Developing Bellechasse-­Timmins Gold Deposit

New Discovery Resulting in a 20KM Mineralized Gold Belt

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Message: Would you vote for Larry Hoover to be a member of the GNH board of directors?

Lar has my vote.

Frank, as you laid out, GNH is between a rock and a hard place......lol, but seriously it is.

Last July i posted the below on another board with discussion around GNH's tenuous financial position. While my comparison's may be simplistic in nature, you will get the drift of what i am trying to get across in the body of the text. There are company's already doing so with great success.

"A few days ago my daughter, all 19 years of her is looking over my back reading about the state of the junior's and the difficulties faced trying to raise exploration cash. She was full of questions and at the end of it all we talked about expenses incurred while drilling and i threw out the ol' average of $300/m drilling costs. She looked at me with her big browns, gave me a spock eyebrow..."really?". "That's the reality, the average for most exploration drilling + / - a few hundred", I say. She says,"so then most companies down on cash with good properties are just sitting and waiting with some of them giving away the farm for a few pennies to continue exploring? "Yep, that's about it kiddo".
Her and I have talked quite a bit about GNH over the years, she's read Lar's report and most of the Historical document's and she says the one constant that rings true over time for GNH has been its concurrent validation of higher grades of the deposit thru the results of "bulk sampling" over that of diamond drilling given the known nuggety nature of the deposit.
She says, "perhaps it's time for a much larger bulk sampling program." Hmm...well...yeah maybe. A comprehensive sample over a larger area on strike and over a broader width, say in the neighborhood of a 10,000 ton sample would go along way towards reaffirming to the market and masses the validity of grade for the deposit. A sample this size dwarfs the largest bulk sample to date and when coupled up with the recovery rate from the GRG process which has shown that the fines are easily recoverable to 96.8%.

" To view "Figure 2: Gold Liberation in Comp 1 and Comp 2", please click on http://files.newswire.ca/1075/Figure_2.pdf

In the Composite Sample 1, approximately 61% of the gold grains occur as liberated, 36% as exposed and 3% as inclusions (locked) in sulphides, oxides and non sulphide gangue. In the Composite Sample 2, approximately 42% of the gold grains occur as liberated, 55% as exposed and 3% as inclusions (locked) in sulphides, oxides and non sulphide gangue.

The main gold mineral is native gold (native Au-Ag alloy, with Au >75%, Ag <25%) for both samples. Semi-quantitative analysis of the gold grains indicates yields of 86.8% Au and 10.8% Ag in Composite Sample 1, and 88.4% Au and 9.5% Ag in Composite Sample 2. with the balance in need of some work.

"We are extremely pleased with the results of our latest Gold Deportment Study and the technical information regarding the gold characteristics from these composite near surface samples. The gold deportment study further demonstrates that a majority of the gold at Bellechasse-Timmins may be recoverable by gravity process further demonstrating the economic potential of the deposit"'
Perhaps a successful bulk sample program could actually make GNH some much needed cash after costs all said and done.

Back to the drilling, there remains a substantial amount of drilling to be done to move the GNH deposits forward, with markets and financing being what they are...deplorable..an astute forward thinking management must be getting tired of ponying up a million everytime we need to drill 3000 meters. The cost of a 3000m drill program is more than some juniors have in available cash. GNH is not that far away. So what do you do going forward knowing you will need to drill, drill, drill? Do you continue to pay the Drill contractors thier cool million for your 3000m, or do you do some out of the box thinking? Lets say that during the drill program assays yeild finds necessitating further additional drilling and you do not have the cash to do so.....what do you do, your stuck between a rock and a hard place, back to the trough to raise cash and further dilute your company into oblivion to the point where the av. investor thinks twice about investing in your company do to the the outstanding share count.
So....again what can be done.
Out of the Box.....
Step 1: submission of application for bulk sampling program.
Step 2: a capital expenditure-procurement of a Multicombo drill rig c/w associated components
Step 3: a hiring program-to acquire an in-house Drill team experienced in Multicombo drilling
Step 4: an in-house training program designed to train up a 2nd team for a second drill which

Of course there are many steps in and between the above but on a broader scope the cost savings over time are significant to say the least, the costs of singular 3000m program would pay for a Drill rig and man it for a year, regular maintanence and the odd chunk of drill stem and bit costs inclusive. Do you buy new, do you buy used...depends on the deal, do you finance??? Hell yeah.
Run the explo company as any other company which watches tightly the expenditures and it is easy to see why you would want to do everything in-house, and stop paying the rape and pillage rates these firms are getting, hell O&G drillers out here in AB only get $42/hr and they have to deal with bottom pressures and prevention of gas to surface and mud weight and a large crew to boot. Wages for rock drillers are most often set DOE, depending on experience, here we would want a top level experienced driller, you can gaurante him and his helpers year round work.
Pay the drill team (3 guys) $1000/day, set realistic drill targets and offer to pay bonus' whether it be options or cash on production m/drilled/day, this type of pay they will stick around and not fark off with one paycheck under their belts.
Costs are 1500 day bits and fuel inclusive. A simplistic view: lets say the team was able to average 20m/day for 30 days for 600m drilled.

20mx30dx$300/m drilled = $180,000 to drill 600m
now then a different view post capital expenditure.
30dx$1000/d=$30,000 to drill 600m exclusive of fuel/bit and overhead, for the hell of it lets ad in $10,000 in extra's for bit's and what nots, hell lets even throw in a 10,000 motor repair for the 30 days
now we are at $50,000 for drilling 600m, still only 1/3 the cost of paying a Drill contractor.
Back to drilling, we know now that 30 days of drilling will cost us roughly $50,000
What's a years worth of drilling for lets say that very same 7200m for 600m/month.

Drill contractor
$180,000.00 / month/ x 12 months = $2,160,000,00 for 7200m drilling.

Drill team in-house with associated expenses
$50,000.00/month/ x 12 months =600,000 for 7200m drilling.

Its simplistic yes but it's there as comparison, it would pay GNH to move forward with a capital expenditure for a Drill rig and crew it up.
The savings on one years worth of drilling using the "simplistic" view would enable GNH to not only pay for a bulk sample but also for all the assaying they need do as well as enable them to position themselves for the addition of the 2nd drill rig. Then smelt the fines from the bulk sample and sell em.

Hell and if all goes to hell in a handshake they can always sell the Rig/s.

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