our present CEO...KerberNot one thing in this addresses you concerns about institutions.
I thought I'd look at what plan CC had for us shareholders and to see if he was going to address yours, mine and GKs concerns about institutional buyers.
This was what he had to say in the annual report. Its a long read, but worth the time to see he promised nothing and we got nothing. I guess if you don't have a plan, make any promises, but let things bump along with RIC nobody can pan you for not doing anything.
And the two properties he talks about...what have they brought us?
CC said...
MESSAGE TO SHAREHOLDERS
Dear Shareholders:
In the past year your Company has maintained a focus on advancing the Island Gold Project towards commercial
production. To that objective, major milestones were achieved. The 650 tonne-per-day on site mill was
refurbished and successfully placed back into operation in September of 2006. In November 2006, the first gold
pour was completed. To the end of 2006, over 2,100 ounces of gold were produced and sold. In early 2007, a
mine closure plan was filed with the Ontario Ministry of Northern Development and Mines. This closure plan
provides for full mining operations to proceed at the Island Gold Project. Finally, the results of the reserve
calculation for the Island Gold Project were received and the Proven and Probable Reserves are estimated to be
approximately 1 million tonnes of ore at an average diluted grade of 8.55 g/t for a total of 278,711 ounces of gold.
These reserves provide for more than four years of commercial production estimated to begin in July 2007. There
is a strong potential for increasing the mine life by increasing resources through further exploration and converting
known resources to reserves.
Richmont Mines Inc. has been our joint venture partner for the past two years and is an experienced, capable
operator in narrow vein, high grade gold deposits. Throughout 2006, Richmont Mines continued to develop the
Island Gold Project and carried out test mining and milling. Patricia Mining and Richmont Mines invested over $23
million during the year to perform this advanced exploration and development work. In 2007, it is expected that
total pre-production and production results will produce in excess of 34,000 oz of Gold. Patricia Mining will begin
to realize cash flow from commercial production in the second half of 2007 provided these levels of production
and the cost structure thereon are realized as anticipated.
The processing of mineralized material through the on-site mill has continued for the first part of 2007. During the
second quarter of 2007, the new reserve and resource estimates combined with the filing of the Lochalsh closure
plan provide all of the elements to make a commercial production decision in the second quarter of 2007. The
resources and reserves on the project will be systematically updated as more diamond drilling is completed and
the data generated becomes available to update the current resource model.
The Company is well positioned to take advantage of dynamic gold prices which reached almost US$726 per
ounce during 2006. We believe strong gold prices will continue throughout the remainder of 2007 and into 2008.
We look forward to reactivating exploration activities now that the Island Gold Project is nearing commercial
production. We have several good exploration properties in the area surrounding the Island Gold Project. This
includes the newly acquired 75% interest in the Edwards gold property which is contiguous to and on strike from
the Island Gold Project. A second exploration opportunity is on the Ego property located approximately 16 km
southeast of the Island Gold Project. The Company has conducted a high resolution air born EM survey of this
property to further identify exploration targets.
It is my pleasure to thank Patricia’s directors and staff for their significant efforts and our shareholders for their
continued support. I look forward to keeping you informed of your Company’s progress. We are extremely
encouraged by the Reserve and Resource Report which provides for more than four years of production with a
strong potential for further extension of mine life. We look forward to joining a small group of privileged
companies that have successfully advanced a project to commercial production.
Chris Chadder
President & CEO