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Mrs. Gwen Fraser 2 <br /> <br />Hercules Lode (patent no. 5604). All of these claims were located prior to the Oscar Lode, <br />and they are all owned by Mi Vida Enterprises. These facts have been repeatedly made known <br />to COM, Inc.'s on-site Mill Superintendent, J. Wayne Tatman. <br />Not only was this ore not abandoned by Gold Hill Ventures, it has been the subject of <br />negotiations between COM, Inc. and Gold Hill Ventures for over one year. As recently as <br />October, 1991, 1 had discussions with your on-site Mill Superintendent about the sale of this <br />ore stockpile. If COM, Inc. really believed that the location of this stockpile was an <br />operational or environmental problem, your company could have moved this ore to a site <br />mutually agreed upon by all of the parties concerned. COM, Inc. has all of the necessary <br />machinery and equipment needed to have transported this ore stockpile to a site other than the <br />coarse ore bins of the Gold Hill Mill. <br />Gold Hill Ventures has never granted permission to COM, Inc. to mill this ore. Your <br />company will be held accountable for the conversion of this ore to concentrates. Similar ore <br />processed in 1987 and 1988 in the Gold Hill Mill resu]ted in concentrates which contained <br />8.28 ounces of gold and 53.12 ounces of silver from gravity concentration, and 8.54 ounces of <br />gold and 61.60 ounces of silver per ton from flotation concentration. At present precious <br />metal prices, this concentrate would be worth approximately $3,]72 per ton. Your <br />unauthorized conversion of Gold Hill Ventures' ores will result in the production of nearly ten <br />tons of concentrate worth around $28,850. <br />Clearly, the concentrates produced from this ore will be the subject of a dispute over <br />ownership unless this matter is promptly resolved. I hope that you will quickly settle this <br />matter through the simple expedient of the purchase of the ore stockpile which you are <br />currently milling without the owners' approval. <br />As you well know, there are many hundreds of thousands of tons of mine dumps that <br />are located near the Gold Hill Mill. Some of these have already been permitted for surface <br />mining operations, and these mine dumps could be made available to COM, Inc. for milling <br />under the proper terms and conditions. Foremost among these terms and conditions would be <br />the owners of these properties receiving payment for the gold and silver ore contained in their <br />mine dumps. <br />When I was in Reno, Nevada during August and September, 1991, I met with William <br />Schnack, who was introduced to me by your brother, J. Wayne Tatman. We had several <br />