Post by
SolaMio on Jan 05, 2007 1:04am
Rick Somerville diamond driller
Ahem.... Diamond drilling is in. Apparently our $181,359 diamond drill is out for rent to Rick Somerville for 4,500/month and (if any) he gets the upside + 2000/ month to operate his drilling business out of the Golden Arch offices.
"...During the quarter ended October 31, 2006, the Company’s wholly owned subsidiary, Frontier Drilling LLC had the opportunity to enter into a third party contract for drilling in Nevada. The contract was for not less than 4,000 feet but was cancelled early due to poor ground conditions that proved to be more than Frontier’s drill could realistically handle. The Company and its client agreed to cancel the current contract and to review alternative methods for the Spring of 2007. This contract was basically a break even on a cash basis.
Since then, a contract for 10,000 feet of drilling in Arizona was signed. (doesn't pay to say between whom) This contract is proceeding well.
Operations are currently suspended for the Christmas break and will resume in the second week in January, 2007.
Effective July 31, 2001, the Company entered into an agreement with R. Somerville Geological & Mining
Engineering Ltd. (“RSGM”) to provide consulting geological and project management services to the Company.
RSGM Engineering Ltd. is controlled by Richard Somerville, a Director of the Company.
In addition, effective August 1, 2006, the Company’s wholly owned subsidiary, Frontier Drilling LLC entered
into a two year lease on the Ingetrol Drill with RSGM Engineering Ltd at $4,500 per month. In addition,
effective November 1, 2006, Frontier entered a second equipment lease with RSGM Engineering Ltd,
which financed the purchase of a second diamond drill, a fully reconditioned Longyear 44. As noted above, RSGM Engineering Ltd. is a controlled by Richard Somerville, a Director of the Company.
Effective February 1, 2004, the Company has agreed to pay $5,000 per month to President and Director Les Kjosness for management services to the Company.
During the quarter ended October 31, 2006, the company paid $11,900 to Ford Cannon Consulting, a company controlled by Ford Cannon, an officer of the Company.