Geology of Lease Area

Skardu Basin is a northwest-trending intermontane basin along the Indus River in the Karakoram Himalaya Mountains of Pakistan. Seismotectonic domain boundaries in the Karakoram Himalaya commonly cross lithologic and some older structural boundaries. Four major structural-seismotectonic domains exist in the Skardu area:

· Himalayan seismic zone, characterized by thrust tectonics;

· Hindu Kush–Pamir seismic zone;

· Skardu quiet zone, characterized by strike-slip, extensional, and rotational tectonics with relatively little seismicity.

· Southern Edge of Eurasian lithosphere (Tarim–Kun Lun–Tibet) northeast of the Karakoram fault. The Skardu quiet zone is interpreted to be within the Himalayan thrust prism, above an aseismic detachment along which stable sliding or ductile faulting accommodates displacement. Stresses transmitted into the Skardu quiet zone laterally from the Himalayan seismic zone toward Eurasia and perhaps upward from the inferred basal detachment result in gross clockwise rotation, translation to the north-northwest, and a right-lateral sense of shear in the Skardu region.

Landsat lineaments defined by major drainages suggest an array of fractures and faults in the Skardu quiet zone. Field data suggest that the lineaments generally reflect distributed shear along myriad small faults rather than displacement exclusively localized on major, discrete fault surfaces. Extensive glacial and fluvial erosion have accentuated trends characterized by relatively dense fracturing and faulting. At its confluence with the Indus at Skardu, the Shigar River flows through a breach that may have originated as a pull-apart structure similar to the pull-apart basin along the upper Sutlej River.

The preserved vestiges of the upper Cenozoic Bunthang sedimentary sequence reflect Skardu’s early basin phase. Uplift along the Nanga Parbat–Haramosh syntaxis and along the northeastern margin of the Himalayan seismic zone may have contributed to the ponding of the Indus River in the Skardu Basin during Bunthang time. These axes of uplift may be related to movement of the Himalayan thrust wedge from a region of easy basal slip (Skardu quiet zone) to a region of increased resistance to basal slip (Himalayan seismic zone, or, in the case of the NP-H syntaxis, the Hindu Kush-Pamir seismic areas). Regional uplift within the Skardu quiet zone may reflect thickening of the thrust prism in response to variations in shear resistance along the detachment.

Quaternary glacial lake beds located on the floor of Skardu Basin are generally undeformed in the western half of the basin. Local deformation within the lake beds in the eastern half of the basin is probably due to interaction with glaciers.

MINERAL DEPOSIT PLACER GOLD IN BRIEF

Since the beginning of time, people in the area have known how to extract gold from placers. Gold can be found in abundance in the Hunza, Ghizer, and Indus rivers, as well as the majority of their tributaries. Along all these rivers, large terraces with depths up to 120 meters are frequently exposed.

According to a survey done in 1998, local gold-washers in the area annually extract about 15 kg of gold. These gold washers wash 700–1000 kg of sand per day with the help of 8–10 people using archaic methods like mercury amalgamation to recover this yellow metal.

With the development of new techniques, mechanized gold recovery systems are now available that can process 5 to 50 tons of mica per hour with guaranteed safe recovery of mica along with other metals and gemstonesdevelopment and ultimate mining. These include:-

· Precious and base metals

· Precious and semi-precious gemstones

· Industrial minerals

Standard Operating Procedure (SOPs)

Our policy, in general, in the area of exploration activities / geological investigation will be to conduct environmental impact assessments and social impact assessment prior to implementation of planned exploration works. Therefore, in finalizing site selection full account in environmental and the social impacts, if any, alongside all other technical and business consideration shall be taken.

Standard Operating Procedure (SOP) in placer gold mining typically includes the following steps:

· Site Assessment: Before starting any mining operation, a site assessment should be conducted to determine if the area is suitable for placer gold mining. Factors to consider include the presence of water, accessibility, geology, topography, and environmental considerations.

· Equipment Selection: Once a suitable site has been identified, the appropriate equipment should be selected based on the size of the operation and the type of material being mined. Common equipment used in placer gold mining include sluice boxes, high bankers, trommels, and dredges.

· Set-Up and Preparation: The equipment should be set up and tested to ensure it is functioning properly. Site preparation should also be conducted, including the removal of overburden and the creation of access roads.

· Mining Operations: Placer gold mining typically involves the use of water to separate gold from other materials. This can be done using a sluice box, which uses water and gravity to separate gold from sand and gravel. Alternatively, a high banker or trommel can be used to wash the material and separate the gold.

· Gold Recovery: Once the gold has been separated from the other materials, it needs to be collected and processed. This can be done using a gold pan or other specialized equipment. The collected gold should be weighed and recorded.

· Site Clean-up: Once mining operations are complete, the site should be cleaned up to minimize the impact on the environment. This may involve the removal of equipment, restoration of vegetation, and the stabilization of any disturbed areas.

· Record Keeping: It is important to keep accurate records of all mining operations, including the amount of material mined, the amount of gold recovered, and any environmental impacts. These records can be used to assess the success of the operation and to plan future mining activities.

It is important to follow all local laws and regulations related to placer gold mining, and to prioritize environmental sustainability and responsible mining practices.

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No doubt exploration site selection has an important upon the amount of disturbance. Pollution that may be caused during field operations will be primary object will be dump and recycle accordingly. Throughout geological investigation site selection shall be aimed to minimize any dislocation or disturbance of local inhabitant or disruption of their lives, or any risk to land holding or to water supplies. Besides, it will be aimed to avoid any long term effects upon drainage or water resources of the area. In addition under unavoidable circumstances or necessary measures will be taken to mitigate any impact or local flora or fauna or their habitats.

It may, however, be clarified that our past geological exploration experience is indicative that no environmental implementation results during geological traverses, sampling and other field investigation, that we shall undertake in the area. Notwithstanding environmental pollution / implication effects as well as their mitigation measures shall definitely be factored in / catered for by the management and the field personnel’s as and when preliminary editing / tunneling, geophysical Survey work and drilling operations or started in the “Reconnaissance License” area by the company.

For this work schedule it shall be the policy of company to appropriately and adequately train its human resources in environmental and Health and Safety (EH&S). Apart from this company employ working this remote area will be equipped to address accidents and field emergencies, beside, out trained manpower shall be equally available for taking emergences of the local population as and when areas arise.

Moreover, all possible necessary steps shall be taken in order to assists local inhabitants to adjust or the impacts that are directly or indirectly caused on account of our activities, we, the management will liaise pro-actively with local people / communities by responding immediately to their concerns. Adequate and well before time warming / intimation shell be given to those that are like to be effected because of our activities, in case damages caused to their land / property restoration measures shall be taken to their satisfactory and or as nearly as possible or else compensation shall be paid for damages caused by as.

Not only that but also company’s team working in remote areas / locations effective training and gear preserving health and safety, in addition to, as well as water and food hygienically fit shall be provided.

Safety and Health at Work

Safety and health at work are important considerations in placer gold mining operations. Here are some measures that can be taken to ensure a safe and healthy work environment:

· Training: All employees should be trained on the proper use of equipment and safety procedures before starting work. This includes training on first aid, emergency response, and hazard identification and mitigation.

· Personal Protective Equipment (PPE): Employees should wear appropriate PPE, including hard hats, steel-toed boots, safety glasses, and gloves, as well as respiratory protection if needed. The type of PPE required will depend on the specific hazards present at the worksite.

· Hazard Identification: Employers should conduct regular hazard assessments to identify potential hazards and implement measures to mitigate them. Hazards in placer gold mining can include slips, trips, and falls, equipment malfunction, exposure to harmful chemicals, and environmental hazards such as extreme weather conditions.

· Emergency Response: Employers should have an emergency response plan in place, which includes provisions for first aid, medical treatment, and evacuation in case of an accident or injury. All employees should be trained on the emergency response plan.

· Environmental Protection: Employers should take measures to minimize the environmental impact of mining operations. This includes proper disposal of hazardous waste, protection of water sources, and reclamation of the land once mining operations are complete.

· Regular Monitoring and Evaluation: Employers should regularly monitor the work environment for hazards and assess the effectiveness of safety and health measures. Any issues that arise should be addressed promptly.

By prioritizing safety and health at work, employers can reduce the risk of accidents and injuries and create a safer and more productive work environment for their employees.

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The DWCP (2016-22) focuses on development and implementation of OSH mechanism for vulnerable categories of workers. It supports the capacity building measures of the ILO constituents to promote occupational safety and health including social dialogue at the workplace.

The ILO has been providing technical assistance to the Government of Pakistan in light of possible ratification of relevant ILO conventions on OSH particularly the Safety and Health in Mines Convention, 1995 (No.176). In addition, it has also extended technical assistance to enhance capacity of the SCORE trainers on the modern OSH management system approaches based on the ILO

Personal Protective Equipment on Site

Personal Protective Equipment (PPE) is an important component of safety in placer gold mining operations. Here are some examples of PPE that may be used on site:

· Hard hats: These protect the head from falling objects, bumps, and other hazards.

· Steel-toed boots: These protect the feet from heavy equipment, rocks, and other hazards.

· Safety glasses: These protect the eyes from flying debris, dust, and other hazards.

· Gloves: These protect the hands from cuts, burns, and other hazards.

· Respirators: These protect the respiratory system from harmful dust, gases, and other airborne hazards.

· Earplugs or earmuffs: These protect the ears from loud noises that can damage hearing.

· Reflective vests: These increase visibility and help prevent accidents.

The specific PPE required will depend on the hazards present at the worksite. Employers should conduct a hazard assessment to identify potential hazards and determine the appropriate PPE for the job.

It is important to ensure that PPE is properly fitted, maintained, and used by all employees. PPE should be regularly inspected for damage and replaced as necessary. Employers should provide training on the proper use of PPE, including how to properly put on, take off, and care for the equipment.

By providing and ensuring the proper use of PPE, employers can help protect their employees from accidents and injuries and create a safer work environment.

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Geologist Engaged On Permanent Base

Letter of Appointment

Date: 1^st Jan 2020

Name: JAHANGIR KHAN

Address: Flat # 4 Muhammad Plaza, Service Road, Transformer chowk,

Dear Jahangir Khan

Appointment as: Senior Geologist.

We refer to your recent interview for the above position and are pleased to advise that we are offering you the position with our Company effective from 1st Jan 2018 under the following terms and conditions:

1. SALARY

Your salary will commence at 25000/- per month.

2. PROBATIONARY PERIOD

Your appointment will be subject to a probationary period of 6 months. An official confirmation of your appointment will be notified to you in writing.

3. WORKING HOURS

Your working hours will be as follows:

Mon – Fri :

Lunch Break :

At times, you may be required to work irregular hours, including Saturday and Sunday.

Appropriate time off will be considered for work performed outside normal operational hours.

4. LEAVE OF ABSENSCE

Leave of absence whether medical or annual will be given in accordance with the Company’s Employee Handbook. Application on prescribed form for leave must be made one week in advance.

5. PAID LEAVE

5.1 ANNUAL LEAVE

The annual leave will be as follows:-

a) Employed for 1-3 years : 10 days

b) Employed for 4-5 years : 15 days

C) Employed for more than 5 years : 24 days

The maximum leave will be fixed at 5 days. The leave will be taken at interval periods unless requested for special reasons such as an overseas trip.

No leave will be granted immediately before/after Public Holidays.

Employee may carry forward a maximum of 7 working days’ unutilized leave to the following year and must be utilized by end of that year.

5.2 MARRIAGE LEAVE

Permanent employees are entitled to 10 days’ Marriage Leave.

5.3 COMPASSIONATE LEAVE

Permanent employees are entitled to:-

a) 3 days – death of spouse, child or parent

b) 3 day – death of parent-in-law, brother, sister or grandparent.

6. BONUS

Bonus is dependent upon the Company’s profitability and your performance. It is only payable at the end of one year’s service and will be paid before New Year.

7. MPF

Deduction of employee’s contribution and employer’s share of contribution will be in accordance with the respective Ordinance currently enforced.

8. PERIOD OF NOTICE FOR TERMINATION OF EMPLOYMENT

Period of notice for termination of employment or salary in lieu shall be as follows:-

a) First month of probation – without notice

b) Second month till probation and 0 7 days

c) After probation- 1 month

Proposed Machinery List required for mining / Equipment Detail

Specific Use of Each Machinery

Trommel Screen

The trommel screen is used to separate materials by size. The rotating drum rolls larger pieces over to allow all fines to flow down and through the trommel screen plates

CENTRIFUGAL CONCENTRATOR GOLD RECOVERY

The application has shown that the recovery of gold can be very high, as much as 99% and the concentration ratio is up to 1,000 times. In the recovery of natural gold in lode ore that has a particle size of -0.074mm, the gold recovered is about 98%, for recovery of gold in particle size of 0.004mm, it is up to 97%.

Sluice Box

A box with riffles along the bottom, used to trap heavier gold particles as water washes them and the other material along the box.

Gold Bullion

Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins. Bullion can sometimes be considered legal tender, and is often held as reserves by central banks or held by institutional investors.

Melting Furnace

Metal melting furnace means a cupola, electric arc furnace, or electric induction furnace that converts solid forms of iron to a liquid state.

Mercury Amalgamation Gold

In this practice, elemental mercury is used to extract gold from ore as an amalgam. The amalgam is typically isolated by hand and then heated—often with a torch or over a stove—to distill the mercury and isolate the gold.

Shaking Tables for Gold

A Gold Shaking Table are basically low-capacity machines used as last step in the gold upgrading process. The shaking table is a thin film, shear flow process equipment that separates particle grains of its feed material based on the differences in their specific gravity, density, size and shape.

Owned Machinery Available At Mine Site

· Generators

· Shaking tables

· Piping system for water

· Sluice box six in quantity

· Metal detecting machine

Rented Machinery

· Excavators

· Loaders

Installation Detail of Machinery

The installation details for machinery used for placer gold mining can vary depending on the specific type of machinery being used. However, here are some general steps that can be taken during the installation process:

· Site Preparation: The site where the machinery will be installed needs to be prepared properly. This may include clearing the area of any obstacles, levelling the ground, and providing a stable base for the machinery.

· Foundation Construction: Once the site is prepared, the foundation needs to be constructed. The foundation needs to be strong enough to support the weight of the machinery and provide stability.

· Installation of the Machinery: The machinery can now be installed on the foundation. This process will vary depending on the specific machinery being used. For example, if a trommel screen is being used, it will need to be assembled and mounted onto the foundation.

· Electrical and Water Supply: The machinery will need electrical and water supply for proper operation. This will require the installation of electrical wiring and plumbing to connect to the power and water sources.

· Testing and Commissioning: After the installation is complete, the machinery needs to be tested to ensure that it is working correctly. This includes testing the electrical and water supply, as well as the various components of the machinery.

· Operation and Maintenance: Once the machinery is installed and tested, it is ready for operation. It is important to maintain the machinery regularly to ensure that it continues to function properly and efficiently. This may include cleaning, lubrication, and regular inspections.

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Revenue Detail

Approximate Expenditure for Three Years

1^st Year (2023)

1. Technical Geological Equipment PRs. 14, 00,000

2. Salaries, PRs. 6, 00,000/-

3. Transportation. PRs. 12, 00,000/-

4. Documentation (Security, rent etc) PRs. 4, 00,000/-

5. Chemical Analysis of samples. PRs. 5, 00,000/-

6. Office Expenditure. PRs. 4, 00,000/-

7. Visits, Tours. PRs. 2, 00,000

8. Misc. Expenditures. PRs. 1, 00,000/-

Total:- PRs. 48,00,000/-

2^nd Years (2024)

1. Salaries of Staff. PRs. 8, 00,000/-

2. Transportation. PRs. 5, 00,000/-

3. Documentation. PRs. 2, 00,000/-

4. Chemical analysis. PRs. 1, 50,000/-

5. Office expenditure Astor/Gilgit PRs. 3, 00,000/-

6. Equipment’s. PRs. 1, 50,000/-

7. Miscellanies Expenditures. PRs. 100,000/-

Total. PRs. 22, 00,000/-

3^rd Years (2025)

1. Equipment’s. PRs. 2, 50,000/-

2. Salaries. PRs. 1, 50,000/-

3. Transportation. PRs. 2, 50,000/-

4. Office Expenditure. PRs. 4, 00,000/-

5. Visits Tours. PRs. 3, 50,000/-

6. Misc. Expenditures. PRs. 3, 00,000/-

Total. PRs. 17, 00,000/-

SUMMARY OF THE EXPENDITURES.

1^stYear PRs. 48, 00,000/-

2^nd Year PRs. 22, 00,000/-

3^rd Year PRs. 17, 00,000/-

Total PRs. 87, 00,000/-

Accidents Data

Placer gold mining, which involves extracting gold from alluvial deposits, can be a dangerous activity due to the use of heavy equipment, exposure to hazardous materials, and working in remote areas with limited medical resources.

It's important to note that these reported accidents are likely just a fraction of the total number of accidents that occur in the placer gold mining industry. Accidents can also result in injuries and long-term health effects, such as respiratory problems from exposure to dust and chemicals.

Recovery rates from placer gold mining accidents vary depending on the severity of the accident and the availability of medical resources. Some accidents may result in permanent disabilities, while others may require extensive medical treatment and rehabilitation.

Overall, placer gold mining can be a dangerous activity we ensure all required proper safety measures, training, and regulatory oversight to prevent accidents and protect workers

Land Compensation

Land compensation for placer gold mining varies depending on several factors, such as the location of the mining operation, the size of the mining area, and the value of the gold deposits. Typically, placer gold mining involves the extraction of gold from alluvial deposits, such as rivers or streams, which are considered public lands.

Placer gold mining may require permits or licenses from local, state, or federal authorities. These permits may require the mining company to pay royalties or fees to the government, which can be considered a form of compensation for using public lands.

Additionally, if the mining operation requires the use of private lands, the mining company may be required to negotiate a land-use agreement with the landowner. The terms of the agreement would typically include compensation for the use of the land, which could be in the form of a lump-sum payment, a percentage of the profits generated from the mining operation, or a combination of both.

Overall, land compensation for placer gold mining can vary widely depending on the specific circumstances of the mining operation. It is important for mining companies to work closely with local authorities and landowners to ensure that they are complying with all applicable laws and regulations and that they are providing fair compensation for the use of public and private lands.

Stage of Mining (Development Stage)

The stages of mining development in placer gold can vary depending on the scale and complexity of the operation, but typically include the following:

· Exploration: This involves identifying and assessing potential placer gold deposits through geological mapping, sampling, and testing. This may also involve using geophysical techniques such as ground-penetrating radar or magnetometry.

· Permitting: Before mining can begin, the necessary permits and licenses must be obtained from regulatory agencies. This may involve submitting an environmental impact assessment and obtaining approval from local authorities.

· Site Preparation: This includes setting up infrastructure such as access roads, power lines, and water supply systems. It may also involve clearing vegetation and removing any obstacles that may hinder mining operations.

· Extraction: This involves the actual extraction of gold from the placer deposit using various techniques such as panning, sluicing, dredging, or hydraulic mining. The methods used will depend on the nature and size of the deposit.

· Processing: Once the gold has been extracted, it must be processed to separate it from other minerals and impurities. This may involve using gravity separation, flotation, or cyanide leaching.

· Reclamation: After the mining operations have ended, the site must be reclaimed to minimize environmental impacts and restore the area to a state similar to its original condition. This may involve re-vegetation, soil stabilization, and water management.

Overall, the development stage of placer gold mining involves a thorough understanding of the deposit and the application of appropriate mining and processing techniques to extract and recover the gold while minimizing environmental impacts.

Mining Type

Traditional mining of placer gold typically involves the use of simple hand tools and manual labour. Here are the basic steps involved in traditional mining of placer gold:

· Site selection: The first step is to select a suitable site for mining. This may involve conducting a geological survey to identify areas with the potential for gold deposits.

· Prospecting: Once a site has been selected, prospecting is conducted to identify areas with high concentrations of gold. This is typically done using a gold pan, which is a shallow metal or plastic pan that is filled with sediment and water. The pan is swirled around, and the heavy gold particles settle to the bottom.

· Excavation: After identifying a promising area, the next step is to excavate the sediment to access the gold deposits. This is typically done using hand tools such as shovels, picks, and chisels.

· Washing: Once the sediment has been excavated, it is washed to separate the gold from the other materials. This can be done using a gold pan or a simple sluice box, which is a long wooden trough with riffles that trap the heavy gold particles as water flows through.

· Collection: The gold particles that are trapped in the riffles or in the gold pan are collected and stored. The collected gold may be further processed using specialized equipment or sold as raw gold.

Traditional mining of placer gold is often labour-intensive and can be physically demanding. It is important for miners to take appropriate safety precautions and to follow best practices to minimize the impact on the environment.