Boot,

Management is very reluctant to give “back of the napkin estimates” due to the fact that they cannot prove any of their estimated numbers at this point and being a public company the SEC would jump all over them for making such statements. However, having personally talked with most of the major players at SFMI, my gut feeling is in the words of Rich Kaiser “They’ve got the goods, GOLD and plenty of it”! Everybody on the BOD and staff know (thinks they know) that there is a lot of gold and silver left in that mountain. If you review the video of the shareholder meeting that is available on youtube you can listen to Roger Scammel describe how he feels that there is still gold and silver bearing ore above the tunnel and that the oldtimers never ran out of ore – they just ran out of money.

Also, be sure to catch “Gold Fever” on the on the Outdoor Life network this coming Saturday and 12PM EST. The show host Tom Massie who has spent the last 13 years educating and entertaining people on the fundamentals of finding gold has a little poke around inside the Sinkler tunnel and clearly and excitedly points out gold bearing fissure veins and pockets in the granite walls of the tunnel. During the program he takes his little pick and chips off a piece of quartz from the tunnel wall that has a visible gold nugget.

Drilling is planned in two stages. The first will be in the Sinkler Tunnel. However, as they have already identified their drill targets and planned to start drilling last summer, MSHA required that rockbolting be done for the entire length of the tunnel. Unfortunately, this has set them back by a few months. However, drilling in the tunnel can be done during the winter months. As of September the work had already been started and once it is completed the permits will be issued. Drilling on the surface will follow late spring 2012 after the winter snow melts and the access roads can reopen.