From the Nov.28MD&A (www.sedar.com), another source of revenue for Plexmar inaddition to the 10% gold commercialization royalties from Ucucha:
"Malin Plant
TheCompany owns a small flotation plant located in the La Libertaddepartment in Northern Peru close to Oro del Norte, Grand Chimu andLucma concessions. The plant was bought from the Peruvian government atthe time when the Company was exploring the Cascajal project. TheCompany has been looking for local partners to start the plant or tosell it and the book value is $144,000.
The Company recently signeda joint venture agreement, called ‘Minera Juliaca’ with a Peruvianresident (``the Owner``) to jointly explore, produce and commercializecopper concentrates located on the Maria Gracia concession. The MariaGracia concession is located near the town of Juliaca in the PunoDepartment, in southern Peru. The Owner is also a principal of MineraUcucha SAC.
The Owner has been producing, for the past 6 months, anaverage of 25 tons per day of high grade copper. The production comesfrom a network of veins, varying in widths from 0,5m to 4,0m withcopper grades varying from 2 to 12% copper. The head grade is onaverage 4 to 5% copper and was recently increased to 7-8% cooper due tothe lower prices of copper. The Owner has already acquired a second 100tpd plant and along with the Malin plant, the milling capacity will be250 tons per day in a few months. The Owner wants to slowly increaseproduction to 1,000 tons per day. A copper concentrate is beingproduced on site and then shipped to Lima for refining.
Plexmar willlend the Malin plant to the joint venture; in return, the Owner of theconcession will move, refurbish and install the necessary equipment onthe Maria Gracia project. The Malin plant has an estimated capacity of50 tons per day, however, the Owner will increase the capacity to 100tons per day. Plexmar will retain 15% of the profits generated from theJoint Venture. A construction and production schedule has to beprovided by the Owner and approved by Plexmar before the dismantlementof the Malin plant can start. Whenthe Malin plant is fully operational at 100 tons per day, Plexmar’sshare of the profits are estimated to be around $US 35,000 per month(with copper at $US 1,50 per pound and head grade at 5% Cu)."