| SECURITIES
AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15(d) OF For the financial period ended March 31 , 2005 Commission
file number: 2-99518-D State of incorporation: Colorado I.R.S. employer identification number: 74-2446999
Name of each
exchange
The number
of shares of the common stock of the registrant outstanding as of March
31, 2005: Results
of Operations. For the current quarter, Gold Hill Corporation ("the Company") realized a small net loss which is detailed in the financial section of this report. The decrease in earnings and cash flows reported for the period was due primarily to expenses related to the N. Goldfield gold prospect located in Nevada. Mineral Exploration. During the year, the Company continued its search for gold in Nevada. Currently, it holds lode mining claims on two large prospects. One is located along the northwest end of the Carlin gold trend east of Paradise Valley in the pediment area about 3 miles from the old abandoned gold-silver camp of Spring City. Here, the Company holds 108 lode mining claims covering the prospect, which may be tested by drill during the drill season in 2005. The primary target is disseminated gold in sedimentary rocks similar in occurrence to deposits found along the Carlin trend. Six holes have been bonded with the BLM. The other prospect is located about 10 miles north of Goldfield, Nevada, in pediments. Here the Company holds 156 lode mining claims. To date, 13 shallow test holes have been drilled. The holes encountered an epithermal vein system but only anomalous gold was found. Since then, the Company conducted a detailed grid line study of the area to evaluate the drilling plus other ground located directly to the south. A large altered intrusive granite structure was detected at depth which is suspected to have a relationship to any gold deposition found in the overlying volcanics, analogous to the gold deposits of Goldfield to the south. The structure is located about 3/4 miles south of the drilled area. The rich gold deposits of Goldfield were found in volcanics directly above highly altered Alaskite within the underlying granite structure. Altered Alaskite at the subject prospect appears to be much more extensive than at Goldfield, suggesting the presence of important ore deposits is very promising. This particular Alaskite which is hydrothermally altered granite is found in outcrop on Columbia Mountain, associated with gold vein deposits. Drilling is expected to commence mid-year, depending upon drill hole bonding with the Bureau of Land Management (BLM), weather conditions, and drill rig availability. Top of mineralization is expected to be relatively shallow, ranging in depth from about 250-600 feet. The price of gold is currently around $425 per ounce, which has inspired a significant amount of gold exploration. The result has been a shortage of drill rigs. The current market for a large gold deposit at economic depths is excellent. In the event of a major discovery, the Company may sell, merge, or joint venture with one of the major gold producers.
Oil and
Gas Properties. The prospects
currently under study have potential of 1 to 5 million barrels each, which
if successful could favorably impact the share value of Gold Hill stock.
At least one of these prospects is expected to be included In May 2004, Gold Hill participated in a well with West Star Producing Company to earn a 25% working interest in the South Wanette Layton Oil Unit, which includes 1520 unitized acres, five stripper wells, a tank battery, and flow line. The well was drilled to a depth of 4,000 feet and completed in the Calvin sand, which was the main objective at about 3,865 feet. The well was completed as a gas well with small amounts of condensate. Initial production tests were approximately 770,000 cu ft of gas/day. Management believes it to be on the edge of a channel sand which is projected to contain a considerable amount of oil. The Company expects to participate in a new well to be drilled in the channel for oil, and may increase its ownership in the field. The gas well is presently producing 200,000 cu ft/day. If oil is discovered in the proposed well, the gas well may be shut in to conserve the reservoir drive. The Layton oil sand was encountered in the gas well at about 3,100 feet and has good development. A recent oil reserve study made of the Layton oil sand unit (1,520 ac) indicates potentially recoverable oil reserves by improved water flood methods to be from 2-6 million barrels, including perhaps as much as 1-2 million barrels recoverable by primary methods. The Layton oil zone has not been adequately drained by previous production due to well spacing, paraffin blockage, and failed waterflood attempts. Management will operate the well through completion after which West Star will continue as operator of the unit. Development of the Layton and Calvin zones will be pursued by subsequent drilling. ITEM 3: OPERATIONS General
Operations. Regulation.
Corporate History. Gold Hill
Corporation is an exploration company focused on large wildcat major oil,
gas, and gold prospects, which if successful will significantly impact
upon the value of the Company's stock. In addition to the Nevada Gold
prospects, Gold Hill is active in oil and gas exploration. Although Gold Hill is a public company, it is considered to be a developing company and its stock does not presently trade. Management's policy is to withhold stock trading until an important discovery is made. Gold Hill's management is comprised of experienced and successful explorationists who are qualified to carry forth the goals and aspirations of the company. The primary goal of the Company is to discover a major deposit while avoiding debt. At the same time, the company is focusing on retaining a large interest in each prospect so that a discovery will have a dramatic impact on stock value to the benefit of the shareholders. Gold Hill's executive and operations offices are located in Oklahoma at 2233 West Lindsey, Suite 117, Norman, Oklahoma 73069 (telephone 405-321-8371). Unless the context otherwise requires, the term "Gold Hill" as used herein refers to Gold Hill Corporation.
The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q as prescribed by the Securities and Exchange Commission. All material adjustments which, in the opinion of Management, were necessary for a fair presentation of the results for the interim periods have been reflected. Gold Hill
Corporation March 31 , 2005 Current Assets Total Current Assets $ 419,762.19 Fixed Assets West Star 1-6 $186,951.00 Total Fixed
Assets: $187,401.00 Current Liabilities: none Equity SIGNATURES GOLD HILL CORPORATION |