MINES FOR SALE

THE CALIDA MINE             --------           EXECUTIVE  SUMMARY

MINERAL RESERVES:  $7.088 Billion

Gold:  1,705,780 ounces.  $2,899,826,000 @$1,700 per ounce

Silver:  60,972,582 ounces.  $2,134,040,370 @ $35 per ounce

Copper:  513,548,836 lbs.  $2,054,195,344 @ $4 per pound

Annual Net Profit Projection: $506 million at 150 tons per hour

LOCATION:  The Calida property is located approximately 24 miles south of Salmon, Idaho and 5 miles west of Highway 28 within the Mormon Canyon area.

DESCRIPTION:    The property includes 15 unpatented lode mining claims containing 300 acres.  The claim block is situated on lands administered by the Bureau of Land Management.  Calida consists of numerous old producing mines both surface and underground, having produced from 7 separate shear zones containing important quantities of gold, silver, and copper.

GEOLOGY:   Genesis of the Calida ore deposits, simply put, is a series of intensely altered and mineralized shear zones hosting oxide and sulfide ore minerals.  The shear zones range in size from 2’ to over 130’ in width and up to 14,000’ in length.  The shear zones represent a hydrothermal plumbing system for the migration of ore-bearing minerals throughout the zones of crushing and shearing.  Mineralization consists of native gold, and gold-bearing copper and silver minerals.  Most predominate in the system as tested includes the minerals of chalcopyrite, pyrite, chrysacolla, malachite, azurite, limonite, goethite, and assorted minerals containing both gold and silver.

ORE RESERVES:   Exploration drilling and trenching, combined with exposures in old workings, have provided the foundation for calculating an in-ground ore reserve.  Three different periods of drilling have focused on developing a reserve base to justify the implementation of a comprehensive mining and milling program.  The work programs have resulted in adequate data to define a ore reserve totaling 9,073,301 tons.  The in-ground ore reserve contains an average ore tenor of 0.187 oz/ton Au, 6.72 oz/ton Ag, and 56.6 lbs/ton of Cu (2.83%).

Calida is a porphyry deposit, generally meaning that it was created through an upwelling of material from the earths core. Drill testing has only gone to 500 feet. There is speculation that the ore body may go down to 2,000 feet or more. If so, this would dramatically expand the ultimate mineable reserves.

MINERAL RESERVE REPORTING STANDARDS: There are currently multiple and conflicting standards worldwide for the reporting of mineral reserves. Following a major stock fraud, Canada enacted a very restrictive law entitled NI 43-101 that essentially dismisses testing data older than 2 years.  Under this standard, the Calida Ore Reserves would be characterized as estimated or historical reserves. Despite intensive lobbying by Canada, the US government has not adopted 43-101 standards. Under existing US law, embodied in SEC Industry Guide 7, and based on the reporting standards set forth by the US Society of Mining Engineers, the Calida Ore Reserves would be characterized as Proven and Probable Reserves.

PRODUCTION: The estimated average recoverable ore value is $717 per ton.  It is estimated that production costs will be approximately $50 / ton for mining (combined surface & underground), and $27 / ton for milling, smelting, refining, and reclamation, resulting in a pre-tax net profit of $639 / ton.  An operation of 150 tons per hour is proposed, resulting in a production rate of 3,000 tons per day (two 10 hour shifts).  At this rate the daily net profit is projected to be approximately $1,917,000.  A monthly net profit of $46,008,000 is anticipated, equating to an annual net profit (11 months) of $506,088,000.

CRUSHING, MILLING AND MELTING OPERATION:  Crushing, milling and smelting should be done offsite on private property.  Much of the gold and silver is expected to be free milling, meaning that it can be released by grinding and recovered by advanced centrifugal and ultra high frequency vibration concentration.  The remainder will be separated out using a bromine or similar based flotation system. No cyanide is required.  Copper requires a separate concentrating circuit.

PERMITTING: The permit jurisdiction for the Calida claims is the BLM. Prior permitting shows that there are no NEPA issues. Private property milling will vastly simplify permitting.  In essence, the permit will be to extract and haul ore. Adjacent private land is available to lease or purchase for a mill site. Based on filing a permit application with an offsite private property mill, the BLM has informally commented that it might only take 11 months to secure permits. There are no known impediments to permitting.

PRICE: Price will be quoted directly to qualified buyers or intermediaries.

The following technical documents and reports are available for review:

2004 Jenkins Technical Summary with 2007 Addendum
2004 Jenkins Ore Reserve Analysis
1983 Donald P. McCarthy Geology Report
1983 McCarthy - Hansen Drill Hole Location Map
1983 Rogers - Hansen Drill Hole Test Results - Assay Reports
1980 Stephen C. Hansen Geology Report
1980 Stephen C. Hansen Drill Test - Trenching - Assay Results
1979 - 1983 Rogers Hansen Drill Hole Test Results & Assay Reports
1980 - 1988 GRE Rogers Hansen Drill Test Cross Sectional Maps - Assay Reports
1980 Thomas E. Finch Geology Report
1980 Rogers Research Geology Report
Calida - Vein Shear Drill Hole Maps

Other information available for review:

BLM LR2000 Database Report Verifying Ownership

2009 Independent Appraisal Report

2010 Appraisal Report Update

Area and Site Maps

Area and Site Photographs (see limited photos below)

If you are interested in purchasing the Calida Mine, or in obtaining further information, please click here for contact information.

Copper Ore

Gold & Silver Bearing Ore

Ore Body Exposed on Hillside