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Kapacke Mining Inc.

Has the Rundown on Placer Gold

Kapacke Mining Inc. entered the gold mining arena at full bore in the summer of 2012 once approvals were obtained from all necessary regulatory agencies. Arriving there, however, was no small feat and is an accomplishment that brings with it a massive undertaking to excavate 1,200 acres that serve to form the Kapacke Gold Project, consisting of 13 claims. Spanning a period of almost 200 years, placer gold mining in the United States has produced relatively small results for those operating at small scale. Kapacke Mining, however, has completed its plan of operation and environmental assessment study of the thirteen claims totaling 1,200 acres in the Osceola Mining District (located in eastern Nevada) and started mining operations in the beginning of December 2011. With the equipment Kapacke Mining has on hand they are able to process up to 1,000 cubic yards a day, which at a return of $55 per cubic yard, would have the potential to produce gross revenue of $55,000 per day. The Osceola Mining District was the largest producer of gold and the longest-lived placer camp in Nevada. Today placer gold production is mainly a byproduct of washing sand and gravel for use as an aggregate in the construction industry. Commercial placer mining performed by other means, such as Kapacke Mining is involved in, occurs at only a relatively few locations. As material progressively washes off slopes and finds its way into streams, it becomes sorted and gold concentrates in what is termed as pay streaks with other heavy minerals. To date, Nevada has not been a large producer of placer gold, although potential sources for lode gold deposits are wide spread all over the state. In the southwest part of the Osceola Mining District, where the Kapacke Mining claims are located, in the area known locally as Hogum, placer gold deposits occur in intermittent channels buried under alluvial fan material below the mouth of Mary Ann Canyon. Historically, the channels were worked by sinking shafts to where the channels were and drifting along their margins. The materials are then raised by a whim, shoveled into sluice boxes, and washed with a small quantity of water that came from manufactured ditches. Today, Kapacke Mining Inc. uses heavy equipment to remove the overburden to expose the channels and then excavate the pay gravel deposits for processing on placer claims. The MAV 5 claims are subdivisions of the former Solomon 5 claim. The claims are placer alluvial deposits, which are deposits made by mountain water run-off forming a large alluvial fan. The depth of the deposits is up to 125 feet

with the Skookum Geological Report showing the concentration of gold in these deposits increasing with depth. To date, Kapacke Mining Inc. has run a total of 10,000 cubic yards to a depth 220 feet total on the MAV 5A claim. Kapacke Mining Inc. was experiencing an average return from these 10,000 cubic yards of $35 per cubic yard when gold was at $1,000 per ounce. Gold is currently trading at $1,700 per ounce. This would equate to $55 in gold per cubic yard today. Kapacke Mining Inc. estimates the current cost to process each cubic yard is less than $5, which places Kapacke Mining Inc. in a prime position of great potential to strike big returns.