Message to Shareholders

2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004

2009 exceeded expectations across the board. Record production, gold prices, revenue and earnings were accompanied by successful cost control and exciting drilling results.

At Eagle River the 811 Zone opened up at depth. This zone has generated the bulk of favourable surprises over the last two years and it is very encouraging to see it extended an additional 300 metres (1,000 feet) to depth. It remains open.

At Kiena, systematic drilling is putting the flesh on the bones of our new Dubuisson discovery. Some higher grade intersections over impressive widths here have encouraged us to commence an underground exploration and development program from the 330 metre level.

Cash is piling up in the treasury putting us in an advantageous position to seek growth opportunities. The priority is a step-wise re-evaluation of our known gold assets in light of current gold prices. Work was initiated on the Wesdome project in Val d’Or and the Mishi deposit in Wawa. These offer good potential for organic growth by leveraging existing experienced workers and mining and milling infrastructure capacity in our own backyard. Acquisition opportunities which fit our regional development strategy will continue to be examined diligently and with discipline.

Although forecasting more modest production levels for 2010, we are hopeful the 811 and 808 Zones at Eagle River will continue to surprise on the upside.

We feel fundamentals have never been more favourable for the gold price and feel our leverage to gold prices has clearly been demonstrated over the last two years. It is with gratitude that the management and directors tip their hats to our miners, geologists and engineers.

On behalf of the Board of Directors,

Donovan Pollitt, P.Eng.
President and CEO

March 17, 2010