Lucille Ball was quoted as saying: "One of the things I learned the hard way was it does not pay to get discouraged. Keeping busy and making optimism a way of life can restore your faith in yourself." By blending Lucy's thought with one on Winston Churchill who wrote, "an optimist sees an opportunity in every calamity; a pessimist sees a calamity in every opportunity," my theme this year is to be positive during dark times, never speak of the past any more than you can help.
The annual report is a special document. It recounts our Company's financial activities and provides me a forum to officially express my views to you. For most of 1998 and continuing to the present, a profound lack of money pervaded all our activities. The best comments I can make about the past year are: it is history, we continue to mine for gold, and we have a sensible plan to work through the industry wide doldrums for gold mining.
The price of gold continues to be under worldwide assault. Let's just accept this until it changes. At our mine finding gold has been the issue for over 100 years. This will never change; however, remote-sensing technology is changing the method of mining the Sixteen to One vein system, and the change is positive. Three groups are actively pursuing gold detection with us. It is not a question of "if" but rather "when" a tool becomes reliable in detecting gold embedded behind a wall of quartz.
While we may be able to mine our way back to prosperity, an infusion of outside capital would greatly assist our efforts to mine. The directors recognized this and approved a concept of wither a stock placement or joint venture to implement our mining program.
The efforts expended over the past years in developing the arts, crafts and jewelry usage of quartz and gold has allowed us to sell our gold well above the average spot price. The sales and awareness of quartz and gold as a precious stone are in an up trend. Numerous items are displayed on the internet at www.origsix.com.
Many of you inquire about the stock price. Page 20 contains a chart reflecting the volume and price of our shares since our listing on the Pacific Exchange in 1989. A few high volume sales into an illiquid market have reduced our market capitalization dramatically.
Yes, optimism is a way of life for you and me as gold seekers. Because I see value beyond the book and market values of our Company (timber, real estate, unmined gold, world-class quartz and gold carvings and the only de-watered deep-vein operating mine in the California gold belt) I remain quite confident in our ultimate success.
Very truly yours,
Michael M. Miller