Recent e-mail from Barbara Dunn, Chase Resources
This was e-mailed to me in responce to an inquirey I made.
PRESIDENT'S REPORT TO THE SHAREHOLDERS
The last year and a half began with great promise. Two long anticipated initiatives for the Company were finally realized - the amalgamation with Delta Gold Mining Corporation and acquisition of the Cikondang Gold Mine in Indonesia. Almost immediately thereafter, however, our reasons for optimism were being severely strained.
Almost simultaneously, the Bre-X scandal burst into the headlines, metals prices began a precipitous slide, BHP pulled out of the region and the Company's projects along with it, and Asian economics went into a drastic tailspin, with Indonesia going to the brink of collapse. In the Philippines, the economy has held together better but the country put a severe slow-down into effect against foreign mineral resource development in the fallout of the Marcopper tailings spill were Placer Mining was the operator. Recently, a further roadblock was introduced when Manila adopted a new Indigenous Peoples Rights Act that effectively has thrown the mineral titles process into limbo.
With all of these factors accumulating, it is no wonder that mineral exploration in general, and in Southeast Asia more particularly, has become a bad word with investors in the markets that have traditionally backed such endeavors.
The current bleak picture will turn around of course, but "when?" is a different matter. In the meantime, Company expenditures have been reduced to bare bones and unpromising, or expensive, mineral properties have been dropped. We have some projects joint ventured out and we are looking to complete more such arrangements. Cikondang and Taysan remain the Company's most important assets and eventually, one or both of these will bear fruit when a more positive climate begins to emerge.
One thing that is certain is that Bear markets do not last forever. Metals are still being produced and consumed, while new exploration and mine development has stagnated. The pendulum will swing the other way and perserverance through the bad times will be rewarded.
RESPECTIVELY SUBMITTED ON
BEHALF OF THE BOARD OF DIRECTORS
Signed: "Ian T. Rozier"
Ian T. Rozier
PRESIDENT |
