September 3, 2006
Following up on conversations you have had with Mr. Bob Flinders, please find the
Introductory Report regarding the Gold Hill Mines enclosed.
In summary, the report will show that the underground mines located
on Gold Hill in Central Montana, are situated on 320 acres of mining
claims and there are additional favorable lands that could be
included. The three separate owners are interested in exploring and
developing the mines.
The mines have a combined production estimated to be 350,000 to
450,000 ounces of gold recovered from 260,000 tons of ore with the
deepest workings just over 600 feet. Ore grades average better than
1 ½ ounce of gold per ton and some into the 10s of ounces per ton.
The last operators, in the early 1990s, speculated reserves in excess
of 300,000 ounces of gold. There is a proven reserve of
approximately 1,500 ounces of gold and 25,000 ounces of silver
contained in old low-grade mine dumps on the surface.
The mine workings are accessible and there are considerable
improvements on the surface including an office, mill building,
complete hoisting system, and others. An extensive collection of
data is available. There is every indication that these ore bodies
continue to depth and that the thousands of feet of unexplored
ground between the mines remain to be tested.
Four gentlemen I am informally involved with are Mr. Patrick Henry, Mr. Bruce Hinkley,
Mr. Flinders, and Mr. Brent Anderson. Mr. Henry owns the Spotted Horse, Kentucky
Favorite and another group of mining claims. Mr. Anderson and family are owners of the
Cumberland Mine. Mr. Hinkley, a geologist with over 25 years experience with the Gold
Hill mines has been instrumental in geology, production, permitting, lab operations and
other facets of past operations here and elsewhere. Mr. Flinders, keenly aware of the
potential of the Gold Hill mines, has been helpful in promoting the properties. Mr. Hinkley
and I have a combined 59 years of experience with the properties and are available to
work on this project.
As for myself, the Maginnis mine has been in my family for over 75 years. I have worked
in the mining industry for 34 years and much of that time at the Gold Hill mines. I am
presently a supervisor at the leading platinum and palladium producing underground
mine in the Western Hemisphere. I am well known in the local community and industry
as a prudent mining man.
Aside from my personal interest in the properties, I can assure you they are worthy of
exploration to determine their potential. We have a wealth of geologic, engineering,
production, reserve, and historical data available; that along with our extensive
knowledge of the properties and the mining industry in general.
I invite you to join us in looking at the exciting and sometimes astounding possibilities we
have and to determine how you might participate in exploring them.
Thank you for your interest,
138 13th Ave. So.
Lewistown, MT 59457