Historically the Company was focused on the skincare and pharmaceutical businesses. In March 2010, after an extensive review by the Board of Directors of the Company and outside advisors, the Board elected to change the overall direction of the Company from these sectors to the natural resources sector. The Board realized that the business prospects of the existing portfolio of assets were not capable of generating sufficient revenue, and the Company had insufficient cash on hand to reach significant revenue generation from any of the product lines in the Company’s portfolio. The Company elected to pursue opportunities in the resources sector as this sector has been experiencing significant growth and investor interest in the past few years and the Board believes the sector has continued growth prospects and significant opportunities exist within the sector.
Initially Senetek perused Relief Canyon, a gold mining project in Nevada. Unfortunately we were not able to close adequate financing in time to purchase 100% of the Relief Canyon Project as we intended. Since a controlling interest in Relief Canyon was not attainable and a minority interest was unacceptable, the Company changed focus to two newly acquired properties. In 2010 we acquired the superb projects, the Gray Eagle Mine in California, and the Iron Creek Property in Idaho, which we own 100% free and clear. The fact that we are now debt free also should also aid us significantly in structuring future new financings for the Company as we develop these projects.
The Gray Eagle Copper Mine, in Siskiyou County, the northernmost county of the State of California, is a past producer of significant amounts of both copper and gold. The deposit hosts a historical resource of just over 1.1 million tons of ore grading 2.59% copper and .027 ounces per ton gold using a 3.3 to 1 strip ratio, a copper cutoff grade of 1%, and recovery factors of 90% on copper and 30% on gold.
The Iron Creek Copper Cobalt Property, in Lemhi County, Idaho some 26 miles southwest of the town of Salmon, consists of seven patented mining claims of approximately 140 acres. The Company recently staked an additional 42 unpatented mining claims over the last several months to expand the land position by 840 acres. Past work by previous operators has identified several mineralized zones of copper and cobalt, and numerous other exploration targets on the property that have not as yet been evaluated.