In 1976, I attended my first shareholder meeting. The gold rush that began in 1975, when the free market system for gold resumed in the United States was in its early stages.
An underground mine like ours attracted a lot of attention. Figures to reopen the mine varied and so did production estimates. Was the vein system mined out? Could the glory days of past production be repeated? No one knew the answers to these questions or just how much money it would take.
After an eight-year colorful and exciting proxy fight for control of the Company, I took over as President in 1983. During the early years and continuing to today, my belief that the Sixteen to One vein system has the potential to support a very profitable mining operation remains. While our mine potential cannot be measured using the proven reserve calculation, so coveted by analysts, I doubt that any credential geologist or mining engineer would dare to say the mine is through. The first steps in gaining insight to value and gold potential of the Company are recognizing the geology as a "vein system" and understanding the disciplines practiced by the miners who guide its exploitation. I have chosen to include excerpts from past annual reports, which I hope will assist many of our new shareholders in comprehending the unique character of this mine and company.
The 1993 year was a pivotal one for us. By the end of September, I understood that the battle for operational survival could no longer dominate our behavior. Survival management, so familiar since 1983, must be replaced by expansive and development management.
Our employees increased through a screening process where one's work ethic was valued more than one's mining experience. We now employ 22 workers dedicated to mine gold in a safe, efficient and profitable manner.
Everything is in place and work can actually commenced in January to develop the productive central section of the vein system. Development, the key to sustain gold production, centers around the new 2483 Winze. By carefully controlling our expenses and underground activities during 1993, we banked sufficient gold to complete this important developmental program.
Now, instead of anticipating another $1 million day like we experienced on December 17, 1993, the entire crew will be searching for the 20-40,000 ounce gold concentrations that have been mined in the past.
It is an exciting time for our company.
Michael M. Miller