Silver Falcon Mining

Yes, Spiny, I was always under the impression that the "tailings" were un mined ore with the exception of the one Dewey pile. All longs have believed this and it was a very early positive factor in my understanding of the business model that SFMI projected. This above ground, low cost gold and silver were to feed the mill and produce healthy revenue to carry the company nicely through to drilling on War Eagle without too much stock dilution. We also were told that as soon as the Sinker Tunnel was ready that readily accessible, rich veins and ore left in shafts could readily be added to the mill feed to further enhance it's value considerably. This is still the plan, albeit much delayed...and given the assays so far for the "tailings" I would have to now assume that newly mined ore would not be diluted by adding t the "tailings" feed.

As an interjection here, is it a leap of faith to still assume that the grades in the remaining 600,000 tons of “tailings” or unprocessed ore from all the various mine workings will not be of a higher grade? Even if we were told we now question the veracity of the hitherto fore communicators. R. Scammel changes that. Assays and mill grades can prove it.

The NR of Feb. 11/08 reported that grades from the least valuable Poorman "tailings" were 3.3 gm/t gold and 94.5 gm/t silver (Met-Solve Labs). On July 7/08 Nr stated that the second "tailings"sampling assays were 6.9 gm/t gold and 50.9 gm/T silver. On Sept.11/08 NR announced corrected earnings estimate "Silver Falcon has $49 million dollars of proven reserves based on the average of the precious metals contents assayed in some 4 dumps, out of 16, accessible on war Eagle Mountain..." based on $800 gold and $12 silver and a cost of $150/ounce. March 25/09 NR restates "tailings" tonnage up to 330,000 tons on average of previous grades now of 5.1 gm/t gold and 72.7 gm/t silver.

Somewhere along the line reports of OSO "tailings" grades (there are those “expectations again) being anywhere from .75 oz/t ( 22gm/t) to 2 oz/t (62 gm/t) gold equivalent were being expected.

Today we get "tailings" assays of .3 to 2.6 gms/t. Hard questions need answering in my humble opinion...especially so from those with millions of shares who have toured the facilities and the workings.

However, it is faulty expectations that have been unnecessarily misleading. In reality, those grades from SFMI's above ground "material" are very good considering the low cost to process them and the prices of the PMs. We can all cite a long list of juniors out there that are drilling anywhere from .4 gm/t to 1.5 gm/t and have years of work ahead of them just to prove up an iffy resource...and they are trading at anywhere from 10 cents to $1....no mill, no smelter, no lab, no permits, no infrastructure, some in politically unsafe areas, no promise of a mother load of rich resources awaiting them in paint-by-number, ready to serve, established mine workings.

Now, I am reluctant to say this but long term holders of this stock have been mislead and we have every right to be totally incensed at this time. Many promises/projections have been broken, cancelled and/or delayed. I have very mixed feelings about all this and it assaults the personal credibility of the officers of SFMI as well as the long standing good will of the company’s supporters. I could do a ton of research and add a lot more fuel to the fire but that is all water under the bridge now and we can only look forward from here. It is not difficult for those such as I who have invested and followed this since late 2007, and who have always given RK ad PQ the benefit of the doubt, to be distraught. To be fair, yes, honest mistakes have been made and misplaced exuberance led to much unrealistic expectation.

On the other hand given the plethora of objective, detailed, undeniable, qualified geological historical data that exists on the resources of War Eagle Mountain, completely outside of the privy of the management and principles of SFMI, I am still convinced of the incredible potential of this potentially world class, rich gold and silver deposit...millions of ounces.

As Spiny and others have alluded to, the fact that R. Scammel, a respected, qualified and successful geologist is now in charge and this has given me the assurance I need to hold this investment long. I am disappointed for the short term but believe the rewards will be there given patience and time. Maybe not as long as we think.

We are on the edge of a flood into the PM and JPM stocks over the near to intermediate term. I’d hate to be on the outside looking in on this particular JPM should it prove up...especially coincidental to a new wave of long awaited speculative fever hitting the JPM sector.