Cotton & Western Mining, Inc.
Volume I Edition II
From Manila, the Philippines
October 15, 2006
MANILA: OCT. 15. 2006
QUOTING CLINT EASTWOOD, “I’M AS PLEASED AS PUNCH”, THAT’S BECAUSE THE NAGSABONGAN IRON DEPOSIT WAS ALL THAT WAS ANTICIPATED AND MORE. ON SATURDAY WE INSPECTED THE 50 SETS OF DIAMOND CORE DRILLED SAMPLES, THE MAGNETITE WAS RICH IN COLOR, VERY LITTLE HEMATIZATION WAS FOUND AT NAGSABONGAN. THE CREW MEASURED THE BIG CLIFF AT 100 METERS TALL BY 200 METERS THICK AND 150 METERS WIDE. DRILLING FOUND THAT THE MAGNETITE IS SOLID. THIS EQUALS 3,000,000 CUBIC METERS OF MATERIAL AT 4.3 SG OR 12,900,000 METRIC TONS AT THIS ONE MASSIVE OUTCROP. THE SAMPLES ARE GOING TO THE LAB ON MONDAY MORNING. THE CHEMICAL ANALYSIS WILL TAKE ABOUT TWO WEEKS TO COMPLETE. THE 1984 AVERAGE FE CONTENT AS REPORTED BY THE GEOLOGICAL SURVEY WAS STATED AT 67%. THAT’S WHY WE HELD SUCH GREAT EXPECTATIONS FOR THIS DEPOSIT. UNLESS HIGH PERCENTAGES OF TRACE ELEMENTS OF UNDESIRED MINERALS ARE FOUND WE WILL BEGIN MINING AT THIS LOCATION BECAUSE VERY LITTLE MINING PREPARATION WILL BE REQUIRED, MEANING CHEAPER TO EXCAVATE.
WE CUT SHORT THE DRILLING PROGRAM FOR NOW BECAUSE OF TIME DELAYS, ONLY DRILLING NAGSABONGAN AND LAPO-AO. DAYAP AND LASALA WERE SKIPPED. ONCE THE CHEMICAL ANALYSIS IS COMPLETED AND REVIEWED WE WILL GO AHEAD AND BEGIN CONTRACT NEGOTIATIONS WITH A SUITABLE BUYER.
OUR NEXT BIG GOAL IS TO START THE HEAVY HAUL EXCESS ROAD. IT HAS RAINED EVERYDAY FOR THE LAST 30 DAYS; HOWEVER THE RAINY SEASON WILL BE OVER VERY SOON, HOPEFULLY BY THE FIRST WEEK OF NOVEMBER.
THE MOST DIRECT ROUTE TO WAWA IS DOWN THE NORTH SLOOP OF NAGSABONGAN MOUNTAIN. WE ARE NOW STUDYING THAT ROUTE WHICH WOULD CUT SHORT THE REQUIRED LENGTH OF ROAD BY 10KM OR SO. FOR THOSE OF YOU THAT MAY NOT KNOW, THE TOTAL IRON RESERVES OF OUR FOUR MAIN MINERAL DEPOSITS ARE OVER 150 MILLION METRIC TONS. LAPO-AO IS THE LARGEST SINGLE DEPOSIT AT NEAR 50 MILLION METRIC TONS; HOWEVER, THE FE IS MIXED
Magnetite Core Samples from the Nagsabongan Iron Deposit 10.14.2006
Close-up Photo of this Magnetite Core Sample Looks almost like Steel
Cotton & Western Mining, Inc.
MAGNETITE AND HEMATITE AND WILL REQUIRE CONCENTRATION TO AVERAGE 65% FE..
THERE IS NOT MUCH MORE TO SAY AT THIS TIME, BUT WE WILL RELEASE THE ANALYSIS OF BOTH NAGSABONGAN AND LAPO-AO AS SOON AS WE GET THEM BACK. I WILL FILL THE BALANCE OF THIS LETTER WITH PICTURES AND WILL BE ADDING A LOT OF NEW PICTURES TO OUR WEBSITE.
I CONTINUE TO RECEIVE PERSONAL LETTERS FROM A LOT OF SHAREHOLDERS AND I WILL TRY TO ANSWER ALL OF THEM. WE NOW HAVE NEAR A THOUSAND SHAREHOLDERS, ALTHOUGH MOST ARE SMALL THERE ARE SEVERAL LARGE BOCKS HELD BY VARIOUS GROUPS.
THE SHARE PRICES DO NOT REFLECT THE TRUE VALUE OF THIS COMPANY. I SUPPOSE THAT WILL NOT CHANGE UNTIL WE CAN DEMONSTRATE THE COMPANY IS IN PRODUCTION AND REVENUES ARE COMING IN.
PICTURED TO THE RIGHT IS RUMI GUIDING THE CORE DRILL INTO THE NAGSABONGAN MAGNETITE WALL OFF NAGSABONGAN CREEK. SOME 25 HOLES WERE DRILLED ON THE CLIFF FACE AND ON THE TOP OF THIS MASSIVE OUTCROP
Bob Holding Nagsabongan Core Sample with Magnet
Drilling into Nagsabongan Magnetite Wall
Cotton & Western Mining, Inc.
ONE OF OUR MANGYAN WORKERS CLIMBS TO THE TOP OF THE MASSIVE MAGNETITE CLIFFS AT NAGSABONGAN IRON DEPOSIT. HE CHECKS THE WALL FROM TOP TO BOTTOM WITH A MAGNET CONFIRMING THE ENTIRE WALL IS MAGNETITE. DIRECTLY ACROSS FROM THIS WALL ON THE OPPOSITE SIDE OF NAGSABONGAN CREEK IS STILL ANOTHER MASSIVE MAGNETITE CLIFF.
THESE MAGNETITE WALLS WILL BE BLASTED DOWN INTO THE DRY CREEK BED DURING THE DRY SEASON. THERE IS NO OVERBURDEN AT THIS LOCATION, ONLY TROPICAL UNDER-GROWTH TO BE REMOVED. VERY LITTLE SUNLIGHT REACHES THIS LOCATION, HENCE THE SURFACE IS COVERED WITH MOSS
PICTURED HERE IS THE SHAW TOOL COMPANY BACKPACK CORE DRILL. NEAL SHAW HAS DEVELOPED A SPECIAL GEAR DRIVE FOR A 2 CYCLE GASOLINE DRILL. THE COLLAR DIRECTLY UNDER THE GEAR BOX FEEDS WATER INTO THE TITANIUM DRILL STEMS FROM A PRESSURIZED WATER BOTTLE. NEAL DESIGNED THIS HANDY LITTLE LIGHT-WEIGHT UNIT FOR GEOLOGICAL EXPLORATION BY FOOT IN REMOTE LOCATIONS. I WISH I HAD THOUGHT OF IT. THIS UNIT WORKS REALLY WELL AND SAVED US UNTOLD SUMS OF EXPLORATION COST. WE DRILLED UP TO FIFTY FEET WITH THIS UNIT. EACH STEM IS 25-INCHES IN LENGTH.
25 DIAMOND BIT CORE DRILLED HOLES WAS MADE AT THE 36 MILLION METRIC TON LAPO-AO IRON DEPOSIT. THIS DEPOSIT LAYS BOTH ON GRASSY MOUNTAIN SLOOPS AND JUNGLE COVERED CANYONS, ALTHOUGH IT IS EASIER TO GET INTO THAN NAGSABONGAN, IT DOES NOT HOLD THE SAME HIGH GRADE MAGNETITE.. INSPECTING THE CORE SAMPLES REVEALED A LARGE AMOUNT OF HEMATITE MIXED WITH THE MAGNETITE. THE 1984 GEOLOGICAL SURVEY PUT THE FE CONTENT AVERAGE IN THE LOW 60 PERCENT RANGE, MEANING THIS MATERIAL WILL HAVE TO BE MAGNETICALLY SCRUBBED TO LIFT IT UP TO AN AVERAGE OF 65%.
A Member of the Drilling Crew Climbs Up the Massive Nagsabongan Magnetite Cliffs
Mini Diamond Bit Core Drill at Work from Surface of the Lapo-ao Iron Deposit . Special Thanks to Neal Shaw of Shaw Tool Company in Portland Oregon. 50 ft of 1-inchTitanium Drill Stems. I call this neat little core drill A “Happy Times Tool Kit”
Cotton & Western Mining, Inc.
WELL, WE ARE ALL WAITING FOR THE LAB RESULTS TO COME BACK FROM OUR INITIAL CORE DRILLING PROGRAM. UNTIL THEN WE WILL CONTINUE WITH THE ROAD PLANNING AND WAIT UNTIL THE RAINY SEASON PASSES TO BEGIN CONSTRUCTION. AROUND THE FIRST WEEK OF NOVEMBER I HOPE.
I WOULD LIKE TO STRESS HERE THAT THE FUTURE OF THE MANGYAN PEOPLE HAS BEEN WEIGHTING HEAVY ON MY MIND. ITS IS A RESPONSIBILITY THAT I DO NOT TAKE LIGHTLY. WE HAVE SOME MEETINGS SET-UP WITH VARIOUS GROUPS CONCERNING THIS VERY SUBJECT. AS LONG AS I HAVE ANY SAY IN THIS, WE WILL TAKE GREAT CARE IN BALANCING THE ENVIRONMENT WITH THE MANGYAN PEOPLE’S CULTURE AND SOCIETY.
UNTIL OUR NEXT POSTING, THANKS FOR BEING A SHAREHOLDER IN OUR COMPANY.
RESPECTFULLY,
Robert L. Cotton
PRESIDENT & C.E.O.
Last, but not lest are pictured above some samples from our Jade Deposit near the Dayap Iron Deposit. We are cutting and polishing these two samples for Chinese Buyers in Hong Kong. Samples are also being tested at the lab for Chemical Analysis, Hardness, Specific Gravity and Abrasion Factors. There are several types of mining equipment made for cutting stones. Mostly Diamond Dusted Saw Blades. Also High-Pressure Water Jetting is used in some mining applications. We have been in contact with Jetech out of Battle Creek Michigan who manufactures ultra high-pressure water cutting equipment up to 40,000 PSI pumps. The Jade will be cut into 1 by 1 meter cubes.
THIS NEWS LETTER IS POSTED ON THE COMPANY WEB-SITE AND ELECTRONICALLY MAILED TO THOSE WHO HAVE REGISTERED TO RECEIVE COMPANY NEWS LETTERS AND DIRECTED FROM THE E-MAIL ADDRESS BOOK OF BOB COTTON. READER COMMENTS AND SUGGESTIONS ARE WELCOMED AND MAY BE DIRECTED TO bobcotton@cottonwestern.com
THIS NEWS LETTER IS MEANT TO INFORM INVESTORS AND THE GENERAL PUBLIC OF RECENT ACTIVITIES AND PROGRESS OF THE COMPANY; IT IS NOT INTENDED OR MEANT TO SOLICIT INVESTMENT. COTTON & WESTERN MINING, INC. IS A REGISTERED NEVADA CORPORATION, ENGAGED IN THE EXPLORATION, DEVELOPMENT AND MINING OPERATIONS OF SELECTED MINERALS.
COTTON & WESTERN MINING, INC. IS A NON-SEC REPORTING COMPANY, THE COMPANY’S STOCK IS QUOTED THROUGH THE PINKSHEETS UNDER THE TICKER SYMBOL: CWRN
