News Release: August 27th, 2003
Results to June 30th, 2003
A 2600 metre drill program has commenced on
the Elk property near Merritt, B.C., focussed mainly on
the WD vein which lies north of the Siwash B vein. The mill purchased
in Alaska last fall has been completely dismantled and is being
moved to a secure site near Merritt.
Expatriate Resources Ltd. acquired a 60% stake in our Logan zinc-silver
property in the Yukon from Energold Minerals and they are
currently evaluating the development of Logan as a 3,000 to 4,000
tonne per day open pit operation with an adjoining flotation
mill facility which would also process material from their Wolverine
deposit. The current resource at Logan is 12.3 million tonnes
grading 6.17% zinc and 26.4 grams of silver/tonne. Almaden is
carried for 40% of the Logan property to positive production
In Mexico, at our Caballo Blanco gold property near Veracruz, Comaplex Minerals Corp. have completed
two phases of geophysics, including Induced Polarization and
magnetic surveys on the Highway and Northern zones, which are
about six miles apart. This work has outlined an impressive resistivity/chargeability
anomaly on the Highway zone; results are expected soon from the
Northern zone. Drilling is expected later this year.
Ross River Minerals Inc. completed a work program on our El Pulpo copper
gold property near Mazatlan. In a press release dated August
21, 2003, they reported prospecting on several vein systems,
one of which has been traced over two kilometers and yielded
very significant gold, silver and copper values. An additional
and adjoining concession of about 100 square kilometres was staked
to cover a recently discovered area of extensive surface mineralization
associated with quartz veins, vein stockworks and breccia zones.
This new property now forms part of the El Pulpo Project agreement
with Ross River.
Our copper-gold joint venture in Eastern Mexico
with BHP Billiton is ongoing with Phase I reconnaissance expected
to be completed by the end of the year.
Our Galeana gold property in southern
Chihuahua is being explored by Grid Capital Corporation. Their recent program consisted of surface sampling, Induced Polarization
and geochemical soil surveys. All these methods confirmed the
presence of significant targets on two separate vein systems,
which we expect Grid to drill later this year.
For the six months ended June 30, 2003, the
Company incurred a loss of $498,717 ($0.02 per share). Revenue
increased due to a higher rate of return being earned on cash
available for investment and the recovery of mining tax credits.
General and administrative expenses decreased mainly due to the
amalgamation and the reduction of operating costs in Mexico.
General exploration increased due to the exploration being undertaken
by the joint venture with BHP in eastern Mexico. Write-down of
interests in mineral properties and loss on foreign currency
increased in the six months ended June 30, 2003.
Cash used in operations was $498,147 in the
six months ended June 30, 2003. Cash of $223,048 was provided
by the issuance of shares and cash used in investing activities
At June 30, 2003, cash and cash equivalents
totaled $524,495 and working capital was $1,042,920. Included
in working capital is the Company's inventory of gold recorded
at the cost of production, not market value. Also included in
working capital is a contingent liability in the event the Company
is unsuccessful in its appeal of assessed additional mineral
tax for prior years.
In the subsequent period, the Company completed
a private placement financing consisting of 323,500 Units at
a price of $0.80 per Unit for gross proceeds of $258,800 and
announced a proposed private placement financing of 1,700,000
Units at a price of $0.70 per Unit for gross proceeds of $1,190,000.
ON BEHALF OF THE BOARD
The Toronto Stock Exchange
has not reviewed nor accepted responsibility for the adequacy
or accuracy of the contents of this news release which has been
prepared by management. Statements contained in this news release
that are not historical facts are forward looking statements
as that term is defined in the private securities litigation
reform act of 1995. Such forward -looking statements are subject
to risks and uncertainties which could cause actual results to
differ materially from estimated results. Such risks and uncertainties
are detailed in the Company's filing with the Securities and