The Mwerasandu (Green Apple property) consists of a group of both patented and unpatented mining claims land that covers most of the Mwerasandu Tin fields. Specifically, the Project is located approximately 400 kilometers (Km) southwest of Kampala the capital of Uganda. In geographical terms, the Mwerasandu Green Apple property location coordinates are approximately 20750031E and 9891200 N. Primary access to the Green Apple property will is from the Kampala Kabale Highway branching off at Ntungamo town and taking the murram road to Kagitumba about 27 Km to Nyakagando trading centre. The Green Apple property lies adjacent to Nyakagando trading centre.

The core of the Mwerasandu Green Apple property consists of 15 patented lode claims that in total encompass an area of 300 hectares (ha). Surveyed steel beacons on short pipes cemented into the ground mark the patented mining claim corners.

The deposits occur in tourmalinised phyllites of the Karagwe- Ankolean system. The depth of the granite below the area in which the tin deposits occur is unknown. The tin deposits of Mwerasandu are irregular tubular masses of quartz which in places bulge to many times their normal width and send out vein like offshoots and large irregular masses that are generally flat in cross section but which have a decided pinch. The strike of the quartz masses may generally with that of enclosing phyllites or cut across it at an angle. The dip of the quartz masses varies from 400 to vertical and it is predicted to be in the same direction as that of the phyllites. There are also irregular quartz masses with an elongated pipe like outline. In places along the edge of the quartz bodies, particularly where the dip flattens, and under the flat offshoots and irregular bulges there are irregular vein like deposits consisting of muscovite and sericitic micas which are thought to be partly formed as a result of reactions taking place between the country rock and the solutions containing mineralisers, that came along with the quartz or ascended along the edges of the quartz deposits, and partly from primary constituents carried in the siliceous solutions. In addition to the mica veins and masses along the edge of the quartz bodies there are others wholly enclosed in the tourmalinised phyllites, but these have some connection with the masses along the edge of the quartz. Generally, the later type of vein dips at angles varying from 800 up to the vertical and it is assumed to leave the masses along the edge of the quartz and pass into the phyllites at places where either the strike or dip of the quartz changes. There are also mica veins extending into the phyllites from the end of the quartz body along the prolongation of the strike of the quartz, the most prominent being known as the Gorton’s lode. The greater part of the cassiterite occurs in the mica veins and it is apparent that large parts of future production will be derived from them. The quartz deposits vary in width from a few cm to 10 m but across the irregular bulges there may be over 30 m of quartz. The mica veins vary from a few cm to 4 m wide, but perhaps they would average from 50 cm to 1.3 m. Though the nature and appearance of the quartz in the different units may vary a little in the whole it is generally similar. For the most part of the quartz in all of the bodies is closely cut by closely spaced joints running in different directions and dipping in different angles and in some places the quartz is brecciated. Where the quartz bodies are cut by faults and affected by post ore body movements the mass is broken and shattered so that it consists of a loose aggregate of sub-angular and rounded varying from a few cm to 30 cm in diameter, clearly showing that there is no further circulation of solutions associated with the post quartz movement. Cassiterite occurs in quartz veins as scattered grains, coarse crystals, pebble blebs and irregular masses but it is rarely seen in the quartz its self without some interaction with veins with muscovite. It usually occurs associated with the aggregates muscovite or in parts of the quartz where the muscovite is present as scattered flakes or line of flakes. Though cassiterite does rarely occur in the quartz independent of the association of cassiterite and muscovite, it is an almost constant future. Much of the cassiterite in quartz is cut by threads and veins of muscovite which do not go beyond the edge of the bleb or mass of cassiterite into the quartz in which it is embedded. This suggests that both the cassiterite and the muscovite bearing it were formed before the quartz. The cassiterite is distributed in an extremely irregular manner and other than its association with muscovite it cannot be said to favour any particular part of the quartz body. However it is clear that the most of the cassiterite occurs in the muscovite foliated parts of the quartz masses in association with much muscovite and in other parts where the aggregates and masses of muscovite are of frequent occurrence and is mostly near the edge.

Measured, Indicated and Inferred mineral resources for tin contained within the limits of the defined tin resource are tabulated in Table 19-7 based on a 100Kilograms per tonne tin equivalent cut-off grade. Although decreasing in grade, the tin resources are open ended at all ends of the deposit and there is evidence that tin is open at depth. The tin equivalent cut-off is based on metal prices of US$8.00/Kg tin and current metal recoveries.

Mwerasandu Mineral Resources – May 2010 Class Tonnes Tin
(%)
Measured 3,249,993.91 5
Indicated 3,220,678.64 2.5
Total M&I 6,470,672.55 3.75
Inferred 2,511,703.55

Tailings from prior mining operations are described as containing 2,000,000 tonnes at a grade of 0.1% tin. The Tailings are included in the resource as Indicated material.

Mineral reserves for the Mwerasandu project were developed by applying relevant economic and engineering criteria to the estimated Measured and Indicated Resources in order to define the economically extractable portions, or Proven and Probable Reserves (Table 2-7). Included in the reserves are 2,000,000 tonnes of Tailings remaining on the Green Apple property from earlier mining operations. The reserves were developed to meet the Canadian Institute of Mining, Metallurgy and Petroleum reserve definitions, which are: