In case you don't readt that other forum.

Originally posted by Gretzky099:

Hi,

Below is Jay Talyor’s latest write-up on Golden Hope Mines which appeared in his August 27, 2010 newsletter:
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Golden Hope Mines Ltd.

Business: Exploring for gold in the Beauce region ofQueec

Web Site: www.goldenhopemines.com

This past week I visited Golden Hope Mines’ Bellechasse property located about 120 kilometers southeast of Quebec City. I took the time to visit this property because I believe it could become a major gold deposit in an area of Quebec that has not received much gold exploration attention until now, when early work by Golden Hope is suggesting a major new gold belt for this gold rich province may be in

the making.

The potential of Golden Hope’s property to host a very major gold deposit seems to be quite high given: a) bulk sampling and trenching results, b) drill results and c) a 17-

kilometer long-strike length of the gold bearing structure on Golden Hope’s Timmins/Ascot claims shown in the map below, not to mention numerous other claims of promise in the district also shown on the map below.

The blue lines shown on the map represent the host gabbro, diorite rocks for gold. What is shown of course is on the surface so those dioritic structures may spread out horizontally at depth. But note on surface the extensive area within the green claim boundaries where those blue lines occur. Those are for sure drill targets for Golden Hope. Again, the 17 kilometer structure we are talking about covers only a small area of claims by Golden Hope and so far, within that small area, only a tiny amount of it has been drilled.

Golden Hope’s prospects have many things going for it that many projects do not have. When I visited the property, we drove by road right to it. There is abundant power and water and labor in the area. There is no apparent metallurgical problems with the company’s gold mineralization that would lead to low recovery grades or to any environmental issues. And as noted, the province of Quebec is second to none when it comes t omining legislation and an even-handed approach between environmental responsibility and the economic needs of the province. I only wished the U.S. would be so sensible in its approach to clean and responsible mining.

Golden Hope’s Challenge

Good as its prospects appear to be at this stage of its development, investors need to be aware that Golden Hope has one challenge important challenge it will need to address. If it can explain the technical issue of the “nugget effect” effectively to the market, it need not be a problem. If it is unable to do so however, it could mean the company fails to realize the full market value for its stock.

For those of you who may not be familiar with what we mean by a “nugget effect” it has to do with the erratic distribution of gold in the ground. When gold mineralization is disseminated over a large area and is evenly distributed, then you can confidently say that drill hole data are representative of gold mineralization throughout a deposit.

However, if you have some larger specks or “nuggets” of gold that appear sporadically in a deposit, once in a while you may have a drill core that provides a spectacular reading of gold and many others that have very low readings.

In the case of Golden Hope, thus far drill results are showing an average of about 2 grams of gold per tonne. However, the bulk sampling of those same structures at surface provided an average grade of 3 grams per tonne or a 50% increase over the drill samples. The problem for the company is that they are permitted by regulation to report only drill core and to factor only drill core into their resource calculations. To a great extent that makes sense since bulk sampling is only from surface and drill core is at depth. So, without bulk sampling at depth, it is impossible to say with 100% certainty that the grade at depth is equal to the grade at surface. Yet it appears highly likely that is the case, at least given the geological theories being proposed by the company’s head geologist and given what is known about drill core assays at depth.

Don’t get me wrong. Surface deposits grading below 2 grams can make for profitable mining operations if the geometry and other conditions are appropriate for low-cost, open pit mining. But if the structures are not sufficiently wide such that a large amount of waste rock needs to be mined and milled, a higher grade may be required to render a project economically viable. In fact, there is a second area on the company’s claims that is or soon will be drilled in which the company’s geologist believes may have the kind of dimensions that could allow it to be an open pit mine. But if the company can effectively educate the markets to understand the likely potential (if that indeed is the case) for this deposit to be of a much higher grade than what is revealed by diamond drilling and NI 43-101 numbers, these shares should then over time more fully reflect the upside

potential for this ocmpany’s Belleghese prospect.In my summary in my initial recommendation of this stock I said the following:

“The Bottom Line: This is a high risk/high reward exploration play. With good results from some 20,000 ft. of surface drill results, the market could begin to price these shares much higher by the end of summer. An allocation of up to 5% of one’s portfolio can wisely be put into a stock like this during a bull market in gold. As I have been saying, this is a gold share bull market of a lifetime. If Golden Hope is successful in their goal of outlining a multimillion-dollar deposit, a ten- or twenty-fold rise in the price of these shares is not out of the question. Even higher returns than that are not out of the question. Investors must be prepared, however, for delays and even disappointments in their “payday.” That simply goes with the territory when it comes to investing in this high risk/high returnsector. If you can’t accept that risk, then focus more on the producers.”

How do I feel after having visited the company’s property and had a chance to speak with the company’s lead geologist this past week? I think my initial “Bottom Line” summary is about right. However, having visited the property and having seen the extensive area and realizing how big this thing could be, I now feel the odds of success in outlining a major deposit may be somewhat higher than I initially thought.

That said, as with all junior exploration companies, the cost of proving up a deposit is considerable. So, the ability to generate interest from the investment community in this company’s project by effectively conveying the upside potential beyond NI 43-101 numbers will be very important in driving the share price higher and in that way efficiently funding (minimal dilution) the company’s future exploration activities. Indeed, the one thing I came away with following my visit to the Golden Hope project is that the major challenge facing management now is properly marketing the prospects of this company’s Bellechese property in light of the statistical challenges with respect to reporting gold values given NI-43-101 regulation. I will be watching this company’s progress carefully in the weeks and months to come with great interest.
If the drill holes continue to provide 2 grams per tonne over a large area and if future bulk sampling on surface continue to provide values of 50% or more from those same drilled structures, it will help me in my mind to become confident that the real grade here is more like 3 grams (0.0965 oz/ton) than 2 grams (0.0643 oz/ton). At today’s gold prices, that translates into a difference of between $116 per ton and $77 per ton.

Regardless, at this juncture, this is an exciting exploration play that has the potential to become one of Canada’s more outstanding new gold discoveries. We should know a lot more as current drill results pour in and hopefully you will tune into Turning Hard Times into Good Times when I interview Frank Candido on September 14th.