Exploration conducted on the Permit Area confirms the existence of substantial placer gold deposits in the riverbeds, river bottoms, and related flood plains of the Permit Area.
The gold bearing gravel of Block 320-A is located within the riverbeds (alluvial deposits) and also extends well beyond the riverbeds (elluvial deposits) in distances from 100 meters to half kilometer, depending on the width of the valley. The upper one meter of overburden is usually depleted in value, due to downward migration of the dense gold particles through water saturated soil. The gold bearing, pay zone gravel in the river is deposited on decomposed quartz lying in a fairly even horizon two to three feet thick lying on bedrock or on a "false bottom" of hard blue clay. More importantly, the gold is not attached to rocks or other minerals and thus requires no milling processes or chemicals to separate it from the surrounding gravel.
Tiehnpo Resources believes that the source of the gold found in the rivers of Block 320A are eroding from ore bodies located in the surrounding hills. Through yearly runoff, the soils are washed into the rivers where the lighter sediments wash downstream and the gold settles to the bottom.
Tiehnpo Resources has imported dredging equipment to conduct tests on the River. These tests confirm previous geological work done on the Permit Area and have yielded an average of 58 grams of gold per Dredge per day, with most recoveries ranging from 0.5 to 3.0 grams/Au per cubic meter. Historically in some locations up to 5 grams/per cubic meter (approx. 1/4 ounce gold per cubic yard) have been reported. Geological reports estimate there are approximately 5,824,000 cubic meters of gold bearing material in the four (4) river systems. (copy of reports are available)