Posted the following on ischlub just now:

Hang in there longs, this company is growing and will soon be a gold producer (albeit on a rather small scale). The lab will help determine higher grades of the above ground ore and cash flow will increase. It will also increase with mill expansion and I imagine the mill will soon be self funding (this year imo) and will eventually help pay other bills. Not a lot of juniors can say that.

The more important shorter term objective, however, is the sinker tunnel. MSHA will eventually (could be days or weeks away imo) run out of loops to make sfmi jump through, and the drills will start turning inside the sinker. The historic grades from this mountain have produced results such as the following:

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[b]AND I'D SUGGEST COPYING THE FOLLOWING DD FOR YOUR RECORDS (thanks to Oryx):[/b][/color]

Quote:An ore analysis was reported by D.A. Yeager, and C.K. Ikona, of Pamicon Developments, Ltd. [b]"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.[/b]



Quote:The survey of the waste dumps was performed by D.A. Yeager, and C.K. Ikona, of Pamicon Developments, Ltd. "The dumps were created in the 1800s with ore that was considered low in value and was stockpiled for the day when metal prices were higher. Generally speaking, the cut-off value for ore to be further processed and transported to the refinery was 2 ounces of Gold per ton. The ore that did not meet this requirement was stockpiled. It seems apparent, both from a perusal of the history of the mines and from the results of the preliminary sampling, that the mineral reserves of War Eagle Mountain were by no means exhausted," wrote Mr. Yeager.

Initial findings estimate that probable recoverable gold and silver metals from the tailings stockpiles could exceed 19,200 Gold oz, and 221,440 Silver oz, or approximately $19 Million gross ore value.

(In the quote above, note that the dollar values quoted correspond to gold at maybe $700- because the assays were conducted relatively recently, not in the 1800s).

More assays from the same survey:

Quote:Keystone Adit: [b]63 g/t Gold (2.2 oz Gold/ton) 1,109 g/t Silver (39.1 oz Silver/ton)[/b]
Illinois Central Adit: [b]477 g/t Gold (16.9 oz Gold/ton) 3,180 g/t Silver(112.2 oz Silver/ton)[/b]



And recent results from another company:

Quote:A total of 49 holes were drilled by NERCO, Inc. The holes ranged from 70-feet in depth, to 700-feet in depth, with samples taken at 5-foot intervals, and were intended to test near-surface average mineralization. The drilling used reverse circulation methods and was not designed to provide results similar to blocked-out or core drilling methods, which yield a detailed analysis covering the entire length of the core.

[b] "We are definitely pleased with the exploration and drilling results that have been obtained thus far in the area. Hole 'W14' indicated nearly 445 vertical-feet of mineable-grade ore at .18 to .85 oz Gold/ton; while, hole 'W40' returned nearly 380 vertical-feet of .11 to ..45 oz Gold/ton. The remaining holes indicated yields from .24 to .88 oz Gold/ton over scattered intervals.[/b]



And more:

Quote:The independent drilling program was conducted by Donald Tully, P. engineer. "Five angle holes, totaling 684 meters (2,245 feet) were drilled In the Oro Fino area. Two angle holes, totaling 312 meters (1,025 feet) were drilled in the Keystone & Illinois Central area. Three vertical holes, totaling 209 meters (685 feet) were drilled in the Cow Cornice Basin area," wrote Mr. Tully.

Mr. Tully added, "The two holes that were drilled in the Keystone & Illinois Central and North Empire zones of the Central Vein system on the Mountain, approximately midway between the North and South shafts of the Poorman mine, struck extremely strong new veins. [b]These structures showed mineable width indications of mineralization, with results of 1,000 ppm of Gold, or 660 g/t Gold (23.27 oz Gold/ton). It is concluded that the War Eagle Mountain property is an excellent exploration bet in a favorable geological environment for discovering additional and new deposits of precious metals, in addition to mining of the existing deposits."[/b]



And more:

Quote:The preliminary surface sampling and assayed results of the mineralized ore bearing quartz veins found within the Illinois-Central zone revealed the following (reported-ounces per ton (OPT)):
[b] Location Vein width (ft) Au (OPT) Ag (OPT)
Illinois Central .42 16.846 111.20[/b]



More:

Quote:Preliminary recovers during the testing mill phase has shown 0.75 oz per ton



And (ho-hum) more:

Quote:According to Met-Solve Labs, the samples from the Poorman's tailings contain 3.3 g/ton Gold and 94.5 g/ton Silver.



And more:

Quote:[b]An independent drilling program was also conducted by Nerco, Inc., and a "Hot-Zone" was discovered as a result of a structural study based on color air photos. This report states, "A prominent east-west lineament was observed. A total of 49 holes were drilled in the areas between the Poorman Vein, the Afterthought Vein, and the Cornice Basin (Cornice Zone), with samples taken at 5-foot intervals. A majority of the drill-holes intersected mineralized zones, ranging from 5- 45 feet in width. Gold and Silver content ranged up to .62 opt Gold and 8.48 opt Silver per ton. [color=red]Considering the random pattern in which the holes were drilled, and the intervals of samples, exploration has succeeded in demonstrating the potential for medium-to-high grade underground deposits to be excellent."[/color][/b]

Yet more:
[b]
Quote:according to Met-Solve Labs, these latest samples from the tailings contain 6.9 g/ton Gold and 50.9 g/ton Silver.[/b]



And one more for good measure:

Quote:Donald W. Tully, P. Engineer on April 14, 1998 recapped the drilling report as follows:

"The Drilling Program was done with a large rotary down-hole-hammer drilling machine which was capable of drilling both vertical and angle holes. Samples were taken at five foot intervals. Five angle holes, totaling 2,245 feet, were drilled in the Oro Fino area. Two angle holes, totaling 1,025 feet were drilled in the Keystone/Illinois Central area. Three vertical holes, totaling 685 feet were drilled in the Cow Cornice Basin area. This was a limited exploratory program.[color=red] [b]The two holes that were drilled in the Keystone/Illinois Central and North Empire zones of the Central Vein System on the Mountain, approximately midway between the North and South shafts of the Poorman Mine, struck extremely strong new vein structures. These structures showed 1,000 ppm in Gold (23.86 oz Gold / Ton).
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