Add
NWPG.OB to Portfolio
Set Alert
Email to a
Friend
| |||
|
|
Quotes & Info
|
| NWPG.OB > SEC Filings for NWPG.OB > Form 10QSB/A on 16-May-2008 | All Recent SEC Filings |
16-May-2008
Quarterly Report
General
The following discussion and analysis should be read in conjunction with the financial statements, including the notes thereto, appearing elsewhere in this document.
The "Plan of Operations" of Newport is incorporated by reference from the Newport's Form SB-1, as amended, filed with the SEC on June 8, 2005.
Plan of Operations
Newport is a pre-exploration company incorporated under the laws of the State of Nevada on July 16, 2003. We commenced our business operations in 2006.
Burnt Basin, B.C.
Results to date show a large zinc, lead, copper, silver soil geochemical anomaly 200-400 meters in width and over 1km in length. Within this area untested airborne conductors have been found as well as many random occurring outcrops which have yielded many values in excess of 12% combined lead and zinc. The latter outcrops also contain silver, copper and gold values.
Numerous other smaller zinc, lead, copper, gold soil geochemical anomalies were defined elsewhere on the grid, many of which are unrelated to any know mineralization. A strong 100m x 150m copper- gold soil anomaly was also defined several hundred meters to the northwest of the Upper Eva Bell showing, which is also unrelated to any known mineralization.
A new discovery of sphalerite-magnetite mineralization was made 800 meters to the northwest of the Halifax Zone with values to 15.4% zinc.
Unexpected Area: A new discovery of massive galena mineralization was also made, 1km north of the Halifax zone with values to 51.5% lead, 1.3 % zinc and 327g/t silver. A second area of mineralization, 200 meters to the north, returned values to 1.03% zinc and a third area of mineralization a further 250 meters to the north, returned values to 17.1 g/t gold, 15.4 g/t silver, 1% lead and 0.6% zinc.
Contact Area: High precious metals values to 59 g/t gold and 74.9 g/t silver were obtained from sampling at the Contact Zone. This zone was discovered during the 2005 work program.
Hastings Area: A historically known area of massive magnetite-sphalerite mineralization was located, 500 m south of the Halifax, with values to 32.3% zinc returned from samples collected.
Burnt Basin Area: A new quartz vein discovery was made, 1 km west of the Motherlode, with values to 4.6 g/t gold.
Aldeen area: A new quartz vein discovery was made, 1km north of the Eva Bell, with values to 4.9g/t gold.
Field work was carried out under the supervision of Linda Caron M.Sc. Geology.
China
A deep Induced Polarization survey was commenced over a portion of the property where near surface I.P. anomalies had been defined last year. The purpose is to define anomalies at depth below the oxidized zone.
No results are available yet but will be released when all the data has been received and interpreted.
On November 17, 2006, Newport acquired an option to earn a 20% interest in a 50% interest held by the optionors in certain mineral exploration rights located in Inner Mongolia, China (the "Inner Mongolia Property"). This property is held by Noront Resources Ltd. ("Noront" NOT TSX-V) through BaoTou Noront Mineral Development Co. and consists of 5.16 km (2) situated about 100 km north of BaoTou City. The option agreement is subject to an underlying agreement dated February 1, 2006 between Noront and the optionors. In order to earn its interest in the property, Newport issued 2,200,000 common shares to the optionors and an additional 300,000 common shares to Noront at $0.10 per share. Newport also granted a total of 2.2% NSR to the optionors on all metals produced from the optionors' interest in the property. The optionors also granted Newport a first right of refusal on acquiring the remainder of their 50% interest for a period of one year. Newport must issue a total of 800,000 common shares to Noront by February 1, 2009 and incur $750,000 of exploration expenditures, with a first year obligation to issue 300,000 shares (issued as noted above) an incur $250,000 of exploration expenditures by February 1, 2007. Newport received an extension on completing the required expenditures to February 1, 2008 in consideration for 100,000 shares of Newport, fair valued at $0.45 per share.
On August 7, 2007 the company issued 3,011,500 shares for the remaining 30% interest in the China Property. The company now has an option to earn a 50% interest in the China Property.
Newport has recently received a geological report on the Inner Mongolia Property prepared by Newport's Consulting Geologist Daniel Huang M.Sc. Diamond drilling on the Inner Mongolia Property is planned during the summer of 2007. In order to proceed with this project, Newport will have to raise at least $300,000 through private placements or other capital avenues.
Off-balance sheet arrangements
As of September 30, 2007, Newport has had no off-balance sheet arrangements.
Loss Per Period/General and Administrative Expenses
Newport's net loss for the nine months ended September 30, 2007, was $320,803, compared to a loss of $221,566, for the nine month period ending September 30, 2006.
Most of the loss for the current period is due to geological consulting fees totaling $216,865 ($26,719 - September 30, 2006). Accounting and legal expenses were $77,959 compared to $35,753 for the same nine-month period ended September 30, 2006. Office and travel expenses were $12,811 compared to $34,572 for the same nine month period ended September 30, 2006.
Liquidity and Capital Resources
As of September 30, 2007, the Company had total cash on hand of $70,580 ($80,943 - September 30, 2006). Newport also had $599,877 in liabilities ($329,293 - September 30, 2006) of which $193,578 is owed to related parties ($193,578 - September 30, 2006) and $206,299 is owed for accounts payable ($135,715 - September 30, 2006).
Management estimates that Newport will need approximately $590,000 over the next twelve months to follow through with its plan of operation. Newport has budgeted $50,000 for legal expenses, $50,000 for accounting and audit expenses, $75,000 for administration, $60,000 for office, $20,000 for travel expenses, $200,000 for Burnt Basin exploration costs, $200,000 for exploration work on the Mongolia Property and $15,000 for transfer agent expenses. Newport intends to raise additional capital through additional private placements of its equity securities and, if available on satisfactory terms, debt financing to achieve our goals and objectives for the next twelve months.
In September 2006, the Financial Accounting Standards Board ("FASB") issued SFAS No. 157, "Fair Value Measurements". SFAS No. 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Company expects that this new pronouncement will have no impact on the Company's condensed consolidated financial statements.
FAS 159, "Fair Value Option for Financial Assets and Financial Liabilities". The fair value option established by this statement permits all entities to choose to measure eligible items at fair value at specified election dates. Most of the provisions of this statement apply only to entities that elect the fair value option. However, the amendment to FASB Statement No. 115, "Accounting for Certain Investments in Debt and Equity Securities", applies to all entities with available-for-sale and trading securities. This statement is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007. The Company expects that this new pronouncement will have no impact on the Company's condensed consolidated financial statements.
Critical Accounting Policies
The Company adopted the provisions of EITF 04-2, "Whether Mineral Rights areTangible or Intangible Assets", and FSP FAS 141-1 and 142-1, which concluded that mineral rights are tangible assets. Accordingly, the Company capitalizes certain costs related to the acquisition of mineral rights
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This Form 10-QSB report may contain certain "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and/or releases, which represent our expectations or beliefs, including but not limited to, statements concerning our economic performance, financial condition, growth and marketing strategies, availability of additional capital, ability to attract suitable personal and future operational plans. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," "might," or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important facts, including but not limited to those risk factors in Newport's Registration Statement on Form SB-1, as amended, filed with the SEC on June 8, 2005.
|
|