Client Update – Evolving Gold

Here’s my latest assessment of Evolving Gold (EVG-TSX-V $1.05)

Finances

• The company is well financed with about C$17 million in the bank.
• Well positioned entering into the next year.
• Allows decisions to be driven by technical demands not limited by finances.

Rattlesnake Hills Discovery Property

• Focusing efforts on two areas, North Stock and Antelope Basin.
• Continue to define the North Stock body, higher grades now to at least 250 meters depth.
• Zone is still open along strike and to depth.
• Numerous holes in main zone still await assay.
• Late holes potentially in higher grade zones designed to fill gaps of knowledge for model.
• Assays for remaining 23 drill holes should be in by second week of February.
• Some holes for Antelope Basin not well positioned leaving target open for expansion.

Porphyry Target

• Mineralized dikes in RSC-027, 35.1m at 1.74, including 15.2m at 3.11.
• Broad stockwork mineralization may be halo above the mineralized porphyry.
• This is an exploration target and needs to be tested for size and mineral potential.
• The porphyry may be the driver for all the mineralization they have explored so far.
• Can’t know the importance of this target yet. It needs more testing.

Other Targets

• They’ve five other exploration targets with essentially no drilling.

Rattlesnake Hills going forward

• Updated technical report to address geometry, economics, metallurgy, mining.
• Permitting for drill program to start again, 3-4 core rigs, May 2010.
• Drill and define extensions of known mineralization.
• Test the porphyry target.
• Test the five other exploration targets.

Nevada Programs

• Very excited by results from drilling at Carlin.
• Five major properties, four under agreement with Newmont, one 100% owned by EVG.
• Expanding land position.
• Improving drilling efficiency and costs.
• Using geophysics to identify the more shallow targets.
• Focusing on neglected in and near the Carlin Trend, structural repeats, covered areas.
• Underground mining is the future of the Carlin Trend, nearly 1Moz per year production.
• Program driven by detailed knowledge of geology.
• Testing the future of the Carlin Trend.

I remain very positive and believe the 2010 drill program should tell the story.