Diamonds are mined in about 25 countries. Although most diamond mining is accomplished by large companies, in many developing and resource rich countries, diamonds and other minerals are extracted by small- scale miners working in the informal sector. These small-scale miners often use simple artisanal mining techniques in alluvial deposits. The process of alluvial diamond mining involves digging and sifting through mud, sand and gravel using shovels, sieves, or even bare hands. Typically, diamonds come from geologic rock formations called Kimberlites. Kimberlite rock formations that contain diamonds are eroded over time by rivers and streams and can deposit diamonds in the sediments carried by those streams farther downstream from the original source rocks. These deposits are called alluvial diamond deposits. The locations of these alluvial diamond deposits are controlled by the surrounding topography, drainage patterns, and the location of the Kimberlites themselves. Alluvial deposits are often mined and exploited by small-scale miners using artisanal mining techniques. Guyana is rich in this form of Diamond mining and Ensurge is positioned to benefit greatly from these resources and this process.
With over twenty years of history through its subsidiary NARIL, and members of management who are grandsons of Guyana gold explorer Jack Paulson, the Company is uniquely qualified to mine gold in Guyana. Whether it is evaluating an existing claim or a developing a startup program, the Company has the experience necessary to get a project into operations. Furthermore, the Company has the logistical experience and strategic relationships within Guyana to conduct operations at a competitive advantage over other mining operations.
A gold exploration program has a beginning, a middle and an end. It starts with potential project area, an existing claim, or a portfolio that finds it’s way to our hands. As the evaluation program unfolds, it has many paths it can take, from mapping and ore sampling, to geophysics and moderate drilling, to making the geology maps and producing the reports. The results are a variety of gold producing locations.
Platinum is an extremely rare substance and remains far less abundant than gold. It is found only in a few commercially viable deposits on the earth and is typically mined in three major producing regions in South Africa, Russia, and North America. However, Guyana is showing significant signs of platinum group minerals and the Company has developed a strategic relationship with the leading explorer of PGM’s in Guyana. Ensurge is continuing it’s exploration on how it will be a viable contributor.
As the price of silver continues to show great strength, more and more old deposits and mines are being reevaluated and Ensurge often looks for new opportunities and assets. There are a lot of junior mining companies that are actively exploring for silver. Though the presence of silver in the Company production in Guyana is primarily a byproduct of its gold mining, the Company is receiving proposals for operations in both the United States and Canada.
Tantalum has shown strong demand and price growth over the past ten years due to its predominant use in various electronic and other “hightech” applications with manufacturers such as Apple and Samsung. Demand for tantalum was weak from 20002003 due to a weak electronics sector, but growth and demand has now returned to the tantalum market with great significance and the Company currently believes that the market for tantalum will continue to grow and, consequently, is preparing to participate in the industry through exploration of additional properties believed to contain tantalum. The Company is developing a multitiered strategy involving in the tantalum business and intends to formally include it within in the overall business plan sometime in the near future.