Q2: Revenue $1.7M (from Cleanup)Nice to see the company report revenue for the first time in its history. As production of gold moves from clean up head grades of .5g/t toindicated grades of 1.5g/t, we'll see a tripling of revenue whileexpenses remain relatively stable. We should also see productionincreases in Q3 based on number of mining days.
Things are looking very promising for this company especially at the current share prices.
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"Gold revenue from the Muping Mine in the second quarter of 2010 was $1.7 million on the sale of 1,511 ounces at an average realized price of $1,145 per ounce. Prior to the acquisition of Song Jiagou, the Company had no source of operating revenue. For the three months ended March 31, 2010, the Muping Mine had an operating income of $260,519.
The Company reported a loss of $502,128 (
.00 per share) on revenue of $1.7 million for the second quarter of 2010 compared to a loss of $273,333 (
.00 per share) on revenue of $nil in the equivalent period of 2009.
Management does not consider the provision of statistical information on current operations at the Muping Mine as relevant because current revenues and costs are the result of mining from the cleanup of stopes underground and materials remaining in the open pit left by the former mine owner. The Company is in the process of preparing its NI 43-101 report in order to develop a mining plan for underground and surface operations. Once these operations commence, management will provide appropriate statistical information in accordance with industry standards."
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13. Subsequent Events
Subsequent to March 31, 2010 the Company entered into the following transactions:
a) A total of 2,600,000 shares were issued upon exercise of share purchase warrants.
b) During the period, the Company submitted the required documents and permit transfers to the China Xinjiang Bureau of Geology and Mineral Resources. However, the mining permits, transfers and registrations have not been completed. Management expects the transfers to and payment of the balance of funds due to complete during the third or fourth quarter of the year ended September 30, 2010