SFMI

Hi Ed.

This is probably more directed at newcomers but sort of answers your questions.

For me, cobbling together the historical drilling results from the last two news releases, plus factoring in all the previous historical data (Kinross geological high value analysis and Idaho Bureau of Mines) additional to mining production information and high grade sampling surprises and recent geological observations, highlights the tremendous discovery potential that now exists for SFMI’s War Eagle properties. So, depending on one’s estimates, mineralization could be anywhere from 5 million to 8 million ozs. gold equivalent exclusive of tailings, and maybe even much more. The high grade to bonanza grade potential is truly exceptional. I’m sure you agree.

I my estimation, the value of any offers made for SFMI will be directly related to when they are made, the later the better going into next year. By then they will have to be extremely high to entice shareholders to sell. I’d hate to even guess right now.

I am expecting the price of gold to hit $1500 to 2,000 by/before year end.

I have only heard rumors to the effect that there is outside interest. Surely those close to Kinross know the potential value of this property as do others close to the scene and going forward I’m sure the news is spreading. Deposits like this are rare, as you know. Given the above factors, I don’t think an intense, closely spaced drilling program will be pre-requisite for resource-starved shoppers.

I have on my desk an exact replica of a 1926, US $50 dollar federal reserve note, redeemable in gold on demand. Once that gold backing was completely removed in 1971 by Nixon everything changed. We have seen the dollar fall from its high of about 1.65 in 1985 to about .87 today and at the edge of a cliff. The world has about a $US Quadrillion derivatives floating around in a $50 Trillion Global economy. True gold reserves of western banks/governments have been surreptitiously and fraudulently diluted, traded, swapped, leased, sold...whatever. No one knows how much swapped gold Fort Knox/Gold Reserve holds or how much central bank gold has been lost/sold …as much as 20,000 tons of the original 35,000 tons. The GLD ETF is just another example of gold theft at high levels and probably bereft of gold just as the COMEX is. All of this has been an increasingly vain attempt to cap the value of gold…defy the law of gravity. It took $250 to buy an ounce of gold in 2002. Today it costs $900. Whoops, we see China has been buying all along and probably holds much more than expected along with Russia, ME, Asia, Europe, SA and others. Gold is now in the second stage of a long term bull and will become a financially driven, mania asset as inflation takes hold. Many are predicting gold to really heat up by the summer and go parabolic past $1100 by Fall and on to $2,500 in 2010. When will the DOW and gold equivocate again? When will the US default on the dollar? How does one store value? Gold is a store of value but not a leverage of value. Gimme a safe haven with upside please.

Well, you know all this but it helps me to just write it down I guess. Mabe some of this will be helpful to new posters.

We know that the big producers return less value for less risk and the funds have been purchasing them all along. So, I ask, what will happen to the trashed junior gold explorers/developers/producers&helli... treasures…huge levers of value? What is your ROI? What is your acceptable amount of risk…especially in a small sector that has yet to see any leverage to the price of gold reflected in the value of the share price? SFMI was last at 2 cents. 2 CENTS! Osisko has about 7 million low grade pit ounces and is over $5 and heading up….just as a very loose example. Yes, it is 43-101 compliant but there are other considerations. It’s safe with upside potential. It is years away from production. What happens as gold rises and attention shifts form seniors to juniors? Where is all of that $9 Trillion cash on the sidelines heading when it hits the markets again looking for ROI? How high will the price per ounce in-the-ground soar?

Many small juniors are trading at less then cash value and the gold deposit is free! What is the cash value of SFMI…an explorer/developer/producer? We see gold holding its value in a time of crisis…how about gold in the ground? Every day we see more demand for gold…coins, bars, scrap, jewellery and most of all…investment. Production is declining as more mines are closing. Most mines are over fifteen years old. Average global gold grades have diminished to 1.3 gms/ton. Gold industry, in-ground reserves are declining. The rich ore has been taken. The gold industry has increased exploration spending by five times but the rate of finding gold deposits has fallen far below the rate of mining gold. The juniors represent the future of the gold mining business. New gold mines are hard to find. Finds like SFMI are preciously rare indeed. As LongSFMI reminds us….it is a turnkey operation.

The gold mining industry desperately needs new deposits. New deposits will be extremely valuable deposits. Shareholders of good gold deposits will be richly rewarded as the realization of the value of those rare deposits is recognized. I strongly believe that SFMI is a rare discovery, high reward, rediscovered gold/silver deposit. Many think that silver will soon outperform gold. For 2 cents, or $1, SFMI represents a once-in-a-lifetime investment.

PS: Many who realize the future value of healthy gold deposits are attempting to suppress the awareness of such value by any and all means possible.

I am a holder of SFMI.