Placer Mining
Placer mining is the (above ground) mining of stream bed deposits for minerals and is frequently used to extract the precious metal deposits (particularly gold) and gemstones, both of which are often found in alluvial deposits—deposits of sand and gravel in modern or ancient stream beds, or occasionally within glacial deposits. The metal or gemstones, having been moved by stream flow from an original source such as a vein, are typically only a minuscule portion of the total deposit. Since gems and heavy metals like gold are considerably denser than sand, they tend to accumulate at the base of placer deposits.

Time and timing are critical to understanding mining in Alaska. With the mining season drastically limited by Arctic weather, there are no more than 120 days of active mining leaving 240 days for planning, recruiting and compliance. The Alaskan winters are harsh but in the spring the ground begins to thaw and the “runoff” of water closes the roads. Equipment cannot be moved until the road restrictions are lifted, usually in late June or by early July.

Gold purity is among the most important information gathered when evaluating a mining property. The purer the gold, the higher the yield. The average purity of the Shirley Bar is 78% and the average purity of the three mining properties we are currently considering for purchase is 84%. The purity percentages have been provided to us by the exploration team in their documentation of the properties and then are averaged. Typically, 15% of the impurities will be silver, which can be captured during the smelting process.

Our Five-Step Evaluation Protocol
The Company is progressing steadily through the disciplined repetition of a simple set of 5 steps:
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1) Identify under-exploited gold mining properties with strong potential.
2) Tie up the properties with exploration contracts with the intended option to purchase.
3) Methodically explore each candidate property with careful consideration that the property has economically viable gold and can be acquired for a reasonable sum.
4) Legally and contractually execute the acquisition of vetted mining properties according to local regulations and authority.
5) Qualify and secure contract operators or deploy our own staff and equipment to extract the gold while maintaining adequate cash in reserve to carry the property in a dormant status for at least 2 years.

The Company is in the process of using its Five-Step Evaluation Protocol to examine new mining properties. To date, several properties we examined were rejected for not having economically viable gold. Currently, several more properties that have been explored during previous mining seasons are being considered for purchase. One additional property with an exciting history that includes substantial amounts of previous exploration data will be thoroughly explored and carefully evaluated for purchase during the 2025 mining season.

The Economics of Gold
We understand the economics of gold. Even at today’s record-setting gold prices it may not be profitable to commence mining work on areas of our properties where uneconomic gold was found. Likewise, where removal of more than 50 feet of overburden wasn't profitable, when the price of gold doubles, removing up to 100 feet of overburden might be viable. We will keep track of the economics and return to areas on our properties that become profitable when the price of gold justifies.

Exploration Program
The Company has contracted with renowned Alaska geologist Jeffrey Keener to assist in examining the geology of the mining properties, provide guidance on where to explore and assist in assembling a long-term exploration program. The company is also advised by Dr. Fritz Foss who has extensive knowledge and experience in the evaluation of geophysical research problems. Dr. Foss's company Unified GeoSystems recently completed a NASA contract to map the surface of Mars. Both Mr. Keener’s and Dr. Foss's qualifications are listed within the PERSONNEL section.

Within the 2,300 acre property known as the Shirley Bar, there are 400 virgin acres that are immediately available as prospect locations. The initial areas of concentration lie to the east and west of the central, already-mined Shirley Bar bench. Glen Creek, Rhode Island Creek and Gold Run Creeks will also prospectively be tested during the 2024 season. Geologic mapping of the area will begin in areas of immediate interest for operations.

Longer term exploration efforts will map the fault lines within each property and sample intervals on the down-thrown side of the fault block to determine the location of Paleolithic stream channel deposits. Exploration will also sample intervals of higher concentration gold in relation to quartz gravels and the occurrence of hydrothermal intrusions. Exploration will then be conducted to test for gold occurrence in those areas that have the ability to produce economic gold. Further exploration will continue using a grid type exploration program to narrow down the confines of the pay streak. The Company is also considering seismic sensors to capture images of depth to the pay layer and bedrock in each location.

Our exploration program objective is designed to ensure we are out in front of the mining operation by no less than two years. We have allocated $440,000 for the exploration team and associated equipment. In subsequent years the exploration program will be funded by each of Quasar’s mines with each mine allocating $100,000 or more towards future exploration each year

‍Potential For Future Exploration
Our Five-Step Evaluation Protocol governs our acquisition strategy and our careful research preceding the purchase of each property will give us confidence of a minimum of 100,000 ounces of gold in place on each property. Claims on seven properties will establish at least 700,000 ounces. Currently, in-ground reserves are commonly valued at (approximately) $1,000 per ounce. When our subsequent seasonal production statistics corroborate the research and exploration work, the value of the potential reserves will be cited in the footnotes of Quasar’s financials. 

The estimated reserves on seven properties could potentially exceed $700 million in value at today's gold price. There doesn't appear to be any reason why gold would devalue, and in fact, the opposite situation seems highly likely.