About Silver Falcon Mining:Silver Falcon Mining, Inc. (OTC: SFMI) is a junior resource production company specializing in gold and silver properties.
Silver Falcon Mining Inc. has acquired the rights to develop and operate the mines of GoldCorp Holdings Co., on War Eagle Mountain, situated on the Owyhee Gold Trend of the Silver Mining District in southern Idaho.
The War Eagle properties of GoldCorp Holdings Co. have produced approximately $270 Million in gold and silver to date, and are situated adjacent to the open-pit mines of Kinross Gold Co. (NYSE : KGC), which have produced approximately $1.8 Billion in gold and silver.
Silver Falcon Mining Inc. expects to assume production responsibilities on War Eagle Mountain during the fiscal year 2008. A 15-20 year life-of-mines is anticipated, with annual production estimated to reach 331,000 oz of Gold equivalent, once all the mines reach full capacity.
War Eagle Mountain Geologic Summary
Barrett Cupp – Senior Geologist
Kinross Gold Company (NYSE : KGC)
“The War Eagle-Florida-DeLamar Mountain trend is an east to west continuum with very tight high-grade silver and gold mineralization to the east (War Eagle Mountain) and increasing volume and decreasing grade to the west (DeLamar Mountain).
DeLamar Mountain, the western-most of the three, has been successfully open-pit minded since 1977. During that time, close to 100 million tons of material has been excavated, including over 15 million tons of ore. Collectively, past underground mining and modern open-pit techniques have produced approximately 67 million ounces of silver and 1 million ounces of gold. DeLamar Mountain is owned by Kinross Gold Co., (NYSE : KGC).
In its first year of operation, the DeLamar Mine recorded the highest tonnage of ore ever produced in the company’s history, at the time, producing 39,542 ounces of gold and 1,899,520 ounces of silver.
On Florida Mountain, estimated reserves and previous underground production records indicate the mountain will produce approximately 21 million ounces of silver and over 600,000 ounces of gold. Initial open-pit mining operations have begun on Florida Mountain. Florida Mountain is owned by Kinross Gold Co., (NYSE : KGC).
Ore mineralogy found within the veins on War Eagle Mountain is identical to the regimes found on the other two mountains. The only key difference is the country rock or precursor host rock. The granodiorite core on War Eagle Mountain (Granite) contains the veins whereas the extrusive volcanics predominately host the mineralization on the other two mountains. This means that the shafts on War Eagle Mountain are more stable, with minimal need to shore the walls with timber.
Based upon records from the 1800’s, and records of the current open-pit mining operations on Florida and DeLamar, mineral ore from War Eagle Mountain was obtained in greater amounts from far less material moved. The veins of War Eagle Mountain were 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.
Should exploration be initiated on War Eagle Mountain, I would fully expect them to encounter high-grade silver and gold mineralization. The veins in the mountain have not been fully exploited with respect to length or depth. My experience at Florida and DeLamar Mountains dictate that any new exploration ventures should be focused on War Eagle Mountain if a large scale project is the desired goal in this mining district. No other property holds the promise of silver and gold than War Eagle.”
On 8,051-foot War Eagle Mountain, the eastern-most and highest ore-grade of the three Gold peaks on the Owyhee Gold Trend, considerable tonnage of gold and silver-bearing ore has been mined, to date. Exploration efforts continue on the mountain in order to determine the depth, length, width, and grades of the existing mineralized veins.
Silver Falcon Mining Inc. currently has the development and operating rights to (14) deep-shaft mines on War Eagle Mountain as a partner with GoldCorp Holdings Co. The mines have shafts and workings ranging from 200-feet in depth, to 1,200-feet in depth. The patented properties include coverage on all (3) known primary gold and silver veins of the mountain; including the most famous and prolific silver-producing mine in the western United States.
…the POORMAN MINE.
At full production utilization, and based on an average gold price of $650 over the 15-20 year expected life of the mines, War Eagle Mountain is expected to produce approximately $215 million per year in revenue.
Production from the mines to date
Oro Fino Mine : 10,766 tons @ 1.04 oz / ton or $700 / ton
Ida Elmore Mine : 13,283 tons @ 2.63 oz / ton or $1,770 / ton
Golden Chariot Mine : 32,173 tons @ 3.12 oz / ton or $2,100 / ton
Cumberland Mine : 3,325 tons @ 2.45 oz / ton or $1,650 / ton
Minnesota Mine : 7,024 tons @ 2.05 oz / ton or $1,380 / ton
Mahogany Mine : 7,515 tons @ 1.98 oz / ton or $1,340 / ton
South Chariot Mine : 10,522 tons @ 2.00 oz / ton or $1,350 / ton
Mahogany #2 Mine : 15,000 tons @ 3.39 oz / ton or $2,290 / ton
Poorman Mine : 21,252 tons @ 1.97 oz / ton or $1,330 / ton
Never Sweat Mine : 6,000 tons @ 2.42 oz / ton or $1,630 / ton
Illinois Central Mine : 11,205 tons @ 3.63 oz / ton or $2,450 / ton
Empire Mine : 7,579 tons @ 1.17 oz / ton or $780 / ton
Illinois Central #2 Mine : 11,635 tons @ 3.59 oz / ton or $2,420 / ton
War Eagle Mine : 3,315 tons @ 1.31 oz / ton or $880 / ton
Highlights of Silver Falcon Mining Inc. and War Eagle Mountain
1. Silver Falcon Mining Inc. has the development and operating rights to (14) deep-shaft mines and their associated claim areas. War Eagle Mountain is on the Owyhee Gold Trend, a massive mineralized fault line in southern Idaho. The mines cover all (3) primary gold and silver-bearing veins on the Mountain, as well as (40) additional offshoots of those main veins; with shafts and workings extending downward to the 1,200-foot level.
2. There are (3) mountain peaks associated with the Owyhee Gold Trend : War Eagle Mountain, Florida Mountain, and DeLamar Mountain. The 3-mountain trend lies in a straight line and is separated by less than 5 miles. The 3-peak trend contains some of the richest ore deposits in Idaho. War Eagle Mountain contains the highest concentration of mineralized ore.
3. DeLamar and Florida Mountain are owned by KINROSS GOLD CO., (NYSE : KGC). These two properties have produced approximately (67) million ounces of silver and (1.3) million ounces of gold, worth approximately $1.8 Billion. War Eagle Mountain has produced approximately 415,000 ounces of gold equivalent, worth $270 Million.
4. The veins of War Eagle Mountain 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.
5. 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 ($1,638) per ton. An estimated (4) million ounces of gold equivalent, worth $3 Billion, is thought to be minable on War Eagle Mountain. A life-of-mines ranging from 15-20 years, and yearly revenue of $215 Million, is expected at full mining capacity.
6. The largest silver nugget ever produced in the United States, at 8,000 ounces, came from the POORMAN MINE. The POORMAN MINE is one of the properties that Silver Falcon Mining Inc. is developing on War Eagle Mountain. It was said of the ore from the POORMAN MINE that, “As jelly is to bread, so is silver to this rock”.
Geology of War Eagle Mountain
War Eagle Mountain is the eastern-most gold dome of the Owyhee Gold Trend, a 5-mile E-W trending mining area, which includes War Eagle Mountain, Florida Mountain, and DeLamar Mountain. The primary gold and silver veins on War Eagle Mountain are the “Oro Fino”, “Central”, and the “Poorman”.
The “Oro Fino” vein system is known to extend at least some 12,000 feet in an N-S direction and has been observed to vary greatly in thickness (0.5 to 25 feet) and mill grades (0.5 to 1.25 ounces). As is typical for this kind of precious metal bearing quartz system, several large “pockets” of very rich ore concentrations occur scattered throughout. These so-called “hot spots” are locations where mill grades of up to 25 ounces of gold per ton are encountered; with some areas showing grades as high as 90-300 ounces of gold per ton. General ounce ratios of silver to gold are 14:1.
The “Poorman” vein system is identical to the “Oro Fino” vein system, but about 1,000 feet to the west, running parallel to the “Oro Fino”. The “Poorman” vein is mostly silver.
The “Central” vein system is a cross-directional vein at right-angles to the “Oro Fino” and the “Poorman” veins. Two sets of major precious metal deposits exist in the locations where the “Central” vein intersects the “Oro Fino” and “Poorman” veins.
The “Oro Fino” vein system has (6) other major veins associated with it, while the “Central” and the “Poorman” have approximately (40) offshoots associated with them.
The gold and silver bearing veins of War Eagle Mountain are steeply dipping to sub-vertical in altitude and are generally oriented in a NS to NW-SE direction. The textures, mineralogy and geometry of the veins all indicate that they are “epithermal” deposits. The effect of the so-called “hyper-enrichment” process undergone by the vein systems tended to produce multiple pockets of bonanza ore, or highly-enriched spots, which War Eagle Mountain is known to exhibit abundantly.
The primary ore host on War Eagle Mountain is Cretaceous Granite, followed by Tertiary Tuff of up to 50% granite. This means that timber is rarely used in the mines, since the walls are extremely stable.
All of the larger veins, such as the “Oro Fino”, “Central”, and the “Poorman” are remarkable for their continuity along both strike and dip so far as developments have gone. The “Black-Jack-Trade-Dollar” vein has been developed for 6,000 feet along its strike and for 1,800 feet in depth without notable decreases in strength. The “Oro Fino” vein has a development along its strike of nearly 4,000 feet, and is strong and well developed 2,000 feet below the surface. Some veins at the 2,000-foot level show yields of 2.5 ounces per ton over 9-foot widths. These facts seem to preclude any adverse conclusions as to the persistence of the main veins in the direction of strike and dip.
The “Oro Fino” vein enclosed a large persistent ore body of medium precious metal content, a condition which gives distinct promise of further extension within the limitations created by the activity of supergene agents. The known ore body is developed in that portion of the vein fissures (cross-fracturing), and it is very possible that the conditions which pertain at the “Poorman” vein are also effective in the “Oro Fino” vein. If this is the case, the ore body might have a considerable pitch (length) in the vein, although this pitch may or may not be northward, like the “Poorman” vein.
It has been shown in exploration on War Eagle Mountain that ore deposits may be expected to persist without great change in tenor to a depth considerably below any attained by mining activity. If it is true that the ore developed on the lowest levels of the mines is hypogene or primary, which seems to be likely, and if it has the reported tenor cited in most studies, there is considerable promise of future discoveries at depth. The fissuring and fracturing which made possible the development of the veins, are certainly continuous for long distances and great depths.
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