4th Quarter Report of 1940

Published Date

The last quarter of 1940 sees Germany occupying Romania, while Greece repels Italy’s efforts to do the same.  British troops launch their first major offensive in North Africa and re-capture Sidi el-Barrani in Western Egypt from the Italians. England and Germany exchange devastating bombing attacks on each other at Coventry and Hamburg, and the German Air Force begins the use of incendiary bombs in its attacks on London. On October 2^nd, the British sea liner Empress, loaded with refugees for Canada is sunk at sea.

In other war related developments: the de Havilland Mosquito and Martin B-26 Marauder bombers, and the P-51 Mustang fighter are brought into service for the Allies; on October 16^th, the first lottery for US WWII draftees is held; and Hungary, Romania and Slovakia join the Axis powers.

In Nevada, at the Desert Silver Mine, Ira B. Joralemon, president of the mine, has strung together two exceptional quarters, and is delighted to report to his investors.  He begins his quarterly report by saying the “...Balance Sheet and Income Statement for the Fourth Quarter of 1940 indicate a notable improvement in the condition of your company in this period”.

Joralemon goes on to inform the shareholders that the development of rich ore on and above the 440 level in the west end of the mine, up the dip from the 600 level western orebody mentioned in the past two reports, has made for a considerable increase in the grade of ore milled, and in the estimated reserve.

Nivloc Mine:  Third & Fourth Quarter 1940

The quarterly report informs us that on the 6^th level the orebody that starts 1,360 feet west of the shaft is approximately 280 feet long by 15 feet wide and averages 0.09 oz. gold and 13 oz. silver per ton; the main orebody developed on the 440 level is 270 feet long by 7 feet wide, averaging 0.065 oz. gold and 13 oz. silver; raises in the main orebody have located ore extending above the 3rd level, with grades higher than that on the 440 level; and additional strands of ore are being located on the 440 level.

According to the report Joralemon continues to expand the mine, with the 7^th level being extended west through smaller bodies of ore to the main western orebody. The east drift on the 7^th level has also found irregular ore of fair grade from 1,100 to 1,300 feet east of the shaft, down the dip from a similar body on the 6th level.

While ore is not thoroughly blocked out, the probable ore now indicated will last a year at the present rate of production. Referring to his estimated reserves Joralemon finishes his report on an optimistic note, just as he started it, saying “a further increase is expected in the next few months”.

Kevin Hull

3rd QUARTER REPORT OF 1940

Published Date

At the start of this quarter Germany initiates the 113 day Battle of Britain to attain dominance of the skies ahead of Operation Sea Lion, the invasion of Britain.  The battle sees all-night air raids, including the bombing of Buckingham Palace, aircraft manufacturing facilities and radar installations, and night-time counter strikes by Britain. Churchill utters his now famous line “Never in the field of human conflict was so much owed by so many to so few” in speaking of the Royal Air Force.

The Soviet Union annexes Estonia, Latvia and Lithuania; Italian troops invade Egypt and British Somalia; and Japanese troops attack French Indo-China.

Four teens, following their dog down a hole near Lascaux France, discover 17,000 year old drawings now known as the Lascaux Cave Paintings, the first successful helicopter flight takes place in Stratford Connecticut and Bugs Bunny debuts in “Wild Hare”.

In Nevada, at the site of the Desert Silver Mine, Ira B. Joralemon, the mine president, is obviously pleased as he informs his investors that the western orebody discovered in the first quarter of 1940 has proven to be one of the best in the mine.  Furthermore, development work to the east of the main shaft has discovered new ore, but it is still too early to give an estimate on the size of either discovery.

 Nivloc Mine:  Second & Third Quarter 1940

In this milestone report the president of Desert Silver tells his shareholders that the excess of current assets over current liabilities, along with the scrap value of equipment, is now greater than $101,947.22, the remaining amount of the purchase price of the property.  He also takes the opportunity to point out, yet again, that while he felt the purchase price was excessive, he is pleased to say that all profits going forward will go to the shareholders and note-holders of Desert Silver.

In the report shareholders are informed that the new orebody in the west is the reason for the increased gold values this quarter.  This orebody is now developed on the 6^th level for 280 feet at an average width of 20 feet.  At the date of writing, ore has been developed on the 440 level, above the new orebody on the 6^th level, by four crosscuts in a length of 130 feet; the ore from these stopes has averaged 11.78 oz. silver and 0.094 oz. gold per ton.

At this time Joralemon is not yet prepared to give an estimate of the ore in his two new discoveries, but is hopeful that there is enough to carry the mine for 8 months of production at current levels.  He also indicates that development now underway will likely increase this prognostication.

The 3^rd quarter report for 1940 concludes that “recovery in the mill is gradually increasing, and is higher than at any time in the past”, and that “equipment both in the mine and in the mill is in excellent condition”.

Kevin Hull, IR

Commentary on Wild Goose News Release

Published Date

Folks as you will have seen from the news release yesterday morning IMMC has picked up a very intriguing property. If you’ve not read the release as yet you can view it through this link: http://www.immc.ca/index.php/news/news-2012/155-international-millennium-acquires-wild-goose-property-near-revelstoke,-british-columbia.

The terms of the agreement are very favorable to the company, and likely reflect a confidence the vendor has in the property yielding a discovery. One hundred thousand ($100,000) in cash, 500,000 in shares (both over 5 years) and $1,000,000 in exploration or development (over 8 years), along with a 50% re-purchasable 2% net smelter return royalty, are good terms.

The Wild Goose property is situated approximately 23 kilometres northwest of Revelstoke in the British Columbia interior. The area is characterized by mountainous terrain and alpine topology, with the center of the property being dominated by a large alpine cirque. The watershed drains into Copeland Creek, which flows into the Jordan River.

This property is in the proximity of the historic Mount Copeland moly mine on the west ridge of Mt. Copeland; the King Fissure deposit, a historic lead-zinc-silver discovery, located on the east ridge of Mt. Copeland; and a placer gold discovery in the Jordan River.

Interestingly, when the King Fissure discovery (not on the Wild Goose property) was explored further in the early 1990s geologists also discovered a new light rare earth and niobium bearing unit within the lead-zinc-silver formation. I’ve spoken with the geologist who will be conducting the field work on the property and he informs me that he will certainly be testing any samples he collects for the presence of rare earth minerals.

The first phase of exploration will test the veracity of the historic samples described in the news release, seek to extend the discovery zones and look for additional showings. In speaking with our geologist he pointed out that the area is also prospective for gold, and that he will be bearing that in mind when taking his samples. As a point of interest, the property was originally staked by a prospector in 1895 based on the Goose Chase gold showing on the Wild Goose claims. The prospector then went on to join the Klondike gold rush and didn’t return to his claims.

Please click to the IMMC Facebook page to view claim and topographical maps of the Wild Goose property: http://www.facebook.com/pages/International-Millennium-Mining-Corp/277522958965623

Kevin Hull, IR

2nd Quarter Report of 1940

Published Date

In just three months Germany invades Norway, Denmark, the Netherlands, Belgium, Luxembourg and France, all of which surrender by the end of June.  The Norwegian and Dutch Royal Families flee to England where a Norwegian government in exile is formed. Italy annexes Albania, the USSR occupies Lithuania and Estonia and attacks Romania, which cedes Bessarabia to the Soviets within a day.

Churchill succeeds Chamberlain as British PM and in short order delivers two of his now famous speeches where he states that he has “nothing to offer but blood, toil, tears & sweat,” and where he urges perseverance so future generations would remember that “this was their finest hour”.  The British complete a military coup by evacuating 300,000 troops from the beaches of Dunkirk, while under bombardment by the German air force, and the first German air raids are launched against England at Chilham and Petham.

The 1940 Olympics are cancelled, and McDonald’s opens its first restaurant in San Bernardino, California. It is against this backdrop that Ira Joralemon, president of Desert Silver, has some good news for his shareholders.

After several months of disappointing development, Joralemon’s crew has found a promising orebody on the 6^th level, about 1,400 feet west of the shaft. From his report, initial production from this orebody appears to be relatively small, but Joralemon tells his shareholders that it seems likely to be a major discovery.  This quarter, an increase in mill recovery, and a decrease in costs, resulted in a profit margin considerably greater than that of the preceding period. Joralemon reports, “the prospects for returning the capital invested, with a fair profit, are much more encouraging than they were three months ago”.

Nivloc Mine: First Quarter 1940 and Second Quarter 1940

The west orebody has now been developed for a total length of 280 feet, with the first 140 feet averaging 16 feet in horizontal width.  For the remaining developed length to the west, the ore in the drift was 5 feet wide.  A raise in this section is up 90 feet on the incline in ore that has averaged about 0.09 oz. gold and 12.5 oz. silver. This orebody is expected to make more than 200 tons per vertical foot, with the size and grade now indicated.  In Joralemon’s opinion old surface work in several shallow shafts strongly indicate that the ore on this level will extend another several hundred feet further west.

In the east, a raise from the 440 level, 130 feet east of the shaft, in an area that was previously thought to be lean, has found from 4 to 9 feet of ore grading 20 oz. of silver per ton. But, it is too early to say how important this body may be.

In conclusion, Joralemon predicts that the older ore-bodies should yield 35,000 tons of rather lean ore.  But, he believes that the west orebody will add many thousand tons to this figure.  If this orebody develops as expected, it will result in a large increase in the ore reserve over the next few months.

1st Quarter Report of 1940

Published Date

The war between the Soviet Union and Finland culminates in the creation of the 12^th Soviet republic in the Karelische region of Finland.  The entire Karelian population of the ceded areas, about 422,000 people, was evacuated to Finland, and the territories were settled by people from other parts of the Soviet Union.

On the war front Mussolini joins Hitler in Germany's war against France and Britain, Germany and England launch air raids against each other and the navel campaign heats up.

In the first quarter of 1940, at Desert Silver’s Nivloc Mine in Nevada, President Ira Joralemon has just one thing on his mind: development work carried out on the 7^th level, beneath the rich western discovery on the 6^th level, has failed to find anything of importance, resulting in lower grades and profits for the quarter.

Nivloc Mine: Fourth Quarter 1939 and First Quarter 1940

The 7th level west drift, which Joralemon anticipated would intercept the downward continuation of the excellent orebody extending from 500 West to 600 West on the 6th level, found only lean vein material. It is not yet definitively known whether this is “due to pulling apart of the ore by the Steep Fault, or to a change in mineralization with depth”.  Joralemon believes this question will be answered with development of the western extension of the 8^th level, below the rich ore on the 6^th level.

Joralemon is also focused on the far western extension of the Nivloc property where several shallow shafts found vein material superior to that found above the main orebodies. He plans to continue the 6th level west drift to a point down dip from the first of these shallow shafts in pursuit of commercial values.

Joralemon finishes his report by saying “the mill is doing better work than ever before, with much lower tailings loss and with a higher percentage recovery in spite of the lower grade ore. The efficiency of the whole operation is higher than at any previous time. All that is needed is a little good fortune in finding ore of satisfactory grade”.