CMC Business Plan

8/2/2019 CMC Business Plan

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BUSINESS PLAN

CRYSTAL MINING CORPORATION

20380 Stevens Creek Blvd.

Suite 108, Cupertino, CA 95014

Tel. #: 386-479-5823

Email: [email protected]

Web: www.crystalminingcorp.com
mailto:[email protected]:[email protected]:[email protected]


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I. TABLE OF CONTENTS

I Table of Contents.. 2

II Forward Looking Statements 3

III Executive Summary. 4

IV General Company Description.. 4

V Products and Services. 7

VI Marketing Plan 8

VII Operational Plan 13

VIII Management and Organization. 15

IX Personal Finances.. 17

X Start Up Expenses and Capitalization.. 18

XI Financial Planning. 18

XII Appendices.. 25

Table 1. Estimated Gold Ore Production.. 25

Figure 1. Pictures of Machines and Equipment to be used. 25

Figure 2. Typical Flow Chart of Gold Ore Process.. 27

Table 2. List of Machines and Equipment Needed (Conversion rate 1 USD = PhP 45).. 27

Table 3. Chamber of Mines of the Philippines operating in Mindanao.. 28

Figure 3. Map of Davao Province. 29

Table 4. Mining IndustryStatistics>> 30

Table 5. Metallic Mineral Production. 31

Table 6. Philippine Gold Production Comparison 32


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II. FORWARD - LOOKING STATEMENTS

This presentation contains certain statements that may constitute forward-looking

statements within the meaning of Section 21E of the United States Securities and Exchange

Commission Act of 1934 and a forward looking information within the meaning applicable

securities legislation. All statement in this presentation, other than the statement of

historical fact, that address events or developments that the Company expect to occur, are

forward looking statements. Forward looking statements that are not historical facts and are

generally, but not always, identified by words expects, plans, anticipates, believes,

intends, estimates, projects, potential, suggests, and similar expressions, or that

events or conditions will, would, may, could, or should, occur. Forward-looking

statement in this presentation includes statements regarding the timing and nature of future

exploration programs and projections, which are, in part, dependent on results from those

exploration programs.

Forward looking statements involved known and unknown risks, uncertainties, assumptions,

and other factors, that may cause the actual results, performance or achievements express or

implied by the forward-looking statements. These statements are based on a number of

assumptions based on the general market conditions, timing and receipts of regulatory

approvals, the ability of the Company and other relevant parties to satisfy regulatory

requirements, the availability of financing for proposed transactions and programs on

reasonable terms, and the ability of third-party service providers to deliver services in a

timely manner.

Factors that could cause the actual result to differ materially from those in forward-looking

statements include market prices, results of exploration, availability of capital and financing

on acceptable terms, inability to obtain required regulatory approvals, and market conditions

and general business, economic, competitive, political and social conditions. Although the

Company has attempted to identify important factors that could cause actual results to differ

from those express or implied in forward-looking statements, there maybe other factors

which cause actual results to differ. Accordingly, readers should not place undue reliance on

forward-looking statements. Forward-looking statements contained herein are made as of

the date of this presentation, and the Company disclaims any obligation to update these

forward-looking statements, whether as a result of new information, future event or results,or otherwise, except as required by applicable securities laws.

The description of this presentation zone does not intend to imply that any economically

estimates of reserves or resources exist on the proposal. Similarly, although projected

features of the presentation are interpreted to show similarities of nearby processing plant

owned by third parties, this should not be interpreted to mean that the processing plant has,

or that it will, generate similar outcome. Significant steps have to be undertaken to fully

understand before any meaningful resource calculation can be completed.


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III. THE EXECUTIVE SUMMARY

When I wrote down this summary in the middle of September, gold then was valued at

$1,270.00 per troy ounce (31.10gms). With gold prices trending up, there has never been a

much exciting time for me and CRYSTAL MINING CORPORATION to invest in the gold industry

business. Gold for the past decades has remained the most stable investment EVER; dating

back more than 10 years ago when gold was only $300.00 per ounce. With the current

recession in the United States and around the globe, there is only one projection for gold to

follow and that is UP. It has been projected that starting next year gold prices will be valued

at $1,500.00 per troy ounce and will eventually go up as high as $2000/troy ounces by year

end 2012. And that is why we, at CRYSTAL MINING CORPORATION has fully committed

ourselves to succeed in making this company a leader in gold mining industry in the next 5

years.

We will cautiously start the construction of our first gold ore processing plant starting March

2011 with a target completion date by June 30, 2011. Region 11 (Davao and Compostela

Valley), Philippines has been chosen due to the fact that gold mining has been ongoing since

the 1980s and has been known as the gold center in the country. To date more than

326,084.68 kilos has been mined with aggregate total of more than 13 trillion dollars in

todays value.

This organization is seeking a financial investment of $500,000.00 from various private

entities who are interested in the Gold Mining Industry.

It is expected and projected that Capitalization would be paid back in 15 months or less from

initial operation of the plant and that companys debt would be nil by then. Sales revenue

would reach more than $ 1,000,000.00 by December 2012. Profits are presented below to

further understand the business opportunity and how as an investor generally able to

capitalize and capture a higher Return on Investment (ROI).

IV. GENERAL COMPANY DESCRIPTION

The Philippines is situated along a well-defined belt of volcanoes called the Circum-Pacific Rim

of Fire where the process of volcanism and plate convergence resulted in the formation of

abundant and important metallic mineral deposits of gold, copper, iron, chromite, nickel,

cobalt and platinum.

The Philippines is considered as one of the countries most endowed with metallic resources

in the world with over $1 Trillion untapped mineral deposits; once fully developed would be

ten times its annual Gross Domestic Product (GDP). The country has overwhelming trillion-

dollar resources. The Philippines ranks in the top 6 for gold, nickel, copper and chromite and

has the potential to be top 10 largest mining power in the world. While the country has

enormous untapped resources, only 1.4% of about 9 million hectares of land, identifies as

having rich mineral deposits, have been explored and covered by mining permits.


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Common metallic minerals extracted in the Philippines:

CATEGORY MINERALS % OF TOTAL VALUE**

Precious Metals Gold 48.07

Silver 0.26

Base Metals Copper 6.78

Iron & Ferro-Alloy Metals Nickel 16.36

Chromite 0.12** based on 2008 Gross Production Value of USD 1.84 Billion

Market Opportunities

2008 total exports of minerals & mineral products: $2,482 million

Export destination countries: Hong Kong, China, Australia, Japan and other trading

partners in Asia, North America and Europe

Concentrate off-take negotiations

Philippine AdvantagesNatural Resources

9 million hectares are high potential sites for copper, gold, nickel and chromite

Only 1.4% covered by mining permits

Ore reserves:

ORE 2005 RESERVES MT

Gold 3,056,947,159

Copper 2,968,064,616

Nickel 953,670,162Chromite 18,744,685

Iron 410,637,010

Aluminum 292,010,410

CRYSTAL MINING CORPORATION is a newly established venture company whose main

objective is to process, explore, and mine valuable gold. Incorporated in the United States on

October 07, 2010, the company is set to launch in the Philippines its first gold mining

processing plant by March 2011. Negotiations and dialogues at the moment have been on-going with a Chinese counterpart to supply needed machineries in processing these gold ores.


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Our mission is simple: To be a leader in the exploration, production and processing of gold by

providing the highest quality of service using the most advance technology, with high grade of

efficiency at the most competitive price.

Our Goal is straightforward:

Phase I Project

a. To build CRYSTAL MINING PROCESSING PLANT for the processing of gold ore by

March 2011 within 20 to 30 km radius of Tagum City, Philippines, known as the center

of gold trading.

b. To be able to process a minimum but not limited to 10,000MT (metric tons=1000kg)

of gold ore during the first year of operation beginning upon completion of Crystal

Mining Processing Plant by June 2011.

Phase II Project

a. Increase company gold ore processing capacity rate to a minimum but not limited

to 15,000 MT (metric tons) by the first quarter of 2012.

b. Explore additional 1 to 2 tenement sites for gold production within the second and

third quarter of 2011 at Region 11, Philippines.

Phase III Project

a. To be able to secure, extract and process its own gold by July 2012 to at least 2

tenement sites with minimum but not limited to an annual gold production capacity of

5000 troy ounces (1 troy oz=31.1034gms).

b. Expand gold exploration drilling sites to achieve minable gold reserves of more than

30,000 troy ounces and be able to increase gold production but not limited to 7,500-

10,000 troy ounces starting January 2013.

c. Double extraction capacity of gold ore to 30,000MT per annum by 2013.

CRYSTAL MINING CORPORATION believes that customer satisfaction is a valuable tool in

providing small scale miners the needed extraction rate for gold ore. In region 11, roughly

40,000 small scale miners have been accounted with 26,876 registered at the provincial

capitol of Davao. Of the 40,000 small scale miners, fourteen thousand (14,000+) plus

unregistered are unaccounted and beyond the guise of the governments detection.

According to the report, 322,512MT daily productions in gold ore is being mined from

registered miners alone not accounting the bulk of production produced by the unregistered

small scale miners. Previous year registered a total of 117,716,880MT annual gold oreproduction had been mined within Region 11 (Table 1).


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The demand in processing these gold ores is so high that according to small scale miners

themselves, they have to wait more than a month before processing their ore into pure gold.

The amount of gold ores to process are in abundance and the backlog is long enough, that

small scale miners are willing to pay additional fee ranging from 15% to 30% on top of the

actual processing cost to speed up its production time.

With the introduction of highly sophisticated machineries, Crystal Mining Corporation will be

positioned better against local competition that currently manufactures gold mining

equipment with 70-80% extraction rate. With Mr. Marlove F. Socorros skills and experience

with these machineries, plus his invaluable presence in the area, would greatly serve as an

important asset in stirring the company towards the right direction in fulfilling our visions and

goals to the fullest.

CRYSTAL MINING CORPORATION has chosen Nevada as its primary base due to its friendly

atmosphere for investors. Among which are the following:

No Corporate Income Tax

No Taxes on Corporate Shares

No Franchise Tax

No Personal Income Tax

No I.R.S. Information Sharing AgreementNominal Annual Fees

Minimal Reporting and Disclosure Requirements

Stockholders are not Public Record

V. PRODUCT AND SERVICES

Extraction of gold from an ore is of vital importance for business especially when you areclassified as small scale miners (miners with investment less than $1M and do not use

detonations, and large machineries). The higher the extraction rate is, the higher the

likelihood that they will avail services from gold processing plant that have the highest

extraction capacity rate. For them, building a processing plant is somewhat a surmountable

project to accomplish. Recent survey in the region has shown that majority of the processing

plants in nearby towns of Tagum City, Davao Oriental, Compostela Valley, Davao del

Norte have an extraction capacity rate of only 70-80% for 95% of the 11,287 existing plants.

Majority of the miners are using locally manufactured products and machineries that use less

sophisticated technology. Crystal Mining Corporation machineries will address this need and

will be able to offer small scale miners an alternative extraction capacity rate far superiorthan what the current trend is. With current extraction capacity rate of 98% efficiency, and

minimal wastage, Crystal Mining Plant will set a new trend in becoming the new force in gold


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ore processing in the area and beyond. Competition will be present without a doubt, but with

the existing waiting period time of one (1) month or more before any gold ore from small

scale miners can be processed, Crystal Mining Corporation has more than enough to process

and will definitely be a better alternative than majority of the existing players. The demand is

so high that our annual production goal of 10,000MT minimum would hardly touch the

current backlog time and overall market in general.

Crystal Mining Plant will consist of the following: Jaw Crusher, Cone Ball Mill, Conveyor,

Vibration Feeder, Ore Bins, Cyclone, DSM, Leaching tanks, Slurry pump, Steel balls, Structure

(office/laboratory) and a GenSet

VI. MARKETING PLAN

According to the data released by Davao Provincial Government Mining Bureau; Region 11,

Davao, Philippines annual gold ore processing accounts for 117,716,880 metric tons for large

and small scale miners. The data also included 11,287 existing processing plant with a total of

26,876 registered small scale miners with about 14,000 plus unregistered and unaccounted.

Philippine Metallic Mineral Production as from January to June of 2010 produced a total of

18,865 kilos of gold amounting to almost $700M. The data further compare previous year

production of 16,875 kilos which is about 12% growth rate year to year bi-annual report.

MGB Metallic Mineral Production

Of the 117,716,880 metric tons gold ore mined in 2009, CRYSTAL MINING CORPORATION will

aggressively grab less than 1.5% of the small miners market which is around 65 million metric

tons with a minimum targeted annual production capacity rate of 10,000 metric tons. For the

last six (6) years since former president Gloria Macapagal Arroyo opened Philippines as

mining haven, the Department of Environment and Natural Resources (DENR) data has shown

that production in gold ore has steadily grown an average of 10-15% per year. It has been

projected that in the next 5 years an average of 10-15% will be experienced as more and

more gold mining companies are signing up for gold mining activity. Apex Mining (28%owned by Canadian firm), North Davao Mining Corporation, Cadan Resources Corporation

(40% Canadian owned), Philsaga Mining Corporation and Asiaticus Management Corporations

are among the companies operating within the region. Table 3 shows the Chamber of Mines

in the Philippines operating in Mindanao.

This is a huge opportunity to pass, hence CRYSTAL MINING CORPORATION was formed to

address the growing needs and demand in the Region and beyond. Even though initial capital

cost is quiet substantial in terms during the start up phase, projections has been made to turn

the company into profitability within 15 months or less. Marketing the company as a new

force in gold ore processing would not be a big problem considering that small scale minerswill always look for a much better extraction rate and therefore clientele acceptance and

company recognition would be easy.
http://www.mgb.gov.ph/pgs.aspx?pgsid=7http://www.mgb.gov.ph/pgs.aspx?pgsid=7


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CRYSTAL MINING CORPORATION has adopted the latest technology in gold ore extraction and

is poised to capture the needed 30 ton per day minimum goal. The Jaw crusher alone will be

able to crush gold ore in a rapid sequence with immense crushing power devouring anything

into pieces. With average 10 tons per hour capacity, it will ensure the CRYSTAL MINING

PLANTS ability to catch up production under downtime circumstances and other need to

basis. To date Marlove F. Socorro is trying to secure a contract from small scale miners who

will be interested in processing their gold ore at the highest extraction rate. On the other

hand, our Chinese counterpart has already submitted their price quotations for the

machineries to be delivered at CIF prices. Once financing is funded we will then proceed with

the procurement of the listed machineries.

Skilled and experienced chemist, expert engineers whose competency in their own field is

without question would be hired during the operation with the rest of the employees to be at

least high school graduates as their credentials.

Government taxation mandates that all company involve in mining will be charge a value

added tax of fifteen (15%) percent on all gold mining activities. These percentages will then

be charged to the miners which will be added to the $70.00 processing fee per metric tons of

gold ore.

P R O D U C T

CRYSTAL MINING PLANT will offer excellent services to the small scale miners continuously,

day to day, year round according to the contract. The product itself involves architecturallydesigned, structured plant to make sure that work flow is free from discrepancies,

inadequacies and anomalies. Once a customer realized that Crystal Mining Processing Plant

has one of the highest extraction rate capacity, a paradigm shift will be experienced in which

small scale miners themselves will be lining up to have their gold process at our processing

plant. They would understand the value of having a higher extraction rate i.e., higher return

on their investment and more money in their pockets.

CRYSTAL MINING PLANT ADVANTAGES AND BENEFITS

FEATURES ADVANTAGE BENEFITS

98% Extraction Capacity

Rate for Gold Ore

Beats majority of the

competition

More monetary unit for the

miners.

Jaw crusher capacity 10

ton/hr

Enables to speed up

production when necessary

Guaranteed production will

be finish as scheduled

24/7 working plant Continued job performance Guaranteed delivery of gold

on time


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Security Driven Stable working environment

with minimal disruption

High level of customer

satisfaction and assurances

Imported and

sophisticated machineries

Minimal down time Continued production and

services

C U S T O M E R S

Small scale miners shall be our main target groups of clientele. These miners will be the one

responsible with the mining of gold ore themselves. Our job is to facilitate faster production

of their gold ore. Once their gold ore arrives at our facility, a coordinator will assist them in an

orderly manner beginning with right receiving up to disposal and markings of their gold ores.Deliveries will be in 20 tonnage size trucks with proper coordination ahead of time to lessen

and minimize traffic congestion within the perimeter. Customers usually send their own

security to watch over their gold ore and making sure that in the end, there will be no gold

anomalies. As part of our companys service of transparency, video cameras and cctv

monitors will be installed around the vicinity during processing period to enhance fair and

balance at all levels with our core customers. In addition a laboratory assay will be conducted

prior to processing the gold ores, this is done to ensure a fair and square processing results.

C O M P E T I T I O N

Large groups of gold mining industry process their own mine; therefore our major

competition would be small scale miners themselves who already have existing plants in the

area. Since the major breakthrough in gold ore extraction has been rated at 98%; only less

than 2% of the small scale miners have upgraded using this advance technology. This will be a

great opportunity for Crystal Mining Corporation to seize these favorable circumstances and

the timing has never been this precise and more exact.

Delivery of gold ore to our sites would be a challenge and the company has proposed of up tofifteen (15) days backlog job processing shall be accepted. Contracts from small scale miners

would be needed to secure the continuous processing of gold ore on a daily bases. Roads to

our site must be accessible and large enough to accommodate traffic for heavy trucks during

delivery. A center for customers shall be established for waiting time with television and

drinks readily available. For all services rendered, there would be a no refund policy. A

thorough prepayment agreement will be printed and agreed upon before any services can be

started.


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N I C H E

Without a doubt the 98% extraction capacity rate would be the driving force for CRYSTAL

MINING CORPORATION. This feature will serve as a beacon for small miners to harvest their

labor using the highest quality of gold extractor there is. The rarity of this idiosyncrasy or

feature within the area, will serve immensely advantageous for CRYSTAL MINING PLANT and

its machineries in pivoting and positioning our company as the NEW FORCE and LEADER in

the extraction of gold ore industry.

S T R A T E G Y A N D P R O M O T I O N

Prior to building and completion of CRYSTAL MINING PLANT, contracts for securing the

30MT/day capacity would be signed before its first foundation is even laid. This will be

accomplished by spreading the information through direct meeting with the small scale

mining owners themselves and at the same time dissemination of information through

leaflet sampling. Rough terrain and mountainous site will be encountered while conducting

and scouting our clienteles and it is a must that a reliable 4x4 vehicle shall be

leased/purchased. Advertising using the local paper and media will be a need be process. A

logo design will be made after the incorporation. Business cards and letterhead will follow

thereafter.

Upon signing a 2 to 5 year contract with our clients, a tour to the plant will be offered after

the completion of CRYSTAL MINING PLANT to make sure that our clienteles will feel secure

and protected for their vested interest and that their business is ours as well. We want to

project an image of business professionals who look after their own success. CRYSTAL

MINING CORPORATION will further serve its clients as a trusted ally, providing them with

excellent service reliably and with utmost transparency.

Promotional Budget:

Transportation/Gas $ 33,333.00

Leaflets 500.00

Business Cards/Letterheads 300.00

Total Promotional Expenses $ 34,133.00

P R I C I N G

In gold ore production, current processing fee is standard; however, several miners or

investors who does not operate or have their own processing plant are willing and


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prepared to add up additional 15 to 30% on top of the existing processing fee.

Proposed pricing shall be $ 70.00 per MT with $ 80.00 per MT as secondary price

depending on the demand and needs of clienteles.

Such steps and/or decisions of the miners are done to ensure that there would be

continued liquidity of finances for operational purposes.

This is also done internally with the processing plant for certainty that ores are

processed on time.

Services and extraction rate capability will play as the most important aspect in our

plant.

Miners at times doesnt mind high processing fee as long as their ores are processed

on time and with highest extraction rate possible.

P R O P O S E D L O C A T I O N

Location for Crystal Mining Plant shall be chosen according to proximity location from small

scale miners. Viability of transportation roads and electricity as well as water utilities shall be

considered in order to run the company with ease. The plan is to have this site within

proximity of competition thereby increasing its visibility to would be customers. Convenient

parking spaces shall be provided to accommodate large and small vehicle enough for the

operation.

D I S T R I B U T I O N C H A N N E L S

CRYSTAL MINING CORPORATION has set to operate one mining site for now contingent to the

needs of the area. Mr. Marlove F. Socorro and the upcoming Assistant Manager shall be in

charge of the direct acquisition of clienteles. Our services shall be available for small scale

miners within and in nearby areas . Contracts shall be signed accordingly per our companys

by laws and regulations in agreement with our clienteles.

SALES FORECAST

Sales of CRYSTAL MINING CORPORATION for the first year of operation shall be from the

Contract between the company and the Small Scale Miners. It is expected and targeted that

30Metric tons a day of Gold Ore shall be processed with $70-$80 dollar shall be charged as

service fee.


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QUARTERLY SALES PROJECTION

(July 2011-September, 2011)

Month of Operation At $70.00 per Metric

Ton

At $80.00 per Metric

Ton

Sales Ranges

1. July $58,380 $66,720 $58,380-66,720

2. August $58,380 $66,720 $58,380-66,720

3. September $58,380 $66,720 $58,380-66,720

Quarter Total: $175,140.00 $200,160.00 $175,140-$200,160

ANNUAL SALES PROJECTION

(July 01, 2011 - June 30, 2012)

Description At $70.00 per Metric

Ton

At $80.00 per Metric

Ton

Sales Ranges

Annual operation $700,000.00 $800,000.00 $700,000-$800,000

VII. OPERATIONAL PLAN

Once CRYSTAL MINING PLANT is completed before June 30, 2011, we will conduct a series of

test of its machineries for optimal functioning before any services from our clienteles shall beaccepted. Operation and dry run shall begin July 01, 2011 and shall operate 24/7, Sunday to

Saturday, 365 days, with two allotted days reserve every month for maintenance and

downtime.

Production:

Products will be delivered to the plant using a 20 tonner capacity truck in a 40 to 50kg

used sack container.

Processing will be done on a first come first served basis.


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Prior and before processing is done, assay analysis will be conducted (for a fee) to

ensure clients of fair processing and give them idea of how much amount of gold is to

be expected.

As mentioned above, we can make the operation 5 days a week 24hrs operation or an

option to operate during weekends as the need and circumstances dictates.

Location:

Site location will be established near the center of trading for customers convenience.

An area not less than 1 hectare and no more than 2 hectares will be leased

approximately 20 to 30 km radius of Tagum City. Electricity should be readily available

and roads should be passable to big trucks.

The plant will consist of the processing plant itself with minimum of 3 CIP tanks, mini

laboratory for assay analysis, firing area, mini office, provision for canteen and the

large portion will be allotted for stockyard. Perimeter fence will cover the whole plant

for security purposes using tin sheets roofing.

Legal Environment:

Barangay permits, municipal permits, Building permits (for plant construction) and

ECC (Environmental Compliance Certificate from DENR) are the basic documentsneeded before construction approval.

Other business permits will be needed upon application of the above mentioned

requirements.

We will out-source the preparation of the above mentioned requirements. Normally,

and based on our interview and research, it will take 30 to 60 days processing of these

requirements

MONTHLY PERSONNEL SALARY

Manpower Qty Unit Price Total Price

General Worker 12 178.00 2,136.00

Supervisor 6 267.00 1,602.00

Asst. Mgr 1 667.00 667.00

Engineer 1 556.00 556.00

Chemist 1 667.00 667.00

Security 4 178.00 712.00

General Manager 1 1,000.00 1,000.00

Total 26 $ 3,513.00 $ 7,340.00


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QUARTERLY PERSONNEL SALARY PROJECTION

Total Number of Personnel Amount in Dollar

26 $22,020

ANNUAL PERSONNEL SALARY PROJECTION

Total Number of Personnel Amount in Dollar

26 $88,080.00

General workers need not be graduates. All of them will engage in manual labor so

they need to be strong and physically fit

Supervisor- should have at least experience in the processing of ore or have worked in

a processing plant before

Asst Manager College grad and loyalty should be unquestionable

Engineer Electrical is the competence

Chemist Knowledge in basic assay and routine analysis

VIII. MANAGEMENT AND ORGANIZATION

SYLVESTRE C. YGAY IV President and Board Member

Graduated at University of Perpetual as Bachelors Degree and consistent Deans Lister

in 1993, President senior batch.

Joined Bristol Myers Squibb in 1996 as Territory Manager and an awardee of Rookie of

the Year having achieved more than 150% YTD performance during his first year stint

with the company. As a pharmaceutical representative and territory manager, he was

a consistent performer that made him become a member of Elite Performers within

Bristol Myers Squibb known as Presidential Awardee for having consistently achieved

a Year to Date performance of more than 100% for more than 3 consecutive years.

Former Owner and General Store Manager of La Pharmacia 1999. A small company

involved in buying and selling of pharmaceutical products both wholesale and retail

merchandise.


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Currently a Registered nurse with Charge Nurse Position at Kaiser Permanente, Santa

Clara.

Superintendent and Head representative of The Church of God (7th day) Salinas, CA.

Married to a devoted and lovely wife Josephine with three (3) beautiful children

namely Matt, Sophia, and Sam.

MARLOVE F. SOCORRO Country Manager/Plant Manager and Chairman of the Board

Graduated at the University of the Philippines Los Banos with a Degree of Bachelor ofScience in Agriculture in 1996

Currently handles the position of a Business Development Officer for a local company

engaged in the sales of various Mining equipment and design and construction of

Processing Plant in Mindanao Area.

Hired by the Petbowe Group of Companies in 2007 in the capacity of Sales Manager.

As the head of the newly established business unit, was expected to develop and

design methods and systems to increase product line thereby opening new

opportunities for the company and the business unit. He is likewise responsible forthe formulation, development, execution and maintenance of marketing strategies,

organizational planning strategies and market research. He identified and developed

other farm input products thus, increasing company product line and creating new

market opportunities to various areas and territory. Further, he developed and

executed creative marketing ideas that ultimately meet company objectives and/or

goals. Revised company guidelines regarding credit policies and implemented thru

gradual conversion of credit-terms to cash basis for all new customers.

Also joined Ajinomoto Philippines Corporation in 1999 as the Chief Agriculturist of the

company. Developed and implemented strategic promotional activities both short-term and long-term propaganda for product awareness in the market. He was

consistently awarded an annual evaluation of a VERY SATISFACTORY rating from the

first year of service until closure of the company. Awarded and granted by Ajinomoto

Philippines Corporation through the Japan International Cooperation Agency (JICA) a

technical training in Japan regarding EXPERIMENTAL CULTIVATION AND FERTILIZER

APPLICATION TECHNIQUES FOR SUGARCANE. A record holder in the company having

a 1,400+% increase in sales in the assigned territory during the first year of service.

Member in good standing of the National Range Officers Institute in the Philippines as

Chief Range Officer and the Philippine Practical Shooting Association

Married to Weng with only 1 child Clarissa Denise


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ADONIS T. ALAGASI Asst Manager

Graduated at the University of the Philippines at Los Banos with the Degree ofBachelor of Science in Agriculture in 1996

Currently holds a position of Business Manager- South Luzon Area at Bioseed Agro-

Chemicals.

Vacant Electrical Engineer

Competence in Electrical

Vacant Chemist

Competence in Assay and routine Analysis

IX. PERSONAL FINANCES

SYLVESTRE C. YGAY IV

As of ending 2009 W-4, Mr. Sylvestre C. Ygay IV has filled a joint annual gross income of

$165,000.00 with his wife Josephine R. Ygay. He currently owns GMC Yukon 2003 and Honda

Odyssey 2001. His wife currently in school for Associate degree in nursing and is expected to

finish by 2013. The rest of personal finance shall be divulged upon request.

MARLOVE F. SOCORRO

Spouses Marlove F. Socorro and Lowena N. Socorro registered an annual income for 2009

amounting to $ 73,989.34. They were both then engage in the operation of a conveniencestore in Dasmarinas City Cavite where a separate house and lot is also located. Currently, his

spouse is managing and operating a restaurant in Davao City. All relevant and pertinent

information such as other properties and bank finances shall be divulged upon request


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18

X. START UP EXPENSES AND CAPITALIZATION

CRYSTAL MINING CORPORATION is at the Pre-Construction Phase of its financial project

preposition. Since planning this strategic concept, the following expenses had been incurred

as listed below and it is expected that half of the allotted $500,000 investment capitalization

would be needed before any operation would be started. Financial Meetings for potential

investors will be conducted in a series of business presentations and meetings. Capitalization

shall be a very important aspect in raising the first half, if not all of its needed projection

amount.

PRE-CONSTRUCTION PHASE (October-December 2010)

Registration and Paper works $ 3,500.00

Financial Statement and Bookkeeping 500.00

Survey and On-site view 5,000.00

Transportation Procurement 33,333.00

Land Lease (6 months advance payment) 2,000.00

Leaflets/Ads 500.00

Miscellaneous/Contingency (20%) 8,300.00

TOTAL EXPENSES $ 53,133.00

YTD EXPENSES ENDING DEC 2010 $ 53,133.00

XI. FINANCIAL PLANNING

CRYSTAL MINING CORPORATIONS goal financially is to settle its debt as quickly as possible in

record time and provide a positive cash flow. Keeping a healthy and strong financial balance

to its shareholders is of utmost importance. The following data below illustrates how we aregoing to meticulously accomplish this. All processing services as explained previously would

not be process unless payment is made ahead of time. Any advance payment of services

provided by the company shall be accepted within specified time frame as stipulated in the

contract between Crystal Mining Corporation and its clienteles. Machineries will be paid half

ahead as well as construction with the rest of the outstanding balances be paid upon

completion or delivery.


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19

ACQUISITION PHASE (January 2011-March 2011)

Equipment and Machineries Down payment/(+Electrical

Transformer) $ 76,889.00

Construction Planning and Design /Structure 22,222.00

Leaflets 500.00

Business Cards 300.00

Miscellaneous /Contingency (20%) 19,982.00

TOTAL EXPENSES 119,893.00

PLUS: CARRY OVER EXPENSES FROM YTD 2010 $ 53,133.00

TOTAL EXPENSES TO DATE $ 173,026.00

CONSTRUCTION PHASE (April 2011-June 2011)

Construction Process $ 22,222.00

Manpower Orientation & Training 7,338.00

Financial Report Expenses 500.00

Miscellaneous Expenses 6,912.00


TOTAL YTD EXPENSES $ 209,998.00

OPERATIONAL PHASE (July 2011-September 2011)

Equipment and Machineries other half payment $ 76,889.00

Materials Expenses (Chemicals,Maint,Electricity, Comm,Food/Entertainment, Diesel) 32,235.00

Manpower Expenses 22,014.00

Transportation Expenses 1,000.00

Rental Expenses 900.00


YTD EXPENSES $ 343,036.00


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RUNNING PHASE (October-December 2011)

Material Expenses (Monthly budget x 3) $ 32,235.00

Manpower Expenses 22,014.00

Exploration Expenses 20,000.00

Transportation Expenses 1,000.00



YTD EXPENSES $ 419,185.00

MONTHLY BREAKDOWN OF EXPENSES DURING THE OPERATION

(EXCLUSIVE OF MONTHLY TAXES)

Manpower Qty Unit Price Total Price

General Worker 12 178.00 2,136.00

Supervisor 6 267.00 1,602.00

Asst. Mgr 1 667.00 667.00

Engineer 1 556.00 556.00Chemist 1 667.00 667.00

Security 4 178.00 712.00

General Manager 1 1,000.00 1,000.00

Subtotal 26 3,513.00 $ 7,340.00

Materials, Maintenance Expenses

Diesel Gas (liters) 650 520.00

Electricity 1 3,334.00Communication 1 445.00

Chemicals 1 2,667.00

Maintenance 1 2,223.00

Food/Entertainment 1 1,556.00

Subtotal $ 10,745.00

Transportation 1,000.00


TOTAL MONTHLY EXPENSES

$ 19,385.00


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21

SALES FORECAST VS EXPENDITURES

MONTHLY SALES FORECAST VS EXPENDITURES

TARGET: 834MT

$70.00 $80.00

SALES 58,380.00 66,720.00

EXPENSES(Monthly Expenses + 12% Tax from Sales) 26,391.00 27,391.00

POTENTIAL INCOME 31,989.00 39,329.00

QUARTERLY SALES FORECAST VS EXPENDITURES

TARGET: 2500MT

$70.00 $80.00

SALES 175,000.00 200,000.00

EXPENSES (Monthly Expenses + 12% Tax from Sales) 79,155.00 82,155.00


ANNUAL SALES FORECAST VS. EXPENDITURES

TARGET: 10,000 MT

$70.00 $80.00

SALES 700,000.00 800,000.00



Above data has shown that CRYSTAL MINING CORPORATION projected sales forecast vs.

expenditures enables the company to pay capital investment by record breaking of (15)

months using the $70/MT valuation for sales revenue commencing July 2011. Its expansion

plan to increase processing capacity rate to 15,000MT by January 2012, would decrease its

liabilities settlement by less than 12 months. Financial assistance is needed at this point to


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extend terms of agreement into a 3-5 year period or more in order to maximize its ability to

expand and grow into multi-million dollar revenue generating company by 2012 and beyond.

CRYSTAL MINING CORPORATION has aggressively plan to increase its gold ore processing

capacity to a minimum of 15,000MT per annum starting January 2012, a 50% increase

capacity. Considering the enormousity of the market, this future production is only peg at 2%

fraction of the total market share. The following data below would be the potential

generating income and expenditure projections. Material expenditures would increase by

about 50% amounting to $16,118.00 per month, however, manpower will only increased by

20% or less amounting to $8,808.00 per month. Upgrade on the continuous ball mill and

acquisition of 2 additional CIP tanks will be of prime priority in order to achieve a 50MT

capacity rate or more per day with. This will allow the company to accept more contracts in a

more harmonious fashion with ability to function at 72MT/day at full capacity. This will

ensure CRYSTAL MINING PLANT to finish its contract in record time all the time.

2012 MONTHLY SALES FORECAST VS EXPENDITURE

TARGET:1250MT

$70.00 $80.00

SALES 87,500.00 100,000.00



2012 QUARTERLY SALES FORECAST VS. EXPENDITURES

TARGET: 3,750 MT

$70.00 $80.00

SALES 262,500.00 300,000.00




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23

ANNUAL SALES FORECAST VS EXPENDITURES

ENDING DECEMBER 31,2012

TARGET: 15,000MT

$70.00 $80.00

SALES 1,050,000.00 1,200,000.00



THE BREAK EVEN ANALYSIS DATA

The following data analysis below depicts a picture of CRYSTAL MINING CORPORATIONS

ability to reach a break even point. Considering that initial production will commence July

2011, it is expected that by the end of March 2012, the company will be able to provide a

positive cash flow amounting to $83,128.00 quarter ending by then. Payments for loan shall

be dependent upon the amount of interest we will incur during the process.

BREAK EVEN DATA ANALYSIS

JULY 2011-SEPT.2011

SALES REVENUE 175,000.00

LESS:

YTD EXPENSES 343,046.00

YTD PROFIT LOSS (YPL) (168,046.00)


OCT.2011-DEC.2011


LESS:

YPL JULY-SEPT.11 + YTD EXPENSES (OCT-DEC. 11)

244,195.00

YTD PROFIT LOSS (YPL) (69,195.00)


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JAN- MARCH 2012


LESS:

YPL OCT-DEC 11 + YTD EXPENSES PER QTR 2012

179,372.00

YTD PROFIT (POSITIVE CASH FLOW) 83,128.00

BREAK EVEN ANALYSISAPRIL-JUNE 2012


CASH FLOW 83,128.00

345,628.00

LESS:

YTD EXPENSES 110,177.00

ANNUAL INTEREST AT 10% 50,000.00 160,177.00

YTD Profit 185,451.00

These break even analyses data shows that CRYSTAL MINING CORPORATION will definitely

able to post a positive profit within fifteen (15) months or less from the day of operation. It is

expected that $185,451.00 will be achieved from henceforth as positive cash flow and it is

expected that by the end December 2012 profit of $490,097.00 or more

($185,451.00+$152,323.00 3Q12+$152,323.00 4Q12) will be realized and that company will

be debt free

Legend:

Sales

Expenses/Loss

Profit/Income


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XI. APPENDICES

Table 1. Estimated Gold Ore Production

Area

Coverage No of small Ave Daily Ore Total Daily Existing Potential Client

miners Production Production Processing Plant Miners Ore

(tons)

Region

11 26,876 12 322,512 11,287 15,589 187,068

Total Annual Ore Production 117,716,880 tons of ore

Available Ore 68,279,820 tons of ore

Figure 1. Pictures of Machines and Equipment to be used

Jaw Crusher model PE 200x300 (10tons/hour) Cone Ball Mill YMQ 900x2100 (1 1.5tons/hour)

Conveyor with Belt TD 500x9000 Vibration Feeder GZ3


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Cyclone CIP/Leaching Tanks (12x16)

GenSet (Cummins 100 Kva)


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Figure 2. Typical Flow Chart of Gold Ore Process

Table 2. List of Machines and Equipment Needed (Conversion rate 1 USD = PhP 45)

Description Model Quantity Unit Price Amount USD

Ball mill YMQ900x2100 1 31,111.11 31,111.11

Jaw Crusher PE200x300 1 6,222.22 6,222.22

Conveyor TD500x9000 2 3,111.11 6,222.22

Compressor 90CFM 1 2,333.33 2,333.33

Vibration Feeder SZ300 1 3,555.56 3,555.56

Ore Bins 30 ton 2 2,000.00 4,000.00

Cyclone 1 1,555.56 1,555.56DSM local 1 1,222.22 1,222.22

Leaching Tank local 3 12,222.22 36,666.67

Slurry Pump 1 3,555.56 3,555.56

Steel Ball 4000 1.56 6,222.22

Generator 100 kva 1 17,777.78 17,777.78

subtotal $ 120,444.44

Structure 1 44,444.44 44,444.44

Electrical (100 KVA

Transformer) 1 33,333.33 33,333.33

Service Vehicle (brand new) 4x4 1 33,333.33 33,333.33Contingency 1 22,222.22 22,222.22

subtotal $ 133,333.33

TOTAL $ 253,777.78


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Table 3. Chamber of Mines of the Philippines operating in Mindanao

CHAMBER OF MINES OF THE PHILIPPINESRoom 809 Ortigas Bldg., Ortigas Avenue, Pasig City 1605 Philippines * Tel.Nos. (632) 635-4123 to 24; 635-4159*Fax No.:(632) 635-4160

* E-mail:[email protected] * Website: http://www.chamberofmines.com.ph

DIRECTORY OF MEMBERS

Company

and Minesite

Location Address Tel. No(s). E-Mail Address Products

REGULAR MEMBERS

1 Asiaticus Management Corp.

(Davao Oriental) (Australia)

255 Chino Roces Avenue,

Makati City

812-9784

892-6611

892-9401816-1346

Copper, gold,

silver

and nickel

2 Benguet Corporation

(Baguio, Zambales, Bataan, Davao

& Apayao)

7/F Universal Re Bldg.,

corner Perea St., 106 Paseo De

Roxas, Makati City

812-1380

752-0717

Copper, gold,

silver,

nickel

3 Philsaga Mining Corp.

(Davao and Agusan Del Sur)

Duratrak Compound, JP Laurel Ave.

Bajada, Davao City

(082) 222-8046

(082) 221-0121

(082) 222-1096

867-8086

810-0111848-2199

[email protected] Gold

ASSOCIATE MEMBERS - METALLIC (Exploration Companies)

1 Apex Mining Co., Inc.

(Compostela Valley, Davao)(UK)

Unit 1704 17th Flr. Prestige Tower

Condominium, Emerald Ave.

Ortigas Center, Pasig City

706-2803 to 06

706-2804

Gold & Silver

2

Indophil Services International

Pty. Ltd. (Leyte, Camarines Norte,

Davao,

Dumaguete) (Australia)

3rd Level, L&F Bldg. ,107 Aguirre

St., Legaspi Village, Makati City

752-1440 to 43

752-1446

Gold, copper &

all

other minerals

3 Philippine Mining Development

Corporation (Davao)

Unit 2904-B, West Tower, Philippine

Stock Exchange Centre,

Ortigas Center, Pasig City

706-1630 to 38

706-1630 to 31

[email protected] Gold & copper

PROFESSIONAL MEMBERS

1 Mindanao Assn. of Mining

Engineers (MAEM)

Lybird St., Del Rosario Heights

Subd., Lanang, Davao City

(082) 233-2859

(082) 233-2859
mailto:[email protected]:[email protected]


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Figure 3. Map of Davao Province


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30

Table 4. Mining Industry Statistics as of March 2010 (Source: Mines and Geosciences Bureau official

website at http://www.mgb.gov.ph/
http://www.mgb.gov.ph/http://www.mgb.gov.ph/http://www.mgb.gov.ph/


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31

Table 5. Metallic Mineral Production Comparison (Jan June 2009 vs. Jan June 2010)

PHILIPPINE METALLIC MINERAL PRODUCTIONJanuary-June 2010 vs. January-June 2009

As of August 2010

Mineral Commodity Unit

Used

JAN-JUN, 2010 JAN-JUN, 2009 % Change

Quantity Value Quantity Value Qty Value

PRECIOUS METALS 31,287,345,738 22,565,646,716 39

Gold KGS. 18,865 30,773,119,719 16,875 22,288,764,680 12 38

Silver KGS. 20,192 514,226,019 14,644 276,882,036 38 86

BASE METALS 18,539,443,792 10,360,183,456 79

Copper Concentrate DMT 110,532 7,385,933,297 87,687 4,332,028,724 26 70

Copper Metal Equivalent MT 27,397 21,362 28

Nickel Concentrate DMT 14,444 3,947,626,000 12,890 3,618,895,000 12 9

Nickel Content ofConcentrate

MT 8,203 7,119 15

Nickel Direct Shipping

Ore

DMT 5,435,162 6,963,215,207 2,984,793 2,237,931,201 82 211

Nickel Content of Ore MT 69,889 59,966 17

*Total Nickel Content of

Ore & Concentrate

MT 78,091 67,085

Chromite DMT 5,882 49,674,105 5,528 49,029,039 6 1

Zinc DMT 8,992 192,995,182 10,659 122,299,492 (16) 58

TOTAL 49,826,789,530 32,925,830,172 51

Source: Website: www.denr.gov.phDepartment of Natural Resources- Mines and Geosciences Bureau

http://www.mgb.gov.ph
http://www.denr.gov.ph/http://www.denr.gov.ph/http://www.mgb.gov.ph/http://www.mgb.gov.ph/http://www.mgb.gov.ph/http://www.denr.gov.ph/


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Table 6. Philippine Gold Production (Jan June 2009 vs. Jan June 2010)

PHILIPPINE GOLD PRODUCTIONQuantity: In kilograms

Value: In Philippine Peso

JAN-JUN, 2010 JAN - JUN, 2009 % Change

Name Of Producer Project Name Qty Value Qty Value Qty Value

PRIMARY PRODUCERS 16,731 27,424,683,159 14,342 19,112,693,754 17 43

Philippine Gold

Processing & Refining

Corporation/FILMINER

A

Masbate Gold

Project

2,479 4,107,668,303 327 470,764,236 657 773

Philsaga Mining Corp Banahaw Gold

Project

1,559 2,728,478,891 896 1,284,493,342 74 112

Lepanto Cons. Mining

Corporation

Victoria Gold

Project

358 607,650,859 460 649,301,043 (22) (6)

APEX Mining Comp Inc. APEX Maco

Operation

353 594,830,516 265 374,800,375 33 59

Benguet Corporation Acupan Contract

Mining Project

41 68,899,491 31 43,199,554 32 59

Johnson Gold Mining

Corporation

Paracale Gold

Project

13 16,592,286 15 17,170,703 (14) (3)

Lepanto Cons. Mining

Corporation

Teresa Gold

Project

0 0 56 79,109,514

Various Small Scale

Mines (SSM) based on

Purchases of Bangko

Sentral Ng Pilipinas

Gold Purchases

of BSP from

SSM*

11,929 19,300,562,813 12,293 16,193,854,987 (3) 19

SECONDARYPRODUCERS

2,134 3,348,436,560 2,533 3,176,070,926 (16) 5

Philex Mining Corp. Padcal Copper

Project

1,590 2,454,926,462 2,030 2,584,201,421 (22) (5)

Rapu-Rapu Processing

Inc./Rapu Rapu

Minerals Inc.

Rapu-Rapu

Polymetallic

Project

326 523,227,084 292 292,791,874 12 79

TVI Resources Dev't

Phil. Inc.

Canatuan Mining

Project

111 191,224,973 82 113,043,743 36 69

Carmen Copper

Corporation

Toledo Copper

Project

107 179,058,040 129 186,033,889 (18) (4)

TOTAL 18,865 30,773,119,719 16,875 22,288,764,680 12 38

*Less purchases from Acupan SSM Project, Banahaw Gold Project and Diwalwal Projects

Source: Website: www.denr.gov.phDepartment of Natural Resources- Mines and Geosciences Bureauhttp://www.mgb.gov.ph
http://www.denr.gov.ph/http://www.denr.gov.ph/http://www.mgb.gov.ph/http://www.mgb.gov.ph/http://www.mgb.gov.ph/http://www.denr.gov.ph/

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