VOLCANO MINE SUMMARY REPORT

Table of Contents
  1. Summary
  2. Geological Information and Location Summary
  3. Open Pit Mining Plan: Volcano Mine, Hidalgo County New Mexico, USA
  4. Exhibits

Links:

The intent of this report is to summarize geological formation, location information, past shipping reports and open pit mining plans concerning the Volcano Mine for the stockholders of Dane Mining & Exploration, LTD from J.L. Dane, President.

Dane Mining & Exploration, LTD was incorporated in Nevada on August 13, 1997, corporation number C-17245-97. The resident agent is Marc Picker, 575 Forest St. Ste 200, Reno Nevada.

The Volcano Mine has been mined as an underground mine since 1885. It was patented under "U.S. Mining Law of 1885" in 1922. Patent results in an owners Title of Warranty Deed. Dane Mining & Exploration, LTD has purchased and holds a Warranty Deed to the patented property. The company has leased 10 surrounding Bureau of Land Management(BLM) mining claims. With this patented mining property and 10 BLM claims, the company has established that the mineable reserve exceeds 40,000,000 tons.

The mining property consists of a silica deposit with enriched veins (Exhibit 1) with an apparent length of over 4500 feet. Silica vein width varies from 150 feet to over 200 feet containing economic shoots of silver and gold. A parallel silver deposit has a width from 13 feet to 15 feet and a depth of over 500 feet with an apparent length of 1500 feet on the Volcano Mine property.

A depth of 500 feet in vein material was reached by examination of the old mine workings by company personnel and professional mining advisors.
 

As recently as 1994-1995 previous lessees removed 50,000 tons of overburden from the silver vein and exposed the silica deposit with the inherent minerals gold and silver. (Exhibit 1) Approximately 2500 tons of ore was mined and shipped to the smelter from the silica vein and adjacent silver vein, resulting in a Gross Profit to the company the sum of $70,957.70 (Exhibit 3-7) This exploratory work prepared the silica vein for mining. When the silica deposit is mined and shipped to the smelter the adjacent 13 foot silver vein will also be mined and shipped.
 

In 1997 a mining permit was issued to J.L. Dane by the state of New Mexico, USA and a mining plan was registered with the BLM.
 

Historically, during September 1981, Dolan Campbell, the operator of the Volcano Mine at the time, shipped several railroad cars of Volcano ore from Steins, NM, USA to Asarco, Inc., El Paso, Tx. The Asarco receiving reports show that the ore carried:

111.9 tons   AU .19 oz/ton   AG 36.11 oz/ton

103.5 tons   AU .23 oz/ton   AG 55.32 oz/ton (Exhibit 6-7)

With independent sampling and professional assaying, results have indicated that the silica percentages will be in excess of 85%.