Resources Summary

The Clifton Shear Veins

The Clifton Shear Zones are just one of the numerous gold and silver deposits found on the Clifton joint venture properties. The Shear Vein system contains over forty identified veins that were mined historically in the 1800's and early 1900's. The Shear Vein system is made up of mostly patented mining claims. These claims were originally owned by as many as 100 surviving descendants of the original miners. It took management almost 30 years to obtain every patented claim in this historic mine area, and to form them into one contiguous block of claims. Two independent mine engineering reports have been issued on the property, both outlining a very large ore potential in the Shear Vein system. But, with recent changes in the laws governing the issuance of proven and probable reserve estimates, neither of the two reports meet the new requirements and as such will not be discussed further herein.

The veins are a rich source of silver, lead and gold. The Shear Veins are unique in the fact that they come right to the surface. The Shear Veins are visible on the surface for distances of up to 6,000 ft. Approximately 100 mine workings penetrate the shear veins and give access into the veins for distances of over 400 ft. The old workings are located on all sides of the Shear Vein property at varying elevations, enabling the company to show consistent silver, gold, and lead values throughout the shear vein system. These veins were originally mined from about 1860 to the early 1900's. At that time, the ore had to be shipped at least 100 miles by wagon, 3-to-5 tons at a time, to be processed. This attests to the exceptionally high value of the mined ore.

Other Clifton Mineral Deposits

Clifton Mining's long term value is further enhanced by the identification of additional mineral deposits within the claim area. Two additional types of mineral deposits have been discovered within Clifton Mining's property boundaries, and there is strong evidence of a third. They are skarn deposits, bedded replacement deposits, and the probable third is a porphyry deposit.

Skarn Deposits

Clifton Mining's skarn system is a two-mile-long system with numerous surface exposures. (see Figure 1). Historical records in the area report some gold values associated with these skarns to be in the multiple-ounce gold category. Copper, which is also associated with the Clifton skarns, can exceed 10%. Samples taken within Clifton Mining's skarn system have already shown values in excess of 0.3 oz./ton gold. Further drill work and sampling will be necessary to delineate exact boundaries and tonnage potentials, however it is currently estimated that Clifton's skarn system may hold as much mineral value potential as the Shear Zones.

Bedded Replacement Deposits

Clifton Mining has already discovered and assayed numerous bedded replacement deposits within the Clifton claim block (see Figure 2). . The assay values associated with these deposits have typically been very high-grade. Assay work completed on the surface and within accessible mine workings, shows value ranges from 0.014 to 0.50 oz./ton gold, 8.0 to 50.0 oz./ton silver, 1 to 30% copper (Monocco bedding), and lead values from 7 to 34%. Current information shows average values within the bedded replacement deposits of approximately 0.04 oz./ton gold, 12 oz./ton silver, and 10% lead. The Clifton Cabin bedding, which was core drilled (see announcement 11/3/97), showed average values of 28.11 oz/ton silver, 17.6% lead, and 0.013 oz/ton gold.

Porphyry Deposit

Clifton Mining can also show strong evidence that a large mineralized porphyry system intrudes the property from the east side, holding promise for a large deep-seated copper or copper molybdenum deposit (see Figure 3). . It is expected that this porphyry deposit will be similar to the Ruth (Robinson) deposit, located only 70 miles south of Clifton Mining's property. The Ruth deposit has produced 320 million tons of ore to date, including 2.7 million tons of copper and 90 tons of gold.

Ultimate Potential

Many geologists who have visited the Clifton area have commented on the similarity of this district to the major gold producing areas of the Carlin Trend. There are the same indicator minerals for gold along with numerous silica blowouts, called jasperoids. Drill cores have shown intensive geological activity, preparing the ground for significant mineralization. Ultimately, we hope this district will provide similar world class deposits of gold similar to those of the Carlin Trend.