STEIFER MINE HISTORY

In 1899, Patrick Steifer moved his family from Alabama to a little mining town in Northern California called Magalia. He purchased 500 acres from the Campbell Mining Company and named it P.B. Steifer Mining Company. The 500 acres, located north of Sacramento, in Butte County, lie on the Magalia Ridge between Big Butte and Little Butte Creeks. It covers the northern extension of the Magalia Mine, a very rich buried stream bed, now known as a tributary channel, one of the richest in the state of California.

In the early 1900's when the price of gold was $20.67 per ounce, operations were begun and nuggets began appearing. As the Magalia miners worked their way north, they hit coarser and richer gold. Gold nuggets weighing from 5 to 25 ounces were common finds. During the early part of the 1900's, the Magalia Gold Mining Company made several offers to Mr. Steifer of $2,650,000 to $3,180,000 for the Steifer Gold Mine. However, Mr. Steifer stood firm, rejecting these offers for his property.

During the mine's first 5 years of operation from 1902 to 1907, a reported $40-$50 million in gold was removed from Steifer Mine. Around 1910, a nugget with a value of $363 was found weighing in at 17.56 ounces! Many miners had to be checked for stealing nuggets from the mine.

The mine continued to operate until 1926. Plans were made to open the main channel where the richer gold was found, and then work both channels simultaneously, providing over one mile of pay gravel. However, through many troubled times only 350 feet of the tributary was worked. Although the mine has been closed since 1926, it is clear that it is extremely rich in gold and other minerals and has tremendous value and potential for huge profits.

STEIFER MINE FEATURES/BENEFITS

• Accessible paved roads.
• PG&E electricity on site.
• Mild climate for access year around.
• Mine operation would boost local economy.
• Gold nuggets weighing up to 25 ounces found at Steifer Mine.
• Located on one of the richest tributary channels in California.
• Mamouth Channel contains rich deposits of Placer Gold.
• Magalia Nugget was the largest true nugget of native gold found in 1859 in Magalia California, weighing 54 pounds troy.

STUDIES & REPORTS

Over the years, there have been several reports and studies performed on the Steifer Gold Mine Property.
1.Steifer Property Preliminary Reconnaissance Report, submitted to: Eno Mining Corporation, Reno, NV August 10, 1984. Prepared by: Placer Management Group.

2. An Outline of a Report on Examination, Evaluation and Recommendations
for Steifer Mining Property. By: Yung Sam Kim, Ph.D., Reno, NV, February, 1984.

CLAIMS AND CHANNELS

• 80 acres of patented claims, including both mineral and surface rights.
• 360 acres of claims including only mineral rights.
• Upper Channel is 100'-200' below surface.
• Middle (Magalia) Channel is 400'-600' below surface (richer).
• Lower (Mammouth) Channel is 1300' below surface with riches deposits.

ENGINEERING OBSERVATIONS

"There are three placers known to exist on the (Steifer) property and the potential for the discovery of significant gold values is excellent."

"Historically, adjacent properties produced substantial quantities of placer gold and were mined up to the boundary of the Steifer property."

"This (Steifer) property appears to have significant economic potential and would likely be a major contributor to the economy of Butte County as an employer and as a consumer of goods and services. It would also make a significant contribution to the tax base of the county."

Glenn Blachford, VP Enginering
Bullion River Gold Corp
April, 2006