SUNERGY, Inc.
Managements Plan With Budgets To Achieve Near Term Gold Production
Nyinahin Mining Concession near Bibiani, Ghana, West Africa
The Company
SUNERGY, Inc.(OTCBB: SNEY) is a fully reporting, publicly listed and traded, production oriented junior mining company engaged in the evaluation, acquisition, exploration, planned operation and advancement of gold/silver/diamond development
The Project
Nyinahin Mining Concession
Effective October 31, 2008, Sunergy completed the acquisition of 100% interest in Mikite Gold Resources (“Mikite”), a Ghanaian corporation with exclusive exploration rights to the Nyinahin Mining Concession near Bibiani, Ghana. The Mineral rights are for gold, diamonds and base metals.
The 150 square kilometer Nyinahin mining concession is located between two geological gold belts, the Bibiani Belt to the west and the Asankrangwa to the east. The property shares borders with several major mining companies, including Newmont Mining, Napoli Gold and Dunkwa Continental Goldfields. The district is home to the famous Ashanti Goldfields-Obuasi Mines and is one of the most active exploratory areas in the world.
A preliminary survey by Geodita Resources LTD, Ghana, indicates that the Nyinahin Concession has significant potential for gold mineralization and for recovery of alluvial gold. There are 3 major anomalous zones: Owusbukurom anomaly in the center Ntoboroso anomaly in the southeast and the Krakyekurom anomaly in the southwest. There are 4 known mineralized trends: Baaneekurom-Nyinahin, Ntoboroso, Owusukurom-Adupiri and Krakyekurom-Adupiri. The reconnaissance has also shown several abandoned surface mines that are yet to be investigated due to time and budget constraints of the current owners.
Location and Access
About 80% of the Nyinahin Concession lies to the west of the Offin River within the Ashanti Region of Ghana The property is accessed via the main Kumasi-Bibiani trunk road and is located 48km southwest of Kumsasi and 20km northwest of Bibiani. Adequate ground water appears to be available for diversion for future mining operations. Electrical power is sup[plied by the National Grid and Infrastructure facilities are available within the concession from notable towns which include Nyinahin, Akorabuokurom, Baaneekurom, Nagore and Ntoboroso.
Evidence of past exploration and mining activities exist in the form of pits and adits. There is a strong clustering of artisan pits located along the Offin River. Three old gold prospects exist on the concession. The first is located about 2.0 km SE of the village of Akorabuokurom and 3km from the village of Otaakurom, the second 1.8km SW of to the east of the concession, whilst the third is located along the south eastern boundary near the village of Owuokurom. Fragments of phyllite, greywacke and quartz are noted in the spoils of these pits.
A systematic exploration program was initiated in July 2005. The work consisted of active stream sediment sampling and geological mapping. Application to the Minerals Commission in Ghana upgraded this 150 sq. km. Nyhinahin mineral concession from a reconnaissance license to a full prospecting license.
Why Ghana
We believe the country is an attractive location due to its stability and it history (Former British Colony independent since 1957. There are favourable mining laws and recently numerous major gold producers have begun defining what we believe will become one of the world’s most prolific gold belts.
The Opportunity
SNEY will begin a gold purchasing program from the artisan’s already working on the concessions; coupled with an oxide mineralization exploration and development plan designed to result in oxide gold recovery through gravity/wash plant operations on concession areas. The Artisans typically recover about 30% of the available gold using crude methods by hand. Modern mechanized methods are able to recover an additional 60% at the rate of 200 tons/hour. There is good harmony in working with the locals, rather than putting them out of work.
The purchasing program from the locals will be immediately profitable with profits initially being contributed to the development of alluvial production equipment and operations..
SNEY will purchase gravity/wash plant(s) and a field smelting facility to further recovery after the Artisan hand operations recover the initial gold. Once profitable, SNEY will reserve 60% of the gold recovered .to guarantee anticipated future Gold Debenture financing for growth through acquisition of profitable targeted gold recovery operations.
Additional Oxide Gold production opportunities are available in other concessions through acquisition or Joint Venture.
Timing
Within 45 days of funding, SNEY will start it’s Gold Buying Program. Within 90 days of funding, SNEY will begin mechanized gold recovery operations on the already previously worked Artisan pits along the Offin river. The operation is profitable from day one because the initial gold is bought at a subatantial discount and the cash cost of mechanized gold recovery will be less than $300/ ounce.
Business Strategy / Budgets / Use of Funds
The following activities with budgeted costs are recommended to move the Nyinahin Mining Concession toward production.
Gold Purchasing Program and Gravity/Wash Plant Production
The proposed program is budgeted as follows:
|
To Be Raised Funds –
Gold Purchasing Program and Gravity/Wash Plant Production: |
| Gold Purchasing Program |
$ 150,000
|
| Wash Plant Purchase |
250,000
|
| Operating and Permitting Costs to Operate the Wash Plant |
50,000
|
| Administrative and Overhead Costs |
50,000
|
| Total To Be Raised |
$ 500,000
|
Financial Summary
Sunergy has several former producing mines and numerous Artisan pits along the Offin River which will be worked for the 60+% of the gold left behind by the Artisans. With the initial purchase of a gravity/wash plant we will begin in Quarter 2 of 2009 at an initial rate of 2,000 – 3,000 ounces per month stabilizing @ 3,000/ month over quarter 3 and 4 for the first year. Once stabilized, the Company will add 1 gravity/wash plant during Quarter 1 and 2 in each of the next two years increasing production by 36,000 ounces per year for each plant. The Company anticipates growing annual production to over 100,000 oz/year which results in projected earnings of $30,000,000 - $40,000,000per year.
Summary of Investment Opportunity Operations
Given the successful transition to a precious metals producer the additional significant upside anticipated by management will be achieved by successfully utilizing the profits generated by the concessions to build shareholder value through becoming a mid-tier producer; entering a niche in the industry recently vacated by other companies through merger or acquisition by larger companies which brought enormous gains to their shareholders. This growth occurs through expanding reserves and resources in properties where the company’s operational and developmental expertise is used to build shareholder and operational value. Historically, it is not uncommon for mid tier precious metal producers to be trading at 40 to 100 times earnings.
Spot Price of Gold and Silver
Gold and Silver have been in a seven year bull market taking gold and silver prices to all time high’s in recent times. Management believes that macro economic conditions domestically and internationally are likely to keep prices at current levels and very likely take them to after inflation highs or higher for gold and silver. Gold’s after inflation equivalent to its 1981 high is over $2,000 per ounce. Continued rising spot prices increased return opportunities at every level along the way.
Contact: Steve Parent, Advisory Board Member @ 775.721.6428 steve@gnmtlive.com or
Joseph Guerrero President @ 602.740.1132 scottsdaleinvestments@yahoo.com
SUNERGY INC
8711 E. Paraiso Driver
Scottsdale, AZ 85255
Phone: 602.740.1132
www.sunergygold.com
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