The Gold Report 04/02/2010

TGR: Who else are you watching in Nevada?

BC: AuEx Ventures Inc. (TSX:XAU) is another company that follows the joint-venture model, where they get other people to spend high-risk dollars on their projects. It is another very intelligent, focused, honest group with management that couldn't get any better. They made a discovery in eastern Nevada called Long Canyon. Their joint-venture partner, Fronteer, is now running that program. Fronteer has 51%. They've got 49%. They're in the process of producing a feasibility study on it, and then they'll push that into production. It's going to be a very low-cost operation generating lots of free cash flow.

Evolving Gold Corp. (TSX.V:EVG) also has a project in Nevada just south of Carlin. A recent drill hole shows they are into a Carlin system that has good grade. The geology is right and they're drilling a second hole on that right now. I've been to their Rattlesnake Hills project in Wyoming, too. They've got a lot of drill holes into it. I like the system because it's so large. So far they haven't been able to pull enough together at a high enough grade in the right location to make it economic. They're still searching, I think.