Here is a link to a very good article on gold dehedging:

http://www.kitco.com/reports/fortis_february2010.pdf

The important thing in here is that dehedging is almost complete. Look at the graph for the last 10 years...consistend dehedging by the worlds biggest producers. These producers know their market more than anyone and when you see dehedging of this magnitude, it is confirmation that they strongly believe that the price of gold only has one way to go.

Hedging offered these companies guaranteed profits (but lower profits in the last few years) because they knew their cost of extraction and they knew what their sell price was. It gave these companies very good insurrance against falling gold prices and ensured the prosperity of the company in the long run.

Now these companies have dumped their insurrance in search of higher profit. Sounds like a risky deal...unless the fundamentals of gold production are so strongly supportive of higher prices, it makes dehedging a no brainer. I believe this is the case and that higher prices for gold (and GNH) are all but guaranteed!

I know our current SP is stagnant but give it 3/6/12 months and you will be very happy you stayed committed to a very undervalued gold junior!

With 3-4 g/t being very possible and Timmins and Laval deposit being 8km apart but potentially linked, we could be sitting on a great lottery ticket!!

Glorieux