The Clayton Silver Mine, discovered in 1877, and historically one of the most active mines in the Bayhorse Mining District in central Idaho, was an underground Pb-Zn-Cu-Ag mine. The Clayton Silver Mine was one of the largest silver producers in Custer County, Idaho and in the state of Idaho outside of the Coeur d’Alene district. Prospect mining at the Clayton Silver Mine site began in 1927 (Clark Mining Co.), at which time the property consisted of 25 patented and seven unpatented claims and was known as the Camp Bird Group. Mining was sporadic until 1935. The Clayton Silver Mine, one of nearly 50 in the district, was largely operational from 1935 through 1986. Until mining operations ceased in 1986 due to low metal prices, records indicate the mine produced approximately 7 million Troy ounces of silver, 86.8 million pounds of lead, 28.2 million pounds of zinc, 1.7 million pounds of copper, and 1,454 Troy ounces of gold from an estimated 2,145,000 tonnes of ore. It is likely that even greater amounts of minerals were mined and recovered considering the lack of production records in the early years of the mine’s operation.

The Company has compiled and comprehensively reviewed available historical drilling and mining information for the Clayton Mine and the Clayton Silver Property. Information available in the public domain was obtained from both the United States and Idaho Geological Surveys. Several sub-surface mine plans were obtained from private sources, as well as the U.S. Department of the Interior, Office of Surface Mining. These data provide the basis for an initial compilation of the sub-surface workings tied to surface. The underground workings are flooded and inaccessible and, consequently, historical records are the only source of information available.