DEVELOPMENT AND EXPLOITATION SCHEME

ABJECT

To prepare and submit an development and exploitation scheme for conversion of prospecting
license no PL-Copper (82 ) for copper into regular mining lease for a period of 30 years convering with
area of 1859.50 acres Mashki chah,Siadiq near Chigendiq District Chaghi belonging to M/S Saindak
Metals Limited and to exploit the mineral according to modern mining technology

LOCATION

The area granted under prospecting license and applied for mining lease situated near Mashki
chah,Siadiq District Chaghi on topo sheet no 30 k/8,12 .It is easily accessible from various track.It is 4 km
E-W and 4 km N-S . It is mostly plain and easily accessible by foot and jeep able track. The exposed siadiq
is on the northern margin of leased area with under mentioned coordinates

Points Easting Northing

A 2413000 612000
B 2416000 612000
C 2416000 609000
D 2413000 609000

GEOLOGICAL DISCRIPTION

The Chaghi magmatic belt 480 km long and 140 km wide is an Andean type island arc bounded by the
Chaman-Noshki left lateral transcurrent fault in the East,Dalbandin-Mir jawa basin in the south and
Afghan desert in the North.The rock exposed in the Chaghi belt, in order of predominance are
volcanic,plutonic and sedimentary. The oldest rock in the belt are submarine stratified volcanic and
volcano clastic known as Sanjrani group which are late cretaceous in age.The chaghi intrusion of younger
age are wide spread in the belt and cut the older sanjrani group.these intrusions are
granitic,granodioritic,monzonitic,dioritic,tonalitic and gabbroic in composition and range in size from
sills,dike and stock to batholiths.The intrusions are from late cretaceous to pliestocene in age

The chaghi belt hosts several prospects of metallic mineralization which include
copper,iron,molybdenum and gold porphyry type mineralization is the most important of all the
occurences found in the belt.hydrothermal alteration is markedly developed in these porphyry deposits
which formed as a result of magmatism associated with subduction of the Arabian oceanic lithosphere
under the southern edge of the afghan micro continent in early cretaceous (sinjrani volcanism ) and has
been active sporadically till recent (koh-i-sultan ) volcanism.GEOLOGICAL map of the leased area
attached.

FIELD SURVEY
The indused polarization (I.P ) and Magnetic survey were conducted by GSP under an agreement with
SML during 2014 and 2015.the main purpose of the geophysical survey was to locate copper
gold/porphyry copper style mineralization.

The leased area shows low magnetic identified two zones which surrounded by high magnetic
signatures.these two zones were detailed investigated b methody ip. Nine ip profiles were done in the
leased area which shows a large chargeability anomaly

EXPLORATION WORK

Systematic geochemical study in the leased area has not been conducted in the past.some ground chip
samples collected by GSP geologist in 1975-76 revealed the presence of appreciable amounts of
copper,gold and silver contents.

On may 2015, an agreement signed between SML and GSP . The GSP will have to drill three exploratory
holes of 400 meter each.up to now they have completed the drilling work and awaited for their
complete report.however the unofficial resources said that the results are very helpful.the exploratory
drilling will be further extended as per receiving their complete report.

The reserve calculations,crossections modling and designing is started simultaneously

As per initial reports about overburden and ore body location,open pit mining preferred.the machineries
included rotary drills,excavators.shovels,and loaders,compressor,dumpers,sprinklers with a large
quantity of ANFO for blasting will be used.

ROADS AND RESIDENSES

A no of labour huts have been constructed for the workers as well as for staff members living at site.a
room for compressor and a room for generator also been constructed at site

MEDICAL FACILITIES

To provide necessary medical facilities to the labour and staff,a dispenser have been oppointed and a
part time doctor.but at the time of serious injury the patient will be brought to the SML hospital in
saindak.

MACHINERY AND EQUIPMENTS

The following essential machinery and equipment are required for the development of leased area

Diesel driven air compressor 1 No

Diesel electric generator set 50 k.w 1 No
Pneumatic rock drill with accessories 4 Nos
Pumping set 50 gallon/minute capacity and 200 5 Nos
head
G.I Pipe for compressor air supply and dewatering 1000 feet
with accessories
Pneumatic sludge pump 2 Nos
Trucks for material supply 2 Nos
Pickup 2 Nos

TECHNICAL PERSONEL

Mining engineer 2 Nos

Geologist 2 Nos
Electrical engineer 1 No
Mechanical engineer 1 No
Sub engineer 8 Nos
Surveyor and driller 5 Nos
Driver and operators 14 Nos
Other non technical staff 5 Nos

ESTIMATED EXPENDITURES

For initial development work, the initial expenditure is expected

Machinery and equipment’s with fuel

And spare parts PRs 250000000/-

Officers, staff and labor salary PRs 7000000/-

NOOR UL HAQUE

Chief Mining Engineer SML

Head Office Quetta