Facts....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 ($ 2,700) 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.
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.
By the way this shaft has no water in it. The shaft with the water lies on the other side of the mtn in the Golden Chariot shaft which isn't a concern and won't need to be dealt with for years as there is more than enough ore available in other locations.
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.
Tailings
The 300,000 to 500,000 tons of above ground tailings (5 gm/t gold; 200 gm/t silver..and up) mixed with excavated material ( 2 oz/T gold down ) could well average 1 oz/T gold equivalent. This translates to between 300,000 oz. to 500,000 oz. @ $1100/oz. today. … or $330 million to $550 million.
Cumberland Shaft ore: 30,000 tons @ 2.5 oz/t gold.