To Our Shareholders:
I would like to take this opportunity to thank you for your patience during 2014. This was certainly one of the most difficult years on record for precious metal equities and we share your disappointment in the share price. But 2014 also marked a year with some of the most significant, fundamental achievements by our team. We acquired strategic properties, rezoned our key mining properties, expanded our permits and significantly reduced our costs, positioning our Company to lead forward in creating higher value and higher returns for our shareholders.
We acquired over 800 acres of private lands, expanding our mineral claims and potential for greater mining and processing. We also restructured our ownership of the mining claims in our Dayton Resource area, eliminating all future royalties there and then rezoned those lands for multiple uses, including mining. In the same context, we rezoned the remainder of our Storey County properties and gained approvals for a landmark expansion of our most strategic operating permit over our most expansive gold and silver resource. Further modifications to our primary Air and Water permits authorized increased operating hours, material processing rates and leach pad capacities. The land position has never been bigger, better or stronger.
We exceeded our targeted 2014, $10 million cost reduction program, realizing annual savings of approximately $11.7, while enhancing the core competencies of our team and increasing ounces produced. We also identified and targeted an additional $6.5 million in cost reductions for 2015 as compared to 2014.
We recently launched our 2014-2015 drilling program, targeting significant discoveries. We already reported additional high-grade intercepts that further define the broadening zone of high-grade gold mineralization on the Eastside of Lucerne. There is much more to come as the program is designed to expand the Eastside of Lucerne’s gold and silver resources, accelerate underground feasibility studies and develop high-grade, underground mine plans.
In 2014, we turned cash flow positive from operations and we are now building on that success with lower strip ratios, better yields and absolute lower costs across all activities. We believe these actions, driven by better mine execution and more substantial development, position the company for profitable growth now, in the first half of 2015, and stronger equity valuations.
Corrado De Gasperis
Statements contained in this blog, which are not historical facts, including statements about plans, goals and expectations regarding businesses and opportunities, new or existing business strategies, capital resources and future financial results are "forward looking" as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, changes in government regulation, generally accepted accounting principles, taxation, competition, general economic conditions and geopolitical conditions. Accordingly, actual results may differ materially from those projected or implied in the forward-looking statements.