Not Such a Great Gold Mining Opportunity

by Jefrey Gomes

This doesn't seem to be nearly the great opportunity that it is being made out to be. $10,000 just to get a claim to use. But you have to still purchase the equipment and not just any equipment, the equipment they tell you to purchase.

Above the $10,000, you have to show the assets of $100,000 and they get 50 percent of what you find! You use their legal advisers and buy their equipment and they can cancel your agreement at their discretion and all legal arbitration or matters are to be settled where they say.

Sorry, this is all a one-sided deal if you ask me. If I am to run a claim, it would be done my way using the equipment I want, especially if I have to purchase it.

They seem to know if you buy large equipment that is only from their preferred vendors what is going to happen if it doesn't work out. They are going to keep your claim and your equipment unless you actually believe you are going to afford to transport it out of the country and I am sure you won't be able to sell it for anything close to what you will have to pay for it.

If these people want to do a legitimate deal they purchase the equipment and set you up all expenses paid and you work it the way they want and you get 50% that would be the fair way.

Stan's response: Thanks Jefrey, for your well thought out comments and interest in the project. I will try to address your remarks in order.

First off, finding a rich, commercial, easy-to-work, proven deposit of gold anywhere in the world is a very difficult proposition. Next, finding that deposit in a politically friendly and legal place to mine freely is even harder.

The project owner does not require you to lease or purchase your equipment from any of the several dealers he has lined up. Those preferred dealers simply have the best prices and nearest availability for parts and repairs. He has spent many months lining up the best deals for everything to help insure the success of the overall deal. Check it out for yourself if you come to Ecuador, but why would you want to reinvent the wheel?

They do not "get" 50% of what you produce. The concession owner receives 20% of the production. For that percentage he went to the time and expense to acquire the concession originally. Further in our deal, he must maintain road access and reclaim all damaged trees and plants according to environmental law.

The project owner receives 25% of the production. In return, he provides invaluable and essential support services as listed in the Support Document. The logistics and costs for those services and teams of people are substantial. If you try to run your own mining support in Ecuador, you will never have any time to mine, or else you will pay a fortune keeping yourself safe and supported. I know this personally because I have been through it with a public company.

An approximate 30% of your production then goes to your own operating costs. Any mining project obviously operates with monthly costs such as fuel, labor, maintenance, lease payments, food, equipment, etc.

You can use your own legal advisers, but good luck finding the honest and competent ones. I have seen more than a dozen gringos get fleeced when moving to Ecuador, paying out $15k-$20k each and still not getting the job done properly.

Your sub-license would only be canceled for not producing gold or for committing an inappropriate act against the locals or Natives. This is in everyone's best interest. Otherwise, it would be crazy to cancel your sub-license if you are being productive. We only want good, productive members of this project.

Seriously, of all of the commercial gold mining operations I have ever seen, it is very rare to keep a net profit of 25% or more of your gross production, especially from the very beginning of the operation. That is exactly what this opportunity offers.