GOLD INVESTMENT OPPORTUNITY
Gold as an investment opportunity
The yellow metal has been an investor’s favourite during times of worldwide financial
and political uncertainty due to its perceived qualities as a safe haven and as a hedge
against inflation. The precious metal hit an all time high in September 2011 of around
$1920 an ounce and, even though it has fallen since to around $1201 at the time of
writing (28th June 2013), the general market consensus is that the metal remains in
a bull market, even if it is not quite as bullish as previously quoted. For example, the
bank Nomura(1) has cut its 2014 forecast from $1,800 to $1,750. But, with further
monetary easing expected, as well as geopolitical tensions and currency issues, any
falls in the gold prices will probably be seen as buying opportunities for gold investors
which, in turn, should help the price trend back up towards its all-time high.
Previously, the easiest way for investors to speculate on the price of gold was to
buy the physical commodity directly, or buy shares in gold mining companies.
IPR is currently offering the opportunity for investors to purchase a share of the
economic benefits of the mining rights of the IPR Capital mining project.IPR is
securing from the land owner the mining rights for 5 years. The mining
operation, in turn improving the output. The benefit to the mining company is
that it will share in the production with us and will own the entire asset after the
5 year licence has expired. If, alternatively, shares in the mining company were sold
in the early stages, these would only achieve a very disadvantageous price and the
current owners would never have control of the business. One reason why many junior
miners do not succeed is that the original owners move to another project that is
more economically viable but in this project, IPR’s innovative funding solution results
in the miners, the partners in LP and IPR Capital all having mutually aligned interests.
Mineral Rights Opportunity in Ecuador
Gold mining has been part of the landscape of Ecuador for centuries with some
academics suggesting that it began as early as 3,500 B.C. Many historians high-
light the Spanish invasion of 1532 and the major industrialisation of the early 20th
Century as significant periods shaping Ecuador’s mining heritage.
Gold remains a boom industry in Ecuador, as highlighted in a recent BBC News re-
port(3) which also ratified the purchase of the economic benefit of a mine to be a solid
investment, In an interview, an artisanal miner disclosed that, each year, his venture is
now paying him 4 to 8 times the $50,000 invested.
The substantially increasing economic viability of mining gold has resulted in the
growth of artisanal, or put simply small-scale production, mining. Even though this can
be a lifeline to locals, it carries significant risks including the dangers inherent in unsafe
working conditions and the real and considerable threat of environmental
Environmental contamination is caused by mercury used in the gold extraction pro-
cess. This clearly is not only harmful to the miners who handle it – and Bloomberg
recently reported it that this could affect up to 16 million miners (2), but, more signifi-
cantly, the local landscape, air and water table are all endangered and this can have
far- reaching effects on the food chain.
Clearly, as the gold price remains elevated, the desire to mine is going to remain strong
but we need to look for opportunities that can offer a return with any associated envi-
ronmental risks being as small as possible. Kendrick Zale Ltd is pleased to offer inves-
tors the exciting opportunity presented by mining rights in Ecuador.
The asset is a mine shaft in the El Oro region in Ecuador, a region that is famous for gold.
So much so that ‘El Oro’ literally translates as ‘the gold’. The region has been highly
publicised on the BBC (3) highlighting its high reserves of precious metals . IPR Capital
has commissioned independent analysts to visit the mine. They have confirmed that
it has been previously mined (albeit artisanally) and that there are clear signs of gold.
Videos of this can be viewed in the product area of our website. The exact entrance to
the mine shaft has the co-ordinates X642990/Y9618279.
Mines in the immediate area include:
• The Dynasty Project, to the south of our mine shaft, which has produced 3.9
million oz. of gold also discussed in the BBC Report (3).
• The Aurelan – Fruita Del Norte, to the east, has produced 13million oz gold
• PIMPA, AMGOLD- QUIMSACOCHA and PIMCA projects are all producing more
than 220,000 oz. of gold per year.
• The Capa Rosa Lab, analysed three levels of the property and have issued a
geological report disclosing between 8- 34 grams per of gold per tonne with the
average for the area being 15 grams per tonne.
Our initial estimates that our mining shaft will produce 7.5 grams per gold per tonne
are also based on historic information from our mining partner Monteverde S.A. We
anticipate that, with modern mining techniques and equipment, it will be possible to
move deeper into the mine and increase the likelihood of hitting the deeper rich veins
of gold, known locally as ‘calvos’. These can yield up to 200 grams of gold per tonne
of ore mined. Clearly, there is no way to guarantee how much gold will be produced
from this mine shaft but, as detailed below, we have structured the project to benefit
partners before IPR Capital or Monterverde S.A. start receiving revenue.
Monterverde S.A is part of Grupo Minera del Pacifico which has over $120million worth
of mining assets and has been in the region for over 10 years and has never failed to
produce gold from one of its mine shafts. Also, they are a leader in Ecuador’s envi-
ronmental mining revolution and have green refining plants that are less damaging to
the local surroundings and comply with new laws that prohibit the use of mercury (4).
They will take control of the day to day running of the mine, including the necessary
modernisation of the mine shaft.
IPR Mining 06 LP will hold the exclusive licence to 5 years’ production from the shaft
and Kendrick Zale Ltd is offering to sell partnerships in this LP with the smallest pro-
portion being 0.04% at a cost of £3,150.00. Please note that additional administration
fees will be applied.
All new partners in this exciting project coming on board will receive 150% of their
purchase funds back before either IPR Capital or Monteverde S.A (this project’s Joint
Venture Partner) receive any revenue from the LP. Once the investing partners have
received this, the revenue will be shared according to the percentage ownership. This
is assured by and detailed fully in schedule 1 of the Limited Partnership agreement.
Partners should note that IPR Capital and Monteverde S.A will own 25% each of the
Based on the analysis done by ourselves and the geologists’ reports on the area, we
are looking at providing clients with a return of 250-300% over the 5 year period. It is
important that investors understand this is not a fixed income product and that the re-
turns may vary. However, these estimates are based on conservative values. There are
many factors that can affect returns such as currency fluctuation, gold price change,
naturally occurring events, understandably we have no control over these factors.
Kendrick Zale is acting as a principle agent for IPR Capital Ltd.
References to MonteVerde have been accumulated over a variety of correspondence exchanges
between ourselves and our lawyers.
Due to the nature of our business and our varied range of financial products our
employees are given market training from industry specialists. We are very confident
that our team possesses the skill set and efficiency required servicing your account
to complete satisfaction. As a client you will gain privileged access to our ‘member
To find out more about Kendrick Zale and Gold Investment opportunities,
please visit www.kendrick-zale.com, or contact us:
Call us on 0845 004 2656.
70 St Mary Axe
General enquiries: firstname.lastname@example.org
Our clients have the peace of mind knowing that they are dealing with a company which adheres to strict compliance
procedures. The products that we offer are either tangible or held in your very own holding account. We carry out
regular ‘in-house’ audit checks to ensure your records are kept up-to-date.
We treat client data with the upmost confidentiality adhering to the Data Protection Act 1998. We do not sell your data
or information to third parties.
In the unlikely event that we went into liquidation our solicitors would act on behalf of our clients with records of our
clients holding. This would be passed on to the liquidator so that it can be treated as separate property from the
ABOUT KENDRICK ZALE