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Message: Perspective

I think we have all had some time to think about yesterdays updated resource release. The initial reactions were not great, but by now most seem to have come to the realization that the total global resource now stands at over 7 milliion ounces with 2 milliion ounces and growing in the HGZ at over 5g/ton. Assuming Dave is correct and they really did miss low on the winter program the HGZ is likely to exceed 3 million ounces once they re-drill. Now we are talking 8 million and growing in a geographically ideal location. But let's back up to yesterday for a second. A confusing NR lead to less than 1% of the outstanding shares being traded. I for one thought it would have been worse. Keep in mind there are guys out there trading this thing with no real understanding of the fundamentals. Folks jumping in and out on a daily basis for dumb reasons like a $10 change in the price of gold. Come on, what does a $10 change in the POG today have to do with what the company is going to be worth when this is a producing mine or bought out. Bottom line the news release was not as negative as some thought the first time they read it, and 99% of shares did not change hands. I understand no one likes to see an 11% drop in the value of their investment, for some that represents 10's of thousands of dollars. I would sugggest stepping back for a moment and considering how many 8 million ounce deposits there are in a politically stable country. I don't think it is unrealisic to see gold back over $1500 in 12-18 months. If that happens you may wish you picked up a couple thousand more shares at todays price. Cheers! NS

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