IF DECADES ARE REFERENCED AS PASSAGES IN TIME, the 1980's ended with our company achieving a secure posture. One glance at our cash on hand tells you that we are under-financed to aggressively pursue an underground gold mining operation. It is always difficult to adjust the dreams and visions for this company with the presence of now. We are, however, clear in thought and realistic regarding what to do with our dominant land position in the great northern gold belt of California.
The Sixteen to One vein system is legendary among high-grade gold mines. New ore zones continue to produce the spectacular quartz and gold specimens found in museums from Washington D.C. to Los Angeles.
Our company, which has one of the most sensational mines in the world is slowly moving away from its past isolation. It remains hidden to many people and will remain so to those people seeking simple answers to complex gold investment opportunities. The management has prepared a plan for returning this traditional gold mining company to the level of profitability it maintained for fifty years, a plan which includes an increase in information to the public.
Our future underground activities have been detailed in the Red Star Osceola Project report.
Brief summary of the plan:
a) Initial phase of mine rehabilitation has been completed
b) Second phase of production requires $900,000.
c) Annual positive cash flow of $3.0 million by the end of year four.
d) Daily mine output of 130 tons/day by year four.
Methods for funding this plan are currently underway.
Our primary goals for the coming year are:
a) Secure funding to implement the Red Star/Osceola plan and initiate program.
b) Increase our number of shareholders to the suggested acceptable levels of the Pacific Stock Exchange (750).
c) Align the company with associates compatible to expand gold mining in the region.
Michael Meister Miller