Introduction

Empresa Minera (Bergbau) AG ceased exploration work in its project Johannes-Colonia mid December of 2008 due to heavy rain falls. The results a very encouraging for tantalite, precious and base metal mineralization and confirm the historic exploration data.

Eastern Bolivia was plagued by a heavy dengue fever epidemic. Mrs. Marlene Arraya de Biste, the legal attorney of Empresa Minera (Bergbau) AG in Bolivia, and the project geologist Ing. Jorge Alvarez fell ill. After several weeks of recovery, both are now in office again.

Project Johannes-Colonia

The time was used for the processing, description and interpretation of the collected field data, which shall be used in the next few months for the technical planning of a tantalite-concentrate producing operation. 362 panned pegmatite samples were processed, described and the content of tantalite/columbite +0.6 cm fraction determined by weighting (Picture 01). In some few samples small gold particles were also detected.

It is the company’s intention to embed the planned washing plant operation into a scientific and ecological tourism project. A “Science center” is planned to be constructed close to the mine site. The installation shall be used to make the geo- and biotopes of the region accessible and to open people’s mind for geology and mining. It is intended to establish agreements with several scientific research institutions. First contacts have been made with the Senckenberg Museum of Frankfurt, Germany, and the Museum Noel Kempff in Santa Cruz de la Sierra, Bolivia.

Mining Fees

The mining fees of the five concessions Johannes, Colonia, Hamburgo, Berlin and Bremen have been paid in due time at February 27, 2009. The double amount was paid, as established in the Bolivian Mining Code for claims which are hold longer than four years. The paid amount totaled US$ 12,629.--.

Other Projects

I assessed additionally on order of the company’s Administrative Board technical information of several other projects located in Brazil, China, Angola and Peru. I made the respective recommendations for the preparation of option agreements and discussion of project equity.

Annual financial balance

The annual financial balance for the business year of 2008 of the Empresa Minera Puerta de Oro S.R.L. was presented to the Bolivian tax bureau on January 27, 2009 due in time.

Economical and Political Development

The political situation in Bolivia stabilized after the referendum held on January 25 of the current year. The new constitution was approved with 61.1% of the popular vote. Landholding was limited with 80.0 % of the popular vote to 5,000 has. The worldwide financial crisis did not yet hurt Bolivia’s economy. The banking system is still rather robust. The exchange rate of one US$ stays since last October 2008 consistently at 7.07 Bolivianos.

Price of tantalite concentrate

The price for tantalite concentrate averaged in the first quarter of 2009 at US$ 81.57 pro kg Ta2O5, CIF Europe (25/40% Basis 30% Ta2O5, max. 0.5% U3O8+ThO2. (http://www.bgr.bund.de)

Santa Cruz de la Sierra, April 22, 2009

Dr. Michael Biste
Beratender Geologe
BDG-Germany No. Reg. 0-1016
Colegió de Geólogos de Bolivia, No. Reg. 0127
SMI Nº. Reg. 4141755  
12.10.2008