PROPERTY - AN OVERVIEW
Global Mining Company (Pvt.) Ltd. Islamabad holds a 30 year Mining Concession for the mining of rubies over a 10 sq.km area at Hunza Dist. Gilgit-Baltistan Province, allotted to GMC by the relevant Regulatory Authority as a ‘Mining Lease’ valid up to March, 2049
The climate of Hunza valley ranges from moderate in summer to cold in the winter season with temperatures dropping below -10 degree Celcius. Hunza is one of the most exotic and internationally renowned places in Pakistan surrounded by peaks rising above the 6,000 meter mark .
The Valley provides spectacular views of some of the most beautiful and magnificent mountains of the world including Rakaposhi (7788m) and Ultar Sar (7388m).
LOCATION & ACCESSABILITY
GMC’s Hunza Property is a 10sq.km operational area Located in the middle of the notorious Hunza valley in the steep mountainous ranges on the north side of Hunza river and stretches from Faiz abad to baltar nala which is about 1.5 km east of Ahmad Abad village.
Hunza-the base of operations is linked to another major international tourist destination namely Gilgit by a 90km drive on the Karakoram highway.
Gilgit the divisional headquarters of the Gilgit-Baltistan province is a 597Km drive or a 280km, one hour flight from Islamabad the Federal capital of Pakistan.
Position of the Property Area
within the regional geological
The ruby bearing host rock as shown in the map below is a marble bed which is contained within the South Karakoram metamorphic complex exposed to the north of the Main Karakoram Thrust.
This complex is composed of low to high grade metamorphic rocks (i.e., para-gneisses), various types of schists, inter banded pelites and marble.
The marbleized bed which bears Ruby and other associated gems has its upper contact with the axial Karakoram batholith and has been geologically mapped for an aerial distance of about 150 kilometers right from Ishkumen valley in the west up to Shigar valley in the east.
The host marbles contain gemstones like rubies, red & green spinel, pargasite and blue sapphire ; Other associated minerals are margarite phlogopite, chlorite, graphite, pyrite, rutile, dolomite, sphene, apatite, tourmaline, plagioclase, pyrrhotite, quartz, calcite, and goethite.
The gem-bearing marble is composed of small to large calcite crystals and is snow white, gray (bituminous), or yellow (sideritic) in appearance.
The gemstones found within the marble are, the result of a special metamorphic concentration process that took place at a temperature of about 600C° provided by its immediate northern neighbor, The axial Karakoram batholith at pressures of about 7 kilobars.
Gemstones of corundum
family already being mined from Hunza valley
Re-crystalized marble bed extensity exposed in Hunza valley contain Ruby, Spinel, Sapphire and Pargasite among other precious and semi precious stones currently being mined through tradition non scientific methods
The available first-hand geological data depicted sparkling indications of the presence of high potential gold resource
Initially GMC plans to develop essential infrastructure for the prospect including construction of an 8km road, establishing site offices, acquiring essential machinery / equipment / stores and allocating relevant human resource.
During phase-1 of operations, GMC plans to establish a gold bearing resource between 250-300 thousand tons containing minimum of 0.5g/ton free gold recoverable through the gravitational process of pilot plant operation. The phase-1 operations include trenching, pitting, shallow aditing, conducting chemical analysis, conducting laboratory/pilot plant scale studies and consequently establishing a process for large scale gold extraction from Ranthak.
During Phase-2 operations, GMC plans to establish a gold bearing resource sufficient to feed a medium scale gold ore bearing, processing plant for 30 years. Operations of this phase include detailed geological mapping, geophysical surveying, core drilling, exploratory aditing leading to estimation of reserves- However small scale mining activities such as extracting free gold and producing gold bearing concentrate through pilot plant operation shall be in operation during the execution of both the phases.
The Overall Fiscal Package
Mining activities being carried out in Pakistan are mainly through small scale mining by sole proprietorships, association of persons (partnerships) and in certain cases by private limited liability companies. Medium and large scale mining activity in the country has been carried outby private limited and public limited companies including non-resident (foreign) companies.
Government, within the context of the taxation and other relevant laws, would design fiscal measures conducive to the promotion of mineral exploration and development including beneficiation and other forms of product refinement. In view of the changing mineral scenario and challenges linked with large-scale mining, both at the national and international level, fiscal regime will be reviewed from time to time consistent with the general tax structure.
Various kinds of taxes/levies applicable to the mineral sector are listed in Appendix-I and will be subject to revision from time to time by the respective governments.
Efforts will be made through seminars and conferences to encourage the mining community/investors to prepare their financial statements in accordance with International Financial Reporting Standards.
Rate of royalty for minerals will be determined by respective government from time to time and changes will be notified to other provinces/federating units and the Federal Government.
The Governments will encourage joint ventures between foreign and local private investors. In addition to royalty, the relevant Government will be entitled to participate in the project in the form of a negotiated equity, participating interest, enhanced royalty rate or such other structure as agreed to by the Government and the mining company.