After the meeting I posed this question to PQ.

Since large investors such as Allen Simon are investing in SFMI ultimately to gain exposure to precious metals, would it be possible to structure Private Placement deals with payouts in actual metal rather than dilutive shares? He said there may very well be deals structured in this manner and he was quite open and supportive of the idea.

Don't know if this will go anywhere but it would certainly be an attractive option to me, were I to throw a big check at the company.

(Unfortunately, any big check I threw at the company would come bouncing back pretty quickly)

Go SFMI

Garick,

This is only speculation on my part, but it would not surprise me if curious miners, aware of the historical bounty in an around WEM have sent their own geo's into the tunnel for a look-see. These big guys do their own work and will not wait around for the 43-101. They don't need that report.

The "perfect storm" scenario is one I am hopeful for as well. Think of the events that are shaping up in our favor.

1) Gold and Silver to reach new highs

2) Majors looking aggressively to replace their resources

3) Smart money entering this market

4) The public becoming aware of the need for PM's in their portfolios

5) Massive currency devaluation across the globe

6) Any deposit featuring VISIBLE gold and concentrations exceeding 1 oz per ton

7) Sinker tunnel worth 100's of millions in today's $

8) Perhaps the most attractive infrastructure package on the planet, certainly for a company the size of Silver Falcon

Please feel free to add your thoughts and event schedule to this list.

As I said above, and as Pic pointed out, this is pure speculation, but Oh, what fun!

Go Falconeers!

Pic wrote this:

2014 would leave a 16 month window for a buyout.....not so unthinkable and it could be sooner. Several world class miners have been rumored as "watching" us closely....too easy and too early to start such a rumor, but fun nonetheless.

On the bus ride back to the hotel after the SFMI meeting, I asked RK this question.

"Does Silver Falcon have any confidentiality agreements in place with any major mining companies?"

He answered enthusiastically in the affirmative.

Howdy Boys, just back to Fort Lauderdale after flying from 7:00 AM this morning. Long day, Boise - Denver, Denver - Houston, Houston - Ft. Lauderdale. Ouch. Pic, my prayers go out to your Brother, I hope he pulls through.

I got a lot out of the meetings. The mill looks good, all is going pretty much as planned. Let's start with the bad news first. Mining is a tough business. It is slow and methodical, and just when you think things are starting to roll, something will fly right out of left field and bite you right in the ass. Mistakes have been made, miscalculations admitted to, and now we lace up the boots and press on.

I was impressed with Pierre. He is energetic, driven and extremely dedicated to getting this thing going. He looks healthy and strong. Regardless the mistakes and mis-steps, he is moving forward and I believe he will get it done. In a private moment, he shared these sentiments. He is 74 years old. He's made lots of money in his life and done lots of different things. SF is not just another notch on his belt. It's the final act in the play. It's his last deal. He's gonna give it everything he's got. I believe this mine is in his blood. He wants this as bad as we do. I believe it.

I also had a private conversation with Allen Simon. He's covinced as well. He told me he never makes mistakes where his money is concerned. He told me he sent a team to the operation before he committed one penny to the Falcon. They inspected every inch of the operation from the front gate to deep inside the Sinker. After their report, he opened his wallet. This was about 2 months ago. Yesterday, he opened his wallet again after seeing the progress that's been made in the ensuing months. For him, this looks like a two year play. He thinks this will be a "Major Score". I like the way he's thinking.

Timelines:

November 1, drill program begins. This does not mean drilling begins. This means advance prep work in the Sinker begins. Rock bolting must be finished to the satisfaction of Bureau of Mines. Blasting within the tunnel will need to be completed as well as other preliminary items to allow for drilling to begin. This will probably take us through January. Optimistic expectations are for actual drilling to begin on or around Feb. 1. I would imagine we could expect some initial drill results to leak out around April or early May.

More to come, but I am tired and need some winks. Remember, mining is a tough, tough business. Maybe the toughest business on the planet. But we truly have a gem in War Eagle Mountain. I believe the boys will get this thing done. They are the team we have in place and not much will change in that regard. It's very possible that SFMI may start gaining some traction just as the PM market begins to heat up in earnest next year. We may be swept up in a perfect storm of positive developments. This has been a long tough road so far for me, and I'm sure we'll stump our toes a time or two before this is all over. But I'm truly in this thing for the long haul. Best get'em while they're cheap. The upside here is scary good.

Best to all the longs,

Great to meet all you guys this weekend, Rich, Jim, Dave, David, Don, Nadine, JoAnn, Tamara, Bobby Joe, Tom, Lewis, Pierre and Allen.

Martin, I would love to hear what you friend had to say about his time in the tunnel. Is he a geologist? Will he be at the SHM? Is he still associated with the company?

As far as the share dump is concerned, my belief is that when the time comes for this thing to take off, volume will spike to many millions of shares traded per day, for prolonged periods of time. If a frenzy is approaching for the PM shares, we'll get caught up in it and it won't matter if some people are taking profits because the desire for shares will be so strong, our price will climb like a rocket. You're doing the right thing, building your position while nobody wants the shares. When this thing goes, you won't want to be among those chasing the price higher.

Sure, 2000 tpd at .3 grams per ton. But if we can determine that we can dig up ore that is even half the historical values of WEM, 120 tpd would be plenty to start. That would easily finance greater capacity mill construction. We would be belching out cash, and the clamour for our shares would be mighty.