VISIT to TRANSECO GOLD MINE in GHANA
(7/2 to 10/2 – 2020)

Short visit report written by Ludo Janssens (Investor/Visitor))

Early on the 7th of February I flew from Schiphol Airport to ACCRA (Ghana) on invitation of Mr Amjad NIAZZI and Mr Godwin Nickleson Amarh (both CEO).
I met both persons already in Antwerp (Belgium) a few months before this date, and this together with Philip Jansen. At that Occasion, Philip had invited an number of Belgian Investors in Transeco for a meeting in the RAMADA PLAZA Hotel (Antwerp) where I reserved a conference room.
All people who assisted one of the 3 sessions that took place, received first hand and direct information from Mr Niazzi and Mr Goodwin. A presentation was given on the status of the Transeco Gold mine.

At the end Mr Niazzi invited a few bigger investors and Philip Janssen and myself for a counter-visit to Transeco in Ghana.

So arriving in ACCRA Ghana that Friday the 7th of February, we were personally welcomed at the Airport by Mr Niazzi and his Chauffer .
At that moment I saw that besides of me there was one more investor client (Mr. Adrie Peeters ), this besides of Philip who arrived one day earlier in ACCRA. So finally there were really only a few people that accepted the invitation for this visit.

We were then brought by car to our Hotel in Accra.

Arriving that Friday evening late in our Hotel in Accra, and before having a good night sleep, we discussed the agenda for the coming days at the outside Hotel bar (near the swimming pool) with a few GIN Tonics.

On Saturday, around 10 am in the Morning, Amjad and his chauffeur came to pick us up with a heavy TOYOTA 4X4 in order to bring us to the mining site.

I think it must have taken us around a 2 hours drive (including a short stop for a drink and some food) reaching the MINING site.
The way to get to the site (starting from Accra), was in a generally VERY GOOD condition (All Asphalted and partly highway).

Arriving at the site, a very good private landscaped road brought us to the entrance of the MINING site.

Security was at the gate to check on the visitors (so we) in the car before getting the effective entrance to the site.

Looking around, we immediately we got a good total over view on the immense terrain, the big number of Machines, the installations, the people working on site, and the piles of ground that were already prepared to be executed in the big DRUM.

Pile of Alluvial ground containing high grade Gold ready to be filtered into the DRUM installation
Machines at work for Piling
Lots of specialized machinery at work

I think I must have seen more than 25 people, working on site at that moment (On a Sunday)

The Team

We were first brought to the Offices on site of TRANSECO where the Full direction of Transeco was gathered and where we were given a global presentation on TRANSECO, Who is Who, It’s Activities, The Status and the Operations in place.

The big man on the left is Mr Goodwin, CEO for the Ghana Operations and Mining
Ready to start the general presentation (Direction Room)

Amongst these people and besides of Amjad Niazzi and Goodwin (Both CEO of Transeco (England and Ghana), there were :

1. The Geologist
2. The Production Manager
3. The Security Manager
4. The Manager for all Mechanics and Machinery and a few other people.

During Presentation and general explanations

They also presented results of their GOLD LAB where tubes were showed, with Gold GRAINS inside, all labeled, indicating where the SAMPLES were taken and the Grade of the ground for these samples.

Samples
Samples

They know exactly from each location “the grade” (= how much grams are contained in the several enormous piles by average of the alluvial grounds that were already prepared for processing in the huge filtering DRUM).

So the Grade gives the proved content of GOLD expressed in Grams per M3 of raw Alluvial ground.
For example in this Pile:

After this introduction that took us around 1 hour in the directors room, we all received a helmet and a security fluorescent jacket to prepare for going on site.
The site visit took several hours. All people from the direction team joined us during this long WALK along the installations and machinery.

Walking towards the Mining area

They explained to us the process of Gold Mining in the real and practical environment of equipment, machinery, installations, test runs, and we could ask to them ALL POSSIBLE and IMPOSSIBLE questions of what we saw and about the production process, as well as on the status of each detail and also explaining what still needed to be finalized before starting the filtering…

DRUM installation : global view
DRUM detail
First transportation part of Drum
DRUM (seen from above)
Transportation systems
Raw Material dump : DRUM Collector
A Compressor (The mine foresees in its own electricity – All electricity is generated on the site)
Gold LAB and Collection Room
(Inside Collection Room (Fully Protected area))
Gold Distillator (Fine distillated Gold comes in here)
Gold concentrator and melting
Mining Site Control Room 1 (You see Philip taking a few Pictures)
Mining Site Control Room 2
Walk from CR towards DRUM installation
A Pump installation for CLEAN Water

(All above Photos were taken and commented by Ludo Janssens (Civil Engineer)).

So our eyes don’t lie and some earlier expressions and explanations were hereby undoubtedly confirmed by FACTS :

1. Yes, Transeco is a real existing MINING COMPANY.

2. Yes, Transeco and the people we met and spoke are all trustable and very professional people.

3. Yes, they know the Gold business through and through (Thoroughly). Mr Niazzi has a lifetime experience in Gold Mining and started his career in the Big South-African Gold Mines.

4. Yes, I experienced Mr Amjad (CEO Back Offices LONDON (England)) and Mr Goodwin(CEO Ghana Operations) to be a kind of perfectionists – when seeing a so well organized mining site where almost all machinery is doubled (backed-up) in case a certain pump or vital equipment element would (fail) fall out during production. Everything must be clearly 100% ‘OK’ and tested before starting the REAL gold refinery. Production is in fact already started through creating the huge piles of alluvial ground in the neighbourhood of the Drum. Once started, it will run 7on7, 24hours around the clock, with exception on Fridays (fixed maintenance day).

5. Yes, I believe that when they say that 95% of the WORK is done (realization of all preparations and installations), yet 5% still to be fulfilled before real Gold refinary to start. We can BELIEVE this.

6. Yes we saw DRUM machinery operate in “DRY RUN” state (Test Cycles).

7. Yes, I believe that this Mining company has a huge potential.

8. Unfortunately, this kind of MINING activities are hugely Capital INTENSIVE.

Installations, Machinery, Diesel consumption, Workers (People), License Fees to be payed, Farmers in the neighborhood, Taxes, Regulations, Security, etc… all this makes that there is still a real need for some funds (capital) before real production to start creating the first ‘KGs’ of Gold. Once in production, it becomes automatically “self supporting”. Mr Niazzi confirms us to be able to find these resources. But he prefers NOT to give away what has been builded up to the BIG CAPITAL and the BANKS who are since a short while now waiting in Line to provide funds and to take a stake in the Mine. He prefers to stay independent from this BIG CAPITAL.

9. Moreover, one of the reasons for the delays in the Transeco operations was due to new ruling by Ghanian Governement setting the obligation to go into “Large scale Mining” (instead of their initial focus on “ALLUVIAL MINING” only), meaning that they now have to go into “HARD ROCK MINING”. This brings a lot of extra requirements. Governement is putting forward these new conditions to wipe out all the small scale miners. If this would not have been the case, production would have been started much earlier.

In Conclusion (and important to us as investors) :
Yes, I hear you say, “this all sounds nice and this is good to know and you bring us a positive story, but bottom line is : we did not receive any Gold so far after all these months of delay”. Of course, that is true and probably we will have to be patient for still a short while, but at the end we will all receive our Gold (that’s what Mr Niazzi did strongly emphasize and what he promised to us), and that has become also my believe after what I have seen and understood.
I can say, I find myself in exactly the same position as all other investors, only I was on site and I saw what I saw.
Mr Niazzi promised to make as soon as possible (and it is one of his priorities now), a NEW planning towards ALL investors (first in, first out), but he will only release this planning (hopefully within a few weeks from now), when he has a good certainty that this plan is realistic. All this to avoid another error on promised delivery and expectation and potential new disappointment on the investors side.

I thank “Transeco Minerals & Mining”and especially Mr Niazzi and Mr Goodwin for having given us the possibility to visit their mining site in all transparency and the exceptional warm receipt they they gave us.

They are willing to receive from now on (when production is ongoing), new groups of investors on site.

My personal reflection :

In life everything is based on TRUST. For example MONEY would be Worthless from the moment that we lose confidence in the People/Organizations/Governments who issue this Money (Dollars, Euros, Yens, etc….).
Why do we trust the VALUE of GOLD ? Because already 2000 years ago (and earlier) already the Romans did so, and we still do today.

My personal mindset : I have a good feeling about the Transeco People, its Management and their Mine.

Ludo Janssens

Finally :

From Left to Right :
Philip Jansen : GoudAdvies
Amjad Niazzi : CEO Transeco (Together with Goodwin)
Ludo Janssens : Investor, visitor
Adrie Peeters : Investor, visitor