Gene,

In The Gold Book, Pierre Lassonde included a chart of the exploration to production mining cycle. (You may have seen a copy of the chart on page 9). Mr. Lassonde's chart shows that the share price of an explorer/late-stage-developer falls from the time a deposit is confirmed to when mine construction starts.

U.S. Global Investors CEO Frank Holmes wrote earlier this year that "[a]ssuming the company continues down the path to development, its share price drifts sideways until around six months before the first ounce of gold is expected to be produced.

I'm hoping that mine construction starts as soon as possible after the license & permitting period is over (September 2012?). Based on Mr. Lassonde's chart , I'd expect Tyhee's share price fall within some channel, e.g., 9 cents - 20 cents, until mine construction starts.

I'm also hoping that mine construction doesn't take more than two years. Say the first pour is in the second quarter of 2014. Thinking about Mr. Holmes' comment, six months before that would put us at the end of the fourth quarter of 2013 or the beginning of the first quarter of 2014.

Putting it altogether, I'm wondering whether the share price will trend to the lower side of the channel until mine construction starts (sometime after September 2012), trend sideways in the channel between the start of mine construction and the end of the fourth quarter of 2013 or the beginning of the first quarter of 2014, and then ramp up thereafter.

If this scenario plays out, we have almost two years to wade patiently into Tyhee (and drive down the average cost basis of our shares!).

Old School