Heavy warm rains fell on a sizable snow pack in the northern Sierra nevada mountains causing havoc thoughout California. The roads and bridges and the river flood plains in Sierra County were seriously affected; however, the mine property sustained only minor damage due to the storms. There are two primary items you should know about and of course a quick update on some of our mining activities.
ONE We are receiving many phone calls and letters asking when the next shareholders meeting is scheduled. The date for June 14, 1997, in Alleghany. June 15, 1997 is the annual bike races in Nevada City. If you need overnight accommodations, I encourage you to make reservations soon. Additionally, two corrections need to be noted in Newsletter #35. The direct line number for our growing Gold Sales department was transposed. The correct number is 530-287-3540. Also, in the Financial Status section on the first page, the correct number showing the total amount of inventory hald as of September 30, 1996 is $1,382,058.
TWO It is likely that you have never seen the following investor newsletter. Steve Wilson, a former broker/dealer of the Pacific Stock Exchange, has a small and loyal following. I cannot pass judgement on his historical recollections and opinions; however his numerical facts and general account of our mine and company are not materially misleading. It is the first time such a writer has featured an independent analysis of our company.
The underground mining plans as detailed in Newsletter #35 is continuing. We completed sinking forty feet below the 2200 foot level (Whopper Country Underhand). This week we began drifting north. We should have the answers about any gold hidden in the vein in fifteen to twenty shifts.
Our primary heading, the 26-105 Raise, has advanced fifty-three feet since December 3, 1996. About eighty feet remain to intersect the 2400 level. The raise is following the dip of the quartz vein and is steep enough to avoid a lot of hand mucking. The crew likes the geology of the heading, but so far, no gold.