President's Letter
April 12, 1999
Historically, perhaps the most lucrative land deal ever arranged in the United States was the purchase of Alaska from Russia. In October of 1867 the Hammer & Sickle came down and the Stars & Stripes went up. Russian minister Edouard de Stoeckl and U.S. Secretary of State, William H. Seward, had agreed on a price of $7.2 million for a chunk of real estate twice the size of Texas. The price was right at 2.5 cents per acre and with current Alaskan natural resource production at about $2.5 billion annually, it was and is a great deal!
Beginning at the turn of the century, gold prospectors rushing to the Yukon Territory via Alaska, tried their luck at Nome and Fairbanks with remarkable success. Even panning the black sands of the Snake River beach near Nome yielded a Million Bucks in two months to miners equipped with only a shovel and gold pan.
Needless to say, the purchase of Alaska from Russia met the criteria for a good deal: the price was right and it was theirs to sell.
In MG Natural Resources corporate history, bad deals vie for attention on a monthly basis. We have been offered mining claims that companies and miners did not even own and at laughable prices! We have been dumbstruck by all the gold assay and extraction methods offered at "bargain basement prices." The wonderful sure-fire-gyro-gearloose machinery made available to the company at a "one time only" offering price has left us speechless but not penniless.
The "great deals" we have rejected brings to mind an adage that, "There is a little food in every garbage dump, but we don't eat lunch there." To risk company shares and dollars on mining claims with little or no merit and methods with no proof would be extremely foolish.
MG has mining property with real values to last the next 1,000 years. At a thousand tons a day, it will take a long time to mine our mountain. By then, it won't be Y2K to provoke our thoughts, it will be Y3K. While you are thinking about Y3K, please consider that by then cars, computers, cyanide leaching and gargantuan Autoclaves could be obsolete.
With the advent of MG Technology for precious metals extraction, all current methods will become obsolete. Real mining does not require massive machinery, as it is molecular in nature. Real mining is not assaying tablespoons of dirt then extrapolating into ounces per ton. Real mining is not drilling massive grids of symmetrically spaced holes and fabricating ore reserves worth millions of dollars. Real mining is however, producing millions of dollars worth of precious metals in hand while following an economically feasible program.
Gold mining companies are cutting back, cutting down and cutting out by the truckload. The reason is not because they do not have gold. The reason may be that they don't have enough gold, gold mining is too tough or environmental laws are too rough. To put it plainly, they cannot make any money.
MG has been enabled by purchasing extraction technology from Johnson & Lett, to make our precious metals mining operations highly economical. We would like to compare our Dollar Value per ton of ore to some of the largest mines in the world.
· We are a micro cap company with ore worth hundreds of dollars per ton. They are maxi cap companies with ore worth pennies per ton.
· We process ore in days. They process ore in years.
· We have small capital costs. They have enormous capital costs.
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One hundred and thirty-two years ago, William Seward bought Alaska for 2.5 cents per acre. Just a few short months from now, we believe it will appear as though we bought Johnson & Lett Technology for less than 2.5 cents per ounce.
Production has moved up from one ton per day the week of April 5th through 9th, to 5 tons per day the week of April 12th through 16th. Upon development of systematic and periodic processing, concentrating and refining, we anticipate refinery checks on a weekly basis.
MG Natural resources Corporation continues to be dedicated to employing the best people, utilizing the best equipment and implementing the best technology all with the highest benefit for our shareholders.
For the Board of Directors
Mike Amundson
President & CEO
MG Natural Resources Corporation
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