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

To: Roebear who wrote (752)	10/30/1997 11:05:00 PM
From: Martin Wormser	Respond to of 4571

Roebear and all, The California Division of Mines printed a book called "Gold Districts of California". It is Bulletin #193 by William B. Clark. It is an amazing 186 page book that contains every gold district in California. Complete with summaries of every district, their history, mine names, production totals, pictures, (the famous Ruby nuggets), maps, geologic sketches and every other fact about gold in California. As of 2 years ago, this incredible book was only $10 postage paid!!! I do not know the current price but if they have the same phone number, here it is, 213-620-3560. This is the LA office. There is also an office in Sacramento. The Alleghany District is 6 pages with lots of photos. martin PS: After reading this book, you'll get GOLD FEVER! There is plenty of gold left.

To: Roebear who wrote (752)	10/30/1997 11:17:00 PM
From: Martin Wormser	Read Replies (1) \| Respond to of 4571

Roebear and all, cont. note.... There is also: Special Publication #34 called "Geology of Placer Deposits" Special Publication #41 "Basic Placer Mining". Also ask for the "List of Publications Available from the Division of Mines" MIGHT BE AVAILABLE ON THE NET! Here's a note from the Department of Mines in Sacramento dated 6\10\96 Phone # 916-322-1080, FAX 916-445-0732. Have fun!!!! martin PS: Webmistress Jill just changed the wrong spelling of Development! Thank you, Webmistress Jill.

To: Roebear who wrote (752)	10/30/1997 11:39:00 PM
From: Charger	Read Replies (1) \| Respond to of 4571

Look at Wild West Magazine, Dec.97 issue, article Gold Rush, 150th anniversary. There is a wonderful map of exactly "our" area plus a rather fascinating history of the original gold rush complete with terminology, politics, deal-structures, old photos and every possible nugget of information.

To: Roebear who wrote (752)	10/31/1997 10:04:00 AM
From: Jeffery E. Forrest	Respond to of 4571

Some History ___ Brush Creek Mining and Development Co., Inc. (the "Company") was incorporated in 1982 and is engaged in the exploration and development of gold and diamond mining properties. From its incorporation until April 1989, the Company operated as a mining and mineral development company at which time its mining operations, conducted through the Brush Creek Joint Venture of which the Company owned 40%, were terminated. Shortly thereafter, the Company became actively engaged in acquiring additional mineral properties, raising capital, and preparing properties for resumed production. The Company did not have any significant operations or activities from April 1989 through June 1989, and suspended all mining operations and reduced its activities to a care and maintenance level. Accordingly, the Company is deemed to have reentered the development stage effective July 1, 1989. The Company currently owns the Brush Creek, Carson, High Commission, Gardner's Point and Pioneer Mines. The Company also has leases with options to purchase the Ruby, Rising Sun, Kate Hardy and Omega Mines. In addition, in fiscal 1997, the Company acquired options to purchase the New California Placer Mine and Wilbank's Placer and Loade Mine. All of these mines, except for the Gardner's Point and Pioneer Mines, are located in the Allegheny-Forest-Downieville mining districts on the western slope of the Sierra Nevada mountain range in northern California and comprise approximately 6,300 acres. Because of the proximity of the mines to each other, the Company believes it can efficiently mine and operate these properties since it will be able to take advantage of economies of scale by sharing personnel, mill facilities and equipment. Based on previous studies completed in December 1990, management believed that the Company's mines had sufficient mineralization to warrant feasibility studies and in January 1991 engaged Keewatin Engineering to conduct and document those studies. The Company received Phase I and Phase II reports from Keewatin Engineering, the Phase II report being dated October 1992. The Phase I and Phase II reports were exploration and development reports of the Allegheny-Forest-Downieville mining district and mining properties of the Company, including an evaluation of the underground hard-rock system and surface geology studies to identify precious metal rock units, and additional structural geology studies within the district. The Ruby Mine was the Company's original focus because of its rich production history and because permits were in place for placer production and hard rock exploration. The Company filed its plan of operation for the Ruby and Carson Mines with the United States Forestry Department, and has obtained all necessary permits for continued production and milling at the Ruby Mine of up to 225 tons of material per day. In order to continue the underground development of the Carson vein system, a more extensive geologic evaluation using diamond drilling on surface and subsurface should be completed. As this was a capital intensive expense the Company decided to detain further development of the Carson Mine until the Company decides to integrate this program into its future development budget. From February 1992 when the Company began limited production at the Ruby Mine to December 1992 when the Company ceased production due to inclement weather, the Company milled approximately 7,300 tons of mineralized placer material and recovered approximately 200 ounces of gold, an amount which is inconsistent with historical production at the Ruby Mine in the early 1940's. However, the Company's management believes that these preliminary results are too small to be a reliable representative sample of the expected placer grades.

To: Roebear who wrote (752)	10/31/1997 10:16:00 AM
From: Jeffery E. Forrest	Read Replies (1) \| Respond to of 4571

KATE HARDY MINE. The Kate Hardy Mine was discovered in 1860 and is an underground lode gold mine located in Sierra County, California, and is approximately three miles south of the Brush Creek Mine. The Kate Hardy Mine consists of two patented claims comprising approximately 42 acres and 15 unpatented claims comprising approximately 320 acres. The Company's investment in this property is $156,456 at June 30, 1997, consisting of $58,667 of land and land options, and $97,789 of development costs. All of the unpatented claims in the property package are in good standing with assessment work documents for 1997 filed with both the BLM in Sacramento and Sierra County in Downieville. The Kate Hardy Mine has no permits for mining operations. In 1957, Richmond Flatland, Sr. acquired the Kate Hardy Mine. In the mid to late 1970's, various attempts were made to rehabilitate the Kate Hardy Mine. On June 30, 1992, the Company entered into a lease effective March 23, 1992, in the form of a mining option agreement for a term of five years expiring March 22, 1997. The Company paid a $50,000 payment (initial option payment) upon the execution of the agreement; and during the term of the lease, must pay $5,500 per month for each month during the first year; $6,500 per month during the second year; $7,500 per month during the third year; $8,500 per month during the fourth year; and $9,500 per month during the fifth year. In addition, the Company must pay a 6% net smelter royalty on all minerals produced. The option purchase price for the mine is $1,500,000 less 75% of all option payments paid up to a maximum of $750,000. The Kate Hardy Mine contains a quartz vein on a reverse fault. The vein is traceable along the surface for approximately 1,500 feet and disappears under tertiary lava both to the north and the south. The vein varies in width from a few inches to over 55 feet. Dykes of gabbro and serpentine cut the vein irregularly. Considerable slate has been replaced by carbonate close to, and within, the vein. Mariposite is erratic in distribution and is not necessarily confined to the exposed serpentine zones. Historically, the best gold production has come from the foot wall and hanging wall portions of the vein. The vein core is largely barren bull quartz. Sulphide minerals associated with gold in the vein include arsenopyrite, pyrite, galena and trace sphalerite. Development has been carried out over 2,700 feet of strike length on the Principal No. 1 North and South Drifts. The vein has been developed on five levels, two of which are accessed by an internal shaft. Stopping has been carried out with three principal blocks over a vertical range of 600 feet. The Kate Hardy mine has been in a care and maintenance level since 1975. The site has a 100 tons-per-day gravity flow mill which requires some upgrading and repair. The underground workings in the south adit are in fair condition with appropriate 20-pound mine rail and all electrical and ventilation utilities installed. The north adit is caved-in for approximately 75 feet and will have to be rehabilitated with new timbering before access to the north section of the property is permitted. There is a corrugated mill building in fair condition and an equipment building in fair condition on the property. The Company has been permitted to dewater the mine. This will allow the Company access to approximately 16,000 tons of ore and will enable the Company to explore the O'Donnell winze and the five existing ore shafts. The Kate Hardy Mine is accessible by Mountain House Road, a graveled road. Power is supplied by Pacific Gas and Electric Company, a public utility. During 1997, the Company paid $10,000 to the Kate-Hardy Mine lessor to extend the lease agreement for an additional three month period. The extension expired on June 27, 1997. No other extensions and/or agreements had been negotiated to date. *MORE

To: Roebear who wrote (752)	10/31/1997 10:17:00 AM
From: Jeffery E. Forrest	Respond to of 4571

OMEGA MINE. The Omega Mine is an underground drift placer mine in Sierra County, California, and is contiguous with the Kate Hardy Mine and is covered by the Kate Hardy lease referred to above. The Omega mine consists of seven unpatented claims comprising approximately 440 acres. All claims in the property package are in good standing with assessment work documents for 1997 filed with both the BLM in Sacramento and Sierra County in Downieville. However, a waste discharge permit is required and a plan of operation must be filed with the U.S. Department of Forestry before full scale mining operation may begin. The Company has no current plans to obtain such a permit or file such a plan. The Omega Mine was active during the 1920's and 1930's when a labyrinth 9 of tunnels exceeding 2,000 feet was driven in the underlying serpentine mainly in pursuit of high grade pay streaks. Raises were driven to access stopping areas in the gravel. In 1957, Richmond Flatland, Sr. acquired the Omega mine. There was no activity on the claims until 1980, at which time the underground workings were completely remapped. Most of the gravel was found to be of igneous origin containing a small percentage of white quartz cobbles. Cobbles vary from a few inches to twelve inches in diameter and are tightly cemented by sand and silt. Before any production may begin at the Omega Mine, the underground workings will have to be retimbered. There is no equipment at the mine site at the present time. The Omega Mine is accessible by Mountain House Road, a graveled road. Power is supplied by Pacific Gas and Electric Company, a public utility *MORE

To: Roebear who wrote (752)	10/31/1997 10:17:00 AM
From: Jeffery E. Forrest	Respond to of 4571

THE POKER FLAT DISTRICT: (DIAMOND POTENTIAL). In 1872, two diamonds were recovered from Brush Creek's Garner's Point property and one diamond was cut into a one carat stone. These two diamonds were recovered from a 109 square foot area of a 30 foot thick section of the paleoplacer gold deposit. A diamond was recovered from hydraulic tailings in Slate Creek, adjacent to the west side of Gardner's Point. Based upon historical data and other relevant information, the Company hired a consulting geologist who sampled the drainage areas around Gardners Point and proceeded to take stream sediment samples and rock chip samples for diamond indicator minerals. Initial results of the samplings were positive. The Company staked 199 unpatented lode mining claims in the old mining district of Poker Flat. Over a three month period the Company performed additional sampling and testing for diamond indicator minerals, and recent results have continued to be encouraging. The Company phase exploration program is complete. The Company is attempting to negotiate a joint venture with certain diamond mining companies to continue the exploration and development of the property.

To: Roebear who wrote (752)	10/31/1997 10:19:00 AM
From: Jeffery E. Forrest	Respond to of 4571

Unpatented Property Interests. The Company has acquired rights to explore for and produce minerals on federally owned lands and paid all required fees to maintain the unpatented claims. The Company acquired these rights through the acquisition of previously located mining claims from the claimant or through the location of unpatented mining claims upon unappropriated federal land pursuant to procedures established by the General Mining Law of 1872, the Federal Land Policy and Management Act of 1976, and various state laws. These referenced laws generally provide that a citizen of the United States, including a corporation, may acquire a possessory right to explore for and to develop and produce valuable mineral deposits discovered upon unappropriated federal lands, provided that such lands have not been withdrawn from mineral location. Withdrawn lands would include, for example, lands included in national parks and military reservations and lands designated as part of the National Wilderness Preservation System (NWPS). The location of a valid mining claim on federal lands requires the discovery of a valuable mineral deposit, the erection of appropriate monuments, the posting of a location notice at the point of discovery, the marking of the boundaries of the claim in accordance with federal law and the laws of the state in which it is located, and the filing of a notice or certificate of location and a map with the BLM and the real property recording official of the county in which the claim is located. Failure to follow the required procedures may render the mining claim void. If the statutes and regulations for the location of a mining claim are complied with, the locator obtains a valid possessory right to explore for, develop and produce minerals from the claim. This property right can be freely transferred and is protected against appropriation by the government without just compensation. Also, the claim locator acquires the right to obtain a patent (or deed) conveying fee title to his claim from the federal government upon payment of fees and compliance with certain additional procedures. Unpatented mining claim interests possess certain unique vulnerabilities not associated with other types of property interests. For example, in order to maintain each unpatented mining claim, the claimant must annually perform not less than $100 worth of work or improvements on or for the benefit of the claim and must file with state and federal authorities an affidavit attesting to the performance of such work. Although currently not a requirement, the Company feels it should continue to file proofs of labor to prevent adverse claimants from occupation of the claim and to have a proper chain of title should the Company decide to apply for patents. In addition, the Bureau of Land Management currently assesses a $100 per claim rental fee which, if not paid annually before August 31 of each year, invalidates the unpatented claims. In the fiscal year ended June 30, 1996, the Company paid approximately $16,000 of rental fees to the Bureau of Land Management to validate said claims. Failure to perform such work will render the claim subject to relocation by third parties and constitutes abandonment of the claim. Further, because mining claims are often located with less then sophisticated surveying techniques, great difficulty may arise in determining the validity and ownership of specific mining claims. Moreover, under applicable regulations and court decisions, in order for unpatented mining claims to be valid against a governmental challenge, the claimant must be able to prove that the mineral deposit on which the claim is based can be mined at a profit. Thus, it is conceivable that, during times of declining metal prices, claims that were valid when located could be invalidated by the federal government.