The enclosed document is our first quarterly report required under the Security Exchange Act of 1934. It is called a Form 10-Q, and you will be receiving three per year plus an Annual Report. We will make every attempt to follow the federal guidelines and make the report as clear and easy to understand as possible. You and I have probably received 10Q reports that are next to impossible to interpret. Your suggestions and comments are always appreciated.
The Company's public relations program began April 14, 1989, with two presentations in Grass Valley/Nevada City. If any of you wish to have such a meeting in your communities, please call or write me.
We are considering alternatives on how to proceed with the development of the Red Star Mine. With the knowledge gained since my last letter to you, our staff has established short term, intermediate and long range plans. The board of directors will consider various ways to finance these plans. Our intent remains the same: to profitably mine gold from the Red Star Mine.
Install new air compressors; activate hoist in the Red Star Winze; complete ore bin and ore pockets; evaluate and activate milling facility.
Process broken ore; extend the Red Star Winze; raise and stope out promising blocks of ground.
EVALUATE Red Star North and initiate a tunneling project in the most favorable location. Extend the Red Star Winze to the 1700 level. Drift North and South from the new level.
I sincerely hope that you find your 10-Q informative. Your knowledge and understanding of our Company is vital to its success.
Very truly yours,
Michael Meister Miller