GREY:RGVNF - Post by User
Post by
curtisprodon Aug 21, 2009 9:33pm
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Post# 16239971
FROM MD&A 3
FROM MD&A 3Red Mountain Property
The Company holds a 100% interest in 218 claims comprising approximately 12,000 acres located in the
Mayo Mining District, Yukon Territory, which makes up the Red Mountain Property. 68 of the claims,
known as the BX Claims, are subject to a 0.5% royalty. The Red Mountain Property is situated in the
Tintina Gold Belt of the Yukon and is being explored for gold mineralization.
The Company acquired its initial interest in the Red Mountain Property in 1993 and to date has spent$3,410,718 on exploration of the Property and $196,631 on acquisition costs. To reconcile with the
Company’s financial statements, $1,555,692 of deferred exploration expenditures were written off in
2000 due to several years of inactivity on the property during adverse gold markets and the Company has received tax credits from the Yukon Territory since 2002 totaling $428,497 which have been offset
against the expenditures in the Issuer's financial statements.
The 2007 work program on the Red Mountain Property consisted of a program of surface sampling as
recommended by the Company's independent geologist to provide information for targeting future drilling
and environmental clean up on the Property. The Company is still waiting for the results of the
geophysical program to be compiled and analyzed by their independent consultant. Accordingly, no
significant work program has been undertaken on the Red Mountain Property this year. The expenditures
incurred by the Company in 2008 and to date in 2009 were essentially costs related to maintaining its
mineral claims.