James Tinnell - Page 13

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          gold vein discovery.  Mr. Cruson estimated the total budget for             
          the next phase of drilling would be about $250,000.                         
               Petitioner recovered approximately 4 ounces of gold from the           
          Quartette Mine, and the project was abandoned in 1996.                      
          F.  Petitioner’s Sale of Decorative Rock                                    
               After petitioner abandoned his efforts to develop the                  
          Quartette Mine, petitioner expanded his business to include the             
          sale of decorative rock in an effort to generate revenue.  In               
          1994 and 1995, petitioner “tried to break into the wholesale                
          market” and realized it was almost impossible.  Thereafter,                 
          petitioner opened a “rock yard” for the retail sale of rock and             
          gravel from his claims.  Petitioner purchased an advertisement in           
          the telephone directory yellow pages.  At the time of trial,                
          petitioner had been selling decorative rock for 4 years.18                  
          During those years, petitioner’s gross income from the sale of              

               18When petitioner’s plan of operations was approved, the               
          BLM, acting in error, granted petitioner permission to dispose of           
          sand and gravel from what petitioner claimed would be “tailings”            
          from his placer operations.  Subsequently, inspectors from the              
          BLM observed stockpiles of what appeared to be decorative rock,             
          and BLM Law Enforcement reported that petitioner was selling                
          decorative rock in the Las Vegas market.  On Feb. 8, 1999, the              
          Las Vegas Field Office of the BLM sent a decision to petitioner             
          directing him to halt the sale of “tailings” and “non-locatable”            
          minerals.  On or about Apr. 30, 1999, petitioner filed an appeal            
          from the BLM decision.  Petitioner hired a mining law attorney to           
          represent him with respect to the BLM’s decision and a geologist            
          to determine whether petitioner is mining “locatable” minerals.             
          At the time of trial, the matter was still on appeal, and                   
          petitioner was still selling decorative rock.                               

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