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 using an excellent dirt road that goes to the site. 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. One additional 100 acre claim is in the process of being added to the claim group, increasing total project acreage to 490 acres.

UNIQUE PLACER OPPORTUNITY: The 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 I contains almost no clays, meaning that it is easy to move and efficient to process at high volumes. Many other claims have placer ore along drainage's and in old hi-bars, leaving much of the acreage without gold bearing ore. Spruce Canyon has widespread gold bearing ore across the claims.

ORE RESERVES: Testing demonstrates proven upper stream bed reserves of US $1,300,000 (10,000 yards at $130 per yard), lower stream channel reserves of $58,564,000 (1,331,000 yards at $44 per yard), and hi-bar reserves of US $96,000,000 (4,000,000 yards at $24 per yard average). This is computed at $900 gold price, for total proven reserves of US $155,864,000.

Based on limited testing and observations, probable reserves are estimated to be double the proven reserves, or US $311,728,000. Only a limited area of Spruce Canyon has been subjected l to detailed or limited testing. Nevertheless, based on the experience of geologist Don L. Jenkins, he has offered his personal opinion that there are likely up to 25,000,000 cubic yards of processable ore on the entire 490 acres, including the additional 100 acre parcel to be added to the project. Proven, probable and estimated reserves, therefore, may be as high as $750,000,000.

An economic analysis is attached using an average ore value is $28 per ton at $850 per ounce. Average mining costs are $4, environmental and reclamation costs $2, and overhead, supervision and other costs $2. This leaves an average net profit of over $20 per ton at today's prices.

At a conservative 150 tons per hour with a single 250 yd/hr rated Goldfield plant, the operation should yield a net profit $24,000 per 8 hour shift. A double shift operation should yield a net profit of $48,000 per day. Running the double shift 24 days per month should yield a net profit of $1,152,000 per month. Assuming about 11 months of actual operation, the annual net profit should be $12,672,000 (based on $850/oz). With 2 shifts net annual profit would be $33,792,000!

PERMITTING: The property is located in part on federal US Forest Service and in part of Arizona State land, with the mineral rights on the state land held by the federal government and managed by BLM. The hybrid state land with federal mineral rights is the easiest of all public land to permit, and can be expedited. Permitting should be contracted to professional engineers and consultants whose business is to write and apply for mining permits. There are no anticipated impediments to permitting.

If you are looking for a large, easy to mine gold property, take a look at the Spruce Canyon Placer Mine.

For more information email us,

and ask about the

Spruce Canyon Placer Mine #L835

fax (208) 265 -5377