Silver Falcon Mining Inc. (fka SFMI)

[crabbybill]

In response to questions asked of RK, he responded as follows;

Troy ounces are used at the refinery level not smelting level production of bullion Dore.Large smelters will smelt twice, once for the gross dore and the second for the bullion dore, bullion dore is the final version. SFMI had the dore (Gross dore) smelted into bullion dore and sold. The revenue received will be posted in the 10-K. But, remember the Belle Peck ore was the lowest of low material atop War Eagle. The first 20-days the mill ran at high production rates with poor recovery. When you tweak a mill for optimal efficiencies, you start high and work backwards until the mill becomes optimal in both input rates and recovery. As the mill became more efficient, the concentration values became greater. But, regardless the Belle Peck was never intended to be a revenue producer, it was slated to tweak the mill, train personnel, validate recoveries using a poor input and to develop a smelting relationship. The last point obviously is not going to occur because the expense and the confusion caused by the smelter has prompted management to poor its own bullion dore.

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