MINES FOR SALE

MILK CREEK PLACER MINE        - - - -         EXECUTIVE SUMMARY

Location:  Approximately 35 Miles South of Prescott, Arizona. 4 unpatented BLM Claims on 400 acres

Ore Reserves:  Mineral Reserves of 714,611 ounces of gold, or US $1.057 Million at $1,500 per ounce gold

Cash Flow:  Annual net profit projected at US $36 Million at 150 yards per hour.

Location: The Milk Creek placer fields consists of 4 unpatented placer mining claims, located in the Yavapai County, approximately 35 miles south of Prescott, Arizona. The site is on US Bureau of Land Management land and is easily accessible with well maintained roads. The area is temperate to desert climate allowing for year around access and production.  The site also has a year around spring and flowing surface water much of the year, a rarity in Arizona.

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 Milk Creek 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 Milk Creek Ore Reserves would be characterized as Proven and Probable Reserves.

Ore Reserves:  The claims have been tested by a number of independent professional geologists.  Compiling the results of the various testing programs shows ore reserves of approximately 17,400,000 cubic yards of gravel which contain 714,000 ounces of gold. Mineral Reserves total 714,611 ounces of gold, or US $1.057 Million at $1,500 per ounce gold.

Production Analysis:  The average ore tenor is 0.04 oz per yard, and the average recoverable ore tenor is 0.036 oz per yard. The average recoverable ore value is $55 per yard at $1,500 per ounce.  Average mining costs are $9 per yard, leaving an average net profit of $46 per yard.

At 150 yards per hour, the operation should yield a projected net profit $69,000 per 10 hour shift, or $138,000 per double shift.  Working 24 days per month should yield a net profit of $3,312,000 per month double shift.  Assuming about 11 months of actual operation, the annual net profit should be $36,432,000 per year double shift.

Permitting:  Permit jurisdiction for the unpatented claims is the US Bureau of Land Management.  There are no anticipated impediments to BLM permitting.

Price: US $5,000,000

The following technical documents and reports are available for review:

2008 Jenkins Technical Report

2004 GoldTech Engineering Testing Report

1998 Stoddard Engineering Geology Report

1991 Terra Sources Geology Report

Other information available for review:

BLM LR2000 Database Report Verifying Ownership

2009 Independent Appraisal Report

Area and Site Maps

Area and Site Photographs (see limited photos below)

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

Stream Bed gravels

Test Pit

Test Pit

Hi Bars and Pond