President's Letter - 2010

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Dear Fellow Shareholders

 

Following a Heads of Agreement announced on Sept 10^th 2009 with a consortium of two Zambian companies that were to finance the installation of the company's EMEW electrowinning plant, the consortium subsequently terminated the agreement as announced on 31^st March 2010.

 

 A strategic decision was taken at that time to depart from Zambia as being the primary focal point of the company.  ICS subsequently sold assets in Zambia to raise 1.7m USD. Under the agreement for the sale of the EMEW plant, ICS is responsible for the installation and commissioning of the plant in Zambia which is currently being undertaken and is well ahead of schedule.

   

Concurrent to the sale of Zambian assets, ICS reviewed several property opportunities and signed an agreement on August 19^th 2010 to acquire 100% of the Excelsior Springs Gold property based in Esmeralda Nevada. 

 

 

Excelsior Springs - Nevada - History

The Excelsior Springs Gold Prospect, including the Buster Mine, is located in west-central Esmeralda County, NV, approximately 50 miles WSW of Goldfield, Nevada. The prospect is located within a belt of Pre-Cambrian to Cambrian meta-sediments sandwiched between the Sylvania and Palmetto lobes of a suspected composite pluton. The pluton and intruded meta-sediments host many small gold mines, placers, prospects and anomalous gold in rock that define a regional gold-rich belt of at least 700 sq. miles. Excelsior Springs is centrally located within this gold belt. The Goldfield District, with a past production of +10 million ounces gold, lies approx. 45 miles east-northeast of the property. The Tonopah District, with a past production of 2 million ounces gold and 100 million ounces silver, lies approx. 65 miles northeast.

The Buster Mine, the main past producing mine on the patented claims, was discovered in 1872. Past production has been estimated at 18,000 tons at 1.2 opt gold. The Buster Shaft is 235 ft. deep, with workings on the 75 ft., 125 ft., and 175 ft. levels. The mine has 1540 ft. of accessible drift, mostly on the 75 ft. and 125 ft. levels. The Upper Shaft, located 750 ft. east of the Buster, is 155 ft. deep with at least 320 ft. of drift on the 130 ft. and 150 ft. levels.

Two phases of exploration drilling of 22 holes (9700ft) by Walker Lane Gold LLC in 2006-2007, identified the near-surface Buster Mine gold zone, occurring primarily on patented claims, that is approx. 150-200 ft wide and +1,000 ft. long, apparently dipping to the south. The zone has only been tested to a depth of approx. 200-250 ft.  Evolving Gold acquired the property in 2008 and completed a first round of drilling in the early summer, 2009. (8 holes - 4320ft).  In total, 53 RC drill holes have been completed to date.

The company is presently finalising a mapping and sampling programme to obtain a better grasp of the surface geology followed by a geophysical survey, cross sectional analysis, and future drilling programmes in an attempt to define a resource.  

Board

During the year Richard Molyneux stepped down as Chairman of the Board and has moved into retirement with Markus Janser taking up the void by assuming the role of Lead Director.  Steven Gregory resigned to pursue other interests and Larry Treadgold, B.Sc (Hons), C.Eng, FIMMM, was appointed to the board and subsequently has taken on the role as Chairman of ICS's Technical Committee. He is assisted by Ken Brook B.Sc, M.Sc, RPG, the company's QP (qualified Person), Dave Wolfe, Geologist, and Tom Kennedy P.Eng.

Mr. Treadgold has over 40 years' experience as an extractive metallurgist and manager in gold, silver, copper and cobalt assets world wide.  During his career he has developed both green field and brown field sites and brought them to optimum capacity and profitability.

ICS has undergone major changes during the last two years and is now well positioned for the future with a positive balance sheet, experienced management and board of directors with excellent technical expertise.  Excelsior Springs has been described by our geologist as an advanced exploration gold project and we look forward to the results of the drill programme that will take place in the Spring of 2011.

ICS will continue to review other opportunities in 2011.

We would like to thank our shareholders for their continued trust and support of the company and its board and we will endeavour to achieve positive results in the coming years.

 

Yours truly

 

"Graham Chisholm"

 

Graham A. Chisholm

 Founder, President and CEO