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'' i '. 1~ ', 1 GOLD fol. PROTECT SUMMARY d CONCLUSIONS PAGE 1 In 1981 F Sousa of St Joe Minerals Corporation estimated the total reserve on the Steen properties above the 5,800 foot elevation (above sea level) which represents the deepest old mine working elevation. From the old closure maps he determined that very few of the old mines ran out of ore at depth. Their closure was due to water and hoisting limitations. He identified 23 vein structures on the Steen properties, 18 of which are auriferous each along a 2,000 foot strike length. Sottsa's reserve calculation states that on the three main veins in the vidnity of the Cash Mine, the Freiburg, the Cash, and the Rex veins, there is a "Potential and Proven" tonnage of 77,000 tons at a grade of 1.7 ounces per ton gold and 12.9 ounces per ton silver. In addition he estimated an additional 144,000 tons in 13 other ore shoots giving a total reserve of 221,000 tons above the 5,800 foot elevation. Sousa used a 1 ounce per ton Au cut-0ff grade in his calculations. In 1988 Allan G Bird, a consultant geological engineer, proposed ' driving a 650 foot adit to intersect the No 3 Level of the Cash Shaft, 257 feet from its collar, in order to extract the known ore in the Cash ' Mine above this elevation and develop on the Cash and Freiburg veins. At the same time he proposed that the Rex Mine be opened to mine 5,000 tons of 3 ounce per ton reserves. ' In this study the author proposes a 2,850 foot adit is driven to inter- sect the Cash Mine shaft at the No 8 Level at the 7,375 elevation, 665 feet from the collar of the shaft. A preliminary surveying, geologi- ' cal mapping and drilling program would detail the proposed program prior to committing the major funding. This adit should intersect 12 known veins and permit the extraction of all known reserves from the Cash Mine. In addition a total of 4,000 feet of drifting is proposed i along the more promising of these veins to block out sufficient reserves to sustain a 30,000 ton a year mine. This would produce an ~ ' estimated 36,000 ounces of gold a year. . The preliminary capital cost estimates for the program are as follows: i o Preliminary Va]uation 5 250,000 o Level 8 Adit & 2,000 ft 52,698,000 of drifting o Stope Development, Drifting, and Rex Mine 52,645,000 • o Mill acquisition and Expansion 51,750,000 ' o Miscellaneous 5 157,000 Total $7,500,000 R. W. Turner C.Eng. Consulting Mining Engineer