Consider the alternatives Mtl_gold...would you rather hold gold (as a currency in this case) which is going up significantly over the last 10 years or US dollars, or Euros maybe? I think these economies and the world economy to a lesser degree are in for a protracted period of no growth/slow growth, think Japan style IMO. You may have seen South Korea buying 4 tons of gold in June/July with no comment on possible further purchases. Did you see how gold did in those months? Now, what do you think happens when 5 or 10 countries decide they want to diversify from US dollars and Euros?

The pain in the US is not finishing with a deal to raise the debt limit. This has only been a mild distraction to the real story. That very slow growth came after trillions were spent to spur it. Now that this huge stimulus money is not there anymore, what do you think happens to the economy of the US? The Euro is not much better. If you are a small country and are holding foreign reserves in US dollars and Euros, do you think it makes sense to dump these now and buy gold? What do you think the relative size of the gold market is vis-à-vis the US and Europe is? If people start stampeding out of these currencies and into gold, we will see much higher numbers than $1660. So in my opinion, $1660 is not nuts at all, just the continuation of a very powerful bull market in gold. A bull market that has been running for 10 years and has no reason to change direction in the medium term.

I am very surprised at the markets response today to the NR of GAX. You now have it in print that the company has hit much more samples in this program than the first program. We have hit 7 holes with QT over 10m, 4 of those were over 40m and one was over 70m. In our first drill campaign, our longest intercept was only 9m. The geophysics indicate many possible sizable orebodies in the direct viscinity of this old mine. I have been feeling like a kid in a candy store for the last 2 weeks buying every share I can. The way I see it, I have a 30% downside risk and a potential 300%+ upside. That is an excellent bet in my book which I would take anyday. I believe we should be trading around the 18 cents level right now based on:

1M in the bank

2.7M in the treasury in the form of Red Ore shares

32km sq on the Cadillac trend with an historical gold mine, grades of 79&19g/t over mineable widths, long intercepts of QT in the same viscinity as those great grades in phase 2 and a geophysics program from Abitibi which is using leading edge technology to define large ore bodies which the drill has now confirmed are QT.

I think many will be kicking themselves really hard for not digging deeper here and realizing the great likehood that we have the next gold mine along the Cadillac trend right in front of our eyes.

My bet is our share price is up more than 100% (28 cents or more), possibly as high as 300% (56 cents or more) by the golf tournament September 17th. If I lose my bet, I will be buying everyone a round of drinks at dinner time!

Glorieux