| ANNUAL - 2003 |
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2003 |
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Dear Shareholder:
In 2003, the Company drill tested a felsic volcanic sequence located south of the Moss Lake deposit, with the goal of evaluating the potential of this sequence to host pyrite stratabound gold deposits.
All holes encountered favourable pyritic tuffaceous horizons highlighted by significant, widespread gold occurrences in the Fountain Lake area. Three holes tested this area returning separate intervals of 6.9 gAu/tonne over 1.86 metres, 3.5 gAu/tonne over 1.0 metres, 3.7 gAu/tonne over 0.92 metres, 3.0 gAu/tonne over 0.99 metres, 3.1 gAu/tonne over 1.57 metres and 7.49 gAu/tonne over 0.49 metres. These values occur within a broad, gold-enriched (greater than 100 ppb gold), pyritic sequence traced by induced polarization surveys across a strikelength of at least 1.2 kilometres.
Clearly this is a very large, gold-enriched mineralized system that requires much more work. In 2004, we intend to seek financing for follow-up drilling with the goal of establishing the continuity, geometry and extent of higher grade, potentially economic portions of this pyritic sequence.
We continue to believe the gold price is headed much higher. Interest and activity in the Shebandowan area is heating up. Our gold properties host resources in excess of 2 million ounces and demonstrated exploration potential. Although higher sustained gold prices are required to stimulate development, years of under-investment in exploration has led to a paucity of significant resources to maintain, let alone increase global production. This combination of events has led to an increased interest in our assets by other mining companies, both big and small.
The value of our assets will grow with the gold price. Any potential deals must increase shareholder value and be approved by shareholders.
On behalf of the Board of Directors,
George N. Mannard
President
April 16, 2004
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