Just to add the mining terms to what you are saying Scott:

"Ore" means any mineralized rock that is economical to mine and make a profit.

Lower grade material that is not considered ore today may be considered ore when the price of the relative mineral rises because the price received exceeds the cost of mining..

At CMM's Lemaque mine they are extracting rock with low grades of gold while they are developing the "drifts" in order to access the high grade ore. Normally they would discard this material but since it has a low percentage of gold and because they are required to remove the material anyway, they are processing it in spite of it's low grade.

All gold mines are sensitive to the price of gold. As you suggest, the higher the price of gold goes, the more "reserves" are available to mine. If the average grade at GNH turns out to be over 2 g/t, they will be less sensitive than another mine with a lower average grade. During the recession we saw many companies simply put the mine on care and maintenance because the price was so low they could not make a profit.

Gold is quite different than most minerals in that it often runs in veins. Thus they build the drifts to follow the veins where possible. Nickel is usually found in much larger "ore bodies" and can be mined with "bulk mining" techniques.

Interestingly, Atlas Copco has a very narrow piece of mining equipment that is operated by one operator and can follow and extract ore from very narrow veins. This is likely some of the new equipment that CMM has recently received.

Jim Tilsey believes that the grades at Belle Chase are closer to 4g/t than 2g/t. He is basing this on the bulk sample results at Timmins.

Jim believes that the difference between the grades derived from drilling and the real grades are explained by the fact that the deposit is "nuggetty". The common sense of this is that a single sample will not necessarily contain enough nuggets to be truely representative of the entire deposit. (The nuggets are distributed randomly rather than uniformly).

Rumor has it that the current drilling is indeed proving Jim to be correct in assuming that this is a large "belt" of gold rather than one or two gold veins.

Soil GAs Hydrocarbon testing continues on the vast land mass held by GNH. The drilling program continues to be expanded due to the unprecidented success of previous drilling. It appears they are hitting more gold laiden quartz with every drill hole.

Today a buss load of analysts including James West visited the property. Early next week the Midas report will be available to subscribers.

Can it be long before this stock breaks out?

SN