Joe

I think it can be safely said that near the 1.55 high, on the way up and on the way down, that the company's total outstanding shares turned over within five days. So it is fair to say that there are a large amount of losses in this issue with the last sale of .54.

The overall daily action in the shares for the past 10 days has been weak along with most of the other group members in the Mcfauld's Lake area play. I can't believe that with a stock dropping 65% already from its high of just over two months ago, that it could be in store for very much more punishment. Especially, holding such a valuable gold asset with a gold forecast by Mr. Jim Sinclair of at least $1,650 in the next few years or so ahead.

Some time ago I stated that .65 cents is in the shares represented by the value of the Goldex NSR. It may not be in the short term but certainly with higher gold prices it will be. The question mark concerning the NSR is WHEN the revenue flow starts? It may not come right away but it is coming. I am confident by listening to Sean Boyd speak and his tone that the property is way understated in tonnage and eventual profits. Remember it will only be costing them $225 to produce an ounce of gold. This tonnage and larger than expected profits may be in the future awaiting drilling but I continue to believe .65 cents per share is realistic, albeit I may be speaking a little into the future somewhat. Anyway, that's the number I am using to add to my holdings if weakness continues for buying into the royalty. If I'm wrong, then I guess I am buying inexpensive long term call options for higher metal prices.

Assuming I could be right, then currently there is no premium on the possiblility of drilling at McFaulds Lake turning up something significant in the share price at .54 . Buying into a company at .54 with the gold asset and no premium on possible drilling success has to be attractive.

In applying French curve analysis to the past price activity it does not look positive for the next 10 days. With the apparent negative price momentum in place it appears that if fear settles into the minds of the recent higher priced buyers above the one dollar level then a possible squeeze could take place against the longs into and about the general area of .365.

I doubt that the .365 will be reached but if it does trading will be in a fast market and for a very short span of an hour or so. I'm looking at the .44 area if .50 gives way . As a shareholder, if those prices are reached I will participate. And if sellers or naked shorts want to take it lower from there then sell orders will be entered for some of my other issues and I will feed in the buy orders if people want to give away the gold asset at such a big discount.