Hello everyone,
In response to LTTL's question posted on the GVG Board
"If we believe in Silveria, what makes gvg rather than jny, the way to go?"
Here goes (this complements Loudd and RADAR@214's quality replies):
On December 16, 2007 I posted the following:
A Chairman's Buying with Transparency!
Hello everyone,
Chairman Len de Melt owns a staggering 3,970,613 shares of Grenville Gold, 538,887
options and 240,000 warrants ($1,538,301.49 spent on common shares at an average cost of $0.387/share)!
After compiling Mr. de Melt’s insider activity from sedi.ca you readily come to the conclusion that
Grenville Gold is his biggest holding and this, by much...
Company |
Common Shares |
Options |
Warrants |
Total |
Last Close |
Common Shares $ |
Fully Diluted $ |
Common Shares % |
Fully Diluted % |
A |
38,767 |
525,000 |
83,333 |
647,100 |
$ 0.27 |
$ 10,273.26 |
$ 171,481.50 |
0.39% |
4.21% |
B |
343,750 |
200,000 |
|
543,750 |
$ 0.16 |
$ 55,000.00 |
$ 87,000.00 |
2.09% |
2.14% |
C |
3,970,613 |
538,887 |
240,000 |
4,749,500 |
$ 0.33 |
$ 1,310,302.29 |
$ 1,567,335.00 |
49.87% |
38.49% |
D |
1,164,500 |
700,000 |
250,000 |
2,114,500 |
$ 0.30 |
$ 343,527.50 |
$ 623,777.50 |
13.08% |
15.32% |
E |
1,415,000 |
200,000 |
|
1,615,000 |
$ 0.29 |
$ 403,275.00 |
$ 460,275.00 |
15.35% |
11.30% |
F |
|
210,000 |
|
210,000 |
$ 2.77 |
$ - |
$ 581,700.00 |
0.00% |
14.28% |
G |
1,250,000 |
200,000 |
|
1,450,000 |
$ 0.38 |
$ 475,000.00 |
$ 551,000.00 |
18.08% |
13.53% |
H |
214,000 |
|
|
214,000 |
$ 0.14 |
$ 29,960.00 |
$ 29,960.00 |
1.14% |
0.74% |
Legend
A = Acero-Martin Exploration Inc. (ASD:TSX-V)
B = Canadian Shield Resources (CSP:TSX-V)
C = Grenville Gold Corporation (GVG:TSX-V)
D = International PBX Ventures Ltd. (PBX:TSX-V)
E = Journey Resources Corp. (JNY:TSX-V)
F = Norsemont Mining Inc. (NOM:TSX)
G = Tech Solutions Capital Corp. (TSL:TSX-V)
H = G4G Resources (GXG:TSX-V)
This could be why, in reference to properties he has vended out over the years, Len de Melt has stated
“[…] the best ones I’ve kept aside for my personal pet projects, which, as it turns out, is Grenville Gold
[…] Our plan is to put at least four mines into production over the next four years."
Mining Stocks to Watch…Grenville Gold – James West – Resource World Magazine 2007
Moreover, he is quoted saying "I liked the company so much I wanted to buy it!"
Further, "The opportunities that we have in Peru are very exciting and I am confident that we will be able
to generate significant value for our shareholders"
Grenville Gold - September 26th 2006 News Release
Now on December 13th 2007, the following news could be read: “Journey Enters Into Letter of Intent
With Grenville Gold to Acquire Interest and Form Joint Venture on Silveria Project […] The terms of the letter
of intent between Grenville, its Peruvian subsidiary and Journey include certain payment and expenditure
requirements by Journey. The payment requirement consists of a non-refundable deposit in the amount
of CDN$200,000 upon signing of the letter of intent. Journey must also fund an amount of CDN$2,800,000
in development and exploration expenditures on the Silveria Property on or before March 15, 2008, at which
time Journey will have been deemed to have earned a 25% interest in and to the Property, and a joint
venture between Journey and Grenville will have been formed.
If Journey funds a further CDN$3,000,000 in development and exploration expenditures on the Silveria
Property, on or before November 30, 2008, Journey will have earned a 50% interest in and to the
Property under the joint venture. At this time, Journey will maintain an option to earn an additional 25%
interest in and to the Property for a total 75% interest, by funding a further CDN$6,000,000 in development
and exploration expenditures on the Property on or before January 31, 2011.”
I contend that Grenville Gold is Len de Melt’s no. 1 play and Silveria his no. 1 Property: it is very
unlikely that JNY ever owns more than 50% of Silveria. Moreover, to earn interest in the Property
Journey will have to substantially increase its share float for financing which will diminish the intrinsic
value of each JNY share; Mr. de Melt surely knows this. Grenville Management meanwhile will be able
to maintain a tight float…
[...]
In the past Grenville has increased ownership to its now 90%-owned subsidiary in Peru which owns the
Silveria Property, Espanola Property and the Chorobal Property; in the future perhaps 100% ownership
for 50% of Silveria?
I_Luv_GVG
___
Also (updated information),
Grenville Gold's Management are very large shareholders of the company and they continue to BUY, currently:
- Chairman Len de Melt owns 4,053,613 shares, 638,887 options and 240,000 warrants
($1,558,391.49 spent on common shares at an average cost of $0.384/share).
- President and CEO Paul Gill now owns 2,849,500 shares and 825,000 options and 1,000,000 warrants
($1,248,810 spent on common shares at an average cost of $0.438/share).
Combined they spent $2,807,201.40 for 6,903,113 shares (at an average cost of $0.407/share)!
On a fully diluted basis Paul Gill and Len de Melt own 9,607,000 shares or 23.2% of the company
(41,364,378 shares - as of February 6th, 2008)
Disclaimer: I tabulated the data myself from sedi.ca
___
The gold in the Grenville Gold name is in Ecuador and Peru and on a comparative basis it is greater
in quantity than what Journey reportedly has (this is speculation and non 43-101).
La Tigrera property in Ecuador
"Grenville signed a Letter of Intent to option 100% interest in the La Tigrera
mining concession from underlying owners based on a 43-101 Resource
estimate which would confirm the mineral resource on the property. The
property is located approximately 50 kilometers from Machala, the
capital city of the El Oro province, population approximately 250,000.
Access to the site is by a well maintained two lane asphalt highway.
The concession itself totals approximately 1662 hectares in area. The
site is also served year round by a fresh water supply from the Tiger
River, (Rio la Tigre).
The project was previously held by Climax Mining Corporation of Australia,
who performed approximately US$3,000,000 of exploration work including
surface sampling and a core drilling program. Climax estimated a resource
of 723,000 ounces of Gold and 2,892,000 ounces of silver. These figures are
not compliant with National Instrument 43-101 and are historical in nature.
The deposit at La Tigrera is of epithermal low sulfur rock. The gold is
located at the optimal area of intrusive rock which has suffered
oxidation and produced a reserve of thick ore grains. Due to the
geologic and topographical characteristics of the soft ore body, the
reserves will be extracted with much less difficulty and expense than
gold that is suspended and mined from hard rock.
It should be noted that there has been no deep body core sampling beyond the 50
meter level. A secondary core sampling program should be undertaken to
explore the possibility of additional ore bodies below the 50 meter
level. This should also coincide with an additional secondary drilling
program to confirm the location of the best core samples as per the
original data, as these sites will the be primary developmental zones
during the first phase of production.
Assay results for the 1500 core samples drilled and over 5,000 assay samples processed are
currently in Quito, the capital city of Ecuador. The geological assay
results for the La Tigrera concession revealed approximately 7,544,000
metric tones of ore grade material. Average head grade per ton of
material sampled revealed approximately 2.635 grams of gold per ton,
and approximately 4.0 grams of silver per ton. These figures are
historical estimates that do not confirm to N.I. 43-101, and therefore
should not be relied upon."
Silveria Project's Millotingo tailings in Peru
Len de Melt, Chairman: "Some people have mentioned as much or possibly as high as
2 million oz of gold just in the tailings."
- The Smartstox Talk Show - Stanley Hunt - July 24th, 2007
Chorobal property in Peru
This property has a historic estimate of 400,000 oz of gold.
___
Rosa Maria\Esponola copper mines
Focused in the development of mines in Ecuador and Peru
MinerSTOX.com Editorial,
By Nancy Boisvert
[...]
"The third property is the Rosa Maria\Esponola copper mines in Peru. These mines where
producing as late as 1995, and Grenville's recent results from 45 underground samples
grade and average 2.5% copper. Considering the past production from the mine and the
mapped length of the vein, the target deposit size is 10 million metric tons equating to a
value of $1.5 Billion ( 2.2 million oz of gold equivalent). It should be noted that these
figures are not 43-101 compliant..."
___
Did Richard Ford choose Journey as his top pick between Journey and Grenville? I don't
think so, this is mere speculation. From his letter :"Richard Ford, as a consultant to Resourcex
Financial Group, has received a cash fee for the preparation of this report." Only paid for by Journey?
Most probably.
___
In a nutshell, why buy GVG more so than JNY:
-Lima listing and the accompanying market cap increase that will very likely follow;
-Much more company insider buying (try to find a President and/or Chairman that have
spent as much money on common shares);
-Len De Melt's top TSX-V holding (and this by much). Because of this, in the future another
stellar property is more likely to come into Grenville's hands not Journey's and Len's
Peruvian claims team is excellent;
-Better properties (this point can be challenged still);
-Grenville has a lower share float (also Journey needs to finance the Joint Venture).
Don't get me wrong Journey is a very good stock, I'm just more bullish on Grenville.
Please visit my 98 KM of Underground Goodness blog for further information.
I hope this helps!
I_Luv_GVG
