Silver Falcon Mining, Inc.'s comprehensive daily assays on mill feed into the Diamond Creek Mill gravity circuit have proven precious metal values and production ratios. The company's management has positively identified the precious metal content from both its sources and its recoveries out from the mill circuit. Daily assays of the mill feed average 4.38 g/ton Gold and 16.44 g/ton Silver. As a result, the company has, on site, approximately 30,000 tons of partially processed ore containing a large dollar amount of precious metals. Recoverable ratios should greatly increase upon the recently announced addition, to the mill site, of the closed circuit leaching unit. The existing mill building has been extended by a total of 40 linear feet and upwards by an extra 10 feet to accommodate the new equipment brought online during this past winter, and to allow for the proposed installation of the flotation unit which will greatly increase the quality of the concentrate produced by the gravity circuit. This concentrate will be accumulated for processing in the future closed circuit leaching unit.