c



  
 
   
  


 


 
   
 

G-Resources Group is a Hong Kong listed Asian focused company that started life in July of 2009 with
the acquisition of the Martabe asset from Australian-based Company, OZ Minerals. ´The Martabe asset
is what we call our ¶key starter asset,·µ said Peter Albert, CEO of G-Resources Group. ´Our vision as a
company is to grow into a significant gold miner, producer and explorer on a world scale.µ

The company is chaired by Chiu Tao, an experienced executive with a background in metals,
investment planning and business acquisition. Owen Hegarty serves as Executive Vice-Chairman and
brings to the company over 35 years of experience in the global mining industry, including a directorial
position with Rio Tinto Group·s copper and gold businesses in Australasia. Raymond Or is non-Executive
Vice Chairman, and as a prior CEO of Hang Seng Bank in Hong Kong, he brings a wealth of banking and
financial wisdom. Peter Albert is the CEO with 30 years of experience in operations and project
management within mining sectors of Africa, Asia and Australia.

c !"#

The flagship project for the G-Resources Group is the Martabe Project in the North Sumatra Province of
Indonesia, encompassing an area of 1,639 km2. The project is located on the west coast of Sumatra in
a large-scale mineralised district adjacent to the Trans Sumatra Highway, and 40 kilometers from the
Port of Sibolga. Due to its prime location, the strip ratio for the extraction of gold is low, driving down
the mining costs as well. G-Resources purchased the mine from OZ Minerals in July of 2009 for $220
million.
´Mr. Chiu was the architect that secured the Martabe asset, which was achieved in the shadow of the
global financial crisis. We were extremely fortunate to secure what is one of the world·s greatest
undeveloped gold ore bodies,µ said Albert.

Following the acquisition of the mine, the company raised $587 million of equity in the world markets
from mainland Chinese and Hong Kong fund managers and tycoons, as well as fund managers from the
traditional markets of London, Sydney and North America.

The current resources of the Martabe Project comprise approximately 140 million tons of ore
containing 6.5 million ounces of gold and 66 million ounces of silver. The reserves are currently states
as 2.7 million ounces of gold and 33 million ounces of silver. Once in production in 2011, the mine is
expected to produce about 250,000 ounces of gold per year and 2-3 million ounces of silver per annum.

#!!!$ $%$&

The G-Resources Group is committed to corporate responsibility. The company maintains good
relationships with the government and local communities by employing members of the community and
supporting local programs. When filling positions on the mine project, they recruit at the local level
first, then regionally, then nationally and internationally, only widening the net when resources at the
specific level have been exhausted. ´Getting the right expertise on the ground is really crucial to the
initial start-up success as well as the long-term sustainability of the business. Building that local
network, the local capability and the local social licenses are absolutely imperative,µ said Albert. ´We
see that as one of the cornerstones of our business model.µ

Additionally, the company encourages connections with local businesses to help sustain the community
over the long run and provide opportunities for growth beyond the mine itself, whether it is a
successful food business or one that capitalizes on a cultural or local craft. ´We must understand that
one day, every mine, no matter how big it is, will close,µ said Albert. µWhat we need is a goal for when
the mine closes; it must close in a sustainable fashion. We must leave behind a sustainable
environment so that the community can move beyond the mining. It·s a tremendously difficult goal to
set for oneself, but that·s where we set our focus. It·s the vision that drives the strategy of how to
implement operations during the life of the mine.µ

The model for local involvement began with a mining project in Laos. ´Our philosophy is wherever
we·re operating; we·re operating in somebody else·s backyard. We have to understand and respect
that, putting ourselves in their shoes. You have to understand what their motivators are, why they
would encourage us to be there, what they would want from the business and project development and
how we can work together for the benefit of all stakeholders,µ said Albert.

#'#c%%(

Though the Martabe Project is situated in a great location, the project has not been without short-term
challenges, most notably from Mother Nature. The area has received record rainfall for the first three
months of the year, a once every thirty-year event that has caused the company to pause and assess
the location of the infrastructure and facilities. ´What it will do for us is ensure that what we have is
sustainable,µ said Albert. ´When and if we experience other extreme events, the facilities will be
placed in an ideal location.µ

Though some mining projects may site political risks as a challenge, G-Resources forged good
relationships with the government and local community. As a result, the project has received
substantial government and community support. ´You can never underplay that, you can never get
complacent about that and we don·t,µ said Albert. ´We continually nurture and manage those
relationships and ensure that we·re in touch with the community on a daily basis.µ
The mine is also located in a seismic area, next to the Sumatran fault. All facilities are designed to
withstand earthquake activity, should it occur. The company has tried to plan for and mitigate any
challenge that comes their way. ´The success of good project management is to be able to deal with
those sorts of unforeseen events, which are inevitable in any sort of project,µ Albert said.

Ë$)&%

Albert sees a trend towards a shrinking number of players in the gold mining industry, as merger and
acquisition activities accelerate. Geopolitical, physical and meta-physical tensions in the marketplace
influence the price of gold, and will make the gold mining industry an interesting and challenging place
to be for years to come.

G-Resources Group has been working on exploration activities in the Martabe Project area. ´We have a
vision to be a million ounce producer within the 3 to 5 year time frame. It won·t all come from
Martabe; we·re actively looking for opportunities in the Southeast Asian territories. There·s a huge
amount of untested mineral potential in this region,µ said Albert. ´We believe that through our
experience³we know the rocks, we know the people, we know the environment, we know the
governments³we believe we have a competitive advantage in regards to being able to establish
ourselves and grow the company in this part of the world.µ

´You have to work with the community to decide how certain opportunities can be developed that
benefit everybody,µ Peter Albert, CEO, G-Resources Group