I’m a first time poster, and recent shareholder. As par of my DD I came across Agnico Eagles’ 2005 technical report on the Goldex extension,(“GEZ”) (171 pages). GNH uses Goldex as a comparison to their Bellechasse deposit, and I found it interesting to read the challenges Agnico Eagle had with determining grades in the extension, partly due to the ‘nugget effect’, to get a comfort level sufficient enough to justify the development of the GEZ. It gave me a greater sense of comfort with the model that GNH is pursing and the potential their deposit may have. I do not profess to have a mining background and understand all of the technical report, and would be interested to read anyone else’s take on this report and how comparable it is to GNH. I have taken a number of comments out of the report, which admittedly are out of context, but may spark an interest in someone reading more. Here is the link.

http://www.agnico-eagle.com/Theme/Agnico2/files/pdf/Goldex_TechReport_26Oct05.pdf

• The Goldex lode gold deposit is almost entirely hosted within the “Goldex Granodiorite”, a quartz Diorite
• The Goldex Extension is characterized by swarms of gold-bearing quartz-tourmaline-pyrite veins and veinlets
• diamond drilling core has had a tendency to under-estimate the grade of the resources
• The width of the quartz diorite sill ranges from 90 m to 250 m.
• The mineralized faults set usually correspond to brittle openings or fractures with low apparent displacement. These fractures and faults are the locus of mineralized veins, usually less than 40 cm width.
• The «GEZ» was first developed and bulk sampled in 1995-96 from the 8th level (730 m) after deepening of the shaft to 792 m. A total of 33,333 tonnes of development at 2.4 g/t Au were milled in 1995 and 102,868 tonnes of stoping at 2.54 g/t Au in 1996. The overall gold recovery reached 94.22%. (note: These were underground bulk samples to prove the grade.)
• The tests that were done to understand the correlation between the gold grade estimate from diamond drilling, versus the muck sampling and the actual mill grade, suggested that estimates of grade from diamond drill core (because they are derived from smaller samples) could be significantly up-graded
• A detailed Thompson-Howarth incremental precision analysis of muck, chip and diamond drill core sample coarse and pulp duplicate results using a variety of determination methods (i.e. FA-AAS, FA-gravimetric, metallic screen) has clearly demonstrated that the «GEZ» ores contain a nuggety gold component that results in in-homogenous and un-representative 1 kg sample splits after initial sample crushing. The data is consistent for each sample type. The error introduced by the current crushing/ splitting protocols is estimated at 40%. However, it will not resolve the large nugget effect carried through to the pulps resulting in +70% error. As in the case of the muck and chip samples, this large error occurs from the unrepresentative character of the 1-kg coarse splits prepared from the original drill core samples that are likely undersized.
• It can be concluded that the historic data suffered from the same problem as the recent sampling campaign in that the 1-kg coarse crush splits remain apparently in-homogeneous and/or initial sample sizes are too small to be representative.

Results: (NI 43-101 compliant) March 2005

Probable 2.39 g/T Au , 21 387 000 tonnes 1,641,000 oz

Inferred 1.92 g/T Au 3 195 000 tonnes 197,000 oz

(Reference: Agnico-Eagle, 2005b)

(note: although on their website, they now speak of a grade of 2.1 g/T and 24M tonne reserve. There is some discussion in the technical report of dilution of grade due to mineability, and inclusion of waste rock. In 2010,Agnico Eagle wasalso investigating a new "Zone D" 150 meters below the GEZ with similar characteristics. They are mining the GEZ today down to the 800 meter level. )

I found it encouraging that they committed significant capital to develop the GEZ when the Average Gold Price in 2005 by Quarter was:
2005 Q1 $427
2005 Q2 $427
2005 Q3 $439
2005 Q4 $485