More good news! When I last wrote on February 5, 1992, the Company had just begun finding gold using metal detectors underground. Well, I thought another letter was in order because the crew continues to pull out gold, and these events may be considered to be "material."
We are now two months into the metal detector program, and results have been excellent. We have recovered over 1300 ounces of gold, and the Sixteen to One is richer by approximately $350,000 (1). We continue to get extensive media coverage for this modern gold strike, and have received inquiries about the Mine from as far away as Switzerland(2). As you may have noticed, the stock price has been rising on the Pacific Stock Exchange, possibly in response to these developments.
We calculate that recovery of approximately 140 ounces of gold a month will cover all Sixteen to One corporate expenses. As our present recovery rate exceeds that by more than 500%,(3) we are increasingly optimistic we can generate the money needed for the next three months without seeking help from outside investors.
Congratulations on your ownership of a gold mine running in the black! If you wish additional information, please call or write me.
(1) The first 30 days we used the metal detector under a contract with Ian Haley, former underground foreman, and his partner, Randy Yager. As of February 18, 1992, the Company rehired five miners and instituted a program under which the crew receives a bonus once gold production exceeds 140 ounces per month.
(2) You may have seen articles on the Sixteen to One in the March California Mining Journal, the Grass Valley Union, the Downieville Mountain Messenger, or on ABC and NBC television news. The gold Prospector, a magazine oriented toward gold seekers, will be featuring a story and photographs on the Sixteen to One next issue.
(3) Our best day, March 4, 1992, so far yielded approximately 280 ounces of gold.
Michael M. Miller