Well, I continue to follow this board with great interest and there has certainly been an up and down and up level of optimism from various posters here since the last SHM. Only bigpic has remained fairly stable. My own outlook has pretty much tracked with the majority of posters and have been very grateful to bigpic for his stability. It has helped me a lot. I have to admit that when Sinbob and Garrick began to bail, that really made me nervous. Even Bouts wavered.

That said, the PR of June 27 was a very important turning point for me. I have been very concerned about this company this past year because of the cash needs that need to be supplied to further all the aspects that need to progress to make Silver Falcon acheive the best long term share price possible. It has been my business experience that when you have your cash flow needs supplied intra company, that your options are vastly improved. When you run short of cash, especially substantially short as seemed to be the case with Silver Falcon, and also especially when that shortfall is unexpected or unplanned, all of the sudden you become completly at the mercy of those who have the cash that you need. Those that have this cash can be anywhere from benevolent to vicious. I haven't found very many of the benevolent kind.

It appears to me that the June 27 PR tells me that self generated cash is still a primary goal of the company. If they are able to follow through and actually get their permit for the closed circuit leach processing system, then they should be able to actually free up their estimated $4.5 million worth of precious metals. Their PR stated that they would be able to process approximately 3000 tons of high grade concentrate in that system. That 3000 tons would be generated from 30000 (approximate) tons of previously processed material. This assumption comes from their PR statement that the 3000 tons comes from a 10 fold reduction in material resulting from going through their flotation process. I think I have this right. If they have to reprocess 30000 tons, it could take anywhere from 200 to 600 days to generate that, depending on whether they process 50 or 150 tons per day.

Whatever it is, if it is, it goes a long way toward solving their cash needs. They need only supply there shorter term (6 months?) needs. I'm assuming that the $4.5 million would actually come in over the next year.

I know and agree that these shorter term needs include drilling. It would be wonderful if they are able to generate the funds necessary for this from some entity of the more benevolent source. Perhaps this has already been secured. That would be the best of all worlds. Then maybe the share price would exlode in the short term (6 to 12 months) and we would all benefit. If they are not able to obtain this cash from some reasonable entity, and no drilling happened this year on the mountain, I would certainly be dissapointed but to me it would not be a disaster. It is more important to me that the company survive and when the self generated cash begins to arrive, they can start drilling in the Sinker Tunnel in the Fall or whenever practical. I also know that all of this was suppose to have already happened. I was very tempted to stay in bed in the fetal position a number of times this past year.

The concept of a self sufficent junior, especially of the type that Silver Falcon is (huge gold reserve potential and located in mine friendly Idaho) was what got me into this originally (thanks sinbob and bigpic). The whole story was very exciting. The hic cups have certainly been exasperating, but I have met the people running this company and like and respect them all. They have made some questionable decisions but they don't seem to become derailed and I like that. I have been to the last two SHM of both SFMI and GLDC and will go again this year, Lord willing. I even like and respect Chris for his enthusiasm and work ethic. I really don't know about the competence level and I certainly would not object getting someone in there with a better background.

I have been in this for 2 1/2 years and added some more this week after seven months of just sitting on it. The only time I have sold any (not enough)was when it reached $.40. I'm retired and any cash available has to come from selling something. I hope I'm right about this, because I have more in this than I should.

Thanks again to all of you posters, and welcome IW.

Calfarmer

Calfarmer