BVIG -- Cracker Creek Mine Information Report

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Cracker Creek Gold Mine

Site Information

Prepared by: Michael Caprio

Eureka Mining LLC

Date: 7/1/2012

Eureka Mining LLC P: (732)740-5766 F: (732)605-1090 email: [email protected] of 27

Table of Contents Turn Key Operation Includes: .............................................................................................................. 3 Site Findings: ........................................................................................................................................ 5 Cracker Creek Pricing ........................................................................................................................... 5 Eureka Mining LLC Operating Expenses ............................................................................................. 6 Site Pictures - Recovered Gold pictures ............................................................................................... 7

Site Pictures - Land pictures ............................................................................................................... 10 Site Pictures – Aerial Property Pictures.............................................................................................. 20 Sumpter History .................................................................................................................................. 25


Turn Key Operation Includes:

19+ acre Patented mining claim

Patented in 1894

1.5 – 3.0 million yards virgin material with multiple river channel layers

o Additional 20 bordering acres available upon request (1.5 – 3.5 million yards

virgin material)

Located in Sumpter, Oregon

Zoned RR5 (housing can be built on site)

o Additional 20 acres has beautiful log cabin already built on gold bearing

material!

On Site Power Lines for 110 / 220 / 3 Phase power

Unlimited water via on-site creek

2 settling ponds currently exist on the site

Site easily accessible via main roads

Processing plant and excavation area are easily accessible

Annual taxes approx. $600 / year

Property once used for recreational gold panning for 50+ years

Verizon cell phone service

Verizon internet service

Site By Products Include:

o Gold

o Silver

o Titanium

o Clear and Black industrial diamonds

o 3/8” Aggregate Material

o Landscape Boulders

50 – 125 ton / hour complete self contained wash plant (2-3 man operation)

200 sq. ft. gold room with all electrical / plumbing equipment

Complete wash plant located on 8” thick concrete slab(s)

400 ton / hour de-rocker for washing boulders up to 3 foot in diameter

Trio 5’ x 16’ double vibrating screen (utilizing 1.5” screen on top for crushing)

5x16 SLR Allis Chalmers Slurry pump with heavy rubber liners

Orival 1200 Gallon / Minute self cleaning water filter

All VFDs, Motor Starters, electrical equipment, custom Water / Slurry pump starter

(plant starts with 1 man in less than 2 minutes)

Qty: 2 – Pan American Dual 42” jigs

Cyclone separator

25’ Sand screw

25’ Sluice box with miner’s moss


Custom platform with handrail for jig access / cyclone access

All necessary pumps, hoses, clamps

Goldtron automated panning machine

1650 gallon / min fresh water pump (with variable speed controller)

Secondary high capacity water pump

30hp Townley Submersible Slurry Pump with agitator

CAT 730 Articulating Dump Truck with approx. 6000 hours

CAT 325CL Excavator with approx. 6000 hours

CAT 962G Loader with approx. 6000 hours

CAT D7E Bull dozer

All tools, welding machines, etc…(includes every tool used to build the plant in

2010).

3000 Gallon Diesel fuel tank with pump station

On Site Office trailer with refrigerator, air condition, heater, working bathroom

(clean)

On-site Conex box for tool storage

Complete plant operating videos / pictures are available for download upon request.

The pictures and videos can be found at the following link:

https://ezeob.sharefile.com (please make sure you include the https )

Email address is your email address

Password: goldmine.

Please Note: This link will only work once you receive a confirmation email that the account is active.

https://ezeob.sharefile.com/


Site Findings:

Site assays reveals 0.44 – 2.0 grams / yard ($14 - $150 per yard material)

Exposed hard rock vein measure 15’ x 65’ at the surface

Hard rock surface assay reports 0.5 oz gold / ton on the surface (1998 assay)

Black sand certified assay report

o F/A grav method for Blacks Lights reveal 33.016 oz / ton Au, 8.42 oz / ton Ag

o F/A grav method for Blacks Heavy reveal 10.645 oz / ton Au, 3.70 oz / ton Ag

The site use to be an ancient river channel overlaid with Gold Bearing Glacier deposits

which produces Gold from the surface to the bedrock!

Blue Lead soil has been found on the site in all areas of the mountain

Read Lead soil above and below Blue Lead reveals multiple river channels that once flowed

Pictures of recovered diamonds (diamonds are industrial grade diamonds)

B4MC Mining Report Available upon request

Certified Geologist Report Available upon request (available approx. 10/16/2010)

Cracker Creek Pricing

Complete Turn Key Price (approx. 19.5 Acres total)

Price: $7,500,000.00

The following pricing includes an additional 20 acres that extends directly behind the mining area.

The total virgin yardage for the mine would be approximately 39.5 acres.

Complete Turn Key Price (approx. 39.5 Acres total)

Price: $10,000,000.00


Eureka Mining LLC Operating Expenses

Our costs to run the plant are minimal. All equipment is owned outright. Here is a brief summary of

our expenses on a monthly basis which makes this a very profitable mine site:

$1200 / month Rental of 3 bedroom house about 1/2 mile away from the mine site

$5000 / month Food for all employees and expenses

$1000 / month - 3 phase electrical power (the whole plant runs from power lines through the local

electric company via 600 amp service)

$5000 / month - Off-Road Diesel fuel for the Loader, Excavator, Dump Truck and Dozer (2000

gallons / month @ approx. $2.50 / gallon)

$3000 / month - part time equipment operator, misc items, belts, hoses, etc....

Our expenses are low due to the ease of excavation of the property. The plant is no more than 100 -

200 yards away from the excavation area. There is a very small distance to move the material to and

from the wash plant and we have a 30 yard CAT dump truck. For us, our cycle time is approx. 7

minutes to get material to the plant (includes loading the dump truck), so 3 - 4 loads from the Dump

Truck is more than enough material for the hour....

Total cost of extraction (actual complete cost of running the plant) is $15,200 / month or $506.66 per

day.


Site Pictures - Recovered Gold pictures

The end result, some pictures of our site melted gold bars….


Site Pictures - Land pictures


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Site Pictures – Aerial Property Pictures


Sumpter History

SUMPTER GOLD MINING!

Gold mining in Sumpter, Oregon dates back to 1862 when pioneers were following the Oregon Trail out west in search of their dreams and a better life. In California, the gold rush was in full swing drawing many folks in search of that lucky strike. Back east, the Civil War was heating up and it is widely believed that five Confederate Soldiers on their way to the California gold fields discovered gold right here in the Blue Mountains.............. A cabin was built and named Fort Sumter after the infamous Civil War fort in South Carolina. Placer Gold was plentiful but it wouldn't be until much later near the end of the century when the town would really begin to grow with the advent of stamp mills

and other, more efficient methods to extract gold from the ore. Until 1892 Sumpter was very much isolated from the outside world. With the arrival of the Sumpter Valley Railroad, came more people, more opportunities and that is when this small placer mining town exploded in growth and opportunities! The first US Census records Sumpter's population at about 3500. But Chinese, Women and Children were not counted so the actual population must have been quite larger. The first post office was opened in 1874 but soon discontinued and a new one opened in 1883. It has been said that the government required the township to change the name of the town from Sumter to Sumpter to avoid connection to the civil war. Some believe it was just changed to avoid confusion.

FLOATING GOLD DREDGE The most prominent and most devastating new technique of extracting gold from the Sumpter Valley came on the scene in 1913 with the building of the first Yuba-Style floating mechanized placer mining dredge. Two more such dredges would be built in the next 20 years. Unfortunately, this was an inefficient form of mining which tore through the valley leaving in its wake 1600 acres of rock piles called "tailings." Though the dredges operated in the valley for over 40 years, most of the gold was left behind and can still be found today. The last of the three Dredges, the Sumpter Valley Dredge, operated from 1935 until its buckets were halted in 1952. The Sumpter Valley Dredge still exists today thanks to an ambitious restoration and preservation partnership between Oregon State Parks and Friends of the Dredge, a private group formed by local residents interested in preserving the dredge. The ongoing restoration project began back in 1993 when the Oregon State Parks purchased the dredge from a private owner. The CCMM and Friends of the Dredge also work together in Sumpter to further efforts of preserving our gold mining heritage.


PLACER MINING Gold mining in Sumpter, Oregon took on new forms as new techniques to extract ore evolved and discovery of one of the largest continuous gold veins in this area made hard rock mining a reality and large mining companies were formed and soon mining camps began to spider across the mountains; the remains of some mines can still be seen today. Some mines are still being worked today, privately, on a much smaller scale and according to the US Geological Survey, much of this hard rock gold vein still exists. As Sumpter grew to be a progressive town, new ways to extract the gold began to surface in the Sumpter Valley.

HARD ROCK GOLD MINES Once the vein was discovered, hard rock gold mines appeared throughout the Blue Mountains; eventually numbering about 35 total and some of the original mines are still being worked today. One of the more famous gold producing mines was the Bonanza. It gained the attention of a well known geologist named W. Lindgren for the U.S.G.S. Here is an excerpt from his famous report written in 1900: "The Bonanza Mine is situated about 10 miles west of Sumpter on the head waters of Burnt River at an elevation of 5,140 feet. The first location is said to have been made in 1877 by a pioneer prospector named Jack Haggard, who sold it in 1879 for $350 to the Bonanza Mining Co. In 1892, the mine was bought by the Geiser brothers for a reported sum of $3,000 and worked by them until 1898, when it was sold to the present owners, a Pittsburgh, Pa. for a price believed to have been $500,000." Most of this ore was shipped on the Sumpter Valley Railroad to smelters in Washington State despite the existence of a large smelter in Sumpter which prompted its closure with only three years of operation. Hard rock mining seemed to hit its peak by the turn of the century with a recorded take of nearly $9 Million. And....there is still more where that came from!

THE MONIGHAN DRAGLINE In 1940 a new monster arrived in the Sumpter Valley! The Monighan Dragline arrived and began working in the local area and in some cases along side the existing Sumpter Valley Dredge. In some cases, the Monighan was called in to dredge shallow areas ahead of a floating placer dredge...........The Monighan continued working until it was ordered to stop for the same reason as the Sumpter Valley Dredge: World War II.

SUMPTER GOLD MINING CONTINUES! Gold Mining continues in the Blue Mountains surrounding Sumpter on a private level. Some once famous hard rock mines are still producing gold in satisfactory amounts. Placer mining is also still active in local streams and even within the Oregon State Sumpter Gold Dredge park right here in Sumpter, Oregon! And........with the price of gold on the rise.......gold mining in this once famous area may be mining up ghosts from our gold rush past!


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