Replies to post #43578 on Silver Falcon Mining Inc. (fka SFMI)

[oryx]

Not true.

SFMI needs cash desperately.

Yes, they need funding to proceed with the business plan, but they are not "desperate", and never have been. There is big money behind them. "Funding can dry up in an instant"- of course it can, but you could say that of any company. As an investor, you evaluate the chances of that happening. SFMI has funding now- and from a number of sources, so the likelihood of every source drying up at once is pretty low. And even if all the sources dry up? Well the mill is producing more than it costs to operate, and will be doing even better when the expansion underway is completed. Even if every source of funding dried up, at worst they scale back to what the mill will fund. And BTW, if every source of their finding dried up at the same time it would probably be the result of problems much bigger than SFMI which would make your investment in them the least of your worries.

The tailings are not profitable. To be profitable they would have had to sell enough metal to recoup all of their expenditures for the mill and labor and business expenditures to date.

Huh? SFMI owns the mill and mill property and equipment (though with a small mortgage on the land which they may have paid off with shares, I'd have to check). The mill itself produces more than it costs to operate. Would you shut it down because according to you it's not "profitable"? And if you look at the costs of constructing the mill, you'd know that it won't take long to recoup even that. You can't say that the mill or tailings are not "profitable" just because SFMI has spent large amounts elsewhere, such as the Sinker rehab.

That day is not today. Nor tomorrow, nor next year, if ever...

The mill is running at a profit. Again the question is "Would you shut it down?". And that profit from the mill operations will greatly increase when the mill expansion is complete. Will the mill operations using the waste ore ever be profitable enough to support the other operations? Most importantly, until the mining of new, much higher grade ore begins? Maybe, maybe not. But if you run the numbers, the mill right now will definitely be subsidizing the rest of the operations, and after the expansion will be very close to financing the whole operation, possibly running at a profit. Which greatly reduces the amount of money they will need to reach the point where they are mining new higher grade ore. Then the real fun begins.

Permit? What's the delay? If all you need is a permit to get to ALL THAT GOLD FLOWING IN THE TUNNEL and to finance your operation why are you not permitted to mine?

You know what's required to get a permit. SFMI has had to jump through numerous hoops, and then ended up with more months of work to do when MSHA belatedly decided they had to rockbolt the entire tunnel. And with the recent mine accidents (including a couple of recent ones in Idaho), you can be very sure that MSHA is going to be very strict. Mining is inherently dangerous work, and getting a mining permit is not the same as getting a fishing permit.

[gsdreamer]

In my opinion SFMI has the permits or has confidence that they will have them soon. If not, why would they now be seeking bids for their planned 5000' drill program?

"Murphy, Id. -- (MARKET WIRE) -- 12/14/11 -- Silver Falcon Mining, Inc. (SFMI) announces that a bid request will be tendered for underground exploration services for the Company’s Sinker Tunnel project. The successful bidder will provide a comprehensive cost-service breakdown for blasting and drilling on the proposed project. A sizable chamber at the far end of the Sinker Tunnel is necessary, whereas a drill room will be created to provide drilling equipment access and mobility. Once the drill room is completed, SFMI plans on drilling 5,000 feet, using both RVC-reverse circulation drilling and diamond core drilling methods on predetermined geological targets within the Sinker."

Step by step everything is happening as advertised. Nobody is happy about the current stock price (well maybe a few are happy about it) But, investing is about the FUTURE. The time frame may not be in sync with everyone's expectations. But seriously, the progress on site has been spectacular in terms of construction speed and quality. IF they have the goods they will continue to be funded. And based on what has been funded so far, I'd say that BIG MONEY does believe that they have the goods, and plenty of it!

Also I would like to point out to those who believe the historical documentation, that there is good ore that has been previously mined measured in ounces per ton gold just sitting in the flooded mine shafts waiting to be recovered.

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.

(closer to 50m at today's prices - just sitting there)

However, because of environmental concerns the water may not simply be pumped out. According with a conversation that I had with RS in September, DEP has required that SFMI spray the water into the air at a slow rate to allow the water to evaporate.

So again, patience is key here.

As I see it!

Have a nice weekend!