Q1 - 2002
CONSOLIDATED
BALANCE SHEETS
As at March 31st (in thousands of dollars)
|
March 31, 2002
(unaudited) $ |
Dec.
31, 2001 |
ASSETS |
Current |
|
|
Cash |
20 |
114 |
Accounts receivable |
117 |
134 |
Prepaid expenses |
12 |
20 |
Total current
assets |
149 |
268 |
|
|
|
Cash for
Exploration Expenditures |
- |
116 |
Exploration and
development projects (note 2) |
17,532 |
17,260 |
Other Assets |
153 |
156 |
|
$
17,834 |
$
17,800 |
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY |
Current |
|
|
Accounts payable and
accrued liabilities |
436 |
288 |
Mortgage Payable |
500 |
500 |
Total current
liabilities |
936 |
788 |
|
|
|
SHAREHOLDERS'
EQUITY |
Share capital |
54,050 |
53,853 |
Special
Warrants |
- |
197 |
Contributed
surplus |
759 |
759 |
Deficit |
(37,911) |
(37,797) |
Net shareholders'
equity |
16,898 |
17,021 |
|
$
17,834 |
$17,800
|
GOING
CONCERN - Note 1(b)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended March 31 (unaudited in
thousands of dollars)
|
2002
$ |
2001
$ |
CASH
PROVIDEDFROM (USED BY): |
|
Operating activities |
Loss for the period |
$
(114) |
$
(137) |
Item not affecting
cash - depreciation |
3 |
5 |
|
(111) |
(132) |
Changes in non-cash
working capital |
(29) |
(2) |
Cash used by
operating activities |
(82) |
(134) |
|
|
|
Investing activities |
Cash for exploration
expenditures |
(116) |
- |
Additions to
exploration and development projects |
(128) |
(742) |
Cash used by
investing activities |
(12) |
(742) |
|
|
|
Net decrease
in cash during period |
(94) |
(876)
|
Cash,
beginning of period |
114 |
1,719
|
Cash, end of
period |
$
20 |
$
843 |
CONSOLIDATED
STATEMENTS OF OPERATIONS AND DEFICIT
Three months ended March 31, (unaudited, in thousands of dollars, except per share
amounts)
|
2002 $ |
2001 $ |
|
|
|
Revenue |
Interest income |
$ 3 |
$ 18 |
|
|
|
Costs
and Expenses |
General and administrative |
114 |
150 |
Depreciation |
3 |
5 |
Total Costs and Expenses |
117 |
155 |
|
|
|
Net loss for
period |
114 |
137 |
Deficit, beginning of
period |
37,797 |
33,708 |
Deficit, end of period |
$
37,911 |
$ 33,845 |
|
|
|
Loss per share - basic and
fully diluted |
$ 0.002 |
$ 0.003 |
|
|
|
Average outstanding
common shares |
54,266,740shs. |
51,578,406shs. |
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
March 31, 2002 and 2001
(unaudited)
1. a) General
The
consolidated interim financial statements of the Company are prepared by management using
accounting principles generally accepted in Canada for interim financial statements and
reflect the accounting principles set out in the notes to the Company's consolidated
financial statements as of December 31, 2001, appearing in the Company's 2001 Annual
Report. These interim financial statements should be read in conjunction with those annual
financial statements and the notes thereto.
The results of operations and cash flows for the three-month periods are not
necessarily indicative of the results to be expected for the full year.
. b) Going Concern
These
consolidated financial statements have been prepared using accounting principles
applicable to a going concern entity, which assume that the entity will continue operating
in the future and be able to realize its assets and discharge its liabilities in the
normal course of its business. The Company's exploration and development projects are in
their early stages and, consequently, the Company, having no operating revenues to sustain
its activities, has been wholly dependent on equity financings and the optioning of
resource properties for its funds.
Several adverse
conditions cast substantial doubt on the validity of the Companys application of the
going concern principle. The conditions
include ongoing losses and property write-downs, working capital deficiencies and
insufficient cash reserves to meet the Companys minimum commitments. Therefore, the
Companys ability to continue its operations, its planned development activities, and
maintain its interest in its projects, is dependent upon the satisfactory completion of a
financing or optioning or sale of property interests to provide the required funds. Should the company not be able to obtain the
necessary financing and should the Company not be able to continue as a going concern,
then adjustments would be required with respect to the carrying value of the Companys
assets and liabilities, reported net loss, and the balance sheet classifications used.
2. Exploration and
Development Projects
Project |
March 31, 2002 |
Dec. 31, 2001 |
|
(in
thousands) |
Rainy River |
$ 11,694 |
$ 11,429 |
Lac Rocher |
4,068 |
4,066 |
Mel Properties |
1,265 |
1,265 |
Strong/Moak Lake |
300 |
300 |
Other |
205 |
200 |
|
$ 20,489 |
$
17,260 |
3. At May 15, 2002 the issued and outstanding common shares of the
Company totalled 54,266,740 and on a fully diluted basis there would be 59,216,724 common
shares outstanding.
|