Section 8

Section 8: Validating the Geological Survey Documents.

 The Investreport’s Smear Campaign towards Karatbars peaked in the month of August. We noticed sometime between 8/16/2019 and 8/24/2019 three documents where uploaded to www.karatgold-kbc.com/downloads/ section of the site according to the waybackmachine website as shown in figures 121-123. This was very surprising at the time but after considering Harold Seiz’s article on 8/22/2019 title “Marvin Steinberg and Karatbars — the full Story”, fits within this time. This is the time frame we suspect that the three documents were uploaded to the www.Karatgold-kbc.com site. The three documents that were posted to the site were the notarized Mandate Letter of Authorization dated 8/13/2019, Geological Survey for Region Tranomaro LM61 dated 8/13/2019 and Mining Permit Operating License for Tsaravintana Mining SARLU dated 9/21/2015.

 After reviewing the three documents, we noticed that the Mandate Letter of Authorization and the Geological Survey documents were both a copy dated on 8/14/2019 and the Mining Permit Operating License did not have a copy date. The fact that these documents were dated a day before the article from AMBcrypto on 8/15/2019 was interesting to note. Then that same article was taken down on 8/16/2019, which that article claimed that GSB Gold Standard Banking & Karat Gold Corp PTE. LTD owned the mine in Madagascar. The very next day on 8/17/2019 the GlobalCoinReport comes out with the article that matches the documents that were uploaded is just revealing someone jumped the gun and posted the information that we all were told before Investreport made the link to Tsaravintana Mining SARLU. We suspect the person that had that report published it on the site and didn’t get the memo from Karatbars on the change. We also suspect Karatbars was forced to make a trip to Madagascar due to the loss of credibility of the affiliates regarding the Smear Campaign. In order to gain the trust from the affiliates again so they had to get copies of the documents pertaining to Tsaravintana Mining SARLU since they are the true owners of the permits. And while in Madagascar both Josip Heit & Alvaro Bello got the Notarized Mandate of Authorization which appointed Alvaro Bello as the representative to negotiate and discuss and to enter into contract bidding for both GSB Gold Standard Banking & Karat Gold Corp PTE. LTD that would need to be renewed every 12 months. Then Karatbars could claim that the documents they received will back up their claims to the mine with the help of the article from GlobalCoinReport that got corrected with the new claim. This was very cleaver for Karatbars to pull this sleight of hand trick. But it definitely fooled a lot of the affiliates since all we seen in the Skype chats was thanking Harold Seiz for providing the documents so they can prove to the affiliates that are questioning the Investreport  reports as being just a fraud campaign against Karatbars.   

We are going to look at the first document the Mandate Letter of Authorization to analyze and translate the document since Karatbars didn’t seem to give us a translated copy of the first page. It’s funny how Karatbars seems to provide a translated copy to their documents that they use when it comes to discredit Marvin Steinberg but when it comes to their own documents they like to leave you in the dark as to what the documents translate to. After translating the first page of the document, it was revealed that it was a cover page and it was about the statement of facts of acknowledgment between the parties from a Notary service which states that Alvaro Bello is the representative for both GSB Gold Standard Banking & Karat Gold Corp PTE. LTD as shown in figures 124-134. We suspect that only Josip Heit & Alvaro Bello as stated above were the only ones present in Madagascar since the stamp and signature that was used for Harold Seiz was identical to the Memorandum of understanding articles from the Statement of Facts about Karatbars but we can’t fully confirm this as fact.

 The second documents is the Geological Survey for the Tsaravintana Mining SARLU permit PE 15745 and PE 39756 copy dated August 2019 as indicated on page 2 of the document as the translations are shown in figures 135-145. The document also provided scans of other documents that are related to Rakotoandriana Andriambelo the expert Geologist for the region. There were four separate documents that needed translating and after each document was translated we were able to get a good idea what each document represented. But there were some reference numbers within the documents that needed further clarification.

We did an intensive search for the Geologist that performed the Survey and after some time we were able track him down and established email exchanges that answered our questions as to the purpose of the documents as shown in figure 146-150. We were under the impression the documents were related to the mining permit itself but that was not the case. The documents that were presented by Karatbars regarding the Geological Survey was just Rakotoandriana Andriambelo’s personal numbers 452027 / 002576 on page 10 of the geological survey and the reference number for the Engineering Degree from the University of Antananarivo. We also learned that the study for the survey was carried out in 2006 for the Anosy region and continued for the LM 60 and LM 61 in 2011 as explained in the email exchange as shown in figure 148.  The next two documents was the General Management of Taxes that he indicated was his tax identification card that is used for the purpose of checking if he is in good standing with the tax regulations with Malagasy State. And last document was just his professional card that authorizes him to work in the Mining, Geology and Environments sectors as shown in figure 149. The other reference numbers No. 0105036 / DGI-G and RCS number 101 221 038 559 were his personal identification. We needed to determine the requester of the Geological survey copy that was presented by Karatbars. But the response that we got back needed to be clarified. And after receiving Rakotoandriana Andriambelo response for clarification, we determined according to his response that Tsaravintana Mining SARLU was the requester of the copy for the Geological Survey for region LM 61 as shown in figure 150. This response was very interesting since Tsaravintana Mining SARLU requested it. We would have to ask why they have not requested this back in 2018 when Karatbars claimed that we had the agreement with the mine according to the Finalization Memorandum of understanding back in August 2018 as listed on Section 8.2.1. KCB whitepaper or even before that date. This further validates our suspicions regarding these recent documents to be presented and dated 8/14/2019 rather than presenting documents that were dated during the time frame they claimed they had the agreement and mine in place. We do have the Memorandum of understanding dated 8/2/2018 but since it was never notarized by a third party it does not mean anything and would not even be considered a validated document. We suspect that they can’t provide any documentation since there is none and had to scramble to get the documentations from Madagascar in order to prove their claim with the affiliates.  

 The third document was the Mining Permit Operating License for the Tsaravintana Mining SARLU. We translated the document in order to determine the wording of the permit as shown in figures 151-159. After analyzing the document, we noticed the permit was for 40 years starting from 9/21/2015 which will make it valid until 2055 but wait according to the KaratCoinBank-Whitepaper.pdf section 5.4 KBC FOUNDATION GOLDMINE states 2070 as shown below. We would have to say that’s a big inconsistency on the whitepaper. We also noticed the permit was authorize for mining Ruby, Sapphire, Copper, Malachite, Azurite, Mica, palladium and Rhodium only as per the mining code Article 30 listed below. Now going back to the Memorandum of understanding it stated gold, silver, copper, magnesium and quartz crystals. Now after comparing Memorandum of understanding to what the permit list as substances that are authorize to be mined that seems to be a major inconsistency. We would have to say regarding the Geological Survey Conclusion that the document only states Gold up to 2,350 tones , Silver up to 800kg, Copper up to 445 tones, Malachite more than 10,000 tons and Uranium up to 3,400 tons as shown in figure 137-138. Also as noted on the White paper nowhere nears the gold they claimed.   

 Now here is where you would have to put your thinking cap on regarding the 1.4 tonnes. Now back to Harold Seiz video presentation that was published on 3/26/2019 by another Youtuber since the one that Investreport was referring to was removed from the Karatbars own YouTube channel how convenient. The only video that is present now of the very same day of the 1.4 tonnes not 1.12 tonnes which begs to question where did they find .28 tonnes of gold? That video of the gold that was deposited in the Hong Kong vault was published on 4/4/2019 with a title of “Look behind the scenes: Karatbars and Gold Standard stores 1.4 tonnes of gold for new payment system” from Karatbars own YouTube channel. The video that was removed from the Karatbar’s YouTube channel which showed Harold Seiz own words say 1.12 tonnes not 1.4 tonnes then later in the video he said 40kg we would have to say was that just a slip up and he meant to say 1.12 tonnes? According to everything we know about the mine since 2018 it was allegedly operational by the end of 2018 and we were mining gold which was shown by the claims of depositing 1.4 tonnes to the vault in Hong Kong which was the reason for that video. Now based on all the information that we revealed in this report we would have to say all the affiliates were lead to believe that the gold that was being deposited in the vault in Hong Kong was coming from the production of mining from Fort Dauphin Madagascar. We would have to say that is no longer a valid assumption since we highly suspect that the gold came from the sales of the 7.2 billion KBCs that were sold during the ICO and slowly deposited in the vault to make it look like it was coming from the mine which makes it another clever sleight of hand trick from Karatbars. How can we prove this suspicion you may ask then? Well simple math does not lie. Now during the ICO affiliates were purchasing 1 gram worth of gold for which the amount of coins would be 8750 KBC coins per gram. We would have to say that there were some affiliates that purchased at the higher prices back then but we will use the 8750 figure for our calculations. Now according to www.goldpricz.com the price in US dollars for 1400kg of gold comes out to $67,020,899.12. We allegedly sold 7.2 billion KBC coins during the ICO and if the affiliates were purchasing by the gram which most were doing the whole time back then that would mean 8750 KBC coins were being sold per gram. Now if we divide the 7.2billion KBC coins by 8750 the results would be 822,857.14 grams of gold. Now from our experience from that time, the total cost was around $72 dollars per gram after the sale from the Karatbars site. So if we multiply the 822,857.14 grams of gold with $72.00, the results will be $59,245,714.28 with a difference of $7,775,184.83 which we would have to assume it would be from the sales of the KCB coins. So based on this analysis we would have to say that the 1.4 tonnes of gold in the Hong Kong vault would have to be a valid amount and that also answers any questions why Harold Seiz has the vault in Hong Kong rather than a vault in Germany.

KaratCoinBank-Whitepaper.pdf section 5.4 KBC FOUNDATION GOLDMINE states:

 “The GOLD MINEFort Dauphin” shall be acquired by KARAT COIN BANK in the future and invest at least USD 500 million. It is located in the southeastern part of Madagascar, more precisely in Anosy region, districts of Ambosasary Atsimo, in the rural commune of Tranomaro where the mining permits of type PE n 15745 and n 39756 are spread over an area of 75 km². The Anosy region is known for its gold resources. Experts estimate the local gold production volume there for the next ten years at over 6,000 tons of gold. In addition to gold, the mine also has deposits of copper and silver. Total reserves are estimated to be 22,123.41 tons of copper, 36,241.41kg of silver and 22,987.41kg of gold. The end of the mining activities is forecasted around the year 2070. The mine is already producing but is not yet fully developed. It is expected to complete the construction and an increase of the capacity by the end of 2018. Then almost 700 skilled workers shall be employed daily to mine the gold deposits, to process them in the mine’s own refinery and to initiate further transport of the noble metal for its storage. Produced gold shall be safe kept by the KARATGOLD SECURITY HOUSE in cooperation with FORT KNOX.”

Article 30 which states “A mining permit covers the existing substances listed among mines in the perimeter, for which it is granted. In case of finding some clue for other mineral substances listed among mines and which is not the subject of the mining permit, which holder suggests to undertake research and/or mining, he should deposit a statement for this purpose at the Mining Cadastral Registry Office, and obtain before any operation that relates to these new substances, the extension of his mining permit and, if necessary, an environmental authorization from the relevant authority.”

Figures 121-123: The screenshots below are three documents where uploaded to karatgold-kbc.com/downloads.

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Figure 123

Figures 124-134: The screenshots below are from the Mandate Letter of Authorization translations.

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Figures 135-145: The screenshots below are from the Geological Survey translations.

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Figure 144

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Figures 146-150: The screenshots below are the email exchange with the geologist for the region.  

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Figure 148

Figure 149

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Figures 151-159: The screenshots below are the Mining Permit Operating License for Tsaravintana Mining SARLU.

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Figure 159

  1. https://karatgold-kbc.com/downloads/
  2. https://karatgold-kbc.com/assets/files/Gold_Mine_Madagascar-Document1.pdf
  3. https://karatgold-kbc.com/assets/files/Gold_Mine_Madagascar-Document2.pdf
  4. https://karatgold-kbc.com/assets/files/Gold_Mine_Madagascar-Document3.pdf
  5. https://www.youtube.com/watch?v=ueNLACYpj3M

 During this extensive research regarding Section 8, we validated that there were three documents that were uploaded between 8/16/2019 and 8/24/2019 on the www.karatgold-kbc.com/downloads/. We validated that timing of the upload of the documents was in conjunction with two articles that were published in the same time frame. We suspected that Karatbars was forced to travel to Madagascar and obtain the documents from the true owner Tsaravintana Mining SARLU in order to gain the trust from the affiliates and use it to back up the claim to the mine. We determine that the first document was a Notary service which states that Alvaro Bello is the representative for both companies. We determine that the second document is a Geological Survey for the Region LM 61 which Tsaravintana Mining SARLU in the owner of the mine. We validated the scan documents that were provided with this document was referencing the Geologist Rakotoandriana Andriambelo personal and professional documentation that is required by the Malagasy State. We validated that the requester of the copy of the Geological Survey dated 8/14/2019 was Tsaravintana Mining SARLU and suspected that Karatbars had to scramble and travel to Madagascar and obtain copies to prove their claims to affiliates. We determine the third document was the Mining Permit Operating License for the Tsaravintana Mining SARLU for permit PE 15745.  We validated that the permit was valid until 2055 not 2070 as it was indicated by Karatbars. We validated inconsistencies between the Mining Permit Operating License authorize list of substances compared to the Memorandum of understanding listed of substances. We determine that a video regarding the inconsistencies from what was vaulted in Hong Kong was removed from the Karatbars YouTube channel. We validated that the 1.4 tonnes of gold that was vaulted in Hong Kong was validated to be correct based on simple math calculations. We highly suspect based on the math calculations that affiliates were lead to believe that the gold that was vaulted in Hong Kong came from Fort Dauphin mine production operations but it really came from the KBC ICO sales revenues which was used to purchase the gold. 

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