Remember that the information below is not meant to be in any way a complete analysis of the opportunity, but to give potential Investors an overview of some of the issues that may be important. Interested investors should examine further information. Also please refer to the terms and conditions in your subscription agreement.

1. Proposal Title/Headline

Prospective Thai Gold Development CAPITAL NOW RAISED

2. Business Summary

The company has exclusive exploration rights and titles in central Thailand covering 74 sq.km, all located within 20 km of the newly commissioned open-cut Chatree Gold Mine developed by Kingsgate Consolidated N.L., a publicly listed Australian company with a market capitalisation of $115 million (planned production 150,000 ozs p.a). There are 3 major prospects where approximately A$2,000,000 has been spent identifying the most prospective areas. One title is 800 metres from the Chatree mine, whilst another, 9 kms west, has proven surface gold as evidenced by up to 2,000 local amateur fossickers working the site over the past 3 years. The prospect where most work has been done is to the north-east of Chatree where excellent surface and trench results have been achieved over significent distances. Up until 1987 all gold in Thailand was owned by the King. The law changed in 1987 and in that year the management team members of the company became founding working partners in the original joint venture that evolved into Kingsgate's Chatree Gold Mine. The company wishes to raise funds with the object of bringing one or more prospects to Initial Feasibility, i.e. demonstrating development viability, within the next 12 months.

Updates

3. Estimate of Market Size and Growth Potential

The global gold market is extremely large and any single mine's production would be unlikely to effect the price of gold.

4. Market Demand

Gold has been used as a store of value and for jewellery for thousands of years.

5. Competitive Advantage

Lower Cost Price

The gold exploration areas are highly prospective and the only mine in production in the area is the Chatree mine owned and operated by Kingsgate Consolidated N.L. Kingsgate's costs of operation are in the bottom 1% of all world producers.

6. Market Distribution

A very efficient distribution market exists through the various gold bullion dealers. Hedging of forward gold production is common and helps protect revenue.

7. Management

The Executive Chairman (based in Sydney) has been involved in gold and other publicly listed resource companies for the last 25 years. He and associated interests were founding partners in the Thai gold exploration joint venture that has evolved into the 150,000 oz per annum producing Chatree Gold Mine recently developed by Kingsgate Consolidated N.L. Operational management is co-ordinated by the Executive Chairman and senior management team members in Thailand one of whom is a qualified geologist who speaks fluent Thai and the other is a geophysicist. There is a minimum of 5 team menbers in Thailand.

8. Technology

Kingsgate's public announcements state that they have recovered nearly 13,000 ozs of gold (including gold in circuit)in the first full month of production (Dec.'01)at a recovered 94% of the mill-feed head grade. These recovered grades give confidence that other resources discovered in the locality will be similarly easy to treat.

9. Product Development

N/A

10. Scalability

Scalability is not an issue as production plants can easily be built to process any agreed production rate.

11. Intellectual Property in SME's Business

It is considered that Thailand is the best country in South East Asia to explore from a combined political/geological perspective. Considerable work has been conducted on the company's titles over the last 4 years, leading to a strong likelihood of the discovery of economic gold resources. The management team has extensive hands-on knowledge of Thailand and its social and business culture.

12. Barriers to Entry

Exploration Licences and Mining Leases are exclusive in nature and that exclusivity applies from the date of application to grant to expiry, including exclusive renewal rights. Competitors, therefore, do not have access to the company's leases.

13. Milestones

The objective in raising $1m is to provide sufficient working capital to enable the company to rapidly expand exploration and drilling on all its mineral exploration rights and titles over the next 12 months. The goal is to bring one or more prospects to Initial Feasibility,i.e. to the point of demonstrating development viability.

14. Risks

That the abundant, rich surface manifestation of mineralisation is not replicated sub-surface.

15. Company Valuation

No

16. Abridged Profit & Loss

 

The Profit and Loss (unaudited) is for the year ended 31 December 2001. Other Expenditure represents exploration costs Administration costs are kept to a miminum with the Executive Chairman drawing no salary The company has Thai tax losses and significent potential tax benefits

17. Balance Sheet

18. Accumulated Sales since business started

Sales
$0

Years Established
4

19. Is the business solvent

yes

Solvency History

20. No. of Employees

2 to 5

21. Shareholding % to be issued to new investor for investing.

16.

22. CAPstart Matching Product

  C1

23. Business Stage

Seed/product development

24. Role the investor would play

Non Executive Director

25. Main Location

overseas