This document includes statements that may constitute forward-looking statements
made pursuant to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995. We caution readers regarding certain forward-looking
statements in this document, press releases, securities filings, and all other
documents and communications. All statements, other than statements of
historical fact, including statements regarding industry prospects and future
results of operations or financial position, made in this Quarterly Report on
Form 10-Q (" Report ") are forward looking. The words " believes ," "
anticipates ," " estimates ," " expects ," and words of similar import,
constitute " forward-looking statements ." While we believe in the veracity of
all statements made herein, forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered reasonable by
us, are inherently subject to significant business, economic and competitive
uncertainties and contingencies and known and unknown risks. As a result of
such risks, our actual results could differ materially from those expressed in
any forward-looking statements made by, or on behalf of, our company. We will
not necessarily update information if any forward-looking statement later turns
out to be inaccurate. Our actual results could differ materially from those
anticipated in these forward-looking statements for many reasons, including
risks and uncertainties set forth in our S-1 Registration Statement, as well as
in other documents we file with the
The following information has not been audited. You should read this information in conjunction with the unaudited financial statements and related notes to the financial statements included in this report.
We are an "exploration stage" company that has not realized any revenues to date. Our business is the acquisition and exploration of mining properties located in the state of
Plan of Operation
We have completed the first phase of the recommended exploration program on our Silver Oasis claims. The program was finalized in
The first phase cost
Whether or not we will discover commercially viable mineral deposits will depend on this further exploration.
Our plan of operation is to continue exploration work on the Silver Oasis Claims. There is no assurance that an economic mineral deposit exists on the Silver Oasis Claims. Even if we complete our proposed exploration program on the Silver Oasis Claims and we are successful in identifying a mineral deposit, we would have to spend substantial funds on further drilling and engineering studies before we will know if we have a commercially viable mineral deposit.
The Phase 1 reconnaissance exploration and sampling program results are very encouraging and suggest that high-grade silver mineralization could occur at depth. The "
Other base metal mineralization, such as copper, lead, zinc and tungsten, is observed in nearly every sample and suggests that a complex poly-metallic ore geneses. This high-grade mineralization is consistent with other accounts from other mines found in the mining district.
Our plan of operation for the next twelve months is to carry out the second phase of the recommended exploration program. This program may consist of acquiring additional prospects contiguous to the Silver Oasis Claims and sampling, assaying those claims, as well as geological mapping, a detailed rock sampling program and map and sample underground workings for future drill targets. Phase 2 is estimated to cost between
We will require additional funding in order to proceed with additional exploration on Silver Oasis Claims. We anticipate that additional funding will be in the form of equity financing from the sale of our common stock or from director loans. We do not have any arrangements in place for any future equity financing or loans.
In addition to exploration costs of approximately
If we are not successful in raising additional financing, we anticipate that we will not be able to proceed with our business plan. In such a case, we may decide to discontinue our current business plan and seek other business opportunities in the resource or non-resource sector. Any business opportunity would require our management to perform diligence on possible acquisition of additional resource properties. Such due diligence would likely include purchase investigation costs, such as professional fees by consulting geologists, preparation of geological reports on the properties, conducting title searches and travel costs for site visits.
Based on the nature of our business, we anticipate incurring operating losses in the foreseeable future. We base this expectation, in part, on the fact that very few mineral claims in the exploration stage ultimately develop into producing, profitable mines. Our future financial results are also uncertain due to a number of factors, some of which are outside our control. These factors include the following:
• our ability to raise additional funding;
• our ability to locate and acquire a suitable interest in a mineral property;
• the market price for minerals;
• the results of our proposed exploration programs; and
• our ability to find joint venture partners for the development of any property interests
We have not attained profitable operations and are dependent upon obtaining financing to pursue exploration activities. For these reasons our auditors believe that there is substantial doubt that we will be able to continue as a going concern.
We have had no operating revenues since our inception on
Results of Operations for Periods Ending
We did not earn any revenues during the three or six-month periods ending
Liquidity and Capital Resources
We expect to continue incurring losses in the next twelve months. We have no agreements for additional financing and cannot provide any assurance that additional funding will be available to finance our operations on acceptable terms in order to enable us to complete our plan of operations. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our exploration of our mineral claim and our venture will fail.
We plan to continue to finance our activities in the short term through shareholder advances similar to the ones that have occurred to date. In the longer term it is hoped there will be further equity financings but none are planned at the moment.
Off-Balance Sheet Arrangements
We do not maintain any off-balance sheet transactions, arrangements, or obligations that are reasonably likely to have a material effect on our financial condition, results of operations, liquidity, or capital resources.