Here are some facts you have not read:
Saying that historic geological reports are “hearsay” is a personal opinion contradicting the facts. Historic geological reports are every bit as valid today as they were years ago.
1) Historical Geological Summary
There is no doubt that historic reports (Idaho Bureau of Mines) and present day evaluations, samplings, and assays show without a doubt that SFMI is sitting on a tremendous reserve of gold and silver. )
The veins of War Eagle Mountain are of far higher value per ton than any other mining operation in the Silver City Mining District, and some have speculated that they are more valuable per ton than the historically famous "Comstock" mother lode. There are (3) main veins on War Eagle Mountain each estimated to be 10,000+ feet in length, and 2,000-feet in depth. The veins have been determined not to decrease in grade as the depth of mining increases, and are remarkable for their consistency of yield.
Approximately 19.35 million tons of mineralized ore is calculated to exist on War Eagle Mountain. Approximately 165,000 tons of ore have already been produced, with an average yield of 2.52 ounces of gold equivalent ($ 3,250) per ton. An estimated (4) million ounces of Gold equivalent, worth $ $4.4 Billion, is thought to be minable on War Eagle Mountain. A life-of-mines ranging from 15-20 years, and yearly revenue of $ over $500 Million, is expected at full mining capacity.
Senior Geologist Barrett Cupp's report:
Quote:
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Approximately 19.35 million tons of mineralized ore is calculated to exist on War Eagle Mountain. Approximately 165,000 tons of ore have already been produced, with an average yield of 2.52 ounces of gold
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The Oro Fino system is known to extend at least some 12,000 feet in a NS direction and has been observed to vary in thickness [0.5 ft to 25 ft] and mill grades [0.5 to 1.25 Oz Gold/ton]. To date, only about the first
300 to 1100 feet in depth of the Oro Fino Vein has been mined on approximately 15% of its total known length. The Oro Fino Vein
system has approximately 6 other vein systems associated with it, while some 40 additional main vein systems are believed to
exist on War Eagle Mountain.
As is typical for this kind of precious metal bearing quartz vein system, several large "pockets" of very rich ore concentration occur throughout. These veins are the so called "Hot Spots" locations where mill grades of up to 25 oz Gold/ ton are encountered. Some areas showing grades as high as 90-300 oz gold/ton. All of the ore produced to date on War Eagle Mountain has averaged 2.52 oz. Gold equivalent [Gold and Silver values combined].
The depth of the vein systems is known to be in the 2,000 to 2,500 foot areas. Estimates of reserves range from 500,000 to 3,000,000 oz. of Gold. More recent surveys have tended to confirm these estimates and with Silver values included, reserves, could reach 5- 8,000,000 oz of Gold equivalent. War Eagle Mountain has a rough ratio of 1:14 [1 0z. of Gold for every 14 0z. 0f Silver].... @ $1100/oz. …or $5.5 billion to $8.8 Billion.
The Cumberland vein, also part of the War Eagle structure, is clearly a seperate vein system. This vein is 100 to 200 feet east of the Oro Fino vein. The Cumberland vein is oriented N-S Dips 60 degrees to the east and is one to twelve inches thick. Very rich ore, some as high as 9 oz of Gold to 40 oz of Silver exists within this vein.
The Poorman vein, also part of the War Eagle structure, is an identical major vein to the Oro Fino vein, but about 1,000 feet to the west, running parallel to the Oro Fino vein. This vein is mostly Silver. The Poorman vein produced the largest nugget of Silver ever mined in the United States, at 8,000 oz [500 pds]. Historically, the Poorman vein has produced mostly silver. According to this report from the Idaho Geological Survey,
Quote:
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The vein was discovered in 1865, and was worked continuously till 1873. The first 2,000 tons are reported to have yielded $547,000. Since that time it has been exploited at intervals—in 1885, 1896, 1897, and 1898. The production, as gathered from Raymond’s reports, is as follows: 1866, $800,000;1868-69, $168,000; 1870, $42,769; 1871, $18,127; 1872, $11,740; total, $1,040,636. The whole production to 1880 is reported to have been about $3,000,000.
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An ore analysis was reported by D.A. Yeager, and C.K. Ikona, of Pamicon Developments, Ltd. "Investigations indicate at least one year's reserves in place at the bottom of the Illinois Central; with ore indications of 11,205 tons @ 103 g/t Gold (3.6 oz Gold/ton)," wrote Mr. Yeager. So this translates to 33,000 oz or $33,000,000.
Reserves that have been proved up to a significant degree of confidence do not disappear. And the evidence for significant reserves at War Eagle Mountain is about as good as it gets.
2) Mining Related
SFMI model:
1) ramp up quickly into low cost production/cash flow and mill fed by 800,000 tons above ground, high grade gold/silver ore. (this normally takes 5 to 7 years and $millions and much stock dilution via multiple private placements.)
2) cash flow generates profit and finances easy access and drilling via a complete multi- tunneled, multi-shafted and adited mining infrastructure.
3) additional upside exploration potential; no environmental or permitting issues; local, skilled labor pool; geopolitically friendly nation; receptive community needing jobs; fresh water, roads, power (soon) etc., and more.
The “43-101” factor: SFMI does not have to do a 43-101 yet. It would be necessary if they had all their resource below ground. SFMI has 800,000 tons above ground (confirmed by attendee sighting and management at Sept. meeting). A 43-101 would be necessary if they needed to persuade outside, deep-pocketed parties that their below-ground geology was good enough. SFMI has no requirement of doing a drilling project to define the below-ground geology. Cash flow from above ground, royalty free ore pile processing will finance drilling on War Eagle Mountain.
3) SFMI related
Operating mill ramping up efficiency and production from 70 tons/day now to 140 tons/day to 500 tons/day. The mill is capable of 200 tons/day right now.
Ore is being processed….concentrate being produced.
Monthly payments being made on lease.
NR stating .75 ozs/gold equivalent/ton above ground ore.
All filings up to date; all permits in place.
4) Sept. 17th Annual meeting feedback. (much thanks to Spiny/Oyx, Pic/CV, and others)
Over 100 attendees at meeting and tours of site and mill.
Ore piles 8 to 10 stories high and as long.
Diamond Creek Mill is operating 24/7, producing visible gold and silver concentrate
Mill is modern and set up impressive...
Water based processing…no cyanide leaching…clean operation.
Concentrate collected and saved for smelting.
Milling can be easily expanded within mill building.
SFMI negotiating best smelter arrangements.
Assays to be released after smelting.
Over 1000 pounds of concentrate on hand is collateral.
Growth with higher production and higher grades.
Planned share buy back when higher efficiencies reached.
Mill is owned free and clear.
Uplistings to TSX and Bovespa delayed to make better use of immediate cash flow on project/production…initiating mining process on in mountain via sinker Tunnel.
Present burn rate is $50,000/month, which is outstanding.
No major stock dilution…may use shares as hiring bonus but will be offset by buyback program planned.
Area residents pleased with SFMI….the improvements to the area roads.
Huge quantities of ore being hauled.
Heavily mineralized, granite samples were taken by many attendees….and the Oslo adit ore contains up to 4 oz/ton gold.
Rehabilitation of Sinker tunnel has commenced….winter snow will not hamper operations.
Exposed precious metals/veins on the face of the Sinker Tunnel walls, ceilings, floors… can be immediately mined via quitclaim deeds which can bypass any surface claims which may exist in the Oror Fino system on the east side of War Eagle. .
Management will only release PRs when proven factual.
There is a bank line of credit against the building concentrate which means there is a good indication of the grades…smeltering will e done during or before Dec. and grades will be released…and share a 15% buyback will commence…at prevailing market prices.
Pierre Quilliam has many long term, loyal believers that have confidence in him…some going back to the Dycut days who were in attendance that trust him and his abilties…he is meticulous in is filings and adhering to the SEC rules.
Many attendees to purchase more shares.
5) Rumour Related
In-house smelter possibilities
Deep pocketed suiters in negotiations.
The SP is being held down by MMs and investors with little knowledge of the fundamentals of SFMI.
Hints of buyout potential at much higher prices of $3 to $11 later.
Reports that certain large miners and funds most interested.
Price of gold and silver to hit $1600 and $30 by Dec. creating sense of urgency over very rare, large grade resource that SFMI sits on. Time frame for potential suitors shrinking rapidly.
6) Proof Sources available via silverfalcon.com website
AI
