SILVER FALCON MINING REOPENS WAR EAGLE MOUNTAIN
MINING OPERATIONS IN IDAHO
Silver Falcon Mining, Inc. (OTCBB: 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 GoldLand Holdings, Co. (OTCBB: GHDC), on War Eagle Mountain, situated on the Owyhee Gold Trend of the Silver City Mining District in southern Idaho. The War Eagle properties of GoldLand 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.
On September 14, 2007, GoldLand Holdings Co. (GHDC;OTCBB) acquired an interest in 174.82 acres of land on War Eagle Mountain, consisting of a 100% interest in 103 acres, and a 29.166% interest in 71.82 acres. GoldLand also owns five placer lease claims on War Eagle Mountain from the U.S. Bureau of Land Management, each of which covers approximately 20 acres, or approximately 100 acres in total. On October 11, 2007, GoldLand leased its mineral rights on War Eagle Mountain to SFMI. Under the lease, SFMI is responsible for all mining activities on War Eagle Mountain, and the Company is obligated to pay Goldcorp annual lease payments of $1,000,000, payable on a monthly basis, a monthly non-accountable expense reimbursement of $10,000 during any month in which ore is mined from the leased premises, and a royalty of 15% of all amounts SFMI receives from the processing of ore mined from the properties. The lease, as amended, provides that lease payments must commence July 1, 2010.
SFMI closed on the purchase of the mill site in early December 2009. The Company has made improvements to the road to the mill site, located a prefabricated office and mill lodging on the property, drilled a water well, and installed a prefabricated building on the mill site and installed mill equipment in the building, among other improvements. In May 2010, SFMI began to process tailings leftover from 5 to 6 prior mill sites on the mountain. Company testing indicates that there are sufficient quantities of gold and silver remaining in the tailings to justify further processing, as a result of milling techniques used in the 1800’s that failed to extract all of the gold and silver from the ore. SFMI elected to build the mill on private property that the Company owns, rather than BLM property, because of lower reclamation costs, even though the offsite property will entail higher transportation costs. The Company believes it has sufficient financing in place to complete this phase.
SFMI’s initial focus on processing the tailings left behind by far less efficient mining methods creates an opportunity for significant near-term profitability as well as the capital to finance new mining development. Although SFMI is an exploration stage company, the quantity of tailings available to the Company and the mineral content estimates available from the random sampling of the tailings convinced management of the value of completing the start-up phase and the processing of tailings began May 17, 2010. On October 27, 2010, the Company sent it first batch of concentrate produced from its milling activities to a smelter. SFMI is now taking the first steps in the planned confirmation phase as the Company works towards the development stage.
SFMI believes that full scale mining of raw ore will be profitable. In particular, historical records of mining on the site, and subsequent reports of the geology of the mountain, indicate that veins containing gold and silver extend much further vertically than could be mined when the site was last mined in the 1880’s. In addition, historical records indicate that gold and silver exists in the veins in sufficient densities to warrant mining using modern extraction and milling techniques.
Based on knowledge of prior production, a documented history of the closure of mines prior to exhaustion, and a long history of published professional public and private consideration and speculation about Company property, SFMI has concluded that there is the possibility of a multi-billion $ revenue opportunity for the Company at War Eagle, which the Company estimates may hold multiple millions of ounces of gold.
For further information about Silver Falcon Mining, Inc, visit the company’s website at www.silverfalconmining.com and/or call Rich Kaiser at 800-631-8127.