The second quarter financial statement shows six month revenues of $1,009,699 and profits of $554,748, computing to a per share profit of $.16 per share, an increase of $.01 over the first quarter. This is the first time in over thirty years that the Sixteen to One has enjoyed two profitable quarters in row. If you would like a full copy of our quarterly SEC filing (10-Q), including financial statement, please let us know and we will be glad to send it to you.
At the Mine
June and July were devoted for the most part to preparing our new mill for operation, a two week vacation for the mine crew, and milling rock from 1991, pre-metal detector explorations of the mine. We expect to derive a higher concentration of gold from the rock we are now clearing front eh mine, which has been identified by metal detectors as gold bearing.
One of our main priorities for work in August is clearing the stope (underground exploration) at the 2200 level of the mine.1 the goal is two fold: to expose veins that have not been available before for metal detection, and to collect rock for milling.
The other main project for August is the renovation of the 1500 level to provide access to the Red Star area of the mine. The Red Star ore zone was identified in 1964, and was still producing gold in significant quantities when the mine was flooded in 1965.
The area has not been mined since, so we are looking forward to exploring it with modern technology. We completed a steel bridge across the abandoned Tightner Shaft yesterday2, and work on clearing cave-ins and debris will continue through the fall.
The Sixteen to One gold strike is the cover story of the October issue of Gold and Treasure Hunter magazine, available at newsstands now. The article, entitled "Metal Detectors Go High Tech - Underground Bonanza at the Sixteen to One ", includes large glossy photographs of our specimens and smelting process, and we are very pleased with the way it came out. If you have any difficulty finding it at a newsstand, we will be glad to mail you a copy for $3.50 to cover cost and mailing.
Gold and Quartz Specimens
The Sixteen to One has long been famous for its spectacular gold and quartz specimens, and many of you have been asking how to get one. We ship each with a certificate of provenance and a large, detailed map of the mine working s showing the area where the specimen was found. Since this has been a great year for the Sixteen to One, you may want to mark our success with a purchase. We are enclosing a sheet we hope will give you all the information you need. Please let us know if you have any questions after reading it.
Campaign to Fund Development
We have always had confidence in the gold deposit of the Sixteen to One, and the last seven months of gold production has confirmed it. Development of previously unexplored areas of the gold deposit is the key to the Company's continued success.
Working capital beyond that currently being generated by gold production will be necessary to fund that development, so we have recently embarked on a promotion program targeting stockbrokers and investment advisors.
We are hoping that you, our shareholders, may also know people who would be interested in the mine. We've enclosed one of our new brochures for your information, and will be delighted to send you as many as you might be able to pass on to potential investors. Thanks for your help.
Special Order Form
We have offered you so many items in this newsletter we thought it might make your lives a bit easier if we were to include an order form. We look forward to hearing from you.
Michael Meister Miller