10-Q Management's Discussion and Analysis of Financial Condition and Results of Operations
"However, we are now in discussion with a private American owned Ghanaian company who currently operates alluvial gold operations on the Offin river in nearby Dunkwa, in Ghana and has adequate equipment and equipment manufacturing facilities to commence a bulk sampling operation designed to determine the longer term viability of alluvial operations on our Nyinahin concession with the goal of establishing a Joint Venture on our alluvial mineralization. We are currently preparing a request for permission to start this operation. Updates will be provided."
Pampana River Concession, Sierra Leone: Pending Renewal
This is a renewable license and all renewal applications, permits and associated fees have been paid and filed with the Minerals Commission in Sierra Leone. Once the renewal is finalized, a 4 year EXPL license will be granted. Should the renewal not be approved, there will be an adjustment to our financials to reflect any change in status. We are optimistic that this matter will be resolved prior to year end 2013.
Commencement of Cash Flow Operations – Liberia proposed 2013 -2014
David Price, The Dredgemaster, who recently joined our management team as Director of Alluvial Operations in Sierra Leone and Liberia, has plans to increase our dredging capacity as required up to six dredges in Liberia and a further six dredges in Sierra Leone this year, subject only to financing. He will arrive in Liberia by the end of November and meet our geologist from Sierra Leone, a local Liberian geologist and Management from the US and Liberia to inspect and approve the deployment of a dredge and crew to Liberia to work in a sponsorship role with Liberian owner operators in a profit share plan under existing class c mining licenses on the St. Paul river. This is a known diamond and gold area and we are currently testing a quantity of recoverable black sands. Sand itself is also being looked at as a viable marketable byproduct of a dredging operation. Results of this visit should be available in early December and rains permitting, operations will be scheduled to begin. Diamonds, gold and black sands will be being recovered on a daily basis, once overburden is dredged away and we expect to have reportable inventory and or cash flow by year end.
Commencement of Cash Flow Operations – Sierra Leone proposed 2013 - 2014
David Price, Dredgemaster will travel to Sierra Leone after his Liberian visit and accompany our geologist, Management and local owner operators of mining licenses to our proposed mining sites for inspection and evaluation. We plan to deploy an initial dredge, wash plant and crew to an area on the Sewa river in Sierra Leone in a Sponsorship arrangement with local Sierra Leonean operators to extract diamonds, gold and black sands under a profit share plan. This is a proven diamond and gold mineralized area and we will be directly in charge of all operations. This opportunity lends itself, on receipt of satisfactory results to grow dramatically in the near term. Implementation will commence once the river is safe to operate with divers and our dredge(s). Again, this operation is projected to produce diamond, gold and black sand recovery opportunities on a daily/weekly basis leading to reportable inventory/cash flow by year end if the rains cooperate and most certainly by January 2014. Financial results from dredge production will be being used to design a dredge financing program, whereby the actual cash flow that is Sunergy’s share may be directly assigned to pay the investor for the dredge. More details on this as we progress.
Management intends to work closely with local artisanal operators in both Liberia and Sierra Leone so that cash flow becomes the focus of 2013- 2014 operations. Expansion of operations focused on cash flow is being pursued in a highly prospective diamond, gold and black sands areas that are in addition to the Pampana project.
AI
