SPRUCE CANYON MINE        - - - -         EXECUTIVE SUMMARY

Location:  Near Prescott, Arizona - 4 unpatented claims on 390 acres

Ore Reserves:  Mineral Reserves of 98,000 ounces of gold, or US $167 Million at $1,700 per ounce gold

                         Estimated Total Reserves at completion of mining: $1.3 Billion +              

Cash Flow:  Annual net profit projection US $33 Million at 150 yards per hour.

Location: The four Spruce Canyon claims are located on approximately 390 acres in central Arizona, 15 miles west of the city of Prescott. The claims are near a main highway and fully accessible.  Water is available from the year around drainage, and many springs on the property.  The site sits on top of a known and high yield aquifer. Back up water will be available from wells to be drilled.  Local weather allows for a year around production season.

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 Spruce Canyon 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 Spruce Canyon Ore Reserves would be characterized as Proven and Probable Reserves.

Ore Reserves:  Current analysis indicates mineral reserves of 98,000 ounces of gold, or US $167 Million at $1,700 per ounce.   Based on limited testing and observations, it is likely that substantial additional reserves will show with additional testing programs implemented during the operational phase. Total reserves are estimated to ultimately be $1.3 Billion+.

Production Analysis: A unique characteristic of the Spruce Canyon claims is that there is an enormous amount of easily accessible ore available for processing.  In addition, this ore contains almost no clays, meaning that it is easy to move and efficient to process at high volumes.  Many placer properties have placer ore along drainages and in old hi-bars, leaving much of the acreage without gold bearing ore.  Spruce Canyon has widespread gold bearing ore across the claims. An economic analysis shows an average recoverable ore value of $51 per yard at $1,500 per ounce.  Average mining costs are $5, environmental and reclamation costs $2, and overhead, supervision and other costs $2. This leaves an average net profit of $42 per yard.

At 150 tons per hour, the operation should yield a net profit $63,000 per 10 hour shift. A double shift operation should yield a net profit of $126,000 per day.  Running the double shift 24 days per month should yield a net profit of $3,024,000 per month.  Assuming about 11 months of actual operation, the annual net profit should be $33,264,000.   This property is suitable for the construction and operation of a second plant site. A second plant could increase annual profits to $66,000,000.

Permitting:  The property is located in part on federal US Forest Service land and in part of Arizona state land, with the mineral rights on the state land held by the federal government and managed by BLM.  There are no anticipated impediments to permitting. State land with federal mineral rights normally is subject to expedited permitting.

Price: US $5,000,000

The following technical documents and reports are available for review:

2005 Jenkins Technical Report & Summary

2005 Steven H. Lewis Geology Report

1984 Ryland-Cummings Geology Report

1972 US Department of the Interior Article: Placer Gold Deposits in Arizona referencing the Spruce Canyon site

1933 Engineering & Mining Journal Article referencing testing at the Spruce Canyon site

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 Spruce Canyon Mine, or in obtaining further information, please click here for contact information.

Stream Bed Gravels

Exposed Hi Bar Gravels

Hillside Dozer Cut Test Area

Test Trench