From another board...

There seems to be a lot of confusion here on the board about what is goin on with the operations at GNH. I spoke with the company and I'll break it down. N.B. the main focus remains on near term deliverables, the definiton of the Bellechasse (Timmins) Deposit. The work on the FSG Target will be conducted simultaneously.

The New FSG Target

The NR today was about a new target not yet being worked on. The new target is called FSG after the geologist who discovered it Frank S. Glass. This target was found after work had previosuly been done on the CouCou target which yielded low values. The comapny knew from aero-mag data that there were rich zones. They then did a Geochem process on a more prospective zone and the results were good. If you read the lab report from the website at http://www.goldenhopemines.com/FG_Gold_Base_Metal_Anomalies.php you will notice at the end of the report that the target scored a 4.5/6 for Gold. This is a VMS type target so there will be base metals associated with the deposit. There has historically been Copper and Nickel mines in the region. "[...] We were always very interested in this particular area and we now believe that we were simply a few kilometers away from where we should

have been looking all along.” states Frank Candido, President, Golden Hope Mines Ltd. (From NR dated Oct 28 2009.

Bellechase (Timmins)

From the Oct 28 2009 NR:

Golden Hope Mines continues its large bulk sampling program on its wholly owned

Bellechasse (Timmins) Gold Deposit. The program is progressing very quickly and

results are expected at the end of 2009. Golden Hope Mines is working toward

developing reliable grade data that will permit preparation of resource estimates. Pictures

from the bulk sampling program have been posted on the company’s web site at

www.goldenhopemines.com/gallery.php.

The program is underway and on schedule. I suggest everyone look at the pics on the wibsite to understand how labor intensive this process is, its not just a drill core and calling it a day. From Sept 30 2009 NR:

"[...] the company will complete at least 5 trenches and process between 300 and 500 tons of rock." I was told that it turned out to be 7 trenches and over 550 tons of rock. That is a lot of rock to move.

Just so we are all clear here, the process works as such:
1. Holes drilled, dynamite placed in holes and trenches created;
2. Bolders removed from trench and placed in piles (see pics on site)
3. Piles moved to crusher, crushed down to gravel size and move to holding zone(see pics on site)
4. 5x20kg samples taken out of every pile of rock/gravel (see pics on site);
5. Sacs transported to local warehouse/lab;
6. Each sac is crushed down to a fine powder;
7. A sample scoop of fine grind is taken;
8. The sample scoop is sent to Activation Labs in Ancaster Ont. for fire assay
9. ---- Allow for turn around time -------
10. Sample results come back, are analyzed and interpreted by geological staff
11. Results are released to market.

Ok.... so where do we stand in this process? I was told that there were 70 large piles that were blasted out of trenches and that the 1st round of crushing is almost complete. While the 1st round of crushing is ongoing, the sacs are crushed down to a finer powder at the local warehouse/lab and samples are sent for fire assay as they are ready.

So they appear to be holding to their schedule. There are, as per usual, certain delays you can never predict: weather, lab waits etc. That being said, I think that this is being managed properly (finally) and that results will indeed be coming in for the end of the year. There may even be blue sky results from FSG work... who knows?

At the end of the line, what is 1-2MMoz worth in mkt cap terms? Whatever the number you justify to yourself: 50MM? 100MM? 200MM? more?!?!, it has to be more than the 7MM mkmt cap it's trading today. So I wouldn't worry about day to day fluctuation in share price too much at this point, if you wanna scalp for a few pennies try RIMM, MSFT, C, AAPL or something. The name of this game is doing you DD and waiting for the flower to blosom. I have bought and sold this thing a few times over in the last few years, but to trade a junior is tricky especially as volume isnt constant. It is nearly impossible to day trade these things. But like any other investment, choose a good entry price and choose your profit target target and let time do the rest for you.

Keep your heads up and do your DD, however/whatever it is,
MTL_F