Genesis Electronics Group Inc (GEGI)

[DD_dempsey]

MUST READ THIS DD- $GEGI

You wrote an excellent analysis that I'm responding to. It was widely misunderstood that the project would take 7 years to actually materialize.
Thank you for a very well written piece and to remind everyone hat in actuality - they should have about 2000 tons a day ofngold production on that one mine by Dec 2017. That's quite a bit of revenue. Then the move to 6000 per month comes next.

One doesn't have to be a genius to do the math. Here is the recent press release correcting the tile table for gold ore development and production.




Here is a part of your analysis that tries to tell others why it doesn't really mean 7 years wait before value. You did a great job. I didn't have the time to point that out with my analysis aforementioned.

Here again is a portion of the DD you presented off the Cacique website.

The operation is projected to 300 tons per day in a period of five years on the sole Guayuco vein. There will be space for greater expansion as the other gold bearing structures are tested.

The recovered grade of gold is estimated in 10 g/ton and 8 g/ton of silver (AAM NOTE: 300 tons per day @ 10 g/ton = 96ozt/day for gold....300 tons per day @ 8 g/ton = 77ozt for silver. That's $119,481 per day for gold & $1276 per day for silver based on today's NY close.)

Operational costs per ground ton including royalties, transport of ore and refinement charges are estimated at USD $120, which is roughly USD$ 400 per troy ounce, when the operation is upgraded to 300 tons. This is in the lower Quartile of cash costs in the mining industry

!!!!****The first year the project will produce over four million dollars in gross revenue****!!!!, growing up to forty five in the fifth year. Gold produced will grow from actual 7 kg per year to 900 kg per year.


Social approach


Sustainability of the project is a factor taken very seriously, with both social and environmental care strategically considered. The property is surrounded by land appropriate for the harvesting of Inca Seeds (Sacha Inchy) and the project will use the knowhow and commercial development of Inca World Wide to utilize this land for the local community.


Location of the Property


The project Guayuco is located in a low valley, with maximum elevation of 60 meters above sea level. The zone of the property has very low hills with steepness of less than 30% and is adjacent to the river Nechí.


Infrastructure


A dirt road of 1.6 miles goes from Puerto Claver, the nearest town, to the property. The project has access to abundant water and power to supply its needs. The closest airport is in El Bagre, 45 minutes from the project.




Geology


The mineralization explored up to now is a multiple siliceous vein system. The entire property is over the batholith of Segovia, a major source of gold produced in the country. The high-grade mineralization occurs over important intervals of more than one kilometer in depth, as has been found in other exploitations in the same batholith. The mineralization is rich in sulfides with abundant pyrite and lesser amounts of galena and sphlerite.

Six major high-grade veins have been found in the area with considerable width and continuity. The mineralization is similar and there are sub parallel structures. All of the veins have been mined by small-scale miners, within the limitations of this rudimentary practice. These structures are to be tested and there is good evidence of more enriched zones that have not been uncovered. The existing zones prove the high potential of further gold reserves.

Small-scale mining

Historically, the property has been mined by small-scale mining in the absence of explosives and in many cases small generators have generated the electric power. This has limited the operations to shallow depths that don’t surpass 30 feet. Only two operations have been using some mechanization and were able to develop works to a depth of over 200 feet, well into fresh rock.