Transcription of SPIA tour To Molejon Project.

Lazaro Rodriguez, Engineer:

The Project itself is based on the extraction of gold from a deposit that is being mined in an open manner, how this Works at the beginning of the Project, a first exploration phase is developed. This first exploration phase through perforations determines the amount of concentrated gold in a physical space of the mineral in a physical space of the rock.

Our plan of the mine tells us for what and on what basis we are working, on the basis of extracting 2,500 tons per day by an average law of 2.6 to 3 grams per tons to obtain 6,000 ounces per month.

DjurdjicaKuntich, Engineer

How much weight is a ton in metric volume. I’m talking about approximately, more or less a cubic meter how much weight does it have in removable rock matter.

Lazaro Rodriguez, Engineer:

The weight is relative in this material because the factor is more or less 1.8 to 2.4 is the factor that varies because obviously in this pick we have three types of representative rock, one is sabrositas which is mostly clay, the other is indecita which is a very firm rock and another which is quartz de brecha which is where the gold concentrates more easily, then each one of the minerals has different densities.

Mr. Lázaro

Petaquilla Gold, s.a.

What is important here is the efficiency of the process has been determined before this stage in relation to the extraction. When I get here, I already extracted my efficiency point from 93 to 97 percent.

Everything that I return from my re-wash that I am re-circulating here, we will be able to say that goes into the efficiency.

CIEMI When you left, I was explaining there at that point it goes back into the circuit again but that time that it spends using up the time is an efficiency but of extraction; this means the right Word is as soon as the product is recovered, that you made in the cycle to extract in the point that you give the solution and that is going to depend on, if the first round when it started and ended there appears as efficiency.

Mr. Lazaro

When I start up with 200 or 300 the cyanide acts and disappears on the way

Mr. CIEMI, it starts with a lot of strength.

Mr. SPIA,I clarify the topic the explanation started indicating that the efficiency that the priority of the efficiency is the economic profitability that the function of the Plant which I think is fantastic. They even present the re-use of the solutions in relation to avoid accumulation of storage substances and to keep the profitability levels. What I personally don’t understand is if you present that the extraction average is 30 pounds of gold daily that what makes 600 monthly, that uses 500 kilos of cyanide and use them in the process; why do they still need to use 500 if they are using in the flow.

Just said it, you that use two specific solutions to avoid the effect of the reaction of cyanide is formed transforming cyanide, to my understanding, the cyanides have some effects on the environment.

Mr. Lazaro

If the cyanide that has an interesting characteristic, a fast reactive which is destroyed with water, with ultraviolet rays, bacterial agents, with the environment. Then it is lost, dissolved on the way, all that I can recover of cyanide means a saving for the new addition.

Mr. CIEMI, correct

Mr. Lazaro,

Now, how to handle it, that’s why this part of the detox of cyanide the amount of cyanide PP of what we start off with let’s talk about 250 leaving here must be less than zero to a PP less than a part.

Mr. CIEMI; that is the expectation, after a solution

Mr. Lazaro:

And that is what goes to the re-wash tub. The re-wash tub itself is an OK environment handling system. Then, in deed if there was running water I would not need a re-wash tub.

A detox substance less than a part of a million that must have a process of natural detox in that tub.

Mr. DjurdjicaKuntich:

Those tubs are open or closed, or the tanks?

Mr. Lazaro;

¿Are they open, are those liquids?

Mr. DjurdjicaKuntich;

This means that there are people watching the process

Mr. Lazaro;

These are open and these are assistants.

Mr. DjurdjicaKuntich;

OK.

Mr. Lazaro:

OK. We are now going into the re-wash tub and I’ll quickly explain; we already have boxes that have not been absorbed that are still in the separation process of gold from that coal.

Why do you separate the gold from the coal? They are separated with electric energy, with temperature and also with reagents which here would be with the new cyanide. And we can separate these particles of gold from the coal: the particles are kept in an electrolytic cell given that they precipitate the cells are washed, dried and melted and we obtain our results, that is what is worked on.

We are going into the re-wash tub; ¿how does the re-wash tub work?

R. A re-wash tub is a natural construction it is a trough or land where the soil compacts, to that compacted soil is placed a layer of plastic clay characteristic of our soils it neutralizes, over that layer of clay, a net is placed which is a cushioning and over that a lainer h is placed which is welded boron and there the result is poured into it, leaves the process of the whole plant and of the process, becoming isolated from the environment. That re-wash is isolated, it shelters that pulp that naturally appears and that ends in a clayish landfill of compacted land and can then be re-used. For example in Nicaragua there is one of the best examples of creating a vegetable garden on a re-wash.

We have a Project; to use clay. A Project that is called Peta-Arcillas to generate: railings, clay materials etc.

So, all the pulp is kept in this container isolated from the environment and is all the water that reflows again to the place is re-used ; so at the end this I show it works, we are going to take out a part we are going to pass it through the Plant and we are going to keep it in another part of land where we are going to isolated it from the environment that is how the re-wash handling generated by the Plant works, the liquids are re-used in the process that is how it works the re-wash handling and while they are re-used they are also kept in the tubs.

Mr. Rómulo Rodríguez:

This is in regard to the external part. And the internal part towards the bottom the filtrations that are there.

Mr. Lazaro:

Well, the re-wash

Mr. Romulo Rodríguez

Well, you already have the re-wash, you put the net, the solid, you collected the solid, and you located it and everything else. The filtration is lower

Mr. Lazaro:

There is no filtration; it is isolated with a layer of high density poliethilene, it is isolated from the environment, nor with the subsoil

Mr. CIEMI

The question, because it can happen is what if it dams up. If there is going to be a second tub, this does worry us?

Mr. Lazaro:

It is a handling, just as the bic has areas and phases and it progresses according to its planning creating blocks and it generates this volume passes it through the plant; and keeps this volume in the same sequence of the mining, it grows and decreases the level and increasing such. It is the same extraction and construction sequence.

Mr. Romulo Rodriguez:

Now, the study that gives you the degree of toxicity that the recycled waste products have.

Mr. Lazaro:

When we talk about waste products, and something is important there. My waste goes to my waste container, I get less than a ppm, right now the tub may have a concentration of de 5 and 10 ppm.