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14-Jul-2009
Quarterly Report
FORWARD LOOKING STATEMENTS
This report contains forward-looking statements that involve risk and uncertainties. We use words such as "anticipate", "believe", "plan", "expect", "future", "intend", and similar expressions to identify such forward-looking statements. Investors should be aware that all forward-looking statements contained within this filing are good faith estimates of management as of the date of this filing and actual results may differ materially from historical results or our predictions of future results.
RESULTS OF OPERATIONS
We are still in our exploration stage and have generated no revenues to date.
We incurred operating expenses of $1,859 and $1,631 for the three months ended May 31, 2009 and 2008. These expenses consisted of general operating expenses and professional fees incurred in connection with the day to day operation of our business and the preparation and filing of our required reports with the U.S. Securities and Exchange Commission.
Our net loss from inception (November 5, 2007) through May 31, 2009 was $34,915.
We have sold $75,000 in equity securities to date. We sold $15,000 in equity securities to our officer and director and $60,000 to independent investors.
The following table provides selected financial data about our company for the quarter ended May 31, 2009.
Balance Sheet Data: 5/31/09
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Cash $36,985
Total assets $41,485
Total liabilities $ 1,400
Shareholders' equity $40,085
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LIQUIDITY AND CAPITAL RESOURCES
Our cash balance at May 31, 2009 was $36,985. Management believes the current funds available to the company will fund our operations for the next twelve months. We are an exploration stage company and have generated no revenue to date.
PLAN OF OPERATION
Our exploration target is to find exploitable minerals on our property. Our success depends on achieving that target. There is the likelihood of our mineral claims containing little or no economic mineralization or reserves of silver and other minerals. There is the possibility that our claims do not contain any
reserves and funds that we spend on exploration will be lost. Even if we complete our current exploration program and are successful in identifying a mineral deposit we will be required to expend substantial funds to bring our claims to production. We are unable to assure investors we will be able to raise the additional funds necessary for Phase 3 or to implement any future exploration or extraction program even if mineralization is found.
Our plan of operation for the next twelve months is to complete the second phase of the exploration program. In addition to the $11,500 we anticipate spending for Phase 2 of the exploration program as outlined below, we anticipate spending an additional $10,000 on general and administrative costs and professional fees, including fees payable in connection with reporting obligation compliance. Total expenditures over the next 12 months are expected to be approximately $21,500.
The following work program has been recommended by the consulting geologist who prepared the geology report.
PHASE 1
Detailed prospecting, mapping and soil geochemistry.
The estimated cost for this program is all inclusive $ 8,500 (completed)
PHASE 1A
Detailed sampling about the anomalous, coincident
concentrations of samples taken in Phase 1. $10,500 (fieldwork
completed)
PHASE 2
Magnetometer and VLF electromagnetic, grid controlled
surveys over the areas of interest determined by the
Phase 1 survey. Included in this estimated cost are
transportation, accommodation, board, grid installation,
geophysical surveys, maps and report $11,500
PHASE 3
Induced polarization survey over grid controlled,
Anomalous areas of interest outlined by Phase 1&2
fieldwork. Hoe or bulldozer trenching, mapping and
sampling of bedrock anomalies, including assays,
detailed maps and reports $30,000
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Total $60,500
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Each phase following phase 1 is contingent upon favorable results from the previous phase. The above program costs are management's estimates based upon the recommendations of the professional consulting geologist and the actual project costs may exceed our estimates.
Phase 1 of the exploration program on the claims was completed in April 2008. We received the results from the geologist and he recommended that a fill-in sampling (Phase 1A) take place before the Phase 2 work is considered. This program entailed sampling about the anomalous, coincident concentrations of samples from Phase 1. The program required taking a similar number of samples as taken in Phase 1, but in a more detailed fashion about the anomalies. The cost for this program was $10,500. The fieldwork has been completed and we are awaiting the results.
Based upon his recommendations after Phase 1A, if we proceed with the full phase two exploration program the estimated cost of this program is $11,500 and will take approximately 10 days to complete and an additional one to two months for the consulting geologist to receive the results from the assay lab and prepare his report.
Following phase two of the exploration program, if it proves successful and we are able to raise additional funding if necessary, we intend to proceed with phase three of our exploration program. The estimated cost of this program is $30,000 and will take approximately 20 days to complete and an additional one to two months for the consulting geologist to receive the results from the assay lab and prepare his report.
If warranted, we estimate Phase 2 to be completed in the third quarter 2009 and Phase 3 would be in 2010. We have a verbal agreement with James McLeod, the consulting geologist, to retain his services for our complete exploration program. We cannot provide investors with any assurance that we will be able to raise sufficient funds to proceed with any work after the exploration program if we find mineralization.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
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