Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: RichN who wrote (747)	10/31/1997 10:09:00 AM
From: Jeffery E. Forrest	Respond to of 4571

BRUSH CREEK MINE. The Brush Creek Mine is an underground lode gold mine located in Sierra County, California, approximately eight miles west of the town of Downieville, California. It consists of eight patented mining claims comprising approximately 245 acres and 45 unpatented mining claims comprising approximately 960 acres. The Company's investment in this property is $2,144,555 at June 30, 1997, consisting of $408,496 of land and land options, $1,460,669 of development costs, and $275,390 of mining equipment. All of the unpatented claims in the property package are in good standing with assessment work documents for 1997 filed with both the Bureau of Land Management (BLM) in Sacramento and Sierra County in Downieville. The patented claims of the Brush Creek Mine are not fully permitted for underground exploration, development and production. A waste discharge permit is required and a plan of operation must be filed with the U.S. Department of Forestry and Sierra County before full scale mining may begin. The Company is in the process of obtaining such permit or filing a plan. The Brush Creek Mine was opened in 1868 when the old Brush Creek Shaft was sunk to a depth of approximately 600 feet. Reports indicate that between 1868 and 1870 it produced approximately 19,632 ounces of gold. Between 1870 and 1944, operations at the Brush Creek Mine were limited. In 1870, it was closed due to poor ground conditions, flooding of the shaft and a fatal accident. In 1922, the Ante Up Mining Company drove a 2,200 foot drift which eventually connected with the old Brush Creek tunnel. In 1927, shafts were driven into the Brush Creek Mine by the Kate Hardy Mining Company. Between 1870 and 1994, production records are sparse. Reports during this period indicate that 223 ounces of gold were produced in April of 1929. Between 1944 and 1950, A.L. Merritt made additional improvements to the Brush Creek Mine including the sinking of the Golden Gate Shaft to a depth of approximately 647 feet. Mining activity occurred between 1978 and 1979 when new equipment was installed and a new level was started. This activity ended when the Brush Creek Mine was flooded due to a power failure in 1979. In April of 1982, the Company leased the Brush Creek Mine and, in February of 1984, it purchased all patented and unpatented claims of the Brush Creek Mine. The Company continued limited development and production until the end of 1985 when the Brush Creek Mine was closed. Until the Brush Creek Mine was closed in 1985, work was carried out on an extension of the old Brush Creek Shaft and ore pockets were exploited between the 410 and 465 foot level. A new 60 tons-per-day mill was assembled near the portal of the Brush Creek tunnel and 14 holes totaling 4,950 feet were cored from various underground locations. Subsequent mining produced approximately 700 to 1,000 ounces of gold. Both upper and lower adits are reinforced with concrete and have steel security doors. The Brush Creek Mine has 30-pound rail, and electrical and air lines on both levels. The rail is in good condition. There is also a steel corrugated equipment building and a small changing room for miners located on the property. Water normally accumulates from underground sources in the Brush Creek Mine. This water can be pumped in sufficient quantity and quality for mining operations and the Company anticipates that it will be sufficient to meet its mining and milling needs. In addition to underground water, two streams flow all year on the property. The Brush Creek Mine is accessible by a graveled road maintained by Sierra County. Snow removal is performed during the winter by the Company. Electrical power is supplied by Pacific Gas and Electric Company, a public utility.