Schill it Out---The Long & ShortExcellent answer Fantomas!
I myself find it quite hard to precis such a question---accurately.
Why ask about the past 13-15 years or so? Try 20 to 25 years or more!!!!
To anyone who is interested in GCU, and who is SERIOUS in their quest for knowledge, it is ALREADY
laid out for you---in full----on GCU's home web site.
I believe it should be required reading for any serious invester----it is also very interesting, informative, and
easy to follow.
Do some diligence of your own. It's quite easy!!!
The story and the history is well documented and laid out for you. You don't have to be "spoon fed"!
Go to
www.goldcanyon.ca.
Click on "Projects."
Click on "Springpole."
Scroll down 8 titles to "Previous Exploration" click it and read THOROUGHLY.
THEN----
Back up to the 7th. title "Project Summary" click on it and read this as well.
See----it is actually quite simple.
Once you've done this, I would like to add a few things that adds some light, and that I think are over-
ridingly very important.
Remember, as Bob Dylan famously once said----"The times, my friend are a changing!"
First of all, things were done very differently. There weren't the private placement financings with all
the warrants and such as there are now---which when a stock is under a dollar and especially 50 cents---
is very diluting to the shares outstanding.
For a long time Michael Levinson entered into various agreements with other companies whereby if that
company spent so much per year on exploration, for a specified number of years---that company could
earn in a percentage of GCU-----say 50 or 51%.
If the company did NOT do this, as specified in the agreement, then the contract became NULL and VOID.
The company in default basically just walked away----and lost ALL of their rights to earn a % of GCU,
and GCU could then enter into another agreement with another company.
This process was done many times over the years, when Michael was in charge. Much knowledge was
gained, a lot of drilling was done, and because of doing business in this way, there was very, very little
dilution in the number of shares outstanding.
One may ask why so many companies entered into such contracts, and why so many of these companies
decided to "walk away." Obviously many thought that it was worth "a shot" at the time of signing the deal---
a quick fix perhaps for a big score, if their modelling and drilling hit "pay dirt" big time. Worth the gamble.
The reasons I guess were many and different. Some of them lost interest in the property with the mixed
results. Others obviously changed their minds and wanted to spend their exploration monies in different
promising projects---or in different parts of the world. There are always BIG allowcation ARGUMENTS
for the scarse exploration monies in the large firms---as to where their money could be best spent.
Others just quit because of financial problems.
WHATEVER!!!!
Yes times were different----much different. Things were done differently than now.
I truely believe a LOT of it---most of it---had to do with the STATUS QUO, and more importantly
The ACTUAL PRICE of GOLD ITSELF.
Many will tell you that the price of gold was being attacked and kept "artificially" low. All that I know is that
the price of gold was LOW----and in fact was falling, constantly------to $ 250 or so US per ounce.
It was getting ridiculous. Many Gold Mining Companies----scratch that---MOST Gold Mining Companies,
Barrick especially comes to mind, HEDGED their future gold production. A very astute and good move at the
time to maximize Profits-----their hedge books were HUGE!!!!
Many gold properties became simply uneconomical to persue further. Many were put on the back burner, and
many others were plain outright sold---if a buyer could be found.
Only the lowest cost, high grade mines were in operation----think rich veins of high grade gold. Certainly NOT
low grade, bulk mining, open pit properties!!!
Heck, I remember Gold Corp's Red Lake mine was shut down! The grades of gold there were falling, and the
miners wanted more money---not less. The miners went ON STRIKE. Luckily Telfer used the opportunity to
dig out a parallel shaft and then drill deeper down. Bonanza----higher grade veins of gold were found!!!
Look at Goldcorp today----a true success! Now Goldcorp is exploraing for low grade bulk mineralization to
extend the life of their mine---AAAAH, the price of gold is now over $ 1,500 per ounce.
BUT---I'm getting ahead of myself.
Back then, with the LOW price of Gold----most Gold Mining Companies changed their modis operendi-----
they severely cut, or stopped ALMOST all of their EXPLORATION----budgets were slashed SEVERELY!!!!!
They obviously decided exploration just wasn't worth it-----instead they left this to junior exploration firms,
deciding that if one "got REALLY lucky" and made a big cheap discovery----they would then just step in and
BUY the company OUT. It was to them wiser, cheaper, and safer! (sound familiar in today's practices?)
Yes it was a DARK DARK DAY-----especially if you were a GEOLOGIST!!!! Even the BEST Geologists were
VERY hard pressed to FIND WORK. Many for quite a while were just PLAIN UNEMPLOYED!!!!
Worse, due to employment prospects AND low, LOW wage expectations at the time-----enrollment and
hence graduation in the Universities declined dramatically-----which created a void and lack of experience
for the FUTURE----which was VERY BLEAK!!!
Then, don't forget there was BreX and the following lack of trust and respect with the mining system.
The investing public lost interest----further worsening things.
I could go on and on----but I think you get the picture.
NOW-----TWO BASIC THINGS HAVE CHANGED:
First off----modern technoledgy has improved immensely----for mining, but more so for exploration. It should
be noted here that I'm not saying Gold is EASIER to FIND. But before a lot or most of it was basically "hit and
miss" drilling-----a lot more of a crap shoot!!!
Second off----AND MOST IMPORTANTLY-----Just look at the Price of Gold----and the RAPID increase in
prices----for MANY REASONS----a BULL MARKET of a lifetime!!!! BUT that is a different topic for another time.
WOW---over $ 1,500 dollars an ounce (mind you that's in US Dollars?)
And it's not just Gold, but Silver too, which with our great drill results really helps GCU!!!
Oh YES----the laws of supply and demand-----and the investing public is starting to wake up and take notice!!
Now old mines, previously thought 'KERPUT' and uneconomical are being re-opened.
Exploration is going on at an all time high.
AND
NOW things are being RE-EVALUATED-----what was unwanted and far too uneconomic---is the toast of the
day! Bulk, "low grade' OPEN PIT Mining is IN. Meanwhile the former status quo, very high grade rich veins,
mining is going the way of the dinausor-----don't get me wrong here, ANYBODY would absolutely LOVE
to find a HUGE high grade vein deposit----CLOSE to the SURFACE-----BUT----try and find one. That is getting
harder and harder to find! There are no doubt some out there SOMEWHERE, but the "easy" ones (and it really
isn't that "easy") have already been found. To mine the existing ones---the miners have to keep following the
veins down to DEEPER and DEEPER depths-----and that means INCREASINGLY much HIGHER COSTS!!!!!
Exploration is expanding out further and further to places that are MORE and MORE remote-----REALLY REMOTE!
This not only increases dramitically the cost of exploration, but more significantly, the costs of mining!!!
Then there is the HUGE problems of the other kind----finding potential mines BUT in politically UNEXCEPTABLE
and unstable areas with corruptable, unfriendly, and fickle----if not outright dangerous GOVERNMENTS!!!
Yes, that's another topic.
So yes Bob Dlyan, the times have a change---D.
We are so lucky with GCU----the right spot, at the right time, in a stable & friendly environment, and in the
right place----not ISOLATED.
Yes Virginia, there WILL BE A MINE at Springpole!!! It's JUST a QUESTION of HOW BIG!!!!!!
If you have read what I've told you to do, and have followed and agreed with my above points----there is something else I would like to point out and make CLEAR.
Yes, we are fortunate to have Quinton Hennigh and the team at Springpole-----BUT---BUT---BUT---
DON'T give him ALL of the credit for what has happened at Springpole lately. Yes, he has done extremely well
but I think in many ways he is getting TOO much of the CREDIT for the success, perhaps.
Being at The right spot at the right time, has A LOT to do with it!!!!
Thirteen or so years ago, and even much more recently-----Springpole and the Portasge Zone would and was
NOT persued----it was "poo-pooed" and the very thought of doing it would have meant instant dismissal,
because it was uneconomical and hence a waste of time and money!!!
Thank God for Michael's dream and vision---against all odds! And Akiko's tenacious determination to carry
on in the legacy of her husband. It certainly hasn't been easy!
I did tell you at the offset that I can't precis!!!
Yours Notoriously, and also probably wrong as always,
BARN BREATH
P.S. OK I'll say it-----come on GCU Management get 'off the pot' and give us a News Release---I don't just
mean re Big Bertha----heck, it's now past the IDES of JUNE!!!! Surely by now the ice is gone from
Springpole Pond. I mean is there any drilling going on AT ALL? Surely by now you MUST have a
drilling programme all planned out----goals and how many meters etc. Any planned site inspections
planned? Anything????? Please don't treat us like MUSHROOMS and keep us completely in the DARK!
Heck, even the NHL and the NBA seasons are OVER. So is your deserved HOLIDAYS!!!
To quote C, L, & M: "The Natives IS restless!!!! IS they??? Yes, they IS!!!!"