Silver Falcon Mining Inc. (fka SFMI)

[Imperial Whazoo]

The pictures are truly great, aren't they?

And, in particular, I want to point out the tracks that can clearly be seen inside the security fence. Obviously, if the road to the Sinker Tunnel were closed, there would not be fresh tracks in the snow inside the security fence.

I think it is very important that these pictures show that the project is going forward.

Of equal, if not greater importance, IMHO, is the fact that there are provisions to the fiscal cliff bill that favor SFMI. As I see it, the Sinker Tunnel is going forward, as the pictures show, and now, due to two provisions found in the fiscal cliff bill, SFMI can go forward, operating under a very favorable economic environment.

I'd like to point out the two provisions to everyone, and then, begin discussing the reasons they benefit SFMI.

If anyone wants to wade thru a lengthy article that includes details of the tax provisions, please go to this link. ( http://reporting.sunlightfoundation.com/2013/fiscal-cliff-lobbying/

Here's what is relevant. The provisions of the fiscal cliff bill which result in a favorable economic environment for SFMI in 2013 are:

1.) A tax credit for each employee trained in rescue and emergency procedures in mines.

2.) A tax credit that allows companies to deduct half the cost of advanced mine safety equipment from its tax bill.

Now why is it important to SFMI that safety costs are greatly tax advantaged, due to the above provisions?

To answer this, go back to the PR SFMI put out on 10/25/12.

The PR of 10/25/12 puts safety issues mandated by the MSHA front and center.

And these safety training issues are a very expensive cost item for the project.

The reason the two tax provisions are important good news for the company and its shareholders is that safety related costs are among the largest expense items involved in the project to drill the Sinker Tunnel.

Lets start with the tax credit for mine safety workers.

Simply put, the personnel mentioned in the 10/25 PR are a MSHA requirement for SFMI, and they are expensive. With this tax provision, SFMI benefits from a tax credit per worker. (Chaching!... the cash register rings!!)

Next, heavy equipment will be tax advantaged to the tune of a 50% write-off in cost! (Chaching CHACHING!)

I very much like the fact that, in 2013, SFMI will benefit from having a hugely improved economic environment as regards safety related aspects of the work that is slated to begin at the Sinker Tunnel.

Taken together with the picture evidence of ongoing progress and current activity.....

Whats not to like? :o)

OK, so there can't be any harm in specifically pointing out a few examples of how this better economic environment benefits SFMI.

1.) Bolting the length of the tunnel:
What is the bolting of the tunnel if it is not safety work? It is safety work. And the equipment to do this is at half cost. And the people doing it are necessary, MSHA safety certified (tax credit and 50% less cost for the equipment).

2.) Blasting inside the tunnel:
We all know there will have to be blasting done inside the tunnel, and there will need to be escape rooms & ventilation shafts and so forth.... which obviously involves people (tax credit) and heavy equipment (50% tax reduced cost).

3.) Tunnel ventilation work & equipment:
We all know there will need to be air brought in and, to oversee this, people will be involved (tax credit and 50% less cost for the air equipment) .

4.) Water removal, ponding, & testing:
We all know there will be water involved (the drills are water cooled). Water removal will be a safety issue, which means we will have both tax credits for the people & tax advantaged 50% cost reductions for equipment involved.

And so on and so on and so on.

So, IMHO, the most important thing to come into the picture regarding SFMI are the two tax provisions discussed above because they generate a very advantageous economic environment for SFMI in 2013.

So thanx for the pictures showing activity at the tunnel. Taken together with the renewed tax advantage provisions, I very much like what I see happening as of early 2013.

:o)

Imperial Whazoo