There was a bit of a discussion on this already.

All this is my opinion. Zero fact.

The good, the bad and the ugly of greades are really dependent on tonnage.

The less tonnage we have, the higher the grades will need to be for a financially viable project.

I spoke to Hoov last week and asked him what the difference was between GNH and the plethora of other prospective juniors out there. There is no shortage of them. I'd been trying to find one to compare...it was not easy...not because they are not out there but because it is difficult to understand the other companies without getting intimate knowledge of them. Long story short there is one fundamental and important difference with GNH at this point in time vs many other juniors. It comes down to one word. OPEN.

GNH is open in all directions and as the geocehm indicates, there is a good probability of more gold.

Here are my Good, the Bad and the Ugly....with a Great thrown in.

Good 3 g/t

Bad 1.5 g/t

Ugly .7 g/t

Great >4g/t

The Bad is actually not bad per se. Given the history of where we have been I am hopeful for a higher grade though. This is potentially an open pit style mine with an existing infrastructure in a stable environment with a pro-mining government. Throw in skilled workers and a local population that WANTS this to go forward and you pretty much have a winner winner chicken dinner of the kind of project that gold producers dream of.

Because we are open in all directions we can rapidly increase tonnage. Feasability is probably based on tonnage x grades - expenditures so as tonnage goes up, grade can go down.

I think Eskay Creek in BC was the highest grade gold mine in Canada at 48.4 g/t. It was VERY high cost to extract.

Osisko's Malarctic mine is 1.07 g/t to give some perspective. That's on 183 MM tonnes though. Big.

Check out this link for more perspective on where we are at vs where we are going.

http://www.osisko.com/en/press/2008/11/25/297/positive-feasibility-study-converts-6-2-million-ounces-to-mineral-reserves-at-canadian-malartic-project.html

I think the Malartic Project and the success of Osisko could be mirrored in the Beauce depending on how everything plays out.

B