Thought I'd put a call in to Sascha and get the State of the Nation. He was happy to share, and it was a good chat. Of course, I have to share with my peeps on AG!

Here's the update:

Geochem results recently released as discussed here. Results expand the strike area considerably which is great news. Fills in the blanks per se. As the results of this survey were so positive the plan is to move equipment currently residing in the FSG area back over to Timmims 2 and north of 88. This should happen by the end of next week. It will be stripped and trenched accordingly - alternatively, not possible it will be drilled (that didn't sound likely).

Talked a bit about the Geochem process. I have a basic understanding but sometimes it's better to hear about it in a regular conversation. It's simply grab samples of soil. Not sure of how much area a grab sample covers but the idea is this; Certain insects reside in areas that are specific to the host rock, or mineralization. Makes sense, yes? When they die, their decompostion releases hydrocarbons. The make-up and composition of these hydrocarbons tells the story of the type of rock in which they lived . As Sascha says, it sounds kind of hokey - but it is actually quite specific. In addition, the Geochem survey analyzes depths to 200-300M whereras conventional surveys only acocunt for 5 or 10M. In addition, each grab sample is $45 to process. Now, I am no expert - but I do have a learners permit for flying solo (ya, I'm cool) and I know the costs associated with an airplane or helicopter is nothing short of ridiculous. They did 500 samples for the first one - or was that the second? Anyways - under 25k to find out where to dig sounds like a bargain to me.

FSG was stripped, trenched and grab samples were collected before Christmas.

He mentioned something about an area being 8km being drill ready but I think I was too busy scratching the other stuff down and now I've forgot what that was about.

I commented on how it seems like they are going pretty good for what I suspect is a small team. He said there are 2 full timers ( 1supervisor) at the field office, and the back ho/ drilling,/trenching crew is about 5-6.

Weather is not much of a factor unless there is large dump of snow, but so far so good.

I asked about the assay results in the lab. He said they were expecting them at the end of this month, but that there could be a backlog in the lab from December and that they won't be concerned until that time. They are in queue.

So..that's kind of about it for now. My synopsis? Well, they are definitely working it. Doing what needs to be done to prove it up. And as this happens, the story improves and as the saying goes...if you build it they will come.

In my business - I run my own - I swear I do everything at least twice before I get it right. Throw money out the door, it's my specialty! I respect the fact that it appears that GNH is getting things in order and doing it right the first time - as opposed to it's lengthy history (pre-Candido) when that was most certainly not the case.

That's about all I got, but I thought it was time for a call and an update. He didn't tell me anything else that I didn't address here.

And for my bullish comment of the day. I can't help but think that 2010 is going to be a banner year for the TSXV. As the USD gets weaker (it will) and the price of gold increases (it will) I am not sure that there is a better place for money to flow than right here. I know getting ahead of myself - but I'm envisioning the Nasdaq during the tech boom, you know?

Have a good one!

B