NEWSGETTY COPPER INC.
MANAGEMENT DISCUSSION & ANALYSIS
June 30, 2007
The following discussion and analysis of the results of operations and financial position of the Company for the six months ending June 30, 2007 should be read in conjunction with the June 30, 2007 financial statements and the related notes which have been prepared in accordance with or reconciled to Canadian Generally Accepted Accounting Principles. The effective date of this report is August 25, 2007.
Forward Looking Statements
Except for historical information, this Management Discussion and Analysis (“MD&A”) may contain forward-looking statements. These statements involve known risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievement expressed or implied by these forward looking statements. The reader is cautioned not to place undue reliance on this forward-looking information.
Overall Performance
The Company is engaged in the acquisition and exploration of natural resource properties. Since 1993, the Company has been conducting exploration for copper on its approximately 200 km2, Highland Valley, British Columbia mineral property, which adjoins the large porphyry copper mining and milling operation of Highland Valley Copper.
The Company primarily has been exploring the Getty North and Getty South deposits. The Getty North and Getty South deposits have mineral resource estimates that were received by the Company in August and June of 2007 respectively. These 2007 technical reports meet the requirements of the CIM classifications referenced in National Instrument 43-101.
The Getty South technical report discloses an Inferred Resource of 28.16 million tonnes, having a grade of 0.47% copper at a cut off grade of 0.20% copper.
The Getty North technical report discloses indicated and inferred resources of oxide and sulphide zones at cut off grades of 0.20% and 0.30% copper. At a cut off grade of 0.20% copper the Indicated Resource calculated was 32.106 million tonnes of 0.454% copper and an Inferred Resource of 8.250 million tonnes at 0.355% copper. At a cut off grade of 0.30% copper, the Indicated Resource calculated was 30.730 million tonnes at 0.462% copper and the Inferred Resource calculated was 3.983 million tonnes at 0.452% copper.
Bateman Engineering, Inc. prepared a project assessment report in May, 1998 for the Company on the Getty North deposit (using information supplied by KHA Resource Modeling, Inc. in December, 1997) which estimated an oxide drill indicated and inferred resource of 10 million tonnes with an estimated grade of 0.408% copper and a sulphide drill indicated and inferred resource of 58.2 million tonnes at an average grade of 0.293% copper for a total drill indicated and inferred resource of 68.2 million tonnes at an average grade of 0.310% copper. The above resource estimates by Bateman pre-date NI 43-101 and as such are not incompliance with the CIM classifications and while believed to be relevant, they should not be relied upon.
Earlier estimates prepared by Watts Griffis and McOuat gave calculations of 5.5 million tonnes of indicated resources of 0.43% copper in the oxide zone and 400,000 tonnes of inferred resources grading 0.42% copper in the oxide zone using a cut-off grade of 0.25% copper. Watts Griffis and McOuat also calculated the sulphide zone as having an indicated resource of 22.2 million tonnes having a grade of 0.43% copper and 5.3 million tonnes of inferred resources grading 0.42% copper using a cut-off grade for the sulphide zone of 0.30% copper. The above resource estimates by Watts Griffis McOuat pre- date NI 43-101 and as such are
GETTY COPPER INC.
MANAGEMENT DISCUSSION & ANALYSIS
June 30, 2007
2
not incompliance with the CIM classifications and while believed to be relevant, they should not be relied upon.
The Getty South deposit was the subject of a pre NI 43-101 resource estimate (Gower Thompson & Associates-1992) of 36 million tonnes of an inferred resource grading 0.47% copper. Subsequently, in 1996,
Watts, Griffis & McOuat advised that the Gower resource estimate was reasonable. Although this resource estimate is considered relevant, it is cautioned that the resource estimate is historical in nature and does not comply with the CIM classifications referred to in National Instrument 43-101 and should not be relied upon. This estimate has not been verified by a Qualified Person.
The Company commissioned a consulting geologist in 2005 to conduct an extensive review of the Getty South historical technical information and to catalogue and digitize this information. This work was a pre-cursor to the technical reports obtained in 2007.
As a result of a disclosure review undertaken by the BC Securities Commission in early 2006, the Company retracted all past references to mineral reserves and because the Company did not have current technical reports in compliance with National Instrument 43-101, it retracted any reference to a current mineral resource.
In August and June 2007 respectively, the Company received National Instrument 43-101 compliant technical reports containing resource estimates for its Getty North and Getty South deposits in accordance with CIM classifications.
On August 24 2007, the Company announced that it had commissioned West Coast Environmental and Engineering, of Nevada City, California, to immediately commence a pre-feasibility engineering study focused on potential cathode copper production from the Getty North and Getty South oxide and sulphide copper resources. The new engineering study is intended to update the past work referred to above and includes possible development of both the oxide and sulphide resources. The oxide resource is proposed to be developed in the same manner as originally proposed by Bateman (1998) with heap/dump leaching followed by solvent extraction and electro-winning. The sulphide resources of the Getty North Deposit would potentially be open-pit mined in conjunction with both the Getty North and Getty South oxide resources. The sulphide copper is proposed to be treated using conventional milling and flotation as is done worldwide to produce copper concentrates. Any copper concentrate that might be produced is proposed to be pressure leached on site with industrially proven, low pressure and temperature pressure oxidation autoclaving followed by solvent extraction and electro-winning to produce high quality cathode copper metal. Pressure oxidation of copper concentrates is a rapidly emerging industrially applied and environmentally sound global industrial technology. The proposed pressure oxidation facility at the Getty property will be based on this proven industrial technology. It will offer the advantages of a large-scale application of the technical and financial advantages of low pressure and low temperatures assuming that the planned study is positive. However, at this time there can be no assurance that the proposed pre-feasibility study will indicate that the quality of the present resources will be upgraded to the status of reserves or that the planned processes will be able to produce cathode copper material as proposed. The above plans for producing copper concentrates and cathode copper may not be economically achievable even though the testing and planning to date indicate that the copper cathode could potentially be produced using the planned processes.
The Company’s other identified potential mineral zones, “Northwest”, “Southwest”, and “Central” are all in the early stage of exploration and there is insufficient data to establish whether any resources may exist. The Company continues to seek additional properties worthy of exploration and development.
GETTY COPPER INC.
MANAGEMENT DISCUSSION & ANALYSIS
June 30, 2007
3
Ongoing reviews of previous geological, geophysical and geochemical programs are being conducted to determine future work programs. In 2005, the Company commissioned a metallurgical testing program of the potential Getty North and Getty South sulphide and oxide copper mineralized zones by SGS Lakefield Research Limited of Lakefield Ontario. In addition, Innovat Limited initiated a pilot-plant testing program of the Getty samples at the Lakefield facility of its proprietary Continuous Vat Leaching process. Phase 1 of the program was used to characterize copper oxide mineralization from the Getty North Deposit and to develop the best chemistry for leaching. Limited testing of sulphide samples was also conducted, but the overall focus was on oxide mineralization. Bottle roll tests established leach kinetics and reagent consumptions, followed by jig-column tests that simulate continuous vat leaching conditions.
Getty North mineralization was analyzed at 0.84% copper (0.55% oxide copper, 65% of the total copper). Copper mineralization in both Phases 1 and 2 programs was crushed to minus 6.3 mm. Phase 1 tests gave 80% recovery at a pH of 1 with a residue of 0.16% copper in 72 hours, while treatment at pH 2 gave recoveries of 75% with a residue grading 0.18% copper, also over 72 hours. The higher pH value is more suitable for SX/EW recovery. Net acid consumptions were 9.6 and 6.7 kg/t respectively. The Phase 2 pilot plant run took place over 10.5 days, comprised of an initial 3-day batch test to bring solution tenor up to levels needed for SX/EW operation, followed by a 5 day continuous run of the vat and then 2.5 days operation of the SX/EW unit, using stored PLS solution. Live capacity of the vat was calculated at 14.7 tons by SGS Lakefield. A grab sample at 48 hours graded 0.18% copper, confirming that the pulsing vat was matching expectations developed in the jig-column tests.
Copper was recovered during the pilot plant campaign using a conventional SX/EW circuit. Recovery of copper to a concentrated solution was 98%. Current efficiency in electrowinning was 92.5%. Cathodes analyzed at 99.97% copper with the impurities being sulphur, silver, lead, and iron. It is anticipated that copper purity can be improved with some fine-tuning of the SX/EW circuit.
Following the leach campaign, some modifications were made to the drum discharger to try to improve the flow through, using leach residue and fresh mineralization feed for testing on water (not leach solution). A 24-hour test was not successful in improving flow through. It was identified during the test that the baffles between the vat leach section and the wash section, combined with poor fluidization in the wash section was
restricting flow to the discharge drum. Also, additional work needs to be done on coordinating the fluidization with the pickup points on the drum. Subsequently, Innovat has advised the Company that design changes it has developed should effectively meet the target throughput rates.
Achievements of the Phases 1 and 2 programs are summarized as follows:
•
Bench scale testing results can be achieved in a pilot plant operation
•
Continuous flow through of mineralization while leaching in a vat is validated
•
Bench and pilot scale leach results indicate that the recoveries can be replicated on Getty North mineralization in the 75% range over 72 hours.
•
Acid consumption is relatively low, in the 7 – 17 kg/t range
•
Decanting of minus 6.3 mm ore results using a decanting drum provides a low moisture content, averaging 9.2 % moisture by weight
•
Paste consistency can be produced by the thickener; a 46% solids paste was produced on 80% - 42 micron material
•
Cathode grading 99.97% copper can be made using conventional SX/EW
GETTY COPPER INC.
MANAGEMENT DISCUSSION & ANALYSIS
June 30, 2007
4
Running of the pilot plant at SGS Lakefield Research is a major achievement, representing the premiere of continuous vat leaching of copper.
The Company has a licence agreement with Innovat for the ongoing non-exclusive right to commercialize the Innovat proprietary technology. The Company has reached an agreement in principle to convert its non-exclusive technology license with Innovat Limited into a joint venture controlling the exclusive use of the Innovat continuous vat leaching (“CVL”) technology. The negotiations will not be concluded until the Company is satisfied with the viability of the discharge system. Subject to conclusion of the negotiations and due diligence review and regulatory approval, the joint venture will be owned equally by Innovat Limited and the Company and the Company will have the right to nominate the majority of the joint venture entity’s board of directors. The resultant joint venture entity would be responsible for arranging the necessary project financing to commercially exploit the technology.
The price of copper remained relatively steady in 2006 as a result of increasing worldwide consumption and decreasing world copper inventory. Recent widely read business journals predict that metal prices in 2007 should continue at current levels due to supply and demand dynamics but there can be no assurance that the current prices will be sustained over the timeframe that would be required to place any mineral deposit that may be located on the Property into commercial production. The Company continues its efforts to move the properties into the development stage to take advantage of the current strong demand for copper.
The Company became involved in a series of lawsuits arising out of its acquisition of its 50% interest in Getty South. Significant legal expenses resulted in higher general and administrative expenses during 2006 and ongoing into 2007 will increase the loss to be reported for those fiscal periods. The 2007 fiscal period may face significant legal expenses due to the outstanding litigation. One lawsuit, considered the most complex of the three, was resolved in the second quarter of 2007 and is reflected in the increased legal costs of the period.
Notwithstanding the distractions of the referred to litigation, the Company believes that the receipt of the two NI 43-101 compliant technical reports and the commissioning of the pre-feasibility engineering study has significantly moved the Company forward toward its stated corporate mission of placing the Getty North and South Deposits into production.
Result of Operations
Due to reduced commodity prices and a lack of working capital, nominal exploration work was carried out by the Company between 1998 and 2003. Consequently at the years ended December 31, 2001 to December 31, 2003 the financial statements were adjusted to reflect a provision for impairment of mineral properties.
Between January 1, 2006, and June 30, 2007 the Company has raised $2,900,001 by way of private placement financing. The Company completed a private placement on May 7, 2007 for 13,000,000 units for gross proceeds of $1,300,000. Each unit, at a price of $0.10 was comprised of one common share of the Company and one-half share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one additional common share at an exercise price of $0.15 per share for a period of 12 months from closing of the private placement. All securities issued pursuant to this private placement will be subject to a four-month hold period from the date of closing.
On May 1, 2007, the Company issued 4,937,500 shares of the Company to a private holding company controlled by director and control person, John Lepinski, at $0.10 per share in settlement of an outstanding debt of $493,750. This debt arose by the Company acquiring marketable securities from debt holder, which
GETTY COPPER INC.
MANAGEMENT DISCUSSION & ANALYSIS
June 30, 2007
5
securities were utilized in resolution of a lawsuit involving the claim of former directors for indemnification and related matters. All securities pursuant to this transaction are subject to a four-month hold.
During the six months ending June 30, 2007, 147,750 whole warrants were exercised, raising proceeds of $22,162.50 for the issuance of 147,750 shares.
During the six months ending June 30, 2007, 350,000 Incentive Stock Options were exercised, raising proceeds of $87,500 for the issuance of 350,000 shares.
The Company’s working capital decreased to ($296,145) for the six months ending June 30, 2007 from ($329,618) at December 31, 2006, the decrease of $33,473 is due to funds raised through issuance of stock, through private placement, exercising of warrants and Incentive Stock Options, which have helped to alleviate the increase in payables during the six months ending June 30, 2007.
The Company’s total assets increased during the six months ending June 30, 2007 to $4,821,444 an increase of $248,761 due to funds raised through issuance of stock, through private placement, exercising of warrants and Incentive Stock Options. The Company’s liabilities increased by $229,358, primarily due to an increase in payables related to legal expenses. Exploration expenditures on the property are deferred, thus increasing the balance sheet value of the mineral rights. The Company has no significant source of working capital other than funds raised through private placement and exercising of warrants.
The loss from operations for the six months ending June 30, 2007 increased by $1,288,207 over the loss reported at June 30, 2006. General and administrative expenditures for the six months ending June 30, 2007 increased to $969,131 compared to $575,540 at June 30, 2006. The comparative increase of $393,591 in administrative expenses between the six months ending June 30, 2007 and 2006 can be attributed to an increase in professional fees. The predominant administration expense being the legal costs associated with the lawsuits outlined under Additional Disclosure. As reported under “Other Item” on the Statement of Operations and Deficit, The Company disbursed $896,319 related to legal fees and costs, to settle indemnification claims of two former directors and the valuator of the 2002 Valuation Report on the Getty South. The Company has no source of income other than interest earned on funds held in a term deposits and rent received for a portion of the Logan Lake office.
Professional fees for the six months ending June 30, 2007 $891,531 (2006 - $482,552) which include $877,569 (2006 - $472,430) for legal and court fees, $13,962 (2006 - $9,322) in accounting fees and $Nil (2006- $800) consulting fees.
Selected Quarterly Information for the six months ending:
June 30, 2007 June 30, 2006
Loss for the quarter ($1,511,774) ($403,060)
Loss for the six months ($1,863,186) ($574,979)
Loss per share: ($0.02) ($0.01)
Assets $4,821,444 $5,075,834
GETTY COPPER INC.
MANAGEMENT DISCUSSION & ANALYSIS
June 30, 2007
6
Summary of Quarterly Results
June 30
2007
March 31
2007
Dec. 31
2006
Sept. 30
2006
June 30 2006
March 31
2006
Dec. 31
2005
Sept. 30
2005
Revenue
$ 2,264
$ 1,698
$ 3,957
$ 2,259
$ 561
$ Nil
$ 748
$ 748
Loss before Other items
969,131
351,412
1,136,910
792,933
$574,979
$171,919
$285,806
$203,881
Net loss
1,863,186
351,412
1,136,910
792,933
$574,979
$171,919
$285,806
$203,881
Loss per share
$0.028
$0.007
$0.03
$0.016
$ 0.014
$0.0044
$0.0084
$ 0.0060
Loss per share diluted
$0.022
$0.0058
$0.017
$0.121
$ 0.011
$0.0034
$0.0067
$0.0046
Total Commitments less than a year 1-3 years
Rent $ 6,000 $ 6,000
Management Fees $ 30,000 $ 30,000
Legal Fees $ 22,500 $ Nil
Liquidity of Capital Resources
The Company has no mineral producing properties at this time and receives no revenues from production. All of the Company’s properties are exploration projects, and there is no assurance that a commercially viable ore deposit exists in any such properties until further exploration work and a comprehensive evaluation based upon unit cost, grade, tonnage, recoveries, and other factors conclude economic feasibility.
As of June 30, 2007, 2,800,000 stock incentive options remain issued after 350,000 were exercised at $0.25 per share. On June 25, 2007 at the Annual General Meeting, the shareholder approved an amendment to the Incentive Stock Option Plan to allow the issuance to a maximum 6,700,000 stock incentive options. Subsequent to June 30, 2007. 1,700,000 options were granted at $0.25 and thus, 2,200,000 common shares remain reserved for issuance under the Company’s amended share option plan.
Financing Activities
On May 12, 2005 the Company completed a 1,335,000 unit private placement for gross proceeds of $200,250. Each unit consisted of one common share valued at $0.15 and a full warrant to purchase a further share of common stock at a price of $0.25 during the period May 13, 2006 to May 12, 2007. No finder’s fees or commissions were paid. Proceeds from the private placement were used to fund the Company’s exploration programs, to pay ongoing expenses and for general working capital. The warrants expired May 12, 2007, unexercised.
On January 16, 2006 the Company completed a private placement of 5,000,000 units for gross proceeds of $500,000. Each unit, sold at a price of $0.10, consisted of one common share of the Company and one common share purchase half-warrant, entitling the holder to purchase an additional half common share of the Company. No finder’s fees or commissions were paid. Proceeds from the private placement were used to fund the Company’s exploration programs, to pay ongoing expenses and for general working capital. These warrants
GETTY COPPER INC.
MANAGEMENT DISCUSSION & ANALYSIS
June 30, 2007
7
were extended to January 16, 2008 at a price of $0.15. As of the July 31, 2007 125,000 warrants were exercised, leaving a balance of 2,375,000 whole warrants outstanding.
On July 7, 2006, the Company completed a private placement and issued 10,000,000 units at $0.11 for gross proceeds of $1,100,000. Each unit was comprised of one common share and one common share half-warrant, entitling the holder of each whole share purchase warrant to purchase an additional one common share of the Company for a period of 6 months (expiry date was extended to July 7, 2008 from January 7, 2007) at a price of $0.15. No finder’s fees or commissions were paid. Proceeds from the private placement were used to fund the Company’s exploration and development programs, to pay ongoing expenses and for general working capital. As of July 31, 2007 22,750 warrants were exercised, leaving a balance of 4,977,250 whole warrants.
On May 1, 2007, the TSX Venture Exchange accepted for filing the company’s proposal to issued 4,937,500 shares at a deemed value of 10 cents per share to settle outstanding debt for $493,750. The securities issued have a four-month hold period.
On May 7, 2007 the TSX Venture Exchange accepted the Company’s non-broker private placement of 13,000,000 units for gross proceeds of $1,300,000. Each unit, at a price of $0.10, was comprised of one common share and one half-share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one additional common share at an exercise price of $0.15 per share for a period of 12 months from closing of the private placement. Proceeds from the private placement will be used to fund the Company’s exploration programs, to pay ongoing expenses general working capital and for legal expenses related to litigation. All securities issued will be subject to a four-month hold period from the date of closing.
The number of outstanding shares after the above transactions is 67,513,907.
As of June 30, 2007, if all the share purchase warrants and incentive stock options were exercised the number of shares outstanding would be 84,166,157.
Outlook
The Company continues its efforts to further develop its mineral properties. Although it is uncertain whether the Company will determine that it has economically recoverable reserves and whether it will be able to obtain the necessary financing to complete the exploration and development of the mineral properties, the Company believes that it may be able to economically develop the mineral properties. However, Canadian generally accepted accounting principles require that development costs related to mineral properties be written down for impairment unless there is persuasive evidence that impairment has not occurred. During the six months ending June 30, 2007 funding was available to continue the exploration of the mineral properties, so future exploration development costs will not be written off until such time as the Company determines if it has economical recoverable resources or until exploration and development ceases and/or the mineral claims are abandoned.
During the six months ending June 30, 2007, the Company performed its own investor relations including dissemination of press releases to the media, interested shareholders, investors and brokers.
Subsequent to June 30, 2007, the Company retained Paul Frigstad as manager of its investor relations program and appointed Corby Anderson PhD., CEng FIChemE, as President, and Robert H. Peterson as director to replace Jean Jacques Treyvaud.
The Company advises that the litigation that it is presently involved may impact on the levels of activity, performance or achievements of the Company for at least the balance of the current fiscal period. After
GETTY COPPER INC.
MANAGEMENT DISCUSSION & ANALYSIS
June 30, 2007
8
receiving legal advice, management remains confident in the outcome of litigation process, however, the actual outcome of the litigation is presently undeterminable. The Company also appreciates that other potential indemnification claims may arise from ongoing litigation.
The Company’s management remains committed to the development of the Company’s Highland Valley mineral claims, subject to a positive feasibility study, production permitting and financing.
Related Party Transactions
During the six months ending June 30, 2007, a professional accounting firm to which a director is associated billed the Company $8,211 (2006- $9,238) in accounting fees related to tax filings, quarterly report review and other professional accounting related matters, The Company reimbursed the professional accounting firm $52,954 (2006– $10,700) for the director’s legal fees, time and disbursements for representing the Company in examinations of discovery and other matters related to law suits. John Parks, Solicitor, Corporate Secretary and director of the Company billed the Company $90,000 (2006- $75,000) for legal fees, as general counsel. For the six months ending June 30, 2007, the Company also paid $3,000 office rent and $15,000 management fees to companies controlled by the Managing Director.
During the year ending December 31, 2006, two directors of the Company purchased 3,704,545 common shares of the Company as part of a non-broker private placement resulting in proceeds to the Company of $395,000.
Outstanding share data
As of July 31, 2007, there were 67,513,907 common shares outstanding.
Additional Disclosure
In 1996 the Company entered into an agreement to acquire a 50% interest in the Getty Central, Getty South and Getty Southwest mineral claims from Robak Industries Ltd. (beneficially owned by director John Lepinski) in exchange for $85,900 cash, a commitment to spend an aggregate of $6,950,000 on exploration and development of the claims by December 31, 2002, an agreement to complete a feasibility report on the Getty South mineral claims by December 31, 2002; and a 1-1/2% net smelter royalty in favour of Robak. The terms of the acquisition could not be met and effective November 8, 2002, the Company and Robak terminated the original agreement and entered into an agreement for the Company to acquire a 100% interest in the Getty Central and Getty Southwest and a 50% interest in the Getty South mineral claims from Robak in exchange for 6,000,000 post consolidation common shares of the Company at a deemed value of $1,200,000, an agreement by the Company to carry 100% of the costs to place the Getty South mineral claims into production, and a 1-1/2% net smelter royalty in favour of Robak. The cost incurred by the Company in bringing the property into production is to be repaid from 80% of the net production revenue. In 2004, the Company approached Robak with a view to acquire the other 50% of the Getty South claims. In the process of obtaining a valuation of the claims, an issue arouse as to the nature and interpretation of the carried interest clause referred to in the 2002 agreement. Robak has advised the Company that it agrees with the interpretation assumed by the Company and has agreed to a clarifying amendment to the 2002 agreement.
On January 10, 2005 former director, Robert Gardner, filed a Third Party action against the Company claiming indemnification from any costs and/or damages arising from a lawsuit brought November 24, 2004 against Gardner, Vittorio Preto and others. Former director Preto filed a similar suit claiming indemnification on May 27, 2005. The Company filed a defence to the claims refuting Mssrs. Gardner and Preto’s claim for
GETTY COPPER INC.
MANAGEMENT DISCUSSION & ANALYSIS
June 30, 2007
9
indemnification. Subsequently, the Company filed a Counter Claim against former directors Robert Gardner and Vittorio Preto as well as Ross Glanville and Ross Granville & Associates claiming damages for negligence and breach of fiduciary duties owed to the Company. This lawsuit was settled in the second quarter of 2007.
On January 30, 2006, the Company released the results of phase 1 of their metallurgy test program being carried out at SGS Lakefield.
On April 25, 2006, the Company initiated a lawsuit in the Supreme Court of British Columbia against the law firm of Blake Cassels & Graydon LLP. The lawsuit claims inter alia, damages for breach of duty owed to the Company.
On April 26, 2006, the Company released preliminary results of Phase 2 of their metallurgy test program at SGS Lakefield.
On July 7, 2006, the Company was named in a lawsuit initiated in the Supreme Court of BC by a number of plaintiffs including Robert Gardner and Gordon Blankstein. The action alleges, inter alia, that the business or affairs of the Company is oppressive or unfairly prejudicial to or has unfairly disregarded the interests of the plaintiffs and those similarly situated. The Company has instructed counsel to vigorously defend the action.
On July 19 2007, the Company announced the results of a NI 43-101 compliant technical report on the Getty South Deposit.
On July 24 2007 the Company announced the appointment of Corby Anderson as President and Chief Operating Officer of the Company and Paul Frigstad as manager of investor relations.
On August 22, 2007 the Company announced the appointment of Robert H. Peterson to the board of directors replacing Jean Jacques Treyvaud.
On August 23, 2007 the Company announced the results of a NI 43-101 compliant technical report of the Getty North Deposit.
On August 24, 2007 the Company announced it has commissioned a pre-feasibility engineering study from West Coast Environmental and Engineering on potential cathode copper production from the Getty North and Getty South oxide and sulphide copper resources.
Summary and Outlook
The Company is a British Columbia company engaged in the business of mineral exploration in the Highland Valley of British Columbia. The Company does not have any properties that are in production or that contain a reserve.
Notwithstanding the distraction of the referred to litigation, the Company’s main focus is to concentrate on the Getty North and Getty South deposits, both of which are the subject of NI 43-101 compliant technical reports. The future proposed development of these two deposits will depend on the results of the recently commissioned pre-feasibility engineering study, the completion of which is expected before the end of 2007. Dependent upon the results of the pre-feasibility study, the Company expects to attempt to secure future equity and possibly debt financing to continue its corporate mission of moving its corporate resource assets into production.