Jay Taylors Newsletter Write Up post his site visit on Thursday, August 26, 2010Date: Sat
Golden Hope Mines Ltd. Business: Exploring for gold in the Beauce region of Quebec 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
