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An Emerging Gold Producer February 2009. DISCLAIMER.
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An Emerging Gold Producer February 2009
DISCLAIMER Certain statements in this document may constitute “forward-looking” statements involving known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Hidalgo Mining International Inc., or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this document. These forward-looking statements involve a number of risks and uncertainties.
HIDALGO MINING INTERNATIONAL • Public vehicle being used to roll-in premium gold (Au) properties • Mission create an international mining company focused on becoming a medium sized gold producer (80,640 oz in year 1; 107,520 oz in year 2) • 50/50 joint venture agreement with Castle Peak Mining Ltd. on advanced properties located in Ghana, Africa • Over $2.5 M in recent exploration • Confirmation of high grade placer deposits on each of the Castle Peak concessions • Grades consistently ranging from 1 to 8+ g of Au per yard • High probable areas for quick gold recovery of over 1 million oz of gold (Non NI 43-101 compliant) • A total potential reserve of 20 million ounces of gold is highly probable given the established gold mining region and the results obtained to date (non NI 43-101 Compliant) • Near term Production (WD – Bonsaso) revenues of more than $25 M and $33 M in year 1 and 2 respectively • Highly experienced management team • Have chosen only the highest quality mineral projects that have real prospects of ultimate economic development
MINING IN GHANA • Ghana’s mining industry • Over 1000 years of mining history • Experienced explosive growth from the late 1980’s • Today is Africa’s 2nd largest gold producer • One of the world’s most prolific gold belts • Current production at 90 M ounces of Au • Current resource of 78 M ounces of Au • Over $1.5 billion in mining investments in the last few years • Favorable mining laws • Politically stable, safe and peaceful • Hundreds of local and foreign companies • Well trained, locally available workforce • Top 5 economic performers and best places to do business in Africa • The major gold producers • Gold Fields Ghana • AngloGold Ashanti • Golden Star Resources • Redback Mining • Newmont Ghana Gold • Over 300 small-scale mining groups • 90 mine support service companies
NKWANTA PROSPECTING LICENSE • 33.55 km2 area located in the Wassa-West District of the western region of the Republic of Ghana • Southeast of Kanyankaw mine • 87.5% held by Canterbury Mining Company Ltd. (Castle Peak subsidiary) • 12.5% held by Netas Mining Company Ltd. (local Ghanaian company) • Option to acquire additional 12.5% interest subject to a 2.5% NSR payable to Netas Mining
NKWANTA ANOMALIES • Stream sediment, soil and rock sampling and gridding have been completed • 2 anomalies around the old Apankrah Mine in the centre of the concession • Apankrah Main (AM): gold values between <0.01 parts per million (ppm) and 7.07 ppm, a strike length of about 2 km and a width of about 350 m • Apankrah West (AW): gold values between <0.01 ppm and 0.58 ppm, a strike length of about 1.6 km and a width of about 200 m
WD – BONSASO PROSPECTING LICENSE • 23.54 km2 area situated in the Wassa-West district in the western region of Ghana southwest of Tarkwa • Borders Ghana Australian Goldfields active mine containing 6 M proven oz of Au • 90% held by Windsor Mining Company • 10% held by WD Gold • Valid until March 13th, 2009 • Annual commission of US $30,000 to WD Gold payable once a drilling program begins until the day that a final report on the drilling program is completed • Windsor Mining is required to sell or list the concession on an international stock exchange within 12 months of the completion of a successful drilling program
WD – BONSASO ANOMALIES • Exploration activities started in January 2008 desk study, geological mapping, stream sediment survey and soil geochemical sampling • The results of stream sediment surveys resulted in the delineation of 3 separate anomalies: Adieyie, Central and Bonsa • The Adeiyie and Bonsa anomalies are considered to be priority target areas • One trench included four separate mineralised intervals with grades greater than 1 g/t Au • The widest mineralised interval is 4 m in width and the highest value was 10 g/t Au
ADIEYIE, CENTRAL & BONSA ANOMALIES • Stream sediment anomalies across the Bonsaso concession picked out by red dots (>200ppb) • Planned future work includes soil sampling and trenching of defined soil anomalies
WD – DOMPEM ANOMALY • Exploration activities started January 2008 desk study, geological mapping, stream sediment survey and some soil geochemical sampling • Results of the stream sediment survey defined 1 stream sediment anomaly with a NE-SW trend • Total of 16 stream sediment samples and 108.9 km lines cut for soil sampling • 237 samples were collected out of a total of 2055 expected • Soil survey generated one strong anomaly with a NE-SW trend • The strike length is about 4.8 km and the width about 900 m • Gold values range from <1 ppb to 1,394 ppb
MANAGEMENT Mark D. Klok, President and CEO • Over a decade of investment banking experience in structuring and negotiating mergers and acquisitions, raising private equity, debt, bringing companies public and developing market maker support • Seasoned financial professional having ten plus years of experience with various companies including gold mining, oil and gas, bio-technology, and real estate • Extensive knowledge in using the OTC:BB, AIM and TSX exchanges bringing companies public to access institutional funds through the capital markets • Will be managing the Company's long-term growth by identifying future acquisitions and institutional relationships as the Company enters into a roll-up and consolidation phase William Tehan, Board Member • Started his investment career on Wall Street with Gilford Securities between 1993 & 1996 • From 1996 to 2000 held a position as an associate in the investment banking firm of Fine Equities working on management and administration, restructurings, and various other banking deals • From 2001 to 2005 has held various positions at Brean Murray and Co., a New York-based investment bank • In 2005, Brean Murray merged with Carret & Co. to form Brean Murray, Carret & Co. LLC. • Promoted to managing director and, as portfolio manager, is responsible for managing part of the firm's $3.5 billion
MANAGEMENT Lee Rice, Board Member • Has been the Chief Engineer and past President of Data Technology Services, Inc. since 1990 • Designs and conducts geological and engineering studies, materials processing studies, and environmental control studies for client firms and organizations including Anglo American Gold, DeBeers, Citicorp, Behre Dolbear-Riverside, the Government of Taiwan, Rio Tinto and more • Has authored several articles in Mining Engineering magazine and was Associate Editor of several publications • Registered Professional Engineer and Registered Member of the Society for Mining, Metallurgy, and Exploration, and a member in good standing of the American Association for the Advancement of Science (AAAS), Colorado Engineering Council (CEC), Geological Society of America (GSA), Sigma Xi Scientific Research Society, and Society of Economic Geologists
MANAGEMENT Robert Edwards, Security Advisor • Has provided elite security and protection services throughout the United States and abroad for corporate executives, dignitaries, royalty, celebrities, and other high-profile individuals • Highly knowledgeable in threat analysis, vehicle search and security measures, riot control, travel risk advisories and security concerns • Experienced with the local customs of Africa, Australia, Latin America, South America, Haiti, and Europe • Certified Security Driver, trained in extreme defensive driving and has certified knowledge in Bio-Terrorism, Urban Terrorism, and Anti-Terrorism Joel Cohen, CFA, Advisory Board Member • Has extensive experience in biotechnology & high tech financings • Former investment banker at Canaccord Capital • Specialized in biotechnology • Has worked on numerous IPOs, private and public financings for various companies including Neurochem, Adherex, Bioniche, Diagnocure, Qbiogene and Aeterna successfully raising in excess of $100 million • Acts as consultant for various companies both in and out of the technology sector • Has lectured in business valuation in the MBA program at McGill University
USE OF PROCEEDS • The Company is planning to raise gross proceeds of US $2.88 million as follows:
FINANCIAL PROJECTIONS Note:all references to currencies are in United States Dollars
CONTACT Hidalgo Mining International P.O. Box 1527 Port Washington, NY 11050 www.hidalgominingint.com Phone: 305-778-8360 Fax: 212-937-5282