/12
Black Mountain claim. Somehow we have moved to the age of instant gratifications. The mountain in this photo is a tungsten claim in Nevada. While it would be cool to do a drive through and walk off with the ingot it is not possible. This claim has to be mined. Excavating, digging, stripping, into dump trucks to be put through the mechanical steps just for a concentrate. When you buy material in a pre-run condition you are buying it from the mountain! This is the point the journey begins. Understanding the hurddles miners face takes a wiser mine and education in the field? No, it does take intelligence that the mine is not in a pepper shaker and the gold just bubbling up to be taken. This is an industry like the oil companies place rigs and pipeline we place humans with guts and heart in temperatures over 130 degrees or sub zero. Each site has a season. This means Alaska for instance has 5 months for mining. Processing is in the latter 7. Arizona has oppressive heat limited the daytime work. Do you see paved roads or electricity? It is the wild, wild, west!
Mountains contain many rock formations. Here is an example of one the size of the car. Yes the equipment can crush it. The next screen demonstrates quartz growing from the ground.
Gold follows quartz but not necessarily is all quartz contains gold. This formation is natural and one of the many beautiful landscapes we encounter on sites. Mining creates admiration for the earth and HGFS uses green technology and we repair and plant into the footprint we take from. Responsible mining starts with HGFS Metals. 07/16/12
Samples for assays are critical to mine acceptance for finishing metal to 999. A chain of custody has to be in place with mine sites for the integrity of the results. Third parties are required and sometimes double assay reports from 2 labs depending on the client request for verification of the results. Assays run about 500.00 each. The industry is very busy so that step alone is backed up 3-6 weeks. Sample taking is the first step and that is where the chain of custody starts. HGFS prides itself on our staff in qualified MISAH certified personnel who verify the sample taker or we personally take them. 07/16/12
You probably see gold riding past you on a highway every single day. Transportation of the metals is handled traditionally by trucking from one location to another. Our equipment is usually on site. We will design a custom set up for your site by request. To get to the gold we need to move the earth. 07/16/12
Taken at a lab in Nevada. Trying to understand that that gold looks like this in the beginning stages. Value of this pile of ore is 72MM USD. If you want to purchase under spot you need to buy at this level. 07/16/12
Chemical extraction in the lab includes buckets to catch the chlorides. Chlorides are parted off and sent to final processing into a saleable condition required by the end buyers. 07/16/12
Assay reports can show PPM, Parts per million. You will have to have a qualified assay reader interpret the information. We do accept assay reports from miners for consideration. If we are interested in the results we resample and test. Testing is paid for by the miner. HGFS absorbs no related costs outside of our own contract obligations. We provide evaluation and set up. Deposits of 750,000.00 for the technology is required. We then work with the miner. yields: Ability to mine : Not an issue at Lamaque or San Juan. Both are mining friendly regions dependent on the mining industry. Mining Feasibiliy : San Juan is an established operation and Lamaque production is scheduled to restart in Q2 2010. However, until the private placments at the end of 2009 were completed, the necessary funds were not available to complete a Lamaque start-up and the operation of San Juan was in jeopardy due to under capitalization. Parts of Lamaque are coming out of long term care and maintenance. It is reasonable that until the first dore bar is poured (scheduled for April 2010) and the traditional analyst site tour (scheduled for May 2010) happens, a certain degree of wait and see will remain and hold back valuation potential [date source was slide 17 of Century March 2010 presentation ]. This is especially reasonable given past false starts at Lamaque [reference and quote to be added...]. Management team : I believe that the current management team performed extremely well to lead the company out of the bad situation the financial crisis of 2008 caused. The timing of the melt down was not anything that any management team could have predicted. The management team found a major investor in Maxim Finskiy to purchase 78M shares at C$0.20 and 38M warrants at C$0.30 in the same year when the stock traded under C$0.02. Well done!!! However, there have been past delays in bring Lamaque out of long term care and maintenance and into production. Hints of schedule delays are likely to result in downward stock price pressure. On the other hand, as of the 2009 Management Information Circular, the CEO and VP of Exploration hold a significant number of company shares. Land Holdings : land holdings are a potential plus for which may one day yield a pricing premium beyond the projected fair market stock price. 21.5 sq km claim in the highly productive Abitibi Greenstone Belt. Potential for further resource expansion is excellent. Century holds several gold properties in Alaska, Canada and Peru that have excellent exploration potential. Many of these properties were acquired when gold prices were significantly lower. The potential is exciting. Share holdings : Not applicable. Geopolitical risks : Not a factor. Canada and Quebec especially are mining friendly regions. Peru has a well established mining industry and derivies over 50% of its exports from mining. Company land holdings are in brown field areas where mining is well established. Precious metal premium : since Century is 100% gold and given Century's outstanding ore grades, this factor is a potential valuation positive. Hedging : Century has some forward sales made to cover start-up expenses. The extent of any long term hedges is to be determined (but is believed to be not an issue). Companies with multiple deposits : not a factor. All deposits with defined resources will be in production in 2010. Cash flow failures : this was a huge issue at the end of 2008. Investors are no doubt looking for major cash flow improvements going into 2011 from the start of Lamaque production. Anticipated Financing : not an issue as of March 2010. Until further updates from management, the private placements and subsequent exercise of warrants are assumed to have provided sufficient cash to launch Lamaque and upgrade San Juan. Further dilution in 2010 is not expected. Market Anticipation : this may be a positive factor as Century has recently reported excellent drill results that presumably are outside of the scope of the current NI 43-101 reports. NSR Royalties : nothing unusal noted. Market conditions : not an issue. Excessive promotion : no known issue. Option and Warrant expiration approach : not an issue since Mr. Finskiy has already exercised his C$0.30 warrants. Remaining warrants are in the money and will build the company cash reserves for Lamaque and San Juan development. Interpretation errors : always a risk but I am not aware of any mistakes in GoldMinerPulse translation of Century reserves and resource counts. If errors are spotted they are noted and corrected immediately. Disputes : the company has had a number of past disputes and has proceed to settlements. No major issues are known. Quantiy of ore : Lamaque is a world class gold mine in terms of known resources. NI 43-101 classification : a discount factor was applied, in calcuating the projected fair market stock price, to account for the high percentage of resources in the Inferred category. However, given the proximity of significant gold mines, and the potential for resource expansion, the discount factor I used may be overly conservative. It is important to remember that even Proven + Probable reserves were at one stage of their development Inferred resources. Given the geology of the area were Lamaque is located, I believe it is a reasonable gamble to bet on much of the Inferred resources will be developed into future Proven + Probable reserves and the large land package surrounding Lamaque will support replacement and expansion of the resources. However, I am leaving as an open research question the reason as to why Century and not a gold major in the region were able to acquire Lamaque. Did Agnico-Eagle or other gold majors at one time pass on acquiring Lamaque? If so why? Recovery and metallurgy factors : no known issues Infrastructure factors: further research required to determine if perhaps some legacy environment issue prevented other majors from acquiring Lamaque in the past. Operating costs: no known issues. However, Agnico-Eagle have achived significantly lower per ounce costs than those projected for Lamaque in 2010. Will Century be able to get their per ounce costs down to the levels achived at La Ronde? [More discussion to be added.] Environmental risks: many of the Century exploration properties have historical mines. Alaska is getting tougher on mining. [More discussion to be added.] Expected extraction methods: further research required to determine if there are potential underground issues (although none are expected). It is also t.b.d. if depth of operations are a potential issue for Lamaque compared to La Ronde. Quality of the independent NI 43-101 reports: not an issue Non NI 43-101 reports: not applicable 07/16/12
The gold bullion market became very inaccessible to private investors during the 20 year slide in the gold price from 1980. The investment market in gold bullion dried up, most of the marketplace's ultimate customers were gold jeweler manufacturers. A fundamental constraint was keeping new gold bullion investment buyers out, and this was the form of the professionally traded commodity - the gold bullion Good Delivery Bar. GLD is the NYSE following.
There are 2 distinct arms in world commodities. One is the existence of what the economist call a super cycle. This is based on demand from China as a world economy effected by various factors in history. China has in fact stepped up demand and there is a known shortage to the demand world wide. The second arm is the commodity market as a whole. The market is based on tangible held physical materials and produces large leaps in price, over corrections and the volatility of the market place. This is NOT relective of physical gold holdings.
1.) Free Gold. Purity of the materials are not locked to other elements. Mother Nature creates the nugget. 2.) Dory gold (or dore gold) is gold that has been directly extracted and refined from ore at the mine into a bar containing 90% gold. This is called a "dore bar." These dore (dory) bars are sent from the mine to an external refinery, where it will be melted down and purified into a new bar that is 999.9 parts per thousand pure gold. The 90% gold bar that goes from the mine's refinery to the external refinery is the dory bar. Once it's melted down for secondary refining, it is no longer "dory gold. “ 3.) Concentrates: Gravity concentration by knocking of materials not requiring heat or chemical extraction. Metals separate by weight and the more materials removed the ‘concentration’ of gold increases. This breaks the materials into small pieces. 4.) chloride of gold; the trichloride obtained as a dark red crystalline mass by the action of chlorine on heated gold.
The bars can be blanks and they are not in the reserve system by hallmarking yet. Hallmark trading is also delivered. You will have to specify your need and we will ship from directly from one of our commercial accounts vaults. You may purchase at the discount and when shipment is ready make the request for the hallmarked materials. Sometimes we will offer exceptional discounts or locked price from our mine site. These offers vary. Above the 3% below spot the DAY OF POUR is our standard production price. Prices and offers are subject to change without notice. 1.) Purchasing from HGFS Metals requires you accept .999 ingots and bars. 2.) You open an account, and at no time will you be able to purchase a finished bar at a discount – unless you are allowing HGFS to pre-purchase the materials from the ground. 3.) You may purchase up to 1000 ounces using spot as the deposit paid at the full rate for 1000 ounces. 6.) The delivery date of your gold is always subject to the mine conditions and processes. We do not set dates for delivery in advance. We mine for gold, and when our process is done, you receive your gold. We work as quickly as we can, and we have orders for gold ahead of your order. You receive a discounted price for gold, for your patience in the process. 7.) NO LOC, LOI, SCO, FCO or other instruments hold value at the refinery level and are not accepted . 07/16/12
Demand is up and supply is down a minimum of 6% worldwide. This creates a wait list for all accounts. HGFS is not the only refinery with a list for wait. We do not provide delivery of coins, nor do we sell at spot or premium. Account holders are: Placed in line as they arrive; Required to sign a contract for sale with a 3% discount calculated at delivery; Responsible for pick up, shipping and hallmarking, as desired; and Allowed the discount, as well as control over predetermined ounces by deposit. HGFS floats the purchase of materials for you – without credit checks etc. There are no other offers from HGFS, and this type of program is no longer available through JP Morgan Chase for any orders. 07/16/12
