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PRESIDENT'S REPORT
Dear Shareholder:
The fiscal year of 1981 was the most active and eventful year in the history of your
company. Following are some of the meaningful events, listed in their chronological order:
1. During the 1981 field season, Canadian Superior (U.S.) Ltd. carried out an extensive
exploration program on the TMG property, consisting of:
a. Surveying most of the unpatented claim areas.
b. Drilling of 57 vertical percussion holes.
c. Geologic mapping.
d. Airborne topographic mapping.
e. Magnetometric survey.
f. Initiation of baseline environmental studies.
In addition to the above work, Superior made a $124,000 advance royalty payment to
Thunder Mountain Gold.
The drilling program resulted in the discovery of an exciting new zone of gold
mineralization, approximately 3,000 feet south of our Sunnyside ore body, which
contains 1.25 million tons of proven ore.
The new ore discovery occurs in the Lightning Peak region. To date three of the holes
drilled show gold mineralization that is 55 feet thick, assaying 0.12 oz. gold. Numerous
other holes in the region show mineralization of a lesser grade, over very extensive areas.
The ore shows a promise of a larger thickness and a higher grade in comparison with the
"Sunnyside" ore body.
2. In August 1981 your company entered into a lease option agreement for the following:
a. Bullion Group of claims, consisting of 1 patented and 16 unpatented claims, directly
adjacent to the Thunder Mountain claims.
b. "L" Group of claims, consisting of 48 unpatented claims, are directly adjacent to the
"Bullion" Group.
The "Bullion" and "L" claims are located in the zone of direct geologic extension of the
mineralized structure, that produced the Sunnyside, Standard, Dewey, Lightning Peak and
other ore bodies.
These Groups add 65 claims to the area controlled by your company, thus approximately
doubling the area of TMG interest in the Thunder Mountain region of Valley County, Idaho.
See Plate #1 (property map)
The acquisition terms pertaining to both the "Bullion" and the "L" Groups are identical
and they include minimum advance royalty payments of $15,000 per year for each
property and an overriding royalty of 3%.
In March 1982, your Board exercised the lease option on both the "Bullion" and "L"
properties.
3. In December 1981, Canadian Superior (U.S.) Ltd. gave your company a termination
notice of their working agreement with the Thunder Mountain Company. This was a
surprising event, especially in view of the large exploration expenditure made during the
past season by Superior and in view of favorable exploration results. This move, however,
proved to be a favorable event for your company because numerous major oil and mining
Site of new ore discovery near Lightning Peak.
From left to right: Tibor Klobusicky, gen. mgr. and Jim Collord, president.
PRESIDENT'S REPORT
companies expressed an instantaneous interest in the Thunder Mountain property.
4. In April 1982, your company entered into a lease agreement with Phillips Petroleum
Company. The agreement took effect on April 19, 1982. It provides for 30 % royalty,
payable to TMG based on net proceeds with minimum annual payments of $125,000,
escalated by the percentage of increase in the average price of gold over $400.00 per
ounce. This also includes a minimum work commitment on the property and a substantial
"area of influence". Claims staked within the "area of influence" by either Party will
automatically become subject to the TMG-Phillips agreement.
Phillips also assumed TMG's responsibilities emanating from TMG's agreements with
the owners of the "Bullion" and "L" Groups of claims. The $125,000 advance payment
and $30,000 advance payments due to the "Bullion" and "L" Groups for the current year
have been received from Phillips.
Immediately upon execution of their agreement with TMG, Phillips commenced preparation
for the proposed active field season of 1982.
5. Beginning April 17, 1982 TMG is being quoted by the National Daily Quotation
Service, commonly referred to as the "Pink Sheets." Thus, Thunder Mountain stock
quotations are now available nationally through the Daily Quotation Service.
I am sure you will agree with me that we have ample reason to be very enthusiastic
about the future of your company.
We will keep you informed about every event of importance.
With best wishes,
Sincerely yours,
gaha-
James Collord, President
THUNDER MOUNTAIN GOLD, INC.
April, 1982
GENERAL MANAGER'S REPORT
Location
The Thunder Mountain Mining District is located in Township 18 and 19 North, Range 10 and
11, East, Boise Meridian in Valley County, Idaho, approximately 50 miles east of McCall, Idaho.
See plate #2.
Capsule History:
The following is quoted from the U.S. Geological Survey Bulletin 1304, entitled: "Studies
Related to Wilderness. Idaho Area and Vicinity" - (1973):
"The property was originally located by the Caswell Brothers in 1899. The Lightning Peak Gold
and Silver Mining and Milling Co. bought the property in 1901 and reorganized as the Belle of
Thunder Mountain Mining and Milling Co. in 1902. They completed about 7,000 feet of
underground development work and some churn drilling. Favorable indications resulted in the
construction of a 40-stamp mill at Belleco, near the mouth of Sunnyside Creek, and the building
of 8,000 feet of tramway by 1904. Only about $5,000 worth of gold was recovered on a test -run
basis. High costs of transportation, owing to the area's remoteness, and poor gold recovery (less
than 70 percent by amalgamation) forced closure of the mine in 1908. The property was
relocated in 1924 by D. C. ad R. J. McRae and R. A. Davis. In 1926, a 10-stamp mill was
erected at the mine. The mill was operated for about 4 months each summer from 1927 to 1936,
and 9,000 tons averaging 0.28 ounce gold per ton was milled. From 1936 until 1938, when
mining ceased, about 8,000 tons was milled averaging 0.22 ounce gold per ton. According to
R. J. McRae, total production during 1926-38 was probably $115,000. No ore has been mined
since 1938. Approximately 20,000 tons of ore from the Dewey mine was treated at the
Sunnyside mill during 1941 and 1942. During the 1950's considerable near -surface exploration
work, including trench and churn drilling, was done by Bradley Mining Co., Yuba Mining Co.,
and J. R. Simplot Co., R. J. and Grace C. McRae and Warren Brown patented eight lode claims
in 1962, covering 185 acres in the Sunnyside mine areas."
Capsule Geology
Most of the gold at the Sunnyside Mine is found in the "lapilli tuff" unit near its top contact with
an ancient mudflow. The ancient mudflow is composed of debris-- which includes Dewey Lake
sediments and many varieties of the Sunnyside unit --most of which are derivatives of the "lapilli
tuff'. Drill hole logs and maps show this as the Dewey Volcanoclastic unit. A thick blue -gray clay
is found at the base of the old mudflow where slippage occurred on the nonwelded top of the
"lapilli tuff" unit.
The mineralization at the Sunnyside Mine is thought to be hydrothermally introduced along
large shear (feeder) zones. The gold is pseudostrataform in the upper portion of the partially
welded rhyolitic "lapilli tuff' member of the Sunnyside unit. Ascending hydrothermal solutions
probably dammed up under the blue -gray clay layer found just beneath the ancient volcanoclastic
mudflow. This allowed lateral spread of the gold bearing solutions in the non -welded, to partially
welded, top of the ore host "lapilli tuff". The resultant deposition is a strata -like ore zone.
The dominant structural control for known mineralization in the District is the N 50 °E
trending Thunder Mountain fault zone. This fault, and secondary parallel structures and as yet
unrecognized cross structures have played an important role in localization of the gold mineraliz-
ation at the Dewey Mine, Sunnyside Mine and the Lightning Peak zone. The N 50 °E trend may
be part of the ring -fracture system of the now faulted and eroded Thunder Mountain Caldera.
The mineralized trend is approximately 12 miles long and several miles wide. All of the known
ore bodies, and probably many more, lie within this mineral zone.
Ore Reserves
The enclosed tabulation will give an idea of the concepts of ore reserves developed by many
professionals --some of which spent decades working in the Thunder Mountain region. Their ore
GENERAL MANAGER'S REPORT
reserve estimates range from several million to tens of millions of tons for the entire Thunder Mountain
District. With its associates, your company controls over 50% of the District's area at the time
of this writing. Action is underway to substantially increase these holdings.
Why this big discrepancy in ore reserve estimates? The estimates, ranging from several hundred
thousand tons to a million tons pertain to a single deposit- -the Sunnyside ore body. Potential
reserves for the entire District were made by several geologists. G. E. Ziegler estimated 25 million
tons for the entire Thunder Mountain District. (1956) Others, led by Robert J. McRae directed
attention to the fact that the district has been explored to a shallow depth only, along a limited
portion of the 12 mile strike length. The following is quoted from the McRae report (1956) :
"The greatest potential for development on the Sunnyside area lies in developing deeper or
much thicker mineralized zones of rhyolite. All exploration, both underground workings and
drilling, has been at rather shallow depths. Deeper drilling may show a thickness of several
hundred feet of rhyolite below the presently known ore body that can be stripped and mined as a
mass, by open cut methods. See plate #3.
The late Mr. McRae was a prominent geologist and exploration manager for the Bunker Hill
Company of Kellogg, Idaho. The McRae family has been in control of the Thunder Mountain
region since 1924.
The current proven reserves of the Thunder Mountain Gold Company are considered to
be in the range of 2 million tons --with an additional 1 million tons in the probable range --with
10-20 million tons assumed possible.
Production
Recorded production of the Thunder Mountain District, prior to 1980 is reported in the U.S.
Geologic Survey Bulletin 1304, on Page 71 as follows;
Gold 22,378 ounces
Silver 102,102 ounces
At present market prices, this production is valued as follows:
Gold 22,378 @ $325.00 oz. _ $7,272,850
Silver 102,102 @ $ 6.50 oz. 663,663
$7,936,513
Bulletin 1304, page 71, refers to the gold -silver potential of the District as follows:
"Potentiai gold -silver resources are estimated at more than 35 times the value of past production."
Bulletin 1304 is the result of a joint effort by the U.S. Geologic Survey and the U.S. Bureau of
Mines. It was published in 1973 under the title: "Studies Related to Wilderness Primitive Area,
Idaho Area and Vicinity".
Ore Grades
The question of grades is subject to just as much controversy as that of the ore reserves.
The lowest computed grade for the Sunnyside Mine is 0.09 oz. gold per ton, based on
drilling alone.
Mr. R. J. McRae computed a grade of 0.18 oz. gold per ton for the Sunnyside ore body --based
on both drilling and underground sampling.
A map in our files, referred to as the Treweek map, compiled in 1906, shows an average
grade of 0.35 oz. gold per ton, based on 1,041 samples taken over 6,000 feet of underground
workings in the Sunnyside Mine. These workings are now open and available for mapping and
check sampling.
There is a consensus among geologists who have dealt with the problem of grades of ore in the
Thunder Mountain District that fine, free gold flakes are being lost in the process of any drilling
method --whether it is percussion or core drilling, because of the porosity of the host rock. It is
anticipated, therefore, that actual mining will produce ore grades that are higher than the grades
computed from assay data obtained from drilling alone.
THUNDER MOUNTAIN MINING DISTRICT
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Plate #2
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EXPLANATION
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PROFILE OF THE STAFF
James Collord, President
Mr. Collord worked as a miner in the Thunder Mountain District from 1930 to 1933.
Later he became mine superintendent at the Sunnyside Mine --which is now part of
the Thunder Mountain Gold property. Mr. Collord worked in that capacity from 1933
through 1937. The Thunder Mountain Mining & Milling Company was then the operator of
the mine.
Except for a one -year's mineral survey trip to Ethiopia in 1943, Mr. Collord devoted his
professional services to numerous mineral exploration assignments between 1937 and 1973
in a variety of capacities.
The Thunder Mountain project, however, stayed uppermost in his mind throughout these
years. His contribution to the project lies primarily in his far-reaching experience and knowledge
of the region. His ties to the Thunder Mountain property became closer following his marriage to
Marjorie McRae, daughter of Daniel C. McRae --locator of the Thunder Mountain claims in the
1920's.
Since 1973, Mr. Collord has devoted practically full time to Thunder Mountain Gold, Inc.
Without his past and current efforts, the TMG Company would not exist as we know it today.
James Collord, Jr., Vice President
James, Jr. stepped into his father's tradition and mother's background. Jim Jr. obtained
his B.A. degree in geography from California State University and his M.S. degree in geology
from the Mackay School of Mines, University of Nevada. At this time, Mr. Collord, Jr. is
exploration geologist with Freeport Exploration Company and he and his family reside in
Reno, Nevada.
Jim Jr. has made extensive studies of the Thunder Mountain region and has made,
and continues to make, valuable contributions to the understanding of the geology of
the area.
Dr. Robin S. McRae, Secretary - Treasurer
Dr. McRae is a graduate of the University of Oregon and of Pacific College of Optometry.
He is the grandson of Daniel C. McRae, the original locator of many of the gold prospects in
the Thunder Mountain Mining District and operator of some of the mines in the 1920's.
Robert J. McRae, author of numerous geological reports on the geology and metallurgy on
the Thunder Mountain Mining District, is the father of Dr. Robin S. McRae, Secretary -
Treasurer of your company.
PROFILE OF THE STAFF
Tibor Klobusicky, General Manager
Dr. Klobusicky and his family immigrated from Czechoslovakia to the United States in 1951.
He is a mineral consultant with an office in Spokane, Washington and has been serving the
mineral industry since 1940.
Mr. Klobusicky obtained his Doctor of Law degree from Carl's University in Prague,
Czechoslovakia and degrees in Geological and Mining Engineering from the Budapest
Polytechnical Institute, Hungary.
Like Mr. Collord and Dr. McRae's interest, Dr. Klobusicky's enthusiasm for the Thunder
Mountain region dates back for a long period of time. Dr. Klobusicky worked with Robert J.
McRae for 9 years for the Bunker Hill Company, Kellogg, Idaho, where R. J. McRae was
manager of exploration.
Mr. Klobusicky helped to evolve the present corporate structure of TMG and guided the
company in numerous contract negotiations, the latest one resulting in entering into the
current agreement with Phillips Petroleum.
Carl V. Wilson
Mr. Wilson is Certified Public Accountant, with offices in Spokane, Washington.
Mr. Wilson was responsible for preparation of the company's financial statements for the
last three years.
John F. Campbell, Attorney at Law
Mr. Campbell specializes in corporate law and securities legislation and regulations, with offices
in Spokane, Washington. Mrs. Campbell supervises the affairs of Spokane Guaranty Co.
registrar and transfer agent for Thunder Mountain Gold, Inc. and for a multitude of mining
companies, too numerous to mention.
THUNDER MOUNTAIN MINING DISTRICT
"
1 1 / 2
P l a t e # 1
C O L O R K E Y
T M G p r o p e r t y i n 1 9 7 9
T M G a c q u i s i t i o n s d u r i n g 1 9 8 0
T M G a c q u i s i t i o n s d u r i n g 1 9 8 1
M i n e s a n d p r o s p e c t s
D i s t r i c t B o u n d a r y
W i l d e r n e s s B o u n d a r y
0
I M I L E
S c a l e
SUMMARY OF ORE RESOURCE REPORT
SOURCE OF INFORMATION
POSITIVE ORE
PROBABLE ORE
tons oz. gold/t
1. Placer Amex, Inc. (1975)
Sunnyside Mine
2. Nevex Mines Ltd. (1975)
Sunnyside Mine
3. U.S. Bureau of Mines (1973)
Sunnyside Mine
4. Robert J. McRae (1956)
Sunnyside Mine
Robert J. McRae (1956)
Sunnyside Mine
5. George E. Ziegler (1956)
Sunnyside Mine
Thunder Mountain District
6. John Treweek Map (1920)
Sunnyside Mine
tons
POSSIBLE ORE
oz. gold/t
tons
oz. gold/t
1.26 mill. 0.0982
1.01 mill. 0.0920
610,000 0.148
379,000 0.35
491,000 0.14
757,000
1.48 mill.
1.8 mill.
0.18 1.35 mill.
2.00 mill.
25 mill.
728,000
0.14
Plate #3
CARLV. WILSON Certified Public Accountant
April 27, 1982
Board of Directors
Thunder Mountain Gold, Inc.
Spokane, Washington
The following financial statements of Thunder Mountain Gold, Inc. (an Idaho
corporation) are submitted herewith:
Balance Sheet
March 31, 1982 and 1981
Statement of Income and Retained Earnings
for the years ended March 31, 1982 and 1981
Statement of Changes in Financial position
For the year ended March 31, 1982
Notes to Financial Statements
Accountant's Report
We have reviewed the accompanying balance sheet of Thunder Mountain Gold,
Inc. as of March 31, 1982, and the related statements of income, retained earnings,
and changes in financial position for the year then ended, in accordance with
standards established by the American Institute of Certified Public Accountants. All
information included in these financial statements is the representation of the
management of Thunder Mountain Gold, Inc.
A review consists principally of inquiries of company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an examination
in accordance with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be
made to the 1982 financial statements in order for them to be in conformity with
generally accepted accounting principles.
The accompanying 1981 financial statements of Thunder Mountain Gold, Inc.
were compiled by us.. A compilation is limited to presenting in the form of financial
statements information that is the representation of management. We have not
audited or reviewed the 1981 financial statements, and accordingly, do not express an
opinion or any other form of assurance on them.
BALANCE SHEET
MARCH 31, 1982 AND 1981
Assets
CURRENT ASSETS
1982 1981
Cash $ 43,196 $ 5,352
Investments, mining stocks 25,075 25,075
Total current assets 68,271 30,427
EQUIPMENT
Equipment
Less accumulated depreciation
5,477
822
4,655
MINING PROPERTIES (Notes B, D, and E)
Montgomery Group 36,835 36,835
Idaho - Montana Group 10,947 10,947
Thunder Mountain Claims 344,000 326,500
UNRECOVERED EXPLORATION & DEVELOPMENT COST
(Note C)
391,782 374,282
62,824 62,824
$527,532 $467,533
Liabilities and Stockholders equity
CURRENT LIABILITIES
Taxes, Idaho income $ 3,956 $ 30
Taxes, Federal income 2,767
6,723 30
STOCKHOLDERS EQUITY
Common stock 7,500,000 @ .05 par value
shares authorized
issued and outstanding, 7,486,218 467,447 467,447
Retained earnings 53,362 56
520,809 467,503
$527,532 $467,533
See also the accompanying accountant's report
STATEMENT OF INCOME AND RETAINED EARNINGS
1982 1981
INCOME
Royalty (Note D) $124,530 $ 35,000
Interest 8,711 1,426
Dividends, net of foreign tax withheld 932 3,897
Gain on sale of securities 7,487
134,173 47,810
OPERATING EXPENSES
Assays 2,794
Assessment work 5,123
Depreciation 822
Director fees 25,000
Legal and accounting 1,410
Management fees 15,000
1,400
1,400
240
Office supplies and postage 426 337
Printing and supplies 2,641 3,033
Professional services 8,499 3,900
Stock exchange 300 100
Stockholder cost 320 1,001
Taxes and fees 4,052 30
Telephone 764 661
Travel and lodging 3,849 1,347
71,000 12,049
NET INCOME, before provision for Federal income taxes 63,173 35,761
Prior period adjustment - 1,245
Provision for Federal income tax 9,867 -
Total to retained earnings 53,306 37,006
RETAINED EARNINGS (DEFICIT), April 1, 1981 and 1980 56 (36,950)
RETAINED EARNINGS, March 31, 1982 and 1981
$ 53,362 $ 56
See also accompanying accountant's report
STATEMENT OF CHANGES IN FINANCIAL POSITION
SOURCES OF WORKING CAPITAL
From operations:
Net income $ 53,306
Add charges to income not requiring the use of working capital
during the current period:
Depreciation 822
36,197
USES OF WORKING CAPITAL
Equipment purchased 5,477
Mining claim purchased 17,500
$ 22,977
INCREASE IN WORKING CAPITAL $ 31,151
CHANGES IN COMPONENTS OF WORKING CAPITAL
Increase (decrease) in current assets:
Cash, checking
Investment stock and brokerage account
$ 37,844
$ 37,844
Increase (decrease) in current liabilities:
Taxes, Idaho income $ 3,926
Taxes, Federal income 2,767
6,693
INCREASE (DECREASE) IN WORKING CAPITAL $ 31,151
See also the accompanying accountant's report
NOTES TO FINANCIAL STATEMENTS
Note A - Accounting Policy
The company maintains its accounting records on the accrual basis. Depreciation is
computed on the accelerated cost recovery system basis using a five year life.
Investment credit is accounted for by the flow -through method which recognizes the
benefit in the year in which the credit is allowed for Federal income tax purposes. A credit of
$538 was recognized in the year ending March 31, 1982.
Note B - Mining Properties
In preceeding years of operation, the company has acquired several mifiing properties in
exchange for its common stock. The largest such acquisition was in 1978, when 5,650,000
shares of the company's common stock was exchanged for eight patented and seventy
unpatented claims known as the Sunnyside group. Cost of the claims was recorded at the
par value, $.05 per share, of the stock exchanged.
During July of 1980, the company purchased the patented lode claims, known as the
Standard (Elk) Group for $24,000 cash and the Hawkeye and Hawkeye fraction patented
claims for $20,000 cash.
In January 1982, the company purchased the Buffalo, a patented claim, and then
exchanged it for the Tekoe unpatented claim which lies among other claims held by the
company.
All of the above described acquisitions, except for the Tekoe claim, were transactions with
the directors and/or major shareholders of Thunder Mountain Gold, Inc.
Note C - Unrecovered Exploration and Development Costs
The records of the company show that it has elected to capitalize all exploration and
development costs and that these costs consist of cash payments and common stock issued
for services in the amount of 279,672 shares.
Note D - Operating Agreement
Under an agreement with Canadian Superior Mining (U.S.) Ltd., dated September 18,
1978, Thunder Mountain Gold, Inc. was to receive $50,000 August 1, 1981 and $50,000
on August 1 of each year thereafter for the life of the agreement. The amount of $50,000
referred to was to be adjusted in each year by the same percentage as the change in the
average price of gold, during the preceeding month of June, from base price of $185 per
Troy ounce.
Accordingly, Canadian Superior Mining (U.S.) Ltd., paid $124,530 to Thunder
Mountain Gold, Inc. on August 1, 1981. In December 1981, Canadian Superior Mining
(U.S.) Ltd., terminated the agreement and released the property to Thunder Mountain
Gold, Inc.
NOTES TO FINANCIAL STATEMENTS
Note E -
In February 1982, Thunder Mountain Gold, Inc., as lessee, entered into two identical
mining leases. In the lease between James Collord, Robin S. McRae, and Tibor Klobusicky
as lessors and Thunder Mountain Gold, Inc. the company acquired the right to mine the 16
claims known as the Bull group which adjoin the company's claims on the southwest. In the
lease between Peter W. Laczay, Tibor Klobusicky, James Collord and Herbert S. Sanderson as
lessors and Thunder Mountain Gold, Inc., the company acquired the right to mine the 48 claims
known as the "L" group, which adjoins the Bull group and the company's claims. The term of
the leases run until cancelled by the lessee. The company is obligated to pay a royalty of 3% of
the net smelter returns of ore produced from each property. Minimum advance royalties of
$15,000 per year are payable for each lease. The $15,000 minimum royalty is subject to
increase by the same percentage as the increase in the average price of gold, during the month
preceeding the month of payment, above $400 per ounce. The advance royalties are deductible
from any production royalties due under the leases. Thunder Mountain Gold, Inc. is to be
reimbursed by Phillips Petroleum Company for the advance royalties. See Note F, Subsequent
Events.
Mr. Collord, Mr. McRae, Mr. Laczay and Mr. Klobusicky are all major shareholders
of Thunder Mountain Gold, Inc. Mr. Klobusicky is its general manager and Mr. Collord and
Mr. McRae are President and Secretary -Treasurer respectively.
Note F - Subsequent Events
On April 15, 1982, Thunder Mountain Gold, Inc. entered into a mining lease with Phillips
Petroleum Company. The lease permits Phillips to explore, develop and mine the Thunder
Mountain claims in exchange for which Thunder Mountain is to receive royalties on the
production proceeds. Until the beginning of production, Thunder Mountain is to receive
advance minimum royalties of $125,000 per year, increased by the percentage of increase
in the average price of gold over $400 per ounce during the proceeding year. Thunder
Mountain is also to be reimbursed by Phillips for the $30,000, escalated in accordance with
the formula set forth relating to the price of gold in excess of $400 per ounce, to be paid for
the lease of the Bull Group and the "L" Group of claims. See Note E.
The advance royalties are repayable by Thunder Mountain, after commencement of actual
mining production, through withholding of a portion of the royalties to which Thunder
Mountain would be otherwise entitled.
Phillips is required to spend a minimum of $300,000 in 1982, and $400,000 in 1983 for
exploration, development or improvement of the property.
Term of the lease is initially for 10 years and thereafter for as long as continuous mining
or development is conducted or until terminated by the lessee.
THUNDER MOUNTAIN MINING DISTRICT
Messrs. Collord and Dr. Klobusicky inspecting the
drilling activities. Aug. 1981.
Old dumps and outcrops at the Sunnyside Mine.
Old Sunnyside Mine portal. The mine was reopen-
ed in 1980, and beyond the portal area the work-
ings were found intact. The Sunnyside mine has
1.25 million tons of proven gold ore reserves.
The Thunder Mountain area of Valley County,
Idaho.
THUNDER MOUNTAIN GOLD, INC.
Corporate Office 1306 Washington Mutal Building
Spokane, WA 99201
(509) 456-8710
President James Collord
P.O. Box 691, Cambria, CA 93428
(805) 927-4560
Vice President James Collord, Jr.
1354 California Ave., Reno, NV 89509
(702) 329-3595
Secretary - Treasurer Robin S. McRae
1307 W. Jefferson St., Boise, ID 83702
(208) 342-8995
General Manager Tibor Klobusicky
E. 3612 16th Ave., Spokane, WA 99203
(509) 534-7137
Transfer Agent Spokane Guaranty Co.
1306 Washington Mutual Building
Spokane, WA 99201
(509) 838-3500
Legal Counsel John F. Campbell, Attorney at Law
1306 Washington Mutual Building
Spokane, WA 99201
(509) 456-8710
Accounting Carl V. Wilson, C.P.A.
Paulsen Professional Building
Spokane, WA 99201
(509) 747-7191
Environmental Studies James M. Montgomery, Consulting Engineers
1301 Vista Avenue, Boise, ID 83705
(208) 345-5865
AMERICAN
a1NE 1982
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Black Lung Task Group Presents Initial
Comments. For the past several months,
a Coal Industry Task Group has been
working with the Department of Labor
to implement the 1981 Black Lung
Amendments.
On Mar. 25, Task Group representa-
tives met with DOL officials to discuss
the industry's priorities and to receive a
draft of DOL's proposed regulations for
implementing the amendments.
After careful analysis by the task
group, initial comments were drafted
and presented to DOL officials on Apr. 2.
It is hoped that many of the industy rec-
ommendations will be incorporated in
the published rulemaking proposal
(which was to appear in the Federal Reg-
ister in mid -April).
AMC anticipates filing formal com-
ments with DOL after a thorough review
of this publication.
—Toni McCrary
EPA Establishes
Small Business
Ombudsman
The U.S. Environmental Protection
Agency in April appointed Marc D.
Jones as EPA's first ombudsman to
represent small business interests.
Jones has been a business and industry
loan specialist with the U.S. Depart-
ment of Agriculture.
He will investigate and resolve
disputes between small businesses and
EPA, act as a focal point for small
business inquiries and comments,
coordinate agency involvement with
small businesses, make recommenda-
tions on policies and regulations affect-
ing small business, and advise the small
business community on opportunities
for public participation in programs af-
fecting them.
Jones will also oversee some of
EPA's ongoing programs that assist
small firms, such as helping them ob-
tain financial aid for pollution, control
equipment, identifying regulations of
particular concern to them, and help-
ing to build flexibility into regulations
and programs affecting them.
The ombudsman's toll -free hotline—
(800) 368-5888—is now in operation
and will be staffed from 8 a.m. to 5
p.m., EST.
• 1982
Looking Back
Mining in the Winter of '38
"If you think the winter of '82 was
bad, you should have tried mining in
Idaho during the winter of '38. Why; it
was so bad, we had to bring out the gold
by dogsled!" One can imagine a veteran
from the Thunder Mountain Mining Co.
saying this as the blizzards inundated
much of the country last winter.
His memories would have been correct
though. Mining Congress Journal files
revealed a newspaper clipping dated
Apr. 1, 1938, headed "Dogs and Planes
Bring Out Gold" and a press release
about a pump unit dropped into the cen-
tral Idaho mining property by parachute.
With snow blocking roads and passes
during the winter and early spring
months, Thunder Mountain was one of
several central Idaho mining properties
that depended on aviation "for their
very existence."
The dog team would transport the
gold bullion and concentrates by sled the
18 miles from the mine to Stibnite where
a plane would pick it up and take it 75
miles to Cascade, the nearest rail point.
"Mine and mill have been operating four
months under the snow," reported the
news account.
Food, other supplies and equipment
were dropped close to their destination
by parachute. On one such occasion,
Thunder Mountain had put in an emer-
gency order for centrifugal pumping
equipment from Allis-Chalmers
Manufacturing Co. The pump and motor
were first carefully wrapped in paper
and covered with burlap bags, then put
into an excelsior -packed box, weighing
450 1b and loaded into a 500-hp Travelair
cabin plane. The plane circled the 8500-ft
elevation "landing field" (which was
covered with several feet of snow) and
dropped its cargo from 500 ft. With the
aid of the parachute, the boxes landed
entirely undamaged.
This effort was made to mine ore
averaging "$8.22 in gold to the ton," ac-
cording to the mine's mining engineer
and superintendent, L.D. Barry. I won-
der how much dog biscuits cost
then... .
21
Big Creek 7/9/83
Dear Bob & Edna:
5 3c%
Nice to hear from you. We tried your number before we flew in
about June 15, no answer. We stayed with Warren & Jayne Brown
in town for a few days before u, o- '
Road is open over^Prof Ple' nw, and we came over Lick creek when
we brought the car in. This road was excellent, in fact it was about
as good as I have ever seen the thing. They hid some of the rocks
along Hum creek last fall with dirt, and it is holding, so far.
I am causing a whole bunch of anguish and consternation to the nice
people like that ignorant Texan. I feel the first fight they have
is with the Forest Service. I accepted the crazy four foot road,
so the FS has to fight the first appeals. I was going to appeal
the four foot road, but Warren and I talked a lot about this, and
finally decided the way to keep out of the courts myself was just
to accept. I can airlift a compressor to the crosscut site, as
well as the mine cars and all the heavy stuff I need, then can
service them with a couple of Honda three wheelers. We bought
two of the Honda 'Big Red' 250's for this, and will have a trailer
made for diesel, powder and so forth. Sounds like fun.
I sure do thank you for the offer to get me in touch with the legal
foundation, and we might need them at a later date.
This little vein on the Golden Bear is a true fissure quartz, and
we have it open on the surface for a strike length of 450 feet, with
an average width of 22 inches and the gold content is 0.64 oz,
which I like. We have spots along the strike for more than 1500
feet, but the overburden is such that we have not done much on
this. The crosscut I have proposed will cut the vein at a depth
of 300 feet, and if it is there, and assays, we have something
that will make a real good little mine. The wall rock is very
competent, and this little vein will shrink real good in mining,
so we shall see. I am in the process of applying for a patent
now, and have the survey done.
The outfit that has the Clear Creek mine in Plumas county in
California is starting production this year. Strange as it may
seem, they told me that they had found more ore on my claims than
they found on the Gold Stripe, which your old friend, Naseath,
owns.
Come see us. We will have the Thunder Mt Gold annual meeting at
the Shore Lodge Aug 29 this year. For sure, we will see you at the
Stibnite picnic on the 7th of August.
Warm regards,
i
Jim & Marj Collord
37-0 (z acr: 05 c C e-L P H
Dewey Mine operators/praised
The new operators of the
Dewey Mine in the Thunder
Mountain Mining District of
Central Idaho are making pro-
gress to clean up what was a
severe pollution problem, state
officials said.
The Dewey gold mine is the on-
ly significant mining operation
now underway in the historic
Thunder Mountain area.
That situation would change in
1985 if a partnership headed by
Coeur d'Alene Mines of Wallace
carries out its plan to open a large
gold mine at Sunnyside about a
mile away.
State officials in July 1981
discovered muddy water leaking
from three one -million -gallon
water holding ponds and into
Mule Creek, a tributary of
Monumental Creek.
The resulting sedimentation
damaged salmon and steelhead
spawning grounds in the creeks,
said Don Anderson, regional
fisheries biologist for the Idaho
Department of Fish and Game.
"It nearly wiped out a stretch of
Monumental between Mule and
West Fork creeks," Anderson
said.
The operators of the mine, Jim
Nelson and Ron Yanke of Boise,
were told by the Idaho Division
of Environment that they were in
violation of state water -quality
standards.
Production at the mine stop-
ped while the operators pondered
a way to solve the problem, said
Larry Jones, mined lands
reclamationist with the Idaho
Department of Lands.
Last year, Nelson and Yanke
sold their interests in the mine to
Arivaca Silver Mines of Van-
couver, B.C., Jones said.
Arivaca converted the extraction process process to one that did
not require holding ponds, Jones
said. Mining is scheduled to__
resume later this fall, he said.
What waste that is produced,
from the Dewey mine is planned
to be applied to hillsides and the
waste will be contoured and,.:
drained to prevent erosion, he
said.
"I see it as turning around,"r'.
Jones said of the environmental;
quality of the area. "They have -
shown some good faith to this .
point."
"They're doing more than they _
were obligated to do and they're_'';
doing a good job," Anderson
said.
Mule shot from under hunter in wilderness
A Boise man was injured last week when the mule
he was riding was shot and fell on him while in the
River of No Return Wilderness area, the Idaho
County Sheriff's Department said.
Chief Deputy Larry Murray said Tom Tucker, 46,
of Boise, suffered a fractured vertebra when his mule
was shot, apparently by a hunter, as he was himself
hunting last Wednesday, Murray said.
Tucker was forced to shoot to death his critically,
injured mule and was able to walk until found by his -
hunting companions, Murray said.
Tucker was flown by a private medical helicopter,
from Missoula, Mont., to McCall, where he was
treated at McCall Memorial Hospital and released,
Murray said.
Whoever fired the shot did not assist Tucker, Mur-
rav said. The assailant escaped, but the sheriff's .
Evans' departure from power council may
A PAY DIRT News Summary
The appointment of former Washington
Governor Dan Evans to the U.S. Senate will
cost the Northwest Power Planning Council
an influential chairman, but will gain the
council a knowledgeable advocate in the
Senate, say Montana's two council members.
Evans, who served three terms as
Washington governor, was appointed to the
Senate in late September to succeed Henry
"Scoop" Jackson, who died September 1st.
Evans had been chairman of the council since
its inception in 1981.
The council has written a 20-year plan to
meet the electricity needs of the Northwest,
and is charged with monitoring its im-
plementation.
Montana members Keith Colbo and Gerald
ueller said in separate interviews that
losing Evans will change the council.
"Rather than focusing on one individual, we
will see a diffusion of the public role," Colbo
said.
Mueller said Evans was possibly more
popular when he left the governor's office
after 12 years than when he was first elected.
Mueller likened Evans' stature in Washington
state to that of Mike Mansfield in Montana.
"Anyone following Dan Evans is going to
have a difficult route to follow," Colbo said.
"Dan was central to us. He brought the
council credibility in the region and visibility
in the region that we just can't replace with
the individuals on the council."
The council is to elect new officers
sometime this month.
Mueller said Evans will be especially
helpful in Washington because some of the
Thunder Mountain gold reserves increased
production in early 1985.
Coeur d'Alene is the operator and can earn
a 60 percent interest in the property by
spending $2.5 million. Thunder Mountain Gold
Inc. of Spokane will then hold 30 percent and
Phillips Petroleum Company the other 10
percent.
Wheeler said the firm has not yet selected
the milling process for the property and the
mining rate has not yet been determined.
Mining will be by openpit. Thunder Mountain
is expected to produce about 25,000 ounces of
gold a year.
With the current figures, the orebody,
known as the Sunnyside deposit, is good for
about 10 years, Wheeler said. Gold
mineralization also is known to exist on the
nearby Lightning Peak property.
Total investment in the property will be
about $15 million, which will come from an $18
million offering of one million common shares
earlier this year. The rest of the proceeds
from the offering will be for acquisition of
other properties.
By a PAY DIRT Staff Reporter
Coeur d'Alene Mines Corporation says ore
reserves at the Thunder Mountain gold
property in central Idaho have been in-
creased and drilling currently ongoing could
increase them even more.
The company reported September 9th
earlier drilling activities resulted in a 26
percent, or 435,000 ton, increase in previously
reported ore reserves at the property.
•
Dennis E. Wheeler, president, told a group
of New York security analysts that the
company has completed 160 drill holes and
reserves now stand at 2.1 million tons con-
taining 0.09 ounce of gold per ton.
Wheeler also said the company is drilling
another 35 holes to outline the limit of the
orebody extension. He told PAY DIRT he did
not know when results from that program
would be available.
The Wallace, Idaho -based company expects
to complete a final feasibility study and
design this year. That means construction
could begin in the second quarter of 1984 and
change group's role
•
Canadian team wins mine rescue contest
By a PAY DIRT Staff Reporter
A Canadian team took first place in the
third annual International Surface Mine
Rescue Competition held in Gillette,
Wyoming September loth.
The Island Copper mine team from Port
Hardy, British Columbia won the seven -team
competition with 1,362 points, just 51 points
short of a perfect score.
In secoctd place was Westar Coal Ltd. from
Sparwood, British Columbia with 1,270 points.
Third went to Carter Mining Company's
Caballo mine in Gillette, with 1,187.5 points
and fourth went to Mobil Oil Corporation's
Caballo Rojo mine, also of Gillette, with 1,133
Page 32A Big Sky PAY DIRT for October 1983
points.
The Powder River Mine Rescue Association
— comprised of rescue personnel from
Campbell County coal mines — was the
sponsor of the event, held at a coal transfer
building at the Cordero mine south of Gillette.
The field phase of the competition consisted
of a five -part problem, gaining access to the
accident scene, gaining access to the patient,
applying emergency first aid, rescuing the
injured miners and reporting accident con-
ditions to the judges.
The remainder of the competition consisted
of the isolation phase, a 20-question test, and
the medical phase,
focus of the council's work has shifted to
Washington, D.C., as Congress tries to deal
with the financial problems of the Washington
Public Power Supply System.
"They really need somebody back in the
Congress who has the intimate knowledge of
the problems we have here and the courage
and knowledge to do something about it,"
Mueller said.
"I don't expect Evans to singlehandedly
solve the WPPSS problem, because that's too
big for anyone," he said, "but there is a better
chance to get some solution with Dan Evans
in the Senate."
Earlier, the power council adopted a
regional conservation and electric power
plan, but has since directed its • staff to
determine if the plan will have to be revised
because work has been stopped on WPP S
plant No. 3.
Of Mines And Men
Hecla Mining Company has expanded its
exploration and mining activity at several
locations over the past few months.
Management changes have been made to fill
vacancies created by the expansion, the
Wallace, Idaho -based firm announced. ./
Michael Gross, formerly unit managerat
the Lucky Friday Mine in Mullan, Idaho, has
been appointed to the new position of
manager of mines. He will report to Arthur
Brown, senior vice president of operations,
and will be responsible for Hecla's active
mining function.s
Ralph Noyes, formerly unit manager at
Hecla's Leadville, Colorado operation will
succeed Gross as unit manager at Lucky
Friday.
Fred Stahlbush, acting mine superin-
tendent at the Sherman mine at LeadvWe,
will become Leadville unit manager.
Josef Suveg has been appointed unit
manager of the Consolidated Silver Project at
Osborn, Idaho. He succeeds Norman
Graham, who was recently assigned to the
new position of unit manager at Cripple
Creek, Colorado.
Kenneth Elwood, Jr. was named
superintendent of the Neihart, Montana
exploration and development prouject.
Ray Kannegaard has moved to the Lucky
Friday as superintendent, succeeding George
Lander who recently retired.
Bruce Tippin has been named director of
the Mineral Resources Institute at the
University of Alabama. He succeeds Carl
Rampacek, who is retiring.
Tippin most recently worked for Holmes
and Narver Inc. in Denver where he was
manager of metallurgical plants. He holds
advanced degress from the University of
Alabama and the University of Minnesota.
CSC T U 3 L 12 5 8 3 Coeur d'Alene official Ray Threlkeld reviews plan.
Miners sauards at Sunnyside
pledgesafeguards
By Tom Grote
The Star -News
The operators of the proposed Sun-
nyside gold mine in the Thunder Moun-
tain Mining District of Central Idaho
, pledged Thursday night to preserve the
environment of the area despite the mov-
mg and processing of 2,000 tons of ore
: per day.
About 70 people attended a public
meeting at the Shore Lodge in McCall on
the proposed mine, which would begin
full production in 1985 if all necessary
government approvals are given.
Representatives of the mine operators,
Coeur d'Alene Mines of Wallace, and
James M. Montgomery Consulting
Engineers of Boise, ticked off for the au-
dience a long list of local, state and
federal laws covering the project on sub-
jects ranging from water quality to solid -
waste disposal.
The mine would be located on 140 acres
of private land and 55 acres of the Payette
National Forest about 58 air miles nor-
theast of Cascade.
The Thunder Mountain district is
almost completely surrounded by the
River of No Return Wilderness area, but
no part of the project is proposed for
wilderness land.
Concerns over preservation of salmon
and steelhead spawning grounds in the
area were expressed by Don Anderson,
regional fisheries biologist for the Idaho
Department of Fish and Game.
Marble Creek and Monumental Creek
make up one of three known spawning
areas for wild anadromous fish in the
drainage of Big Creek, which in turn
flows in the Middle Fork of the Salmon
River, Anderson said.
Sedimentation from natural run-off
and mining activity have put those spawn-
ing areas in jeopardy, Anderson said in an
interview. "One or two more events could
wipe out salmon and steelhead in
Monumental," he said.
An environmental impact statement
that will judge effects of the Sunnyside
project and recommend ways to counter
them is now underway by Montgomery
and should be completed by next summer.
Coeur d'Alene expects to mine 16,000
ounces of gold per year from the area,
said Ray Threlkeld, manager of western
exploration for Coeur d'Alene Mines.
Couer d'Alene will keep 60 percent of
the profits from the mine, Threlkeld said.
Thirty percent of the profits will go to
Thunder Mountain Gold Inc., the owners
of the mining claims that include the Col-
lard and McRae families of the Big Creek
area, he said.
McCall
- 50 miles
Yellow Pine
.- -
Goers jee
✓ 0"
Star -News map
The remaining 10 percent of the earn-
ings will go to Phillips Petroleum Co.,
which was the major leaseholder of the
area until an April agreement with Coeur
d'Alene Mines.
The mine would employ between 80
and 100 people at its peak. The operation
would move 180,000 tons of material
from 40 to 60 acres of open pit mines dur-
ing the six months per year the mine
would operate.
Threlkeld said initial start-up costs were
unknown, but a stock -offering prospectus
issued by Coeur d'Alene Mines in August
said $15.3 million would be invested in
pre -operation expenses.
River of No Return Wilderness
Stibnite
•
Sutnnyside
Mine
Map shows location of proposed mine.
General Manager's Report
About 120 years after discovery of
gold in the Thunder Mountain region,
commercial production is now set for
1986 at an annual rate of 25,000
ounces of gold. Production beginning
in July 1986 was pledged by the
operator in a forward selling
arrangement.
Exploration and development ac-
tivities continued during the 1984
season at. the Thunder Mountain pro-
perty at an accelerated rate. The
Coeur d'Alene Mines Corporation
spent $3.8 million, as compared to an
expenditure of $2.3 million during
1983—thus bringing the exploration
and development expenditure by the
Operator to a total of $6.1 million as
of December 31, 1984, according to
the Company's 1984 10-K report.
The primary objectives of the 1984
exploration — development season
were as follows:
1. Completion of delineation of the
"Sunnyside" ore deposit and prepara-
tion of the deposit for an open pit
mining operation. For this purpose,
twenty angle holes were drilled in that
area.
2. Further verify the presence of
gold -silver mineralization in the
Lightning Peak area and drill -test pro-
minent geochemical anomalies
developed by the 1983 geochemical
surveys.
3. Secondary objectives included
completion of a comprehensive VLF-
EM (Very Low Frequency Electro-
Magnetic) survey to aid in targeting
and development of the ground water
resources of the project area, genera-
tion of a detailed geologic map, and
bulk channel -sampling of the Light-
ning Peak, Powder Cabin and Sunny-
side talus slope areas.
To attain the above objectives, a
total of 117 holes were drilled, of
which 12 were water exploration
holes, 105 were mineral exploration
holes. Average depth of the explora-
tion holes was 152 feet. Excluding the
Sunnyside angle hole program (which
was drilled in known ore) the program
encountered zones of gold mineral-
ization at Lightning Peak. The drilling
program on the Gold Bug claim
averaged .1245 oz/ton gold. Ore on the
Gold Bug claim occurs in a very
Dr. Tibor Klobusicky
shallow depth and it is amenable to in-
stantaneous open pit mining. This ore
represents an extension of the Sun-
nyside orebody. The water well pro-
gram was not totally without mineral
intercepts; one hole penetrated a
15-foot wide zone at 300 foot depth,
averaging 0.613 oz/ton gold. This
represents an important new explora-
tion potential along the Thunder
Mountain fault.
This program found sufficient water
for industrial and domestic needs.
Geologic mapping was continued in
1984, with the completion of a detail-
ed map of the Sunnyside, Thunder
Mountain, Lightning Peak areas.
Much was accomplished in refining the
knowledge of the geologic structure,
volcanic stratigraphy, and mineraliza-
tion of the region.
Talus, and other colluvium sampling
indicated that residual gold occurs
near the surface in several areas. The
Powder Cabin road crossed an area of
approximately 200 x 200 feet samples
from which averaged 0.04 oz/ton gold.
Additional residual gold was found in
the Sunnyside talus slope. These areas
represent future exploration targets.
In addition, work continued on
engineering objectives• in preparation
of commercial production. The
Morrison-Knudsen Co., of Boise, Idaho
was retained to handle the respon-
sibilities connected with design,
engineering, procurement and con-
struction management.
The 1985 engineering program will
include completion of bridge construc-
tion on an all-weather access road to
mine and plant site. All concrete sur-
faces, as well as asphalt work and
building foundations are scheduled for
completion in 1985.
Installation of process buildings is
also scheduled for 1985.
Crushed ore will be deposited on
leach pads in increments of 20,000
tons per pad for the heap leaching
process. Precipitation of the pregnant
solutions will be accomplished by the
Merrill -Crow process. Test work in-
dicates that the complete leaching cy-
cle from crushed ore to bullion, will be
completed in approximately 30 days.
Construction of leach pads has been
95% completed.
Environmental considerations were
discussed in the Operator's 10-K
report to the S.E.C. dated December
31, 1984. Following is a quotation
from the above report:
"Because the proposed production
activities will take place wholly upon
patented claims, an environmental im-
pact statement need not be filed with
the U.S. Forest Service. Water quality
and acquatic life considerations are
the primary environmental concerns.
The Company has spent $525,269 on
environmental studies. Based on these
environmental studies and others con-
ducted by prior Lessees, the Company
believes the project will comply with
applicable environmental regulations."
We are pursuing an aggressive
evaulation program of precious metal
deposits outside of the Thunder Moun-
tain region, with acquisition of
meritorious properties in mind.
Recently properties in Oregon and
Arizona were examined and additional
property evaluations are scheduled in
the Pacific Northwest.
Tibor Klobusicky
General Manager
7
SELECTED FINANCIAL DATA
Following is a summary of selected financial data which indicates trends in the Company's financial condition and
operations.
Selected Balance
Sheet Data
Nine Months
Ended
December 31,
1984
Fiscal Years Ended March 31,
1984 1983 1982 1981
Current assets:
Cash items $133,528 $ 51,921 $ 63,530 $ 43,196 $ 5,352
Prepaid expenses 7,730 23,603 25,170 7,100 -
Investments 7,758 7,758 17,501 17,501 17,501
Property and equipment:
Mining claims 351,582 351,582 344,001 344,001 326,501
Equipment 25,471 27,497 17,505 4,655
Total assets $526,069 $462,361 $467,707 $416,453 $349,354
Current liabilities:
Accounts payable $ 461 $ 6,167
Taxes $ 1,189 100 $ 30 $ 30
Accrued directors
and management fees 22,917
Unearned advance
royalties 38,750
Stockholders' equity:
Common stock 374,329 374,329 374,155 374,155 374,155
Paid in capital 92,554 92,554 91,654 91,654 91,654
Retained earnings
(deficit) 21,208 23,689 (4,369) (49,386) (116,485)
Treasury stock (24,150) (29,400)
Total liabilities and
stockholders' equity $526,069
$462,361 $467,707
$416,453 349,354
Selected Income
Statement Data
Royalties and
other revenue $128,985 $195,784 $166,274 $134,173 $ 47,810
Expenses 130,466 167,726 121,257 67,074 12,367
Net income (loss) $ (1,481)
$ 28,058 $ 45,017
$ 67,099 $ 35,443
Net income per share NIL $.004 $.006 $.009 $.005
No dividends have been paid by the Company.
8
THE FARMER FEEDS THEM ALL
The politician talks and talks
The actor plays his part;
The soldier glitters on parade,
The goldsmith plies his art.
The scientist pursues his germ
O'er the terrestrial ball,
The sailor navigates his ship
But the farmer feeds.them all.
The preacher pounds his pulpit desk,
Brokers read their lengthy tape;
The tailor cuts and sews his cloth
To fit the human shape.
The dame of fashion dressed in silks,
Goes forth to dine or call,
Or drive, or dance, or promenade;
But the farmer feeds them all.
The workman wields his shiny tools,
The merchant shows his wares;
The aeronaut above the clouds
A dizzy journey dares.
But art and science soon would fade,
And commerce dead would fall
If the farmer ceased to reap and sow,
For the farmer feeds them all.
THE MINER SUSTAINS THEM ALL
The politician talks and talks;
The actor plays his part;
The soldier glitters on parade;
The goldsmith plies his art.
The scientist pursues his germ
O'er the terrestrial ball;
The sailor navigates his ship,
But the miner sustains them all.
The preacher pounds his pulpit desk;
The'broker reads his lengthy tape;
The tailor cuts and sews his cloth
To fit the human shape.
The dame of fashion dressed in silk
Goes forth to dine or call
Or drive or dance or promenade,
But the miner sustains them all.
The farmer guides his tractor,
With its shiny plow;
The merchant showes his wares;
The aeronaut above the cloud
A dizzy journey dares.
But art and science soon would fade
And commerce dead would fall,
If the miner ceased to search and mine --
Without Earth's minerals and metals to refine --
Still cavemen would we be all.
80 - 70A 60 YEARS AGO
from issues of Skillings' Mining Review
October 11, 1913—Work on the Consolidated Interstate -
Callahan Co. property is progressing satisfactorily according
to the company's president, Mr. Carlson. He reports condi-
tions in the development to be good. The Interstate orebody
on the No. 4 level, as well as on the No. 3 level, still maintains
high values in the drift. Many improvements are being
completed, including new accommodations for the miners.
The electric haulage is complete, and the mill will go into full
production capacity next week. Concentrates from the mill
are going forward daily. The company predicts that October
shipments will be the highest ever.
October 11, 1913 — The •Shattuck -Arizona Copper Co.
also reports substantial progress at its properties. During
September, the company opened up an important showing of
copper -lead ore in crosscut No. 1 on the 200-ft. level. Work-
ers also laid track across the big cave, and development will
begin next week on the territory south of the cave and over a
very important high-grade silver -copper orebody on the 300-
ft. level. Engineers expect to encounter ore as they drive the
main drift south. Gold ore was recently encountered in
crosscut No. 12 on the 300-ft. level. It appears to be an
important drift and indicates good possibilities for the terri-
tory between the 200-ft. and 300-ft. levels. On the 500-ft.
level, the company has opened up more lead -carbonate ore
carrying good silver values.
October 13, 1923 — Anyone attempting an historical
sketch of different districts of the Marquette iron range will
immediately recognize the names of several men who were
among the pioneers at nearly all the exploration sites where
ore was discovered. Most of the mines in the Numboltd group
reaching the producing stage prior to 1870 were under the
direct control of, or operated with, capital supplied by men
like Edwin Parsons, Edward Breitung, Samuel P. Ely, Samuel
L. Mather, J.W. Edwards, Joseph S. Fay, Powell Stackhouse,
Samuel J. Tilden and many others. In the early history of
mining, records were not kept very accurately. Early writers
appear to have been confused in their use of the terms
"production" and "shipments." For this reason, production
figures prior to the late 1870s are very inaccurate, yet they are
too small in the aggregate to be as important commercially as
historically.
October 13,1923—The E.J. Longyear Co. of Minneapolis
has a contract for drilling on the north shore of Lake Athabasca,
150 miles from Waterways, the nearest railroad point. The
station is the end of steel of the Alberta & Great Waterways
RR in Canada. The contract for drilling is on land near
Fishhook Bay on Lake Athabasca. It is an iron ore exploration
for a syndicate of Alliance, Ohio people. The outfit that has
been shipped in by the E. J. Longyear Co. had to cover 150
miles of the distance by barge, on river and lake. The area has
never before been explored for iron ore.
October 13,1923 —D. C. Jackling, San Francisco, presi-
dent of the Mesabi Iron Co., and famous copper man, passed
through Duluth early Wednesday morning on his way to
Babbitt, Minn., to visit the plant of the iron company. His car
was attached to the morning train of the Duluth & Iron Range
Ry. Charles Hayden, New York, of Hayden, Stone & Co.,
arrived Thursday noon and left for Babbitt by auto.
October 14, 1933 — The American Smelting & Refining
Co. is expanding its interest in gold mining through the
purchase of a 51 % interest in Tarkwa Gold Areas Ltd., which
owns an operating gold mine on the Gold Coast of West
Africa. The company has also purchased 90,000 shares of
Mount Isa Mines Ltd., 8% debenture stock. Another impor-
tant deal by the smelting company is the purchase of the
Descubridora mine, located near Chihuahua, Mexico. In
recent years American Smelting has been actively entering
the actual operating of mines as an adjunct to its extensive
smelting works and refineries. The past eight years has seen
the company acquire important lead, zinc and gold holdings
in Africa, Australia, Canada and Mexico.
October 14, 1933 — The possibility always exists while
navigation is open that schedules may be increased or de-
creased suddenly. It is expected that the Duluth, Missabe &
Northern ore docks will be through for the season about Nov.
1, but the Great Northern, Soo Line and Northern Pacific
expect to move some ore in November. The Great Northern
schedule calls for some ore loading as late as Nov. 20 to 23.
The Great Northern totaled 24.47% of ore shipped from the
district in September, and 23.07% for the season to Oct. 1.
The Missabe railroad shipped 29.34% in September, and
28.55% for the season to Oct. 1. The Skillings' Mining
Review estimate of 20,000,000 tons of ore shipped for the
present season will be realized and quite likely surpassed.
Shipments up to Oct. 1 had totaled 16,301,573 tons.
October 14,1933—Gold at $31 an ounce, with prospects
for still higher prices, has stirred the once famous camp,
Goldfield, Nev., to renewed life. Leasers have started pros-
pecting again in old workings and on the surface, and two
promising discoveries have been made. One miner, panning
in the old Rielley lease in the Florence mine, found a 3-ft. vein
of high grade ore just cutting the corner of the station on the
150-ft. level. Another man, familiar with history, hunted for
an elusive vein of rich ore cut by a blast when the C.O.D. shaft
was started 28 years ago, and found it. Baird and Duffy,
content with ore of a lower grade already mined, have leased
a 1000-ton dump on the Red Hill -Florence that can now be
shipped at a profit. A visit of three days by George Wingfield,
president of Goldfield Consolidated, which paid $29,000,000
in dividends from the bonanza mines, accompanied by R.A.
Hardy and W. Sharp of his engineering staff, has awakened
rumors that the company may resume work soon.
PAGE 14 - OCTOBER 9, 1993 - SKILLINGS' MINING REVIEW