The following income statement for the last quarter represents the first time period in which no royalties were received by the company. Now that our properties are consolidated and we no longer have lessees, gold production will be our main source of revenue. High-grade gold production and ore mined and transported to the mill during the third quarter are not included as revenue. We estimate 150ounces of gold production or $54,000. It will be counted as income when it is processed and sold.
The ninety-day "Gold Rush Incentive Bonus" program concluded September 23rd. It is an understatement to say that everyone is disappointed in the amount of gold we found. The mine teased us every day. Small specks of gold regularly appeared in the muck pile or on the rock faces. On two occasions nice specimens were gathered after the blast. We failed to locate the high-grade concentrations of gold typical of this ore body. Good targets remain on the 2200 level; however they must wait.
During the bonus program the tonnage of rock broken and the per foot advancement of mining exceeded past performances by lessees by 300%. It can be attributed to the keen interest of the miners, who stood to gain from the gold mined and managements approach to the work. We have gained valuable experience and knowledge about the machinery and capabilities of the mine. Currently, the mine is in a standby/maintenance status and will remain so until working funds are raised for development work.
Michael M. Miller