On May 6, 1997, at 1035 mountain daylight time, a Callair A2A, N2915V, owned by a private individual and flown by a private pilot under Title 14 CFR Part 91, impacted the terrain following a loss of lift during takeoff near Grants, New Mexico. The private pilot received serious injuries and the sole passenger received minor injuries, and the airplane substantial damage. Visual meteorological conditions prevailed for the planned cross country flight and a flight plan was not filed. The flight was originating at the time of the accident. Telephone interviews, conducted by the investigator-in-charge (IIC), revealed that the pilot "felt a loss of lift during the climb toward rising terrain and the airplane stalled as he pulled the nose up." The airplane descended uncontrolled into a terrain depression. Local authorities and the airport manager reported that a natural terrain depression (30 feet across and 50 feet deep) located approximately 1/2 mile beyond the end of runway 31 was known by the local pilots as a "loss of lift, sink hole area." With an airport elevation of 6,521 feet and a temperature of 62 degrees Fahrenheit, the IIC calculated the density altitude at 8,200 feet. Structural damage occurred to the fuselage and the wings. The pilot reported 22 hours total time in the make and model of airplane. He reported 30 hours of flight time in the previous 90 days (none in the Callair).