Progress on Unity Project ♦ Forward Stock Split
The Option Agreement with Maximus Ventures Ltd, (new name Bear Lake Gold Ltd BLG:TSXV as of September 2008) of Montreal, Canada, signed on July 27, 2007, provides that Maximus (Bear Lake Gold) can earn a 60% interest in the Unity property by spending US$1.0 million in exploration and development work and by completing a positive feasibility study. Bear Lake works with Unity in the United States under the name of its wholly owned subsidiary, Walker Lane Gold LLC (a Nevada corporation). The signing of the final Joint Venture Agreement, by mutual consent, has been postponed until Bear Lake has completed additional phases of the exploration program. The date by which Bear Lake must deliver a positive feasibility study has been extended until February 2012.
Bear Lake did not work at the property in 2010 but stated their intention to complete the next phase of the drill program in 2011 to assist in preparation of their development and production plans. To date Bear Lake reports indicate they have expended over $990,000 on maintenance, drilling, property expansion, etc. for the Unity project. Currently they have covered the cost of the 2010 Annual Claims Filing with the Bureau of Land Management which was $10,640. Bear Lake assures us that they remain favorably committed to the project.
A trip was made to the property in September to inspect the road areas proposed for remediation by the Forest Service. We toured portions of the 1400 acres of property under Unity control with our resident mine security man, Charles Israel. A meeting was arranged and attended with the Forest Service representative in McCall who oversees the Warren area.
We also met with our government surveyor, John Russell, in McCall, who has been retained by Bear Lake Gold and Unity to be our on site representative with the government agencies. Mr. Russell is working with the Forest Service regarding site plans for the 2011 core drilling phase. Mr. Russell also secured bids from contractors for the road remediation which was completed in October in preparation for the 2011 season. The cost of the road work was shared equally by Bear Lake and Unity.
Mill Site Claim — Possible Purchase for Outright Ownership
Unity is investigating the possibility of purchasing the staked 5 acre Mill Site claim from the Bureau of Land Management. Patents on mining claims are no longer issued but small parcel sales do take place. Ownership of this claim would allow Unity more freedom to establish permanent buildings for the mill, storage buildings, and housing.
Forward Stock Split
The Unity office is still working on the preparation of the stock certificates and paperwork for the 10 for 1 stock split as previously announced. The forward stock split of 10 new shares will replace and void each one share currently held. This forward split will reduce the Unity stock price from the present $2.00 to $.20 per share. Unity shareholders may purchase additional stock at the new lower price.
We thank all shareholders for your patience and perseverance in the long odyssey with this project. The project’s potential for profit is excellent based on historical data and on today’s prices for gold ($1378) and silver ($29). Unity’s Directors remain confident in the belief we are fortunate to forge an alliance with an experienced mining group such as Bear Lake Gold who is well funded and enthusiastic about the Unity Project.
Both Unity and Bear Lake Gold are looking forward to a successful, profitable and long term partnership.
Best Wishes for the New Year.
Ray G. Bohn
Unity GoldSilver Mines, Inc.