Good day everyone,

~I went to the Europe Gold Show in Zurich and ended up having my travel all messed up due to the volcano.  I thus decided to spend some time here in Europe.  I am visiting my family in Portugal and will also be visiting a tungstun project in eastern Portugal.  Iºll try and keep everyone posted.  The internet is a little shotty here. 

Other than that, I hope you are all enjoying the run we have had on Century Mining (V.CMM)  At 72 cents I still think there is plenty of upside left.  The initial target is for 1.50 and at that price I will re-evaluate it, Iºm really looking for this to be bigger than a SAN GOLD.

In the mean time have a great weekend

Victor

Good Morning,

It was a pleasure meeting everybody in Montreal, a beautiful city.  For those of you who just signed up, I just posted some Geology tutorials in the tutorials section. 

The next show I will be at is the Exploration Quebec.  If there's anybody going to that show, I'll see you there.

Good day,

I was speaking the good folks at Riverside Resources and was told about a multipart video series on geology.  I thought this would be an excellent addition the Equities and Economics Report website.

http://www.youtube.com/watch?v=icvnROp7GYw

Here is something that I did a while back, thought you might be interested.  For more of these green companies come visit my other website, www.greenmoneyreport.com

http://www.thestar.com/business/smallbusiness/article/610259

Hi all, I figured I would do a video version of a post instead.  I'll do these periodically.  Enjoy

http://www.youtube.com/watch?v=jqsbdQI5g9E

At the recent Vancouver Cambridge house conference, I discussed investing in gold.  Further I indicated that major investors are going to be paying for the production more than the exploration.  I had recommended a major company as they have performed in-line with the price of gold.  I believe it is time to start looking for the hidden gems.  These are the underexposed companies that are either a junior producer with potential for a great increase in resource or a company that is on the cusp of producing.  I will be talking about a few of these in my newsletter in the upcoming weeks so stay tuned.  In the mean time, here is an example of one that hits close to home for me, Manitoba.

Garson Gold is a potential candidate for this latter category.  First of all, it has property in Northern Manitoba, one of the best jurisdictions to do mining in North America.  Secondly, it has a fairly new mill that has been kept on care and maintenance for the past while.  Thirdly, there is a resource on the property and they are defining more to start feeding the mill.  These are the ingredients for near-term production.

Let us expand a little on these topics.  The history of the New Britannia Mine and the area goes back about 80 years.  There was exploration work done in the area of about 50,000 feet of drilling.  Production in the area in the 1940’s and 50’s totaled about 610,000 ounces.  Even more exploration was done in the 1980’s and a mine was built in 1987 by High River Resources, which formed a 50/50 Joint venture with TVX (later becoming Kinross Gold) to reopen the mine which happened in 1995.  792,379 ounces were produced until 2004 with recoveries at 93%.  The mine was shut down and put on care and maintenance at that point due to the price of gold.

Now we have a situation were the mine and claims that go with it are 100% owned by Garson Gold.  Kinross has a 19.9% stake in Garson Gold.  Kinross has a back-in right for 60% if 3 million ounces of 43-101 compliant reserves are proven up.  The back-in would cost Kinross 3 times the money that Garson spent to that point.  That being said, I am pretty sure that given that Garson won’t need much funding to make this project happen, they won’t be in a hurry to prove up the 3 million ounces.  My guess is that they will keep the resource under 3 million and just keep adding to it as needed, thus avoiding giving away the project, so to speak.

Manitoba is very mining friendly.  Similar to the Quebec government, there is a kick back on exploration work, in the case of Manitoba it is 35%.  The work force in Snow Lake is used to mining and has an expertise in the area.  The infrastructure is also very good.  Work can take place year round in Manitoba.

One of the beauties of this project is that there is no permitting required, and everything is in place.  There is no question as to where the funds are going to come from to build the mine and mill.  It is already there.  This is in my opinion a huge asset.  It is one thing to prove up a resource and by drilling.  It is an entirely different thing to get through the permitting process, no matter how friendly the area is to mining.  A 43-101 resource would have to be proven up, a scoping study, the environmental impact study, the pre-feasibility and the feasibility would have to also get done.  All this would take years to complete.  All that is done already, and all Garson has to do is increase the size of the resource.

The Resource at the New Britannia Mine is 2,211,000 tonnes at 5.11 g/t for 364,000 ounces on a Measured and Indicated bases.  The current inferred resource is 1,094,000 tonnes at 5.01 g/t for 176,000 ounces.  Currently there is a drill program in place to bring the inferred numbers up to a measured category.  There is also drilling to expand the resource.  I believe that if they prove up around 1 million ounces or more, the company will be in good shape.  That being said, given the geology of the area and their land package, this shouldn’t be a problem.  The drill program is scheduled to be 20,000 meters.

The share structure is really the only problem I have with this company at the moment.  They have just completed a financing and now have close to 100 million shares outstanding.  I like that in the short term we can see production.  The current net present value of the company should be at about 58 cents per share based on my calculations.  This represents a substantial premium to the current market price of about 21 cents.  Further, once the company has entered the production phase we are likely to see a share price of closer to 1.10 dollars per share.  This is with all assumptions used being true for the whole period.  Production levels will influence this number greatly.

What the market needs to see going forward is the increasing of reserves.  Garson should use the money it recently raised to expand and upgrade the resource.  That is what is going to move the share price of this company.  If they fail to prove up sufficient resources in this next drill program there may be problems with the share price and there in lies the risk.  That being said, I believe that there is a good chance that they will prove up significant reserves. 

gor more information on Garson, go to www.garsongold.ca

Hi all,

There has been an update to the geo tutorials.  If there are any questions about metallurgy they should be answered in this addidtion.  Enjoy.

I also got an email recently that I am always delighted to see.  It reads as follows;

--Must admit I was delighted as I have been trying to figure out Warrants for a few weeks as this is all quite new to me and the first thing I see in the tutorial is ''Time to talk about warrants'' which has clearly explained things.
The coverage of MetalCorp is fantastic of which I am a shareholder but will now increase my holdings in this one."
 
Many thanks

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Inverness, Scotland, UK