The gold market is a relatively small one as we all know and that makes it easier to control prices. However, we are now breaking out again and have momentum after crossing the psychological $1400 level overnight. Most of the world listens to the talking heads and believe the recovery is real but we know that at best, we are looking at 3 years worth of stagnation IMO, at worst, a double dip at some point.

This week could be very interesting starting tomorrrow with lots of key companies reporting and a few housing reports. If these do not live up to expectations, look for people to start questionning the recovery more and gold prices getting pushed higher yet.

I believe in gold and gold juniors. If you are right, sit tight, sooner or later, the market will realize what you already know and you will be positionned to reap great rewards. GNH's has losts its momentum and is difficult for us. Management made some mistakes but mother earth so far has been more cruel painting a picture of lots of gold but so far, not giving us the results we hope for. We have some evidence that T1&2 will be an economic deposit but until the 43-101 comes out, nothing is for sure. However, if we do have 1-2M ounces at a grade of 3g/t, then just on that, we are a buy at these levels.

With guarded optimism,

Glorieux