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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 Company’s 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 Company’s minimum commitments. Therefore, the Company’s 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 Company’s 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.