Nugget Effect - Management did try to warn us in advace about this issue. Didn't explain it well in the press release but here are my key take aways from this.

Key Points:

1. Tilsley called this gold deposit the second most challenging deposit of his career because of the "nugget effect". When asked the number of gold deposits he had done he said I think the number was either 47 or 48. He did say he resolved the most challenging deposit and would get this one figured out as well. We all need to be ready to take a bullet for this man, or be an organ doner for him if need be because I am not sure anyone else can figure this deposti out, and that is where our arbitrage lies.

2. If you don't believe the Hoov report on how this deposit was formed you should probably get out now. Hoov did buy 150,000 shares yesterday when the sky was falling, that is how much he believs in Tilsley's theory. If you do believe the theory then you will be holding with me.

3. We all have to get use to seeing assays that are 100 meters at .50 g/ton with 2 meters at 120 g/ton. For an average grade of something like 2.5 g/ton. If you are not ready to see these types of results, or you want to just pull the 2 meters out with the 120 g/ton section then you will never be comfortable with this play until underground bulk sampling is complete and that will be a while so once again move on. Stay with more conventional gold plays.

4. What the nugget effect has created for us is opportunity. Guys from Osisko walked because Malaric was an easier to comprehend while being a lower grade gold deposit.. We have roads, power, we are paying under $3.00 per gallon of diesel to run our drill. I think Noront pays $120 per gallon to run their drill in northern onterio. So our exploration costs are very low keeping our dillution to a minimum. When it comes time to sell or mine we will have low costs because we are in the second most favorable minng comunity in the world and infatructure is already in place. The price we pay for all these benefits created by the arbitrage is dealing with this "nugget effect". Our blessing is our curse...

The plan is simple - prove up VOLUME FIRST... then do underground bulk sampling until we can get a grade for he deposit into 43-101 compliance. Tilsley seemed positive at the site visit that this would be at least 2 g/ton.

If you are or are thinking of becoming a major sharehold in this play, call Sasha and go on a site tour. Talking to Tilsley about this deposit will allow you to come to an understanding.