Gold Mountain

Bullion Monarch Mining currently owns a 1% interest in Gold Mountain Exploration and Development Company. Bullion by agreement with Gold Mountain is earning an additional 9% interest by funding litigation with Alpine Mining Inc. The litigation will ensure Gold Mountain legal interest in the Sumpter Oregon Gold property. Recently an out of court settlement was reached with Alpine Minerals whereby Gold Mountain’s interest was established. Legal documents are currently being completed and Bullion will soon receive the additional 9% interest of Gold Mountain Exploration and Development. Bullion is currently working on acquiring more of an interest in this project.

The Sumpter Oregon Gold consists of 13 patented mining claims located approximately 10 miles west of Sumpter and 40 miles southeast of Baker city in Southeastern Oregon. This property lies in the heart of the Blue Mountain Gold belt. The Blue Mountains of Eastern Oregon have long been known for precious metal production. In the early years miners paid little attention to the hard rock quartz veins and concentrated on the free placer gold in the alluvial valley gravels. This concept latter changed as the British geologist and mineralogist, Dr. Alfred Selwyn and Professor Waldeman Lindgren (widely regarded as perhaps the most authoritative geologists of their time) were quoted in a 1928 report upon the merits of the area:

“I find in Eastern Oregon one of the most hopeful mineral zones on the globe. Referring to the quartz ledges adjacent to Sumpter, I say unreservedly that I have never been in any mining country which I consider more promising, or having a brighter future, than that of Eastern Oregon.”

- Dr. Selwyn

“I believe the district has a future second to no mining camp in America. I find the most important veins strongly and sharply defined also having great width”

- Prof. Lindgren, United States Geologist for 30 years

These comments were made over 80 years ago and in our opinion are still appropriate. In the 1980’s NERCO Exploration Company (a subsidiary of Pacificorp) and their joint venture partners American Coppers and Nickel Company spent $9.5 million dollars on exploration and development of this property over a 10 year period. This expenditure included not only a complete geological evaluation, rehabbing old workings, metallurgical evaluation by Hazen Research, Inc. and Mountain States Research and Development, engineering report by American Mine Services, Inc. and 62,500 feet of core drilling.

This core drilling reported by NERCO established approximately an unclassified inventory of 2,750,000 tons with an average value/ton of 0.26 ounces of gold return yielding 715,000 ounces of gold. Bullion has great expectations for the development of this property and is actively pursuing a more substantial interest.