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: Mr. Miller who wrote (767)	10/31/1997 10:06:00 AM
From: Jeffery E. Forrest	Respond to of 4571

THE COMPANY'S CURRENT FOCUS. During fiscal 1997, the Company decided that, under the right conditions, it would be in the best interest of shareholders to secure a joint venture partner to aid in developing the Company's properties. Accordingly, the Company engaged an investment banker to approach qualified mining companies. At the same time, the Company began rehabilitating and permitting the lower Brush Creek Mine in an effort to access 9,000 tons of remnant pillars and 50,000 tons of potential ore blocks. In June 1997, the Company received interim approval from the United States Forest Service to transport thirty tons of ore per day from the lower Brush Creek Mine to the Ruby mill site. The historical grade of the lower Brush Creek Mine is approximately one ounce gold per ton of ore milled. Keewatin Engineering stated in its 1991 report on the mines that Nealon and Associates sampled one of the ore blocks, taking twelve six-foot chip samples which assayed from .002 to 273 ounces per ton gold. By combining the assays with records of production from 1958 to 1962, Nealon estimated that the ore blocks would yield approximately .5 ounces per ton milled. As the Company continues to pursue joint ventures, it is hoped that production of ore from the lower Brush Creek will contribute meaningfully to cash flow. The Company intends also to explore in the lower Brush Creek for a parallel ore shoot which may exist to the south of the known ore shoot on a flatter trajectory and for the potential continuation of the known ore-shoot offset to the north of the post mineral dyke. However, the real potential in the lower Brush Creek is the down-dip extension of the Golden Gate ore shoot. The vein was mined to a distance of six hundred feet below current workings. There, it began to pinch and steepen. When funds are available, or with a partner, the Company intends to follow its established plan to drill at intervals up to 1,000 feet beneath the old workings in an effort to block a resource of 129,000 ounces of gold. In an effort to strengthen the Company's mining staff to better enable the Company to successfully extract ore on its own or with the assistance of a strategic investor, the Company has hired a new mine superintendent, mine geologist, mining engineer and mill superintendent. Although no assurance can be given, management is confident that, to the extent funds are available, the newly added personnel will successfully pursue the Company's plan to steadily increase production and block new reserves.