1) The proposal provides pricing for the construction of on-site laboratory facilities for Golden Band Resources totaling $572,813.
2) The facilities would be constructed in three phases: Phase I for $267,586, Phase II for $280,477, and Phase III for $24,750.
3) The laboratory facilities would include equipment and infrastructure for sample preparation, fire assay, wet chemistry and metallurgy to analyze rocks, soils and mine samples.
1. June 6, 2009 Page 1 Attn: Gary Haywood & Richard Jones
PRELIMINARY PROPOSAL - GOLDEN BAND RESOURCES
The information provided in this proposal is intended for discussion purposes only and does not constitute a formal offer.
Should this proposal be accepted, an official quote will follow within a few work days.
Onsite Laboratory Facilities & Technologies
Rock and Soil Preparation – Fire Assay – Wet Chemistry - Metallurgy
AAS - ICP – XRF – Floatation – Separation – LIMS
2. SUMMARY
Proposal : SEACAN Onisite Lab Page 2 Golden Band Resources
Summary Notes $ Total
Phase I Facilities 2800 sq ft 214,069
Management Fee 25% 53,517
Phase I total $CDN 267,586
Phase II Equipment 208,381
Management Fee 25% 52,095
Phase II total $CDN 280,477
Phase III Installation 22,500
Management Fee 10% 2,250
Phase III total $CDN 24,750
Total cost $CDN 572,813
Module Name Major Components Quantity unit cost Subtotal
Sample Prep facility 1 84,508 84,508
Sample Prep equipment baghouse, compressor, crusher, pulverizer 1 69,077 69,077
Fire Assay facility 1 50,363 50,363
Fire Assay equipment standard fire assay package x 1 1 66,339 66,339
Laboratory facility custom geochemical and environmental lab 1 79,197 79,197
Laboratory equipment AAS, fume hoods, hot plates, geo support pkg 1 72,966 72,966
Courtyard 1 20,000 20,000
Installation and Assembly Phase III Description Quantity unit cost Subtotal
installation assembly / lab onsite at cost – about $7,500 per facility 3 7,500 22,500
insurance - shipping to site 0 0
shipping to site 0 0
Total 22,500
NOTES
TERMS - SUMMARY
15% down (non-refundable) for mobilization, design, schematics, detailed equipment specifications.
65% payment upon acceptance of design.
20% upon satisfactory inspection.
A detailed term sheet will be provided once the exact scope of this project is established.
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standard rock and drill core module 1 prep
lines
standard fire assay furnace and fluxing
module
1600 sq ft covered warehouse / work area
w/shelving
at cost – about $3,000 per million
comprehensiveat cost – about $5,000 to most remote
locations
Facilities include ventilation, electric, lights, benches, walls, windows, doors, floors, arctic insulation on perimeter, return/make up air,
compressed air, benches, shelving, paint interior/exterior, security, network cable, security bars, sound dampening systems.
Materials used are inert to the application and include: epoxy, stainless steel, PVC, polypropylene, among other components .
Equipment used is chosen for robustness, quality and efficiency for each application within the given environment.
Management Fee includes the manufacture and delivery of mobile lab, storage, shipping, receiving, legal, accounting, yard and
manufacture space, machine shop, purchasing, management of subcontractors, compliance to codes, certification (ISO), among other
tasks.
Delivery installed onsite is 4 months.
Warrantees one year on manufactured components, equipment as per vendor.
4. SAMPLE PREP DETAIL
Proposal : SEACAN Onisite Lab Page 4 Golden Band Resources
Facilities Basic Description Quantity
HVAC 18,300 BTU 1
container 8 x 40 x 9 ½ ft 1
doors Phase I total $CDN 2
ducting all equipment, benches, return 1
electrical 110-220V-440 inspected to code (Canada) 1
floor Phase II total $CDN 1
insulation arctic insulation pkg mineral wool / fire proof 1
lighting fluorescent 12
painting exterior epoxy / acid resistant / 3 coats 1
painting interior epoxy / acid resistant / 3 coats 1
security bars windows 2
vents Ventilation / utilities 2
walls melamine 1
windows 3 x 3 ft triple glaze 2
Rock / Core Equipment Description Quantity
baghouse – dust collection 5 hp, auto clean 1
benches with hoods heavy duty stainless steel, dust hood & bin assembly 3
compressor heavy duty, 60 gallon, moisture trap 1
compressor - peripherals air guns, lines, regulator 1
crushers terminator, heavy duty 1
dollies for crushers and pulverizer, heavy duty 1
dryer sample 48 by 36 by 72 inch with 2 carts, insulated 1
electrical disconnects, 220 V equipment special requirements 1
grinding barrels 250 g grinding capacity manganese steel 2
heavy duty carts drying and sample prep 2
manuals and methods hard copy and scan to pdf 1
pulverizer TME STSX 1
pulverizer ballasts 450 lbs iron rods 1
splitter riffle and pans 1
splitter table with dust port 1
supplies and tools for equipment 1
tables optimal 0
trays galvanized steel mesh 21 x 34 - 3 inch lip 36
5. FIRE ASSAY DETAIL
Proposal : SEACAN Onisite Lab Page 5 Golden Band Resources
Facilities Basic Description Quantity
HVAC 18,300 BTU 0
container 8 x 40 x 9 ½ ft 1
doors Phase I total $CDN 2
ducting furnaces and fluxing 2
electrical CSA approved 1
floor Phase II total $CDN 1
insulation arctic pkg / mineral wool / fire resistant 1
lighting fluorescent 10
painting exterior epoxy / acid resistant / 3 coats 1
blower 5 hp heat resistant 1
security bars for windows / optional 0
shelving heavy duty 1
vents ducting and utilities 4
walls steel 1
windows 3 x 3 ft triple glaze / optional 0
Fire Assay Equipment Description Quantity
balance – analytical 0.01 g to 300 g 1
balance micro 0.0001 mg / with isolation pad 1
baghouse lead removal / optional 0
powder station fluxing 1
fans cooling 1
furnace fusion / cupellation modular 30 x 40g crucibles continuous operation 1
Slagging / cupellation table heavy steel with downdraft ventilation 1
6. LAB DETAIL
Proposal : SEACAN Onisite Lab Page 6 Golden Band Resources
Facilities Basic Phase I Description Quantity
HVAC 18,300 BTU 1
compressor lines for AAS includes, gas lines 1
container Phase I total $CDN 1
doors 4 x 7 ft steel 2
ducting all equipment / benches / return 1
electrical Phase II total $CDN 1
floor acid heat resistant epoxy / grit 1
insulation arctic insulation pkg / mineral wool / fire proof 1
lighting fluorescent 12
painting exterior epoxy / acid resistant / 3 coats 1
painting interior epoxy / acid resistant / 3 coats 1
security bars windows 2
vents ventilation / utilities 3
walls melamine 1
windows 3 x 3 ft triple glaze 2
Laboratory Description Quantity
AAS - Spectrometer for base metals and gold analysis 1
balance 0.001 g to 300 g 1
benches stainless steel with polypropylene top 5
cabinets acid / chemical resistant 1
auto-dilutor for high samples 1
compressor / dryer lab grade air oil and water removal 1
de-mineral water system lab grade water 1
fume hood 6 foot with return air and blower 1
hotplates heavy duty 2
gas fittings and apparatus instruments 1
acid neutralization treatment acid disposal 1
network cable optional 0
server optional 0
7. OPTIONS
Proposal : SEACAN Onisite Lab Page 7 Golden Band Resources
Options Description Unit cost
Accommodations 1200 sq ft 3 bedroom unit with washrooms, kitchen and laundry quote
Change Room 16 man, lockers, bench, laundry with 2 bathrooms quote
Chemicals, Reagents and Supplies Bulk pricing for reagent grade quote
Custom Standards quote
Environmental testing quote
Generator Perkins, Cummings at dealer rates quote
Grey water treatment for incinerator toilets quote
ICP SEACAN has many years experience in this area quote
Leco Sulfur, carbon, nitrogen analyzer quote
LIMS Laboratory Information Management System quote
Lunch Room 16 man, kitchen, 4 tables 380 sq. ft. quote
Replacement parts kits For all equipment and instrumentation quote
Sprinkler system with HVAC shut off, alarm, isolation to single can quote
XRF quote
Training Methods of analysis – Assay procedures
Manufactured from on-site ore – certified in association with
CDN Resource Labs
Waste water and effluent monitoring – Acid mine drainage
testing and equipment
SEACAN is a distributor for INNOVX Canada
8. PICTORIAL
Proposal : SEACAN Onisite Lab Page 8 Golden Band Resources
Positioning of containers
Time to complete : 2 hours
9. PICTORIAL
Proposal : SEACAN Onisite Lab Page 9 Golden Band Resources
Should this proposal be accepted, an official quote will follow in a few work days.
Assembly of Roof
Time to complete: 8 hours
10. PICTORIAL
Proposal : SEACAN Onisite Lab Page 10 Golden Band Resources
Set up Utilities
Time to complete: 8 hours
11. PICTORIAL
Proposal : SEACAN Onisite Lab Page 11 Golden Band Resources
Assembly of Courtyard
Time to complete: 4 hours
12. PICTORIAL
Proposal : SEACAN Onisite Lab Page 12 Golden Band Resources
Assembly of Peripherals
Time to complete: 8 hours
13. PICTORIAL
Proposal : SEACAN Onisite Lab Page 13 Golden Band Resources
Set up of Fire Assay
Time to complete: 4 hours
14. PICTORIAL
Proposal : SEACAN Onisite Lab Page 14 Golden Band Resources
Hook up of Lab
Time to complete: 8 hours
15. PICTORIAL
Proposal : SEACAN Onisite Lab Page 15 Golden Band Resources
Sample Prep Equipment Fired up
Time to complete: 4 hours
16. PICTORIAL
Proposal : SEACAN Onisite Lab Page 16 Golden Band Resources
Setup of instrumentation and computer systems
Time to complete: 8 hours
20. SCHEMATIC
Proposal : SEACAN Onisite Lab Page 20 Golden Band Resources
25.00%
Phase I total $CDN
Phase II total $CDN
10%
Phase III total $CDN
Total cost $CDN
Generic Design