A.R.S. / Fountainhead Mine Group

Transcription

1 A.R.S. / Fountainhead Mine Group Gold, Silver and Rare Earth Mineral - Mining The ARS mining operations claim block consists of two (2) patented mining claims of 40 acres, and 6 Federal Mining Claims (unpatented) of 120 acres, for a total of 160 acres. There are 17 adits (tunnels), 17 vertical shafts, 4 production trenches, 20 ore piles and two prospect pits, with two natural water sources on the property. Previous geological reports indicate the mineral value at 4.5+ billion dollars! The Fountainhead Claim Group has 3 veins that contain Free Wire Gold (a rare and valuable formation). The Gold recovers at 99% using water and gravity, milled to minus 20 mesh. Recently a Gallium discovery of 622 ppm was found in an existing high grade Gold vein named Banner. Preliminary Assays indicate it is the highest grade Gallium deposit ever found in America by four fold. At depth gold averages.75 OPT and the silver averages 6.5 oz/ton. We also uncovered an old exploration Gold adit that runs 23% Magnesium with Gold and Silver. Also new Indium discoveries confirmed by: Michigan Tech and Indium Corp. of America. Indium Corp. independent assays report 830 ppm Indium. The mines are located in the Cerbat Mountain range in Mohave County. This area is perhaps the most mineralized area in Arizona. Just one mile to the north is the COD Gold Mine, one of the County s largest past producers. A few miles to the south is the Kingman Feldspar Mine which is known worldwide for its Rare Earth Pegmatites with Allanite and Monazite. Another mile to the northwest is Mineral Park Copper Mine which is the county s largest Copper, Silver and Moly mine. All these veins crisscross our property. The Bluebell adit operated until the late 1950's when metal prices dropped and another one operated from 1957 until around 1977 when the owner died of old age. This vein has 200 ft of ore assaying up to 42oz/ton Silver with Gold and Lead. His children, knowing nothing about mining chose to discontinue and close the mining operations. The old county mining road provides access and extends through our properties over to the old town of Mineral Park. Mineral Park is now one of the state s largest, most profitable, Silver and Copper mines in Arizona. Literally every vein on our property can be seen by outcroppings in rock heading NW from our property to the Mineral Park mine. Early in 2008 ARS purchased all these claims and recently completed a 24 month Phase One Private Geological Survey with extensive research into past mining records and Gov. Surveys, Az. Dept of Mine Reports, including investigations by private geologists and confirmation of the previous owners Geological claims. According to the Metallurgist for ARS, total resources for blocked out, assayed and geologically inferred ore exceeds $ 4.5 billion U.S. dollars, when including the discovery of Indium, Gallium and Rare Earth Metals. Other reported Geologist reports indicate possible values of $30 billion dollars. 1

2 A.R.S. / Fountainhead Mine Group Over twenty precious metal and Indium-Gallium veins have been mapped and assayed. In the Mohave County Miner, Golden Anniversary edition, Friday November 11, 1932 the following quote was made; "No greater gridiron of veins may be found in any mineralized territory than the range of hills from Stockton Hill and Cerbat, on the south end of the range, to Chloride, on the north end of the mineralized zone, and every section is Gold and Silver bearing." ARS has an approved Federal Mining Notice for further Exploration and Development of these properties. A production mill is set for construction on the private patented land. This plant will be located on the privately owned land and is exempt from BLM Mining Notices and Federal Mining Plans. 2

3 A.R.S. / Fountainhead Mine Group / Positions of Assayed Deposits (not all shown) 3

4 A.R.S. / Fountainhead Mine Group 4

5 A.R.S. / Fountainhead Mine Group 5

6 A.R.S. / Fountainhead Mine Group THIS REPORT IS ONLY FOR 1 OF OUR 8 CLAIMS. IT LISTS ONLY 4 OF THE 5 VEINS ON OUR PATENTED FOUNTAINHEAD CLAIM. THE 5TH VEIN HAS NOT YET BEEN ASSAYED AT THIS TIME. 6

7 A.R.S. / Fountainhead Mine Group Many of our ore piles are very valuable and just sitting there ready to process! The Fountainhead ore pile alone, according to reports available from the Arizona Dept. of Mines and published in U.S.G.S. bulletin #140 and #340, show the Fountainhead ore pile of 5,000 tons to contain over 3 million dollars in Zinc, Copper, Lead, Silver, and Gold at last year s metal prices! Additionally, there are blocked out and assayed ore bodies in Fountainhead and Bluebell alone exceeding $400,000, TONNAGE & DOLLAR AMOUNT A: Fountainhead has some 60,000 tons of ore blocked out between the foot level of the property, according to a report filed by Reed and Reed. The tenor of the Ore is expected to be, (according to reports and according to the Ore pile on the property) the following: TONNAGE 60,000 60,000 60,000 60,000 60,000 MINERAL Silver Gold Lead Zinc Copper OPT TOTAL AMOUNT ,000 oz ,600 oz 13 lbs PT 780,000 lbs 328 lbs PT 19,680,000 lbs 12.2 lbs PT 732,000 lbs DOLLAR VALUATION $ 12,326, ,390, ,053, ,467, ,562, Total Valuation: $ 47,799, B: In addition there are approximately 5,000 Tons of Ore on the ground with the following valuation: TONNAGE 5,000 5,000 5,000 5,000 5,000 MINERAL Silver Gold Lead Zinc Copper OPT TOTAL AMOUNT ,500 oz ,000 oz 13 lbs PT 65,000 lbs 328 lbs PT 1,640,000 lbs 12.2 lbs PT 61,000 lbs Total ground valuation: DOLLAR VALUATION $ 299, , , ,705, , $ 3,210, Combined Totals Fountainhead & Ground valuations: $ 51,009, ** NOTE: market prices for 2008 Footnote: This total value is for Blocked out proven ore and the Ore Pile only. It does not include the other estimated reserves for other veins of ore such as Banner, Earl and Shooting Star which also cross the Fountainhead claim. There is also an un-named 7 foot wide vein that appears to be of great value and is not included in any of our reserve reports. 7

8 Shooting Star Prospect THIS IS ONE OF OUR BEST PROSPECTS. IT IS ONE OF OUR 3 FREE WIRED GOLD VEIN DEPOSITS. THIS GLORY HOLE ON THIS PROJECT WAS DISCOVERED IN LATE IN 1942 WORK WAS STOPPED FOR THE WAR WHEN THEY WERE DRIVING A TUNNEL TO GET UNDER THE GLORY HOLE. THE TUNNEL TO THIS DAY ONLY HAS 35 FT TO GO. AFTER THE WAR, THE PEOPLE WE OBTAINED IT FROM, SECURED THIS CLAIM AND LEFT IT SIT IDLE UNTIL TODAY BECAUSE THEY CONCENTRATED THEIR EFFORTS ON THE ALREADY DEVELOPED BLUEBELL MINE WHICH CONTAINED AREAS OF.25 GOLD AND 42 O.P.T. SILVER AND WAS ALREADY DEVELOPED. 8

9 Shooting Star Prospect (continued) 9

10 BLUEBELL LOWER LEVEL DRIFT ASSAYS B Level 30 feet below main adit level east and west of wintz #2 Sample # Vein Width Gold O.P.T. Silver O.P.T. S-1 West 15'' S-2 24'' S-5 36'' S-3 10'' S-4 18'' S-6 19'' S-7 End of drift 30'' ? Samples taken from wintz #2 at ft. intervals heading west. BL-1 East 30'' BL-3 16'' ? BL-2 24'' BL-4 24'' BL-5 24'' BL-6 17'' BL-7 End of drift 19'' ? Samples taken from wintz #2 at 10-20ft. intervals heading east. SW W#2 10ft.deep 42'' % Cu SW W#2 30ft.deep 40'' % Cu Samples taken in Wintz #2 at depth shown above. This data taken from Keegle Engineering Inc. L. Vegas, Nev Production for this mine reported prior to 1948 from the U.S. Dept. of Interior, USGS it was: 469 ozs. Gold, 50,954 Silver, 44,274 lbs. copper, 182,001 lbs. lead. Level B did not exist at that time. This level was dug by Al Beard between 1952 and At that time this mine was know as Blackhawk (Beard Adit). It is believed that production was from the main adit for a distance of approx.400 Feet. John C. Cost ARS Mining 1/11/

11 11

12 ARS MINING ASSAY AND DEPOSIT LOCATIONS 12

13 13

14 14

15 Veins along ARS claims as determined by the 1951 Dings Report for the Department Of The Interior 15

16 Banner Mine Assays along the Fountainhead Vein SE of Fountainhead Claim 16

17 17

18 GALLIUM DISCOVERY 18

19 SHOOTING STAR X-RAY SPECTRO ANALYSIS 19

20 SHOOTING STAR FIRE ASSAY 20

21 ARS Claim Group Reserves and Calculations During the last two years ARS mining has conducted a preliminary investigation to determine the possible reserves contained in its patented and federal mining claims on Stockton Hill near Kingman Az. There are 2 patented claims and 6 Federal claims in this claim block. This report takes into consideration records received from the Az. Dept. of Mines, Mohave County Historical Society, Kingman Mining Museum, and the USGS report by Schrader on The Mines of Mohave County, a production report from the U.S. Dept. of the Mint and past production reports from the last 4 mining companies that owned the properties. These reports contain blocked out ore and production assays and current assays taken a regular intervals along the length of the individual veins at surface exposures. Four of the claims contain notable production. Bluebell Adit was commercially mined up to 1977 with outstanding success and the others were mined until These famous past producers where Fountainhead, Shooting Star and the Silver Legion. During our two year exploration project we mapped and assayed all visible surface veins, outcrops and the positions of 16 tunnels, 17 shafts and 4 trenches along 10 of the major veins and recording there locations by G.P.S. The highly mineralized portions of veins occurs on the vein footwall and range from 1.5 to 4 feet in width while the total vein widths often exceed 40 feet. The veins pinch and swell both vertically and horizontally. We obtained approximately 150 assay samples from continuous chip samples taken across the entire mineralized vein widths along the course of 7 miles of veins. Silver assays have determined areas exceeding 42 oz/ton. Gold assays have ran as high as.69 O.P.T. Assays of zinc were as high as 27%, lead at 40%, copper at 10%, magnesium up to 23% and lithium to 2.5 lbs/ton. A glory hole on the Shooting Star vein contained three 5 ton shipments of ore that yielded smelter returns of 66 to 106 oz/ton gold and 35 O.P.T. silver. Reports and newspaper articles are available. All our assays were performed by independent laboratories which include ALS Chemex, Reed Laboratories and Indium Corporation of America. Most samples were taken on the surface of the deposits and across exposed vein width. Previous mining records indicate assay values increase with ore depth up to 2 or 3 fold. The deepest shafts (430 Ft. were previously sampled at 10 foot intervals by United States Smelting and Refining where used for our assays at depth because the shafts were not readily accessible for our sampling. Fountainhead assays were obtained at depth by actual smelting returns and records of blocked out ore that still exists today. Our samples were 30 to 70 lbs which were crushed to -20 mesh and blended to obtain Fire assay and Spectrometer samples of 1 to 2 lbs. The assay samples where then further reduced to 200 mesh for accurate analysis. Additionally, we ran gravity table production tests on 500 lbs. of ore from 30 feet of vein taken from our newly discovered wire gold indium deposit. Recovery was over.52 O.P.T. wire gold, 2.5 O.P.T. silver and about 1 lb. Indium per ton. The no. 1 concentrate ran 701 oz of gold per ton while the Shooting star ore pile (3,000 tons?) concentrate ran 20 oz. /ton. A RP-4 Gravity Table was used for the test. The wire gold was physically recovered while the indium was determined by x-ray spectrometry and ran 450ppm in the tailings. 21

22 The following is a rough estimate of metal reserves discovered. The value of these reserves exceeds 4.5 billion dollars when including indium and gallium. Ore weight calculations were obtained by multiplying the average vein width times its length and its depth to obtain the cubic feet of ore and tonnage contained in each vein. Both the nearby Tennessee and Golconda mines which are part of this 3 vein system were mined to 1,400 feet and 1,600 ft. deep and carried ore that was better at depth than on the surface. This same trend was seen on our Banner vein as it was assayed from the surface to 430 feet in depth. We additionally discovered gallium in this vein exceeding one lb. per ton. For this report we used assays mostly taken from the surface and believe actual production will be much greater at depth. We feel only 3 or 4 drill holes could confirm these reserve estimates. This report is not compliant. The previous owners Executive Summary reported these claims and the surrounding available claims contained over 30 billion dollars in reserves based on metal prices in We believe this could be correct. Total Reserves Estimated to 1200 feet. Gold 1,271,096 oz., x $ /oz.= $1,442,693,960 Silver 31,323,400 oz. x $18.65/oz. = $585, Copper 67,186,400 lbs. x $3.42/lb. = $229,777,488 Lead 1,089,510,000 lbs. x $1.11/lb = $1,210,445,610 Zinc 1,198,462,000 lbs x $1.13/lb = $1,354,264,060 Gallium 85,520 lbs x $190.00/lb. = $16,248,800 Indium 201,101lbs x $265.90/lb = $53,472,755 TOTAL VALUE $ 4,894,082, NOTE: ZINC AND LEAD PRICE EQUALS ALMOST DOUBLE THE GOLD VALUE. Lithium and Rare Earth Metals not included. Total Ore Weight is 4,539,628 tons when calculated to a depth of 1,200 feet. Mining to 400 ft. at 200 tons per day, the mine life would be over 20 years. John C. Cost ARS Mining / 1/18/

23 Relationship of ARS Claims to Mineral Park 23

24 MAP SHOOTING STAR ORE PILE WITH ASSAYS 24