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


To: Charger who wrote (2190)12/13/1997 9:45:00 PM
From: Dundee Maples  Read Replies (3) | Respond to of 4571
 
Thanks Charger. Here is the near final.

Trip report
Brush Creek Mine
December 13, 1997 (Beta - I just need to get a few names and titles)
By: Dundee Maples

This summary is meant only to give my impressions of my visit to Brush Creek and is not meant to endorse, recommend, or otherwise promote the property - that's up to each individual. I am using my memory to pull together my impressions of what occurred and what people told me. I could and can make mistakes, but I am trying to be accurate and helpful- no guarantees. Everything is paraphrased. Brackets (.) are used for my insert comments. For those of you that don't know Charger is the member of the Silicon Investor's Brush Creek bulletin board that had visited Brush Creek the week before me. Her work is appreciated.

Images posted courtesy of the REDBARON
members.aol.com

I arrived in Grass Valley on Tuesday night, December 9, 1997. Thanks to Martin Wormser, I had reserved a room at the Holbrooke Hotel. I spent the night enjoying the accommodations and the marvelous saloon while going over Charger's notes (from her visit the previous week) and comments from others on the board.

Grass Valley has turned into a bustling town since I last visited it quite some time ago. A 4-lane highway leads from highway 80 (a 4-lane interstate) at Auburn most of the way into Grass Valley.

The next morning I went to the office (Image 1), which Charger described. I met with Mike Pickering (title?) who would be my companion for the day. He couldn't wait to show me the high grade ore that they had hit around pillar number 4. It was very impressive, as Charger has noted. It would definitely become some powerful jewelry.

I started asking questions from this point on and continued to do so throughout my journey. Never once did Mike or anyone else at Brush Creek hesitate or avoid any questions. I am impressed. (Remember, I am not an expert in mining, but I do have experience in business.)

We headed towards the mine by 4-wheel drive vehicle as we talked.

Questions (Q)/Answer (A)

(Q) What is your average burn rate?

(A) $250,000 to $300,000 a month.

(Q) What is your short-term plan (3 months to 1 year) and what is your long-term plan (more than one year)?

(A) Our short-term plan is to maintain focus on the Lower Brush Creek Mine, minimizing expenditures. We are presently working hard on the 5-year plan and, in fact, there is a meeting going on today concerning that plan.

(Q) How many people do you presently have on the payroll?

(A) 36 (above ground and below).

(Q) Tell me a little about yourself? (Didn't really ask this, but the point got across.)
(A) I have lived and worked in this area for over 30 years. I moved here in the 60's leaving a solid job in San Francisco. A definite culture shock, but it was good for the family and it has turned out well. I have worked in this field a long time and have worked with just about every local public official, both state and federal, in the mining in this area. I know the local government officials very well and have a good relationship with them. This has helped us get the key permits for our company. I came to the company in '89, worked as president from '90-'94, then I turned it over to Jim Chapin. I love the work and think we have great opportunity with the great properties that I have helped to accumulate.

(Q) Tell about your co-workers (didn't ask but we talked about it during the day).

(A) Jim Chapin (President/CEO) has been a great addition to the company. He came here from Connecticut because he believes in and loves the company. (I have trouble with names under the best of circumstances; needless to say, I lost many names in these conversations).

(Mike listed much of the staff and noted their assets to the company. The key points for me were that they understood the importance of quality people at every level. It is always difficult going through 6 people to get one good one, but once you have them, life is much better.)

During this conversation we had been driving along a winding road. Finally we exited onto a gravel road and in moments we were at the mine. Image 2 shows that this is a working mine. We are looking directly at the mine. The mine entrance is centered in this picture. (Yes, I know you can't quite see it. If you had come along you could have taken better pictures.) To the right, behind the oil drum, you see where they put the ore once it comes out of the mine. As Charger noted, the ore is held here until an assay is done. The ore that gets a good assay is taken to the mill; ore that receives a bad assay is filtered and used on the roads. Nothing is wasted.

We talked to Stan Griffith the mine supervisor. I also met the safety engineer Bob _____. Stan explained the layout of the mine, what was going on, and the approach that they take in regards to pursuing the veins. I wish I had the map layout because it would help tremendously in reconstructing this conversation. Their main efforts are focused around pillar number 4. But they have found some gold at the southern most portion of the main tunnel, which is also very exciting. (I wish I had asked for a copy of that map!) Stan is a great addition to the team - Stan has been on board for about three months.

We headed into the shop. I met 4 or 5 workers (heavy equipment driver, machine shop workers, trolley driver). All were serious, and all were working HARD. We loaded up on the train and headed into the mine. On both sides in the early portion of the mine, you see nothing but timber. These walls have to be shored up to maintain their integrity. (Part of the hidden cost and work involved in hard rock mining in this area.) Water, water, everywhere and not a drop should you drink.

We finally got into the mine many thousands of feet in and came to a stop. Stan showed me the old main shaft. The lower shaft goes down another 600 feet and is presently under water. (Stan doesn't think it would take that long to pump it out.)

We walked further into the mine. Stan pointed out the vein - how thick and thin it gets and how it moves and twists as it moves through the mountain. We stopped at the entrance to pillar number 4, it is above us. A ladder heads two hundred feet straight up into the pitch black water-soaked darkness. Before we saw number 4, Stan wanted to show me where they had found an indication of gold farther south down the main tunnel. (Thank goodness, a reprieve.) Miners must find the magic in the movements of the veins and somehow follow them to their sweet spots (not an easy task). Image 4, if you look hard, you see some white lines that indicate the vein ( look at the lower portion of the picture between the two beams).

We reached the location. I took picture 5 (Image #5) of Mike because I knew I would never sort out the pictures by the rock formations and colors alone. We climbed up a short ladder where they had found some gold. (Wish I could remember the name of this southern most area but.) Stan explained to me how he would like to head towards number 4. A small effort in that direction would allow them to get information about this virgin area, which has a good possibility of yielding positive results. I agreed it is exciting, and in my opinion more exciting than number 4 pillar. I like the idea of checking virgin areas that give an indication/possiblity of results because that could open up a whole new area. (Remember educated guesses are powerful.)

We climbed down and Stan pointed out areas that showed the thickness of the vein (he used other terms). In Image 6 look hard for the parallel white lines. Then look back at Image 4 and note how thin the distance between the white lines is. (Stan, if you read this and I got it wrong, for heaven's sake correct me and I will fix it.) In Image 7 it is easy to see the layers. If I remember correctly, you often get gold in amongst the black mineral. Sometimes (when you're lucky) you wash the rock off and you see gold.

Every time Stan sat me down, he explained how the indicator minerals are showing up here and there. And how they lead you and tease you towards your objective. Green stones, quartz, iron, folds and bends, angle changes . all are important. You must pay attention to everything. You must learn each mine separately; you must learn what it is telling you. In some areas like number 4 pillar you start working around a halo. It lets you know you are getting close, but you don't know quite where it is.

Image 8 shows Stan and Mike laughing. I just told them I needed their photo as an indicator picture to help me remember.
Please note I have gained nothing but respect for the people I met at Brush Creek. I am trying to relate my impressions and the understanding that I gained from my visit. I hopefully am recording it accurately. I worry a lot about the technical information that Stan, Mike, and others tried to explain to me - if they wish to correct or modify any items I mentioned I would appreciate it. As in most cases, when you talk to experts they can explain things in such a manner that you can understand. But given your limited resources, it may be difficult for you to pass that information on as cleanly as you would like. Thus is my situation.

Trip report Part 2.
Brush Creek Mine
December 13, 1997

Images courtesy of the REDBARON
members.aol.com

Stan and Mike are laughing in picture 8 (Image 8) as we start to head back toward pillar number 4.

Once we reached the entrance to the tunnel heading towards pillar 4, Mike asked if I wanted to go up and get a look at it. I answered immediately, "You BET!" Of course, I had no choice at this point - why do I do these things? Stan opened up the grating that protects the base tunnel from FALLING debris (O'h My!), and started up. He noted that it's 200 feet straight up and it's ok to rest on the way if necessary. (Oh yeah, not this boy I think). He is gone. I moved out. The climb is vertical for the first 30-40 feet (I have no real idea how far it is in actuality), then it leans forward for the next 170 feet or so. It is a long way. Dark and steep, wet and slippery. Visibility is bad; in a couple of places you cannot grab around the ladder to get a grip because rubble has filled it in completely. Often my backpack gets snagged because the opening got so tight. On and On and On --- I only stopped when I had to free my backpack. Finally, I make it to a small ledge where Stan has started to knock out a heavy board to the side so we can go around the support wall.

Let me describe how they seemed to have dug this tunnel. They moved up (I guess 10 feet at a time), built a support wall, drilled the rock to place the charges, solidly closed up both the left and right sides of the support wall (remember this one is over 200 feet up), moved away, blew the charges, climbed back up, very carefully removed one side, started in removing debris by sending it down the side shoots, and they continued this process as they moved through the mountain.

They blew the charges 7:30 this morning and have been cleaning up since then (I guess it was around 10 or 11. I don't carry a watch). So we climbed around and we finally ended up in a crow's nest. Boy, I am happy to see these guys and this miniscule safe haven.

Image 9 shows where they found the high-grade ore that they can sell as jewelry. Look roughly below the white marks and to the left of the miner's hard hat. They excitedly explain the day they found the ore. They are motivated. Image 10 shows (get miner's name) in the work area - note it is small and very steep - the footing is NOT secure. (Get miner's name) is in Image 11. Charger, they have moved about 20-25 feet since your crew was here last week.

If you look very closely at Image 12 you see the drill holes the crew has been working on for charge placement. There are 4 holes starting at the lower left to upper middle right. Image 13 shows more of the rock area.

Stan moved up higher and to the left and told me that this is the old shaft that we saw from below. It runs along number 4. He then told me, "You can touch this beam and that iron rod... ONLY while climbing across here." (Why, you ask?) Because the shaft is old, the beams weak, the rocks are not real stable. OKAY. I do as told . I got to see pillar number 4. Image 14 shows the wall just outside of number 4. You see the clean white rock (sorry the picture isn't better), trace minerals.. It looks good. Stan explains what they look for and why they are excited in this area. Hopes are big. Image 15 shows another area around the shaft looking up along pillar 4; the quality of the rock looks good.

Image 16 looks down the shaft. It looks unkempt, steep, and unstable. That is why they chose to tunnel up parallel to the shaft rather than trying to come up the old shaft and repair along the way. I think they made the correct decision. The original miners left pillars to support the tunnels while they chased the veins. Some pillars like number 4 and number 8 have the potential of holding high-grade ore. Modern mining techniques allow miners to come back in and pick up these sweet spots. We climbed back down into the area where the miners were working. The talk was of gold, the vein, where is it, and what the rocks are telling them. They discussed several approaches for heading into pillar 4. Stan wanted to scoop low going in because he thinks there is some gold that can be picked up there. I think you can see the intensity and interest in the conversation in Image 17. Note that the area is so small and so steep that the 5 of us must all stand at different levels. Top to bottom there's me taking the picture(of course you can't see me), Stan, _____, ______, and _____ 's lamp. Every timber, every tool, every drill, . has been pulled up here with manpower.

Everyone wanted to make the find before Christmas. They want that bonus. (I want them to get the bonus too.)

It was time to go. I tell them all how much all of us stockholders appreciated their hard work and dedication and I headed down. I don't care what anyone says--going down is harder than going up. Once in awhile I saw Mike's lamp way below me- I don't like that. Nevertheless, I finally made it down. I met several more miners at the bottom, tell them what a great job they are doing, and thank them (I hope they realized I really did mean it). Then we climbed back on the tram and left.

Great heavens, we were out. We walked back to Stan's office. Mike and I ate a late lunch while we discussed what we saw, and their plans for the next few days. The night supervisor came in and then another miner and a guy from the machine shop. The talk was always of gold and how to find it. Good men everyone.

Mike and I headed off. We were going to the mill. Mike pointed out that Stan directs the miners but every morning he gets their input on the day's plan. What were their suggestions? What did they think? And if a good suggestion was made then that day's plans would change. (I could see that in the discussions I observed. Good management, good morale, good chance for success.)

Charger mentioned that Brush Creek maintained the roads. Well, they certainly do. (Image 20 shows that it definitely has been snowing.) I saw the men plowing some of roads on our drive.

Image 18 shows the mill as we approached it. (Remember, the mill is located at the Ruby mine. The entrance to the Ruby is towards the right of Image 18.) Image 19 shows where the contractors are doing the work to cover the crusher/grinder (I hope that's right). You can barely see Mike in his blue jacket in front of the crusher. I met the mill supervisor; he was a little miffed because the contractors came at 10 and left at 4:30. (He wanted them to work as hard as the BCMD crew, I am sure.)

Mike led me around the mill describing the equipment and the process. It is important to note that BCMD got this mill and the equipment in it in a very cost-effective manner. They are very money conscious and they won't buy new unless they have to. We ended up in front of the furnace, where lucky Charger got to hold the still warm gold. Lucky lady.

As we leave, Mike shows me an historical plaque on the Ruby. (I do think that it is good to look for gold where others have found it. These mines were not mined out; they were mostly phased out after WW II.)

Just above the Ruby was a piece of flat ground. Flat ground in these parts is hard to come by. This ground will be the future location of the new mill. The permits for the mill are applied for. But the mill will be built only when the gold is found and produced. The new mill will need about $500,000 and there is no need to spend it until it is necessary. (The company plans ahead and watches the dollars - I like that.)

Mike and I talked about many things on the drive back to the office. All of them reinforced my confidence in Mike and the people he works with.

The last images, unfortunately, are poorly focused attempts to show samples of the high-grade ore that they have taken from the lower Brush Creek mine. I am not sure the RedBaron will bother to show them - I can't really blame him if he doesn't.

I did talk with Mike about diamonds. The diamond area is more isolated and they went in with helicopters to collect samples (290 pounds). They have a deal with the geologist that he finds a joint venture partner and basically sets the deal. It is COMPLETELY separate from the gold mining effort. Mike is very happy to have also been involved with getting the claims for the diamond property. It is large and has good potential.

Thanks to the people at Brush Creek, Joan Hiraki for making this report readable, and to you for your time. I hope this description of my visit has been helpful.