Pre Feasibility Report

For

GHUTEHI MARBLE MINES Lease Area – 2.78 Hectare

At VILLAGE: GHUTEHI, TEHSIL: SIHORA DIST. , (M.P.)

LESSEE M/S QUALITY MARBLES ADDRESS:- AT & POST-SIHORA DISTRICT-JABALPUR (M.P.)

PREPARED BY: INDRANEEL DAWANDE, ENGEOTECH CONSULTANT, 1338, VIJAY NAGAR, JABALPUR (M.P.) 1

PRE FEASIBILITY REPORT FOR GHUTEHI MARBLE MINES, AREA 2.78 HA IN (M.P.) 1.0 INTRODUCTION: This is Opencast Semi Mechanized mine, presently mining is temporarily closed due to want of EC.

The feasibility report for Ghutehi Marble Mines over an area of 2.78hectares of applicant/ lessee

M/s QUALITY MARBLES ,, Address: At & Post Sihora ,Jabalpur, District Jabalpur (M.P.) situated at

Village Ghutehi, Tehsil Sihora and District Jabalpur of State is being submitted under the Rule 18 (2) of Marble Development and Conservation Rule 2002

Geographically it is located at a distance of about 62 km at northeast of Jabalpur and 32 km. South west of Jabalpur. Approach from Jabalpur district headquarter to lease area is as follows.From

Jabalpur one has to travel up to Ghutehi village 30 km., southwest of Jabalpur on national highway no.7 and from Ghutehi to lease area is about 2km in the west direction by kuchha road, approachable in all season. and the location of the area falls on Survey of Toposheet no. 64 A/2 and the applied lease area is limited within Latitude: 23° 35’ 52.7” to 23° 36’ 05.1” and Longitude: 80° 12’ 40.0” to 80° 12’

59.9”. The average MSL of the area is 399-401 m and climatically it comes under subtropical region, where the maximum temperature varies from 42°- 45°C during the summer season and minimum temperature varies from 6°-9°C in the winter season and the average rain is 1200 mm in a year.

Topographically, the area has gentle rolling topography with 1-2 m elevation difference.

2.0 INFRASTRUCTURE Following infrastructure have been developed in the lease area 1. Mine Office 2. Site Office which including the all-operational units. 3. Road development as per shown in plan 5. Mine guesthouse Schooling facility, medical facility and post office is available at village Sleemnabad, which is 7 km in northeast of the lease area and guesthouse facility is available at Bandhi (near to Sleemnabad Road railway station), which is 8km in northeast direction. Area falls under jurisdiction of police station Sleemnabad at 7 km in the NE direction

PREPARED BY: INDRANEEL DAWANDE, ENGEOTECH CONSULTANT, 1338, VIJAY NAGAR, JABALPUR (M.P.) 2

NEAREST AIRPORT 1. Jabalpur: 65 km 3.0 GEOLOGICAL STRUCTURE AND GEOLOGY  Regional Geology A variety of rock types ranging from Archaean to Pleistocene sub recent are exposed in

Jabalpur District. The older metamorphic rocks comprising of granite gneisses with enclaves of amphibolite and schist are exposed in the east central part of the district. The ENE-SWS trending volcano sedimentary sequence of Mahakaushal Group consisting of meta volcanic rocks, chemical precipitates and turbidites is exposed in the central and south western parts. Dolerite and carbonate dykes amphibolites, granites and vein quartz intrude these rocks. The dykes exhibit a predominant

ESE-WSW trend. The intrusive Madanmahal Granite occurs in the form of inselbergs and conical hills near Jabalpur. Jungel Group of rocks consisting of sandstone and conglomerate occurring as small and thin bands in the central part of the district unconformable overlie the Mahakaushal Group.

Vindhyan Super Group represented by Semri, Kaimur, Rewa & Bhander Groups consisting of

Sandstone, Shale, Limestone porecellanite and sandstone with glauconite partings occupy these

Northern plateau and form escarpments. Gondwana rocks comprising coarse and pebbly sandstone and shale are exposed in the east central part and the south-western part of the district. Sandstone grit limestone and clay belonging to Lameta Group of rocks occur as linear bands in the south central part. Deccan traps forming extensive plateaus in the southern part. The district consists of 14 to 22 flows included under four units namely , Dhuma Pepardehi and Linga Formation of the

Amarkantak Group. ENE-WSW trending basic dykes are found in the lava flows near Jabalpur.

Extensive Laterite profile has developed over the rocks of Vindhyan & Gondwana. Tight folding of the

Mahakaushal, intense deformation of the Vindhyan along the contact with Mahakaushal and over all broad shallow synclinal structure of the Vindhyan are the main structural features of the area. The contact between the Mahakaushals and the Vindhyan is faulted all along. A number of minor faults and micro lineaments trending NNW-SSE to NW-SW have been identified.

PREPARED BY: INDRANEEL DAWANDE, ENGEOTECH CONSULTANT, 1338, VIJAY NAGAR, JABALPUR (M.P.) 3

The regional succession is as follows:

CLAY WITH CALICHE CONCERTIONS QUARTERNARY RECENT TO PLEISTOCENE LATERITE A DECCAN UPPER CRETACEOUS TO M TRAPS PALAEOGENE BASALTIC/ DOLERITE DYKES A FORU BASALTIC FLOWS (LINGA FM) R TWO BASALTIC FLOWS PIPARDEHI FM) K A THREE TO EIGHT BASALTIC FLOWS, SIMPLE AND COMPOUND (DHUMA FM) N FOUR TO SEVEN BASALTIC FLOWS, MOSTLY COMPOUND PAHOEHE FLOW T HAVING MEGACRYST FLOW UNITS (MANDLA FM) A K GROUP

UNCLASSIFIED BASALTIC FLOWS LAMETA GR CRETACEOUS SANSTONE GRIT CLYA LIMESTONE

SANDSTONE CLAY SILTSTONE AND CHERT (CHANDIYA FM) GONDWANA CRETACEOUS TO SHALE SANSTEO NAND CONGLOMERATE (JABALPUR FM) SUPERGROUP CARBONIFERROUS FRIABLE SANSTONE SILSTONE WITH PEBBLE BED ( BANDHAGARH FM) COARSE SANDSTONE, PEBBLE BED CLAYS AND MUD STONE UNCLASSIFIED GONDWANA ROCK BHANDER GR V NEO PROTEROZOIC SANDSTONE (BHANDER FM) I SHALE SILTSTONE AND SANDSTON E(SIRBHU FM) N SHALE *(GANURGARH FM)----- D REWA GR H SANDSTONE ( REWA FM) Y M A SHALY SANDSTONE ( JHIRI FM)----- KAIMUR GR N E SANDSTONE WITH PORCELLANITE (KAIMUR FM)----- SEMRI GR S S SHALE/ PORECELLANITE (BHAGWAR FM) U O LIMESTONE ( ROHTAS FM) P E P SHALE SANDSTONE AND MUDSTONE (RAMPUR FM) R R SHALE SILTSTONE SANDSTONE WITH INTERBEDS OF LIMESTONE (SALAKHAN FM) G R T SHALE INTERBEDDED WITH SILTSTONE SANDSTONE O POCELLANITE/ SHALE (PALKWAN FM) U E P R SANDSTONE JUGEL FOMATION CONGLOMERATE O QUARTZ VEIN I Z N O QUARTZ PORPHYRY T DOLERITE DYKES R I CARBONATITE U C S ALKALINE ROCK I ULTRABASIC ROCK V AMPHIBOLITE E GRANITE ( MADANMAHAL) S M P A PHYLLITE A L QUARTZITE H A CONGLOMERATE A E O CHERT BRECCIA/ BANDED JASPER FRACTURED K P BANDED HEMATITE QUARTZITE / A R DOLOMITE U T E METABASICS/ METATUFF S R METALAVAS H O A Z O L I C Granite Gneiss enclaves of amphibolite and schist ARCHAEAN REFERENCE [A] Special Publication GSI DRM MAP

ASSESSMENT The lease area has been prospected earlier by means of excavation and bore hole in mineral zone; the sample collection and the outcome exploration proved that the entire area is mineralized for massive Marble deposit for 25 m depth is taken under G2 category as its lateral area is coming under 100-200 m influence. 1. GEOLOGICAL SURVEY: Mapping: 1:1000 for Marble Mines.

PREPARED BY: INDRANEEL DAWANDE, ENGEOTECH CONSULTANT, 1338, VIJAY NAGAR, JABALPUR (M.P.) 4

PREPARATION OF DETAILED TOPOGRAPHICAL CUM GEOLOGICAL MAP: Please see plate no. V Geological and other details: Please see the pervious page Use : Block Mining . GEOLOGICAL RESERVES AS PER UNFC CLASSIFICATION FOR GHUTEHI MARBLE MINES, AREA 2.78HECTARES Classification Code Quantity - m3 Quantity - t Grade/use A. MINEABLE RESERVES (1) Probable Mineral Reserves 121 111465 m3 300956 t B. REMAINING RESOURCES BLOCK (1) Prefeasibility Mineral Resources 221 262585 m3 708980 t MINING (2) Inferred Mineral Resources 333 273000 m3 737100 t

Chemical analysis: please refer annexure no.: XII EXPLORATION OTHER RELEVANT INFORMATION Nothing 4.0 LEGAL MATTERS Rights and Ownership ML sanctioned area is of government waste land and the necessary consent has been given to State Government at the time of agreement. SOCIO ECONOMIC IMPACT STUDIES Well this is a running mine, given the job opportunity tribal and in coming time it will uplift their socio economic status. Public Acceptance- It is well accepted by the public. LAND REQUIREMENT No additional land is required. GOVERNMENT FACTORS This is a running mine, as per information given by lessee that the area is free of all objections. 5.0 OPERATING ROCK MECHANICS The area under UPL is covered by thin layers of lateritic soil cover, say for average 0.5-1.0 m, then Marble is continuing for more than 25 m, the Marble of the lease is massive and at places cross joints have been developed due to shear zone activity. The Marble of the area needs blasting.

PREPARED BY: INDRANEEL DAWANDE, ENGEOTECH CONSULTANT, 1338, VIJAY NAGAR, JABALPUR (M.P.) 5

MINING: a) EXISTING MINING Present mining is the Block mining by adopting the Gali Toda method by using help of wire saw, LD-4, jack hammer, Hydraulic Jack, Compressor, Tata Hitachai Shovel excavator and crane: PRINCIPAL OF BLOCK MINING: - 1. Wire Saw: - One Selection of suitable block which has physical quality color, grain size polish behavior with the diamond tools and concern block should be without cracks and fractured. 2. The principle of block mining is to get three free faces known as the Gali (along the strike) and Toda (across the strike). The basic purpose to prepare the Gali and Toda is to get proper space for block cutting in L shape (combination of Gali and Toda) therefore first Gali then Toda is developed with blasting parameter (if required) which is localized for proper functioning of wire saw machine, approximately 3 - 6 m space. 3. After getting the L shape, vertical and horizontal hole required depth or height of the bench, then making the thread alignment in the rectangular shape the holes are drilled with ‘LD - 4’ portable DTH drill machine. After getting the bore hole drilled, the diamond wire saw machine is used to cut the bottom with diamond pearls followed by both vertical cuts, making rock free from all the sides and now this block is pushed with the help of pneumatic bags or water bags with hydraulic jack ‘Power jack’ and the cut down blocks are lifted up to the surface by crane or pock land machine and waste material is being kept at required place with the help of dumpers/ tractors. b) YEARWISE PROPOSED METHOD OF MINING The previous Mining Plan period was approved from 2011-12 to 2016-17 and the subsequent SOM period is due & effective from 2017-18 up to 2021-22, and hence the present proposal period is coming under 2017-18 up to 2021-22, and accordingly the proposals are given around Pit - A. During the ensuing period, the proposed mining method will be the same as mentioned in earlier Para. b) LAY OUT OF HAULAGE ROAD: Haulage roads 2-3m wide will be a maintained and developed at required places, it will be laid at maximum 1: 16 gradient from surface stack yard to pit bottom at 374m ARL with in bye roads to faces of individual benches. c) BENCHES IN OB/ MARBLE ZONE:- As per permission, Rules under DGMS & MCDR, the development and production benches will be developed. In present proposal, development bench height is of 6 m and width is equal to the height, and production benches are of avg. 6 m height and 6 m width. Ultimate pit slope will be less than 55°.

PREPARED BY: INDRANEEL DAWANDE, ENGEOTECH CONSULTANT, 1338, VIJAY NAGAR, JABALPUR (M.P.) 6

MINING EQUIPMENT Spades, Chisel, Hammer etc. Jack Hammer Pumps (Diesel), Tractor (Hindustan), Compressor (Atlas Copco)

S.NO. LIST OF MACHINES MANUFACTURE EXISTING PROPOSED 1. HYDRAULIC EXCAVATOR (BACKHOE SYSTEM) TATA - 1 TATA HITACHI 200 2. DUMPERS -24 TONNES CAPACITY TATA - 4 3. TRACTOR & WATER TANK HINDUSTAN 1 - 4. TRACTOR (HINDUSTAN) COMPRESSOR (ATLAS HINDUSTAN AND ATLAS 2 2 COPCO) COPCO 5. JACK HAMMER ATLAS COPCO 32 MM DIA. 2 2 6. PUMPS (DIESEL) (CROMPTON) 01 02 10HP 7. DRILL , OTHER TOOLS & SPARES AS PER REQUIREMENT 8. MINING SAFETY EQUIPMENTS AS SAFETY AS PER REQUIREMENT MMR 1961 SHOES, HELMETS, HAND GLOVES, LEG GUARD ETC. 9. MINING EQUIPMENTS SUCH AS CROWBAR, AS REQUIRED PICK-AXE, SPADE, CHISEL ETC.

CONSTRUCTION PLAN AND SCHEDULE The layout of five year development and production has been elaborated in pervious para and Scheme of Mining chapter no V. APPROPRIATE TECHNOLOGICAL PILOT TEST Not required because the Marble Block It is directly purchase by end users. MILL AND PROCESS PLANT Not required. TAILING DISPOSAL Not required. WATER MANAGEMENT During rainy and post monsoon season the water logged pit will be dewatered by the diesel pump through settling tank to the agriculture land or nala. Further, it will be used for sprinkling purpose to suppress the dust. TRANSPORTATION It will be by trucks and Dumpers. POWER SUPPLY Not required for the mining activity. The electricity is available in the lease area Manpower/ Labor relations: Sufficient manpower is available from nearby areas. Auxiliary facilities and services: Not required.

PREPARED BY: INDRANEEL DAWANDE, ENGEOTECH CONSULTANT, 1338, VIJAY NAGAR, JABALPUR (M.P.) 7

CLOSURE DESIGN At the end of mine life about 1.55 ha area will be developed up to 374 MRL which will left as it is because depth wise mineralization is expected which will confirm after the proposed exploration results. In the event of no exploration carried out then approx 0.55 ha area will be reclaimed and rehabilitated by Backfilling and afforestation and rest 1.00 will be rehabilitated by water reservoir .As the level of the mining activity will be quite above than GWT hence no proposal of water reservoir has been given. 6.0 ENVIRONMENT This is a small mine, present environment is normal, in due course of mining activity the environment likely to be transiently polluted by blasting/ movement of trucks which will be taken care by wet drilling, sprinkling of water over the dust area. 7.0 MARKET ANALYSIS As per information given by the lessee he is likely to be sold the material through trades or directly to end user.PMV of the Marble agreed up on with purchasers of different grades and long time contract. 8.0 FINANCIAL ANALYSIS a) Capital Cost: FOR 20 YEARS a. Cost of constructing and maintenance of the site service office Rs. 1,00,000.00 & etc. (0.01) hectares

Supplementary agreement and revised stamp duty , b. Rs. 20,00,000.00 environment consent, Lease registration, lease agreement and mine development cost other incidental expenses(including interest) cost of mining plan and Financial Assurance and Machineries Total Capital investment is Rs. 21,00,000.00 1.) Total Capital investment = Rs. 21,00,000.00 (b)Cash flow forecast: There will not be any problem in Cash flow. Total cash flow will be Rs. 54,39,000.00 per year. c) Investment cost= i) Interest on Capital investment of Rs. 21, 00,000.00 Lacs per year = @12%= Rs. 2,52,000.00 ii) Depreciation of Cost of Building / Site services/ land per year =1,00,000/ 20= Rs. 5,000.00 iii) Depreciation of Cost of Mining plan preparation, lease agreement , financial assurance etc.= 20, 00,000/ 20 = Rs. 1,00,000.00 2.) Per year cost incurred on fixed investment = 252000+5000+100000 = Rs. 3,57,000.00 (d) Inflation forecast: Increase in PMV/ sale value of mineral on yearly basis will take care of inflation on inputs.

PREPARED BY: INDRANEEL DAWANDE, ENGEOTECH CONSULTANT, 1338, VIJAY NAGAR, JABALPUR (M.P.) 8

(e) Operating cost : Rs. 4000/- per cu.m. (Including Breaking, Sizing, Loading, Transport to stake yard, Crushing, De-watering etc. this is in terms of wages, consumables, fuel and spares). Production Total production in 5 yrs = 22,000 t per year 3.) Total Operating Cost of production/ yr = 22000 x 75 = Rs. 8,80,00,000.00 (f) Sensitivity studies: The area does not require any such study. (g) Closure cost: Cost incurred on fencing, parapet wall, warning board, gate, decommissioning, rehabilitation of people etc. = Rs. 50,000.00 per year x 20 years = Rs. 10,00,000.00 4.) Total Closure cost: Rs. 50,000.00 (h) Rehabilitation cost: PMCP/ FMCP implementation cost (Including pit/ dump management/ backfilling, afforestation and other measures etc.) = Rs. 50,000.00 per year x 20 years = Rs. 10,00,000.00 5.) Total Reclamation and Rehabilitation cost: Rs. 50,000.00 Total Cost of production/ yr = (2+3+4+5) = 357000 + 88000000 + 1000000 + 1000000 = Rs. 9,03,57,000.00 Total Cost of production per t = 9,03,57,000/ 22000 = Rs. 4107.00 Say sale value (PMV) = Rs. 5500.00 per t (Excluding royalty and taxes)* Profit = 5500 - 4107 = Rs. 1393/- per t Total cash flow = 1393 x 22000 = Rs. 3,06,46,000.00 per year * Royalty and taxes will be realized by the party from purchaser at the time of sell as per prevalent rates, hence not taken in to consideration. 9.0 RISK ASSESSMENT: No risk involved 10.0 ECONOMIC VIABILITY OF THE PROJECT The total amount blocked Rs. 3,27,46,000.00 with interest 8% per annum Rs. 24,51,680.00 where the per year cash flow is Rs. 3,06,46,000.00 which is higher than interest, hence this project has the economic viability and can be assigned to E-1 axis.

Indraneel Dawande RQP

PREPARED BY: INDRANEEL DAWANDE, ENGEOTECH CONSULTANT, 1338, VIJAY NAGAR, JABALPUR (M.P.) 9