Replies to post #3720 on ***Muaythai''s Miners***

[oryx]

bikeguy- good to see you and IW posting.

A couple of things- Based on their recent PR, SFMI needs to improve recovery at the mill to really get going there. The waste ore they are processing is good grade (5-6 g/t, better than many miner's main resources) and once they get the mill going well it should make the mill profitable and fund much if not all of their drilling and exploration program and get them to the point of mining new ore in a mountain that historically averaged over 2.4 oz/t. Mining was shut down back in the late 1800s because of a financial crisis (sound familiar?), and once the mines filled with water they were essentially abandoned since then. Now of course dewatering is straightforward. Kinross had rights to the mountain for a while, but lost them in a cash crunch when gold prices dropped to ~$200 and their other operations became unprofitable. SFMI also has rights to the Sinker Tunnel, which was started around 1900 a mile or so away below the deep snow line and extends under the mountain so they will have access to the veins year round. Interestingly, the veins are still strong 2000 feet below the surface of the mountain above. SFMI has also added over 2000 acres of claims so that they essentially control most of the rights to a mountain that is one of the least explored but historically most productive areas anywhere.

Drilling in the Sinker should start as soon as the permits are approved, and elsewhere on the top of the mountain as soon as conditions permit. There is some speculation that a buyout may occur once the historically documented resources are confirmed.

As far as the relationship with GHDC- GHDC is not the parent company (they don't own or control SFMI), but more of a partner. GHDC holds the original claims, while SFMI does the real work. Once SFMI starts mining, GHDC will receive monthly payments and a percentage. I'm not too concerned about it, since the boards of both companies are the same, and the principles hold much stock in both companies. Unlike some posters have suggested, there is no reason for GHDC to force SFMI to close and start over- especially since SFMI owns the mill and is funded independently of GHDC. But if you think one or the other has the advantage, then buy that one. I own both, but mostly SFMI.

Like you, I'm pretty fed up with the SFMI board. Lots of persistent ignorance, and undocumented falsehoods repeated endlessly despite repeatedly being shown to be wrong. And too many posts of no substance- nothing but snark, wisecracks and unfounded negative speculation. Many of the more knowledgeable and thoughtful posters now post elsewhere.