As part of the processing for diamonds and gold, we have sand as a by-product. We looked at the sand and saw that Montes Claros, the city closest to the mine, has almost half a million people. That city is growing by 20 percent a year. It needs cement for houses, hospitals, schools, everything you can imagine. And there’s really no supplier of sand near it. So naturally we said, “okay, let’s sell our sand.” We have 1 million tons of sand, and it’s actually annoying because it takes up space. So we did the environmental study needed to show that selling the sand won’t affect the environment, and we got approved and are going to begin selling sand. It will be a beautiful cash flow — we had something that’s free and we’ll be selling it to someone who desperately wants it. That gives an idea of the way we think — the previous owner didn’t even think of that. We also produce gold daily, which means we have gold and diamonds. With gold and diamonds you can make jewelry. We’re thinking that because a lot of our stones are smaller we will put them in jewelry to get a higher price. For example, if you have a 0.1-carat diamond that is polished, you could sell it for $200. But if you put five of them in ring you could sell that ring for $4,000 instead of $1,000 for just the diamonds.
From Sept 10Q http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10311042
As of September 30, 2014, the Company had deposits of $991,230 related to proceeds received for future diamond sales which have been recorded as deferred revenue. In the first nine months of 2014, our revenues were approximately 46% from the sale of rough diamonds, 10% from the sale of polished diamonds, and 44% from the sale of gold. These revenues were derived from a variety of buyers, both commercial entities as well as private investors; approximately 90% from Brazil and 10% from the United States.
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