Silver Falcon Mining (OTCBB: SFMI) announced its Quarterly Report
(10-Q) on Tuesday, May 15th. SFMI projects from financial
calculations a profit of $4,500,000 from gold and silver being
generated from processed tailings at the Diamond Creek Milling
facility. As previously stated, the financials are based on daily
assays of the mill feed average of 4.38 g/ton of gold and 16.44
g/ton of silver. Currently the company has on site approximately
30,000 tons of partially processed ore containing high yield
precious metal values.
Pierre Quilliam, CEO, stated, "We, as a Company, continue to
make consistent strides towards maximizing profits and quantifying
current assets. We are pleased that the financials have validated
values on existing processed materials, and look forward to the
further reprocessing of material to generate higher yields with our
planned forthcoming closed circuit leaching system."
Mr. Quilliam further states, "The nature of mining is to say, it
just can't be done or someone would have done it already. This
attitude, mixed with the technological limitations of the last 100
years, has kept War Eagle Mountain un-mined for decades. We have
dared to believe in the value of War Eagle Mountain and have been
lucky enough to be surrounded by an incredibly supportive
shareholder base. Most mining operations organize themselves around
claims, and then sell them off to large outfits on the potential
value, leaving all the profit to be made by the large
corporations.
This is how SFMI's management looked at it:
1) Historic records give a good indication of the amount of
precious metal In War Eagle Mountain.
a) Solution: Validate as soon as possible;
2) To do something great requires great people
a) Solution: Attract the best and most dedicated people to
develop our operations.
- SFMI invited business mastermind Allen Simon to Chair and
staff the Company's advisory board;
3) The continued mining of War Eagle Mountain was never possible
in the past, due to the weather on the mountain. The purchase of
the Sinker Tunnel changed that for Silver Falcon. Because the
entrance to the tunnel is below the snow line year round, mining
can take place from inside of the mountain.
a) Corporate Plan: Map the vein network on the interior of the
mountain and proceed with mining high yield ore;
4) Ability to process material was not cost effective because
all suitable land near and around the mountain is controlled by
Bureau of Land Management (BLM) since the 1950s
a) Solution: find a suitable milling location
- SFMI owns and operates the Diamond Creek Mill property (at the
foot of the mountain);
5) Mining is expensive, so SFMI needed a path to
profitability
a) Solution: SFMI saw old mined ore tailings that were stacked
like ant hills all over the mountain which management assayed and
found to contain high precious metals yields.
- SFMI secured financing for operations and began processing,
giving Company a path to profitability;
6) As SFMI processed the gold and silver from the tailings,
which needed to be transformed into bullion dore
a) Solution: pour on site
- SFMI now completing a full scale bullion dore operation and is
currently discussing bullion dore production for other third party
operations;
7) All great mines had a great refiner; and
a) Solution: get the best domestic refiner we could find in the
Americas
- SFMI now uses Republic Metals Corporation, to refine all
bullion dore
8) While yields from processing were good, SFMI knew that they
could be higher.
a) Solution: Set-up a closed circuit leaching system to maximize
return of gold and silver by further processing SFMI's tailings on
site
- permitting is underway for the system and full operation is
anticipated for 2013.
SFMI has resisted the current junior mining paradigm of 'rather
than mine, just establish claims and sell off for profit.'
Corporate management has done this for one simple reason: to
maximize the company profit which requires a commitment to get the
gold out of the mountain. The closer we get to this end, the higher
the value of the gold in the mountain becomes. By creating a
profitable mining operation, the shareholders ultimately get
geometric value in their investment. There are many challenges in
running a successful mining operation, but SFMI has continued to
move in the right direction, resourcefully maximizing the company's
potential returns."
Silver Falcon Mining, Inc. (OTCBB: SFMI) is a producer,
developer and explorer of mineral resources, primarily in Owyhee
County, Idaho, USA, with the objective of being a profitable,
low-cost, precious metal producer and creating significant growth
in shareholder value.
Further Information contact: Rich Kaiser, Investor Relations,
757-306-6090, http://www.silverfalconmining.com.
SFMI cautions that statements made in press releases constitute
forward-looking statements, and makes no guarantees of future
performance and actual results/developments may differ materially
from projections in forward-looking statements. Forward-looking
statements are based on estimates and opinions of management at
time statements are made.
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Contact: Rich Kaiser 757-306-6090