War Eagle Mountain
"War Eagle Mountain Geologic Summary"
Barrett Cupp - Senior Geologist, Kinross Gold, Co.
"The War Eagle-Florida-Delamar Mountain trend is an east to west continuum with very tight high grade
silver and gold mineralization to the east ( War Eagle Mountain ) and increasing volume and decreasing
grade to the west ( DeLamar Mountain ). DeLamar Mountain, the western most of the three, has been
successfully open pit mined since 1977. During that period, close to 100 million tons of material has been
excavated, including over 15 million tons of ore. Collectively, past underground mining and modern open pit
techniques have produced approximately 67 million ounces of silver and 1 million ounces of gold. DeLamar
Mountain is owned by Kinross DeLamar Mining Co., a subsidiary of Kinross Gold, Co., ( NYSE : KGC ).
On Florida Mountain, estimated reserves and previous underground production records indicate the mountain
will produce approximately 21 million ounces of silver and over 600,000 ounces of gold. Initial open-pit
mining operations have begun on Florida Mountain. Florida Mountain is owned by Kinross Gold, Co.,
( NYSE : KGC ).
The War Eagle Mountain mineralization is contemporaneous in time and placement to the mineralization on
Florida and DeLamar Mountains.
Ore mineralogy found within the veins on War Eagle Mountain is identical to the regimes found on the other
two mountains. The only key difference is the country rock or precursor host rock. The granodiorite core on
War Eagle ( Granite ) contains the veins whereas the extrusive volcanics predominately host the
mineralization on the other two mountains. This means that the shafts on War Eagle Mountain are more
stable, with minimal need to shore the walls with timber. Based upon records from the 1800s, and records of
the current open pit mining operations on Florida and DeLamar, mineral ore from War Eagle Mountain was
obtained in greater amounts from far less material moved. The veins of War Eagle Mountain were of far
higher value per ton than any other mining operation in the Silver City Mining District and some have
speculated that they are more valuable per ton than the historically famous Comstock mother-lode.
In order to successfully exploit the mineral resources on War Eagle Mountain, an economical means for
exploration, dewatering, and mining must be obtained. Mineral Extraction Co., Inc.,, currently holds the
title to the Sinker Tunnel Complex on War Eagle Mountain, as well as a majority of the important mineral
claims. The tunnel was established around the turn of the century, but was decommissioned prior to
accomplishing the final goal of extensive mining. The possession of the tunnel permits the owner the unique
position on War Eagle Mountain of providing the means to ;
A ) access the underground workings,
B ) a mechanism for low cost drainage and dewatering of the old workings and finally,
C ) a low cost option for the exploitation of a mineral resource without the burdensome expense
of driving a new production drift, or hoisting material to the surface.
The Tunnel is an average of 9'x11' for more than 8,000 feet in length, with several thousand feet of
additional tunnel forming a "T" at the end of the Tunnel, and is in excellent condition despite it's age of
nearly a century.
Should exploration be initiated on War Eagle Mountain, I would fully expect them to encounter high grade
silver and gold mineralization. The veins in the Mountain have not been fully exploited with respect to
length or depth. My experience in the district cause my opinion to be very favorable toward the War Eagle
Mountain target for these key reasons :
1 ) The date and type of mineralization is the same as Florida and DeLamar Mountains.
2 ) The host rock occurrence appears to be the only factor contributing to the style of mineralization. This
implies that the vein mineralization on War Eagle Mountain is of much higher grade than Florida and
DeLamar Mountains.
3 ) Of all the mines in the district, the mines of War Eagle Mountain have been untouched in modern
times due to the trend of modern mining ventures to utilize open pit techniques. Only now, with
increased environmental pressure and rising gold prices are underground programs being seriously
considered.
4 ) My experience at Florida and DeLamar Mountains dictate that any new exploration ventures should be
focused on War Eagle Mountain if a large scale project is the desired goal in this mining district. No
other property holds the promise of silver and gold than this dormant producer could supply."