I guess Mr. Chaffee didn't get around to uploading his shareholder Update.
Shareholders Update
For the Period Ending
September 30, 2012
The following is a brief overview of the current status of Western Sierra Mining for the period ending September 30, 2012. This summary of the period should be viewed in conjunction with the previous reports filed with the Pink Sheets, press releases, the December 31 report to shareholders, SEC filings and previous shareholder updates.
During the third quarter of 2012 we have continued to expand our relationship with current and potential Joint Venture Partners and have completed the acquisition of the Azurite mine in Central Arizona.
The Azurite Mine
During the second and third quarters of 2012, we completed the acquisition of the Azurite hardrock gold, silver and copper mine and the private property on which it exists.
The Azurite project is located approximately 14 miles south of Prescott, Arizona and within the Senator Mining District.
The Azurite Mine, also known as Lower Davis Dunkirk, is comprised of 86 patented acres contained in 6 original patented claims. The Mine consists of 6000 feet of underground workings, together with numerous surface excavations, dumps, and road infrastructure. An old mill site with water is present and usable for future milling.
The Company is in the initial phases of re-opening the mine and upgrading the access roads and driving new roads that will expose additional areas of the main vein structures.
That project should be completed during the first week in October. We will then initiate a small sampling program looking to confirm the work done earlier in the year and prepare for a final mine development plan and submit that plan to any required agencies in the State of Arizona for review.
The Azurite mine will require approximately $1 million dollars to bring it to a full production status. The Company will make available to qualified investors an opportunity to participate in the mines development through a private Joint Venture
relationship. Details will be provided upon written request.
Gold Basin
We have continued to work closely with Pine Creek mining to re-open the Gold Basin placer mine. We have recently completed additional fencing and earth control barriers at the request of the U.S. Forest Service. We are looking at a variety of possibilities to Joint Venture the project with Pine Creek as an operating partner or as the mine operator for an outside or private developer.
Outside and Independent Evaluations for Other
Under a private contract, Western completed a preliminary evaluation of the Castle Springs property. We have been notified that the client, a foreign developer has elected not to pursue the project. The main reason given was their concerns relative to the possible lengthy permitting process now in place on Federal lands. The results of that fairly extensive exploration work was positive and with the new and additional data we derived from that work we are proceeding to continue look for either a financial partner or for a direct sale of the property.
Gold Star/Gold Crown/GDSM
Western continues to work closely with GDSM for the development of the Gold Star properties as they pursue the necessary funding. GDSM also remains committed to the financial support of the Azurite mine. In addition, we have made available to GDSM
additional mining properties for their consideration which they are currently evaluating.
GDSM is currently setting their priorities and communicates with Western as to their progress.
Current Exploration
During this period, we have been looking to expand certain claim sites and have been doing the necessary work to evaluate the cost/rewards attributable to that effort. We will reserve disclosing those specific properties until we have either filed the necessary paper work or decided against going forward.
We are now concentrating on the acquisition of additional private properties to add to our reserve inventory as opposed to properties under Federal lease.
In our last report, we referred to our continuing exploration. Part of that work provided information to make an intelligent decision on Azurite.
We have continued our first look at the Silver Cord underground mine completing basic power and lighting installations. Work there has been limited during the period primarily due to our commitment to other projects and more recently the weather.
Ongoing and New Projects
Western continues to work with individuals and corporations that have expressed an interest in purchasing mines currently in the inventory of the Company. Several proposals have been rejected for a variety of reasons. We are also negotiating with a number of potential J.V. partners in an effort to initiate a project that would lead to a long term production program.
We also continue to work with potential corporate and private investors who are looking to becoming involved with the mining industry and needing an independent evaluation of the proposed transaction or the property itself.
We get many inquiries for our services in the outside and independent property evaluation of our business. However, revenues are extremely small since most of the projects being presented either have little merit; problems with ownership documentation or because of environmental and permitting issues make the project uneconomical.
GEAR International.
In the third quarter of 2011, certain shareholders of Western entered into a stock purchase agreement that if completed would have provided GEAR a controlling interest in Western. GEAR failed to fund the transaction. Late in the first quarter of 2012, a new
agreement was reached with certain shareholders that would again provide GEAR a controlling interest in the Company. After many promises and assurances, GEAR again defaulted on that agreement as well.
Those shareholders involved are now looking closely at the circumstances surrounding the promises and stipulations made during both the first and second contract negotiations by both GEAR and certain associated parties and evaluating their legal options.
Reporting Status
Our financial and corporate reporting will continue to be filed at Pink Sheets.com as will any significant press releases for the present time.
As always, should you require any additional information or have any questions, you may contact the office between the hours of 7:00 AM to 7:00 PM, MST Monday through Friday. We are currently spending a large amount of time in the field but will do our best
to return your calls.
Because of the large volume of calls, callers without caller ID are no longer answered.
Statement for Forward-Looking Information
Certain information set forth herein contains “forward-looking statements” within the meaning of the federal securities
laws.
Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, exploration efforts, financing needs, plans or intentions relating to acquisitions by the Company and other information that is not historical information.
The word “estimates,” “expects,” “anticipates,” “forecast,” “plans,” “intends,” “believes” and variations of such words or similar expressions are intended to identify forward-looking statements.
The Company’ forward-looking statements are based upon the Company’s current expectations and various assumptions. The
Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties, but there can be no assurances that management’s expectations, beliefs, and projections will result or be achieved or accomplished. The Company’s forward-looking statements, apply only as of the date made.
