Golden Hope Mines Ltd.
November 12, 2010

Another stock I think you should keep your eyes focused on for near term drill results it Golden Hope Mines Ltd. I visited this company’s Bellechasse Timmins area property last summer and was impressed with the enormous exploration potential it has.

One complicating factor that has no doubt served to dampen the reception of this stock on the market is a nugget effect that may cloud the picture in the minds of some investors. However, to the extent that is responsible for the decline of about 50% in these shares from their high in September, I think it may provide investors with a great opportunity. I say that because if early bulk samples continue to reveal a true grade of approximately 50% higher than drill core data, the Bellechasse Timmins project could turn into a world class gold deposit. Early bulk sampling revealed an average grade of approximately 3 grams gold/tonne (0.096 opt) compared to a drill core gold average grade of around 2 gpt (0.064 opt). Of course a 50% improvement in the grade would make a huge positive difference in the projected economics of this deposit if as we expect an economic study will be forthcoming in the not too distant future.

So far we do not have any NI 43-101 numbers. I think that is also a plus for investors who can envision the potential here on this property which in my view hast the potential to host a multi-million ounce deposit. So far drilling has been shallow. Most of the drill holes have been only to about 300 meters. Twenty four out of fifty-four holes have been reported to date, but we can look for the rest of them to be reported by year end. Just to the 300 meter depth, in my view it is possible to envision the potential for this property to host between 1.5 million and 3 million ounces of gold from the T1, T2 and 88 Zones.

However, I will be watching particularly closely for results from deeper holes to depths of 500 and 700

meters. If those come back in gold mineralization, we could start to see some really big values emerge. And that is what drives shares of junior gold mining shares.

I would expect the company will follow up with an aggressive drill program in 2011 and then some bulk testing to build confidence in the true grade of this deposit. If we continue to see an average grade of 2 gpt from drill core and 3 grams per tonne with bulk sampling and if gold mineralization appears to be continuous to a depth of 500 to 700 meters, I think this stock could be off to the races.

Some geologists have compared the mineralization here with Agnico Eagle’s Goldex mine which is one of the lowest cost mines on a per tonne basis. Its gold reserves average 2.1 gpt. Of course a lot more work needs to be done before we can know if this property has a chance to evolve into any thing as successful as Goldex. However, if the tonnage and grades are there, one advantage the Bellechasse project may have over the Goldex project is that it is on service where as the Goldex is mining at a depth of between 500 and 800 meters.

There are certainly no guarantees here on this prospect. But if you are inclined to speculate, I think this is a good one to allocate up to 5% of your portfolio at current prices and especially if we get a significant market correction that takes these shares even lower. If I am right and a multi-million ounce deposit takes shape here and if the true grades are closer to 3 grams than the 2 grams in the drill core, this stock could be a really big home run. Just keep your eyes on drill results between now and the end of this year.