Newsletter to the shareholders of the Gold Crown Mining Corporation

THIS REPORT IS COMPILED TO ORIENTATE THE SHAREHOLDERS OF THE GOLD CROWN MINING CORPORATION, AS TO THE PAST, PRESENT, AND PLANNED FUTURE OPERATION OF THE GOLD CROWN MINE.

ON JULY 20, 1953, A QUARTZ VEIN WAS STRUCK AT THE 1,510 FOOT POINT IN THE EXPLORATION DRIFT, AT THE LOWER WORKINGS, WHERE THE MAIN OPERATION OF THE MINE IS NOW IN PROGRESS. THIS VEIN WAS LOCATED AT A POINT ON THE SERPENTINE CONTACT, WHICH WAS VERY FAVORABLE FOR THE DEPOSITION OF COARSE GOLD, AS WELL AS FREE MILLING ORE. THIS WAS PROVEN OUT IN THE NEXT FIFTY FEET OF DRIFT ON THE VEIN, WHICH WAS OUR FIRST ORE SHOOT.

THE COURSE OF OPERATION WAS THEN DECIDED TO THE FUTURE EXPLORATION OF THE MINE. AS THE GOLD CROWN MINE, AT THAT TIME, WAS UNDER LEASE BY THE GILES BROTHERS, THEY DECIDED THAT INSTEAD OF MINING THE DISCOVERED HIGH GRADE ORE SHOOT, TO DRIFT AHEAD ON THE VEIN, AND OPEN UP AS MANY ORE SHOOTS AS POSSIBLE TO DETERMINE IF THIS VEIN WOULD BE A SUSTAINED PRODUCER, AND NOT JUST A ONE OR TWO SHOOT MINE WITH A LIMITED LIFE EXPECTANCY: BEFORE PUTTING IN AN EXPENSIVE MILL OF THE RIGHT CAPACITY. ALSO HAVING ENOUGH ORE AND PROVEN VEIN TO WARRANT THE EXPENSE.

BEFORE THEIR LEASE EXPIRED (AND THE SHAREHOLDERS OBJECTED STRENUOUSLY TO RENEWING THEIR LEASE AFTER THEY HAD STRUCK GOLD, EVEN FOR A SHORT TIME), THE GILES BROTHERS HAD DRIFTED AHEAD ON THE VEIN APPROXIMATELY 450 FEET AFTER ENCOUNTERING THE VEIN, AND LOCATED OTHER ORE SHOOTS TO THE NORTH SHOWING FREE GOLD ALSO WITH PROMISING RESULTS.

THE VEIN CONTAINED GOLD AT INTERVALS FOR APPROXIMATELY 200 FEET IN LENGTH ALONG THE STRIKE AND COULD BE ONE LARGE ORE SHOOT, OR A NUMBER OF SMALL ORE SHOOTS. THE ENRICHMENTS CAME AT IRREGULAR INTERVALS WITHIN THE 200-FOOT DISTANCE: SHOWING MASSIVE AS WELL AS VISIBLE FREE MILLING ORE. THE GOLD IN THIS AREA WAS NOT AS MASSIVE AS THE FIRST ORE SHOOT, BUT OF A MUCH LARGER MINERALIZED ZONE. THE AVERAGE WIDTH OF THE VEIN THROUGH OUT THESE TWO MINERALIZED AREAS WO0ULD BE APPROXIMATELY TWO FEET IN WIDTH SWELLING TO A WIDTH AS LARGE AS SIX FEET, AND COMPLETELY PINCHING INTO NOTHING BUT TO WALLS IN OTHER SECTIONS, SHOWING THAT THERE HAS BEEN CONSIDERABLE MOVEMENT ALONG THE WALLS OF THE VEIN DURING THE PERIOD OF MINERALIZATION. THIS IS AN INDICATION AS TO A GOOD PRODUCING VEIN.

ASSAYS IN THE ALLEGHANY DISTRICT ARE OF LITTLE OR NO VALUE BECAUSE OF THE INCONSISTENCY OF THE ENRICHMENTS, EVEN WITH IN THE ORE SHOOTS THEMSELVES. ONE ASSAY TAKEN FROM THE SAME ORE WOULD VARY AS HIGH AS HUNDREDS OF THOUSANDS OF DOLLARS A TON FRO EACH OTHER IN SOME CASES. THE EXAMPLES ARE: WITHIN A FEW INCHES OF EXTREMELY HIGH GRADE ORE, THE QUARTZ OR VEIN FORMATION MAY ASSAY ONLY A FEW CENTS A TON. THE ONLY PROVEN WAY IS BY ACTUAL RECOVERY IN THE MILL ITSELF. THIS IS NOT THE EXCEPTION BUT THE PROVEN RULE OF THIS DISTRICT.

AFTER THE EXPIRATION OF THE GILES BROTHERS’ LEASE, THE GOLD CROWN MINING CORPORATION TOOK OVER MINING OPERATIONS, FUTURE POLICY AND OPERATIONS WERE CAREFULLY PLANNED, AND CARRIED OUT TO DATE, FOR A SUSTAINED AND SUCCESSFUL MINE, LOOKING FORWARD TOWARD YEARS OF PRODUCTION. THIS HAS BEEN DILIGENTLY WORKED FOR.

IT WAS PROPOSED AT THE TIME OF THE DISCOVERY OF GOLD TO PUT IN A LARGE MILL AND IMMEDIATELY BEGIN PROCESSING ORE FOR THE RECOVERY OF GOLD. BUT AFTER CAREFUL STUDY, AND THE ADVICE OF HIGHLY QUALIFIED MINING ENGINEERS, IT WAS DECIDED BY THE DIRECTORS TO INSTALL A SMALLER MILL TO USE AT ALL TIMES FOR HIGH GRADE ORE AND TO WAIT TO INSTALL A LARGER MILL WHEN THE VEIN WAS FURTHER DEVELOPED, AS THE EXPENSE OF A LARGE MILL WOULD BE TOO GREAT FOR THE CORPORATION AT THE TIME. THIS WAS DECIDED AS THE PRESENT AND FUTURE POLICY TO THE BEST INTEREST OF MINING OPERATIONS, AND THE SHAREHOLDERS AS A WHOLE.

PRESENT AND FUTURE MINING, MILLING, AND DEVELOPMENT POLICY.

1. TO ERECT A 26 BY 80 FEET ALL STEEL SHOP BUILDING NEAR THE PORTAL OF THE MAIN WORKINGS. THIS IS NECESSARY AS THE PRESENT BUILDINGS (WHICH ARE TEMPORARY) WERE CONDEMNED BY THE STATE MINE INSPECTOR AS A FIRE HAZARD. (THIS BUILDING IS NOW UNDER CONSTRUCTION.)

2. TO DRIFT 1000 FEET TO THE NORTH ON THE VEIN WHICH WILL THEN HAVE OPENED UP APPROXIMATELY 1,500 FEET AND POSSIBLY MANY MORE ORE SHOOTS. BESIDES GIVING UP GREATER “BACKS”, (VEINS ABOVE THE DRIFT TO THE SURFACE). PRESENT “BACKS” ABOUT 600 FEET.

3. TO TAKE OUT ALL BOTTLE NECKS IN PRESENT WORKINGS. IN ORDER TO SPEED UP DEVELOPMENT AND EFFICIENCY OF MINE OPERATION AT A MINIMUM OF COST TO THE CORPORATION. (THIS IS NOW ALMOST COMPLETED BY OUR CREW.)
THESE BENEFITS ARE AS LISTED BELOW
A. REPLACEMENT OF ALL 12# RAIL WITH 20# RAIL TO HANDLE OUR HEAVY ORE CARS. (THIS IS NOW COMPLETED).
B. CONDITION TRACK AND CURVES TO INCREASE SPEED OF ORE HAULAGE WITH LOCOMOTIVE (THIS IS PARTIALLY COMPLETED).

4. INSTALL REMAINDER OF VENTILATION PIPE TO WORKING FACE, WHERE GASSES UPON BLASTING ARE CREATED, AND HAVE SLOWED DOWN THE RETURN OF THE MEN TO THE WORKING FACE. THIS WILL BE OVERCOME BY A REVERSIBLE BLOWER-SUCKER VENTILATOR, WHICH IS NOW INSTALLED, AND WILL BE FINISHED BY ADDITIONAL VENTILATION PIPE CONTINUED BACK TO THE FACE, WHICH IS NOW ON HAND.
5. A. INSTALL SIDING (CALIFORNIA SWITCH) FOR THE EMPTY ORE CARS. AS THIS HAS BEEN A DEFINITE BOTTLE-NECK IN THE TRANSFER OF LOADED AND EMPTY ORE CARS TO AND FROM THE WORKING FACE. (THIS IS ABOUT 70 PERCENT COMPLETE)
B. ALSO PURCHASE AND INSTALL A PORTABLE CAR TRANSFER, WHICH WILL BE KEPT NEAR OUR LOADING MACHINE (MUCKER) AS WE PROGRESS NORTHWARD. THIS WILL ALLOW THE LOCOMOTIVE TO BRING FIVE EMPTY CARS TO THE FACE, FROM THE SIDING AT ONE TIME FOR LOADING AND TRANSFER THERE: THEREBY SAVING MANY MAN-HOURS.

6. TO COMPLETE OUR PILOT MILL BY ADDING IT TO A KNUDSUN BOWL FO THE MEDIUM FINE GOLD RECOVERY. THESE TWO UNITS HAVE BEEN ORDERED FROM DENVER, COLORADO, AND SHOULD BE DELIVERED WITHIN THREE WEEKS. THE PURPOSE OF THE MILL IS TO PROCESS OUR RICHER ORES, AND THEREBY BEGIN TO DEFRAY EXPENSES BY PRODUCTION. ALSO TO WORK OUT OUR METALLURGY TO GET THE MAXIMUM RECOVERY AT A MINIMUM OF EXPENSE WHICH WILL BE USED IN THE PILOT MILL, AS WELL AS THE PROPOSED BIG MILL. THIS PILOT MILL IS ABOUT 80 PERCENT COMPLETE, AND WILL BE USED FOR WORKING HIGH GRADE ORE IN PREFERENCE TO SENDING IT THROUGH THE BIG MILL. THIS WILL GIVE US CLOSER SUPERVISION AND CONTROL OVER THE RICH ORES.

IN CONCLUSION: WE WISH TO POINT OUT, THESE STEPS HAD TAKEN TO GET THE MAXIMUM OF EFFICIENCY WITH A MINIMUM OF MAN POWER. BEFORE WE CAN PROCESS OUR ORE TO BULLION, AND HAVE ACCEPTABLE AT THE UNITED STATES MINT, WE MUST COMPLETE OUR MILL AND BUILDING. HOWEVER, WE CAN ONLY PROGRESS AS THE FINANCES ARE AVAILABLE, WHEN THE PILOT MILL IS COMPLETE, AND IN OPERATION, WE BELIEVE THAT AS WE RAISE AND SINK ON THE DISCOVERED ORE SHOOTS, PART OR ALL, OF THE EXPENSE WILL BE CARRIED OUT OF PRODUCTION. NOT EXCLUDING THE POSSIBILITY OF CUTTING A HUGE ORE SHOOT OF BONANZA TYPE ORE, SIMILAR TO THOSE MINES ON EITHER SIDE OF THE GOLD CROWN, AS WE PROGRESS NORTHWARD ON THE VEIN.

NOTICE TO SHAREHOLDERS

DIRECT ALL CORRESPONDENCE TO: GOLD CROWN MINING CORPORATION, ALLEGHANY, SIERRA COUNTY, CALIFORNIA, WITH THE EXCEPTION OF STOCK CERTIFICATES.

THE NEVADA AGENCY AND TRUST COMPANY, 139 NORTH VIRGINIA STREET, RENO, NEVADA, IS THE REGISTRAR AND TRANSFEREE, FOR THE GOLD CROWN MINING CORPORATION. ALL STOCK CERTIFICATES ARE ISSUED AND TRANSFERRED BY THEM.

THIS LETTER TO THE SHAREHOLDERS OF THE GOLD CROWN MINING CORPORATION WAS COMPILED BY THE DIRECTORS OF THE GOLD CROWN MINING CORPORATION.

HARRIETTE DUKE, SEC’TY, TREAS., DIRECTOR

DATED APRIL 12, 1956