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Message: Waste rock

I am thinking that if we are going to be able to retrieve 50% more of the pm out of the ore we now have at the mill by the leaching process we will be doing quite well. I'm not sure of the amount of pm to be recovered but I think any amount out of this material will be good. This was all concidered to be waste rock and not worth processing by the previous miners. Our real goal will be to prove where the richest veins are that will produce the most revenue with the least amount of work. We are fortunate that we have previous drill results to help guide us to the most valuable claims so our new drill program will show the best results and we have geologists reports locating new prospects. The waste rock going through the mill at this time is just a bonus. We can not count on getting an offer that is acceptable to the shareholders and PQ so if we have to mine, we can take the more valuable ore, not the waste rock, to the mill for processing. Some people claim we are never going to mine War Eagle Mountain because a buyout is preferred, I personally would like to see sfmi mine the mountain. I know the early miners made lots of money from the good ore, thats why they could leave the other rock on the mountain. Todays technology and our mill will give us a very nice return on our investment.

Red

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