Stanley Hunt: "Welcome investors my name is Stanley Hunt your host here at the Smartstox Talk Show. Here we are in 2007 at the Vancouver Resource Convention, and I have with me the president Paul Gill from Grenville. How are you doing?"
Paul Gill: "Very good, very good Stanley Hunt thanks for having me on".
Stanley Hunt: "Well you know Peru is hot right now and we have a number of clients there but what you've done in a very short period of time is very exciting."
Paul Gill: "Yes I believe so; we've gone from an exploration company to a development company with one acquisition, and we've been able to do that by taking on four different past producing mines in the San Mateo district in Peru: Millotingo, Pacococha, Germania and Silveria were all mines from 1960 to 1990 and they've had high grade silver ore, had some zinc, had some copper. We're very excited about this project going forward."
Stanley Hunt: "We'll Paul you certainly chose them at the right time, you know silver at over 12$ compared to what it was."
Paul Gill: "Absolutely I think silver's got a long way to go, copper's got a long way to go, gold is coming back as well. I think we've been in a corrective phase and now […] 2007 is going to be a nice bull run for all the commodities."
Stanley Hunt: "Well we certainly hope so. A lot of our analysts our saying exactly the same thing on our show. My interest is you've done these past producers so quickly and of course I guess they've got historic data on what they've done?"
Paul Gill: "Absolutely, we've been able to talk to the people that worked in these mines. We've hired some of them, the mining engineers, geologists, some of the workers that had informally been producing on the property, so they were taking ore out of the ground and processing it. What we've done now is organize them into workforce. We're accessing the information that they have and when we go forward and access them under 43-101 standards, they'll be very helpful filling in the cracks and crevices of the information."
Stanley Hunt: "Well what I like about this is that it's not a grass root situation and you're cutting out some of the risks for the investor."
Paul Gill: "Absolutely, we have a stated goal, a mission of opening three mines in the next four years, that is a lofty ambition and I think we can pull it off. We have the ability, we have the people, we have the financial connections in order to do that and we have the drive, we have a motivated team that wants to succeed in this business."
Stanley Hunt: "Well Paul, I've been following your career for a number of years and boy you do have the drive."
Paul Gill: "Thanks very much."
Stanley Hunt: "So why don't we have one of your other experts on here."
Paul Gill: "Thanks I want to introduce Len de Melt who's the Chairman and is in charge of our Peru operations."
Stanley Hunt: "Len you're the Chairman of this company here and Paul was just telling us, you have already these many old producers here so what is it like in Peru?"
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Len de Melt: "Peru is a beautiful country, very rich country, politics are stable, I love Peru, there's some many opportunities in Peru."
Stanley Hunt: "Well looking at the map and looking at some of our clients who are in Peru, this is a big opportunity for this company to pick up past producers and historical data."
Len de Melt: "Yes we've had a lot of luck in Peru. We've picked up a chain of mines similar to what you find in the Timmins camp or the Val d'Or camp. We have four silver mines that were past producers and we expect to get them back in production very shortly."
Stanley Hunt: "So these are all underground?"
Len de Melt:: "Yeah, at present the history of these mines they've been all underground. We have about 10, 12 km of alteration over 2 km wide. We're gonna do a geochem grid survey over the total property. The blue sky for these mines is that we could hopefully turn them into open pits some day. There will be areas of it that we do hope to turn into open pit mines. But initially we'll get the underground mines back into production."
Stanley Hunt: "So what do you do now you go in and drill this area?"
Len de Melt:: "Well we have hired our mine manager; we've hired our chief engineer; we've hired our chief geologist, we have about 20 underground miners working on the property at this point in time. The very first thing we'll do, we have Minefill working for us down there doing the valuation of the property, they'll take about 3000 samples from the drifts and the adits that are on the property right now, that'll hopefully give us an initial resource estimate, initially they'll do the 43-101, then they'll do the feasibility study, to look at putting in the underground mines back into production."
Stanley Hunt: "So that could all happen in three or four years?"
Len de Melt:: "Yeah that's our dream, our dream is to put one mine into production per year for the next period of time."
Stanley Hunt: "Your certainly much further ahead than other companies that are basically just in exploration stage."
Len de Melt:: "Yes we've had a lot of luck picking up these mines that have been previously in production. We've hired the mine captain that has worked on one of the mines and he said along the seven km drift that's on the Pacococha mine, there are 24 veins along that drift, of those 24 veins, 10 have never been touched, 14 of the veins have been mined. The mine captain tells me that during the 20 years that the mine was operating previously, they have mined about half of the ore, so he's telling me that initially, just to put back the mine into production as it was, in the veins that are already open, the stopes that are already open, we have about a 15 year mine life at a 1000 tons a day."
Stanley Hunt: "Right now?"
Len de Melt:: "Just to continue"
Stanley Hunt: "Wow!"
Len de Melt:: "The mines have never been mined, never been explored below the river valley, below the adits, the adits have gone in from the river valley, so what do we have below the river valley? Do we have the same size of ore bodies again? We can put these mines back into production, create cash flow, have a good solid base and then the blue sky is immense at greater depths and the possibility of open pit mines when we do our geochem analysis on an organized grid."
Stanley Hunt: "Well Len, looking at this and hearing your information, the shareholders are gonna have a lot of information coming down here this year."
Len de Melt:: "We're having a lot of fun with it, Gordon Bub's company Goldhawk own the company next door, the first mine along this chain. Gordon's market cap is a 100 million$ ours is 10 million$, so, Gordon's got one mine, we've got four mines. Gordon has done a great job, the Octogon analysis says that Goldhawk is underpriced and I believe he's right and if Gordon is underpriced with Goldhawk, how much are we underpriced?"
Stanley Hunt: "We'll the investor coming into your market will tell us in the next year or two."
Len de Melt:: "Yes we hope to progress rapidly from here."
Stanley Hunt: "Well Len I just want to thank you and your company for being on our show."
Len de Melt:: "Thank you very much for asking me".
Stanley Hunt: "I'm Stanley Hunt your host here at the Smartstox talk show."
Disclaimer: the transcript above was written by me.
I_luv_GVG
