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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Sawdusty who wrote (417)	10/25/1997 5:57:00 PM
From: GOLDIGER	Read Replies (1) \| Respond to of 4571

Hi Dan, I picked up a very large position of BCMD/CYJ/VSE after I read this story in the Sacramento Bee.Look at the price,it was down 3c to 28c:) Foothills company reports gold find: Brush Creek says quartz is high grade By Cathleen Ferraro Bee Staff Writer (Published Oct. 14, 1997) The same local mining company that located a new source for diamonds near Grass Valley three months ago announced Monday it has discovered a stockpile of high-grade gold that promises even richer finds. Brush Creek Mining & Development Co. said it recently extracted about 300 ounces of gold -- half of which already has been crushed and melted down. "It's so high-grade we could sell wholesale the hard rock quartz to jewelry people who can slice it and make it into rings," said Jim Chapin, chief executive of Brush Creek. The company also has created a solid "button" of gold from its recent extraction that is the size of a baseball. The gold, discovered a little more than a week ago, was found in one of Brush Creek's eight mines spread out over 5,000 acres in the Alleghany Downieville area. The company also owns a ninth mine near LaPorte in Sierra County, about two hours northwest of Grass Valley. The precious metal was found in a section of a leftover gold vein -- commonly called a remnant pillar -- that was last mined in the 1950s. Michael Pickering, a consultant and past president of Brush Creek, said that pillar likely will yield another 500 ounces of gold for every ton of ore milled. That's on par with historical yields of the best mines in the region, he said. Brush Creek is currently mining in an area containing 10 pillars with 9,000 tons of hard rock ore. So far, it has only milled the first pillar and plans to be into the second one by Thursday. Both pillars are located in what is known as the "Golden Gate Ore Shoot." Chapin also said the "real future" of Brush Creek rests further below ground. Until now, the company has been milling in the walls and "ceilings" of the mine, but Chapin said he believes a better source of gold could be 600-1,600 feet below ground level. "If it's virgin (ground) and it's good, we'll take out the center of the cake, so to speak," he said, instead of mining what's been left behind by former excavators. David Werner, a private New York investor who put up more than $300,000 earlier this year to help sustain Brush Creek's work, said the company is "very undervalued." "People aren't paying attention to gold companies right now because the gold market is depressed right now," he said. But, he said the company's stock could appreciate significantly if its diamond finds prove valuable. One of three foreign producers analyzing Brush Creek's ore recently reported that an abundance of sapphire is embedded in the rock sample. In certain geological environments, sapphires and diamonds are often found together. Still, the company is at least two years away from scoring the mother lode, if it indeed exists. Brush Creek continues to search for partners for both its gold and diamond projects. So far, no takers have stepped forward, but several foreign companies have expressed initial interest in a joint venture with the local mining company. It costs about $250,000 a month to operate one mine full time, estimated Chapin. Brush Creek's stock fell three cents Monday to close at 28 cents. BTW,there's only three company's in this area play,Brush Creek,Chandeleur Bay Resources and 16-1 mines. GOLDIGER.