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Grenville Gold Is Focused On Developing Their
Silveria Silver And Espanola Copper Properties In Peru, Where There Are
High-Grade Former Producing Mines
(GVG-TSXV, GVLGF-OTCBB, F9I-Frankfurt)
Grenville Gold Corporation
208 – 905 West
Vancouver, B.C. V6C 1L6
A. Paul Gill
President and CEO, Director
Interview conducted by:
Lynn Fosse, Senior Editor
Published – March 7, 2008
Mr. Gill developed significant experience in the
strategic development of private corporations and public resource companies
such as Norsemont Mining Inc. He has held the positions of President, Chief
Financial Officer, Corporate Secretary and Vice-President of Business
Development of Norsemont Mining Inc. and was also a co-founding director.
Mr. Gill is also the President of AJS Management Corp, a company that
provides restructuring services to private and public companies and CEO of
Epic Mining, a private mining company.
Grenville Gold Corporation is a junior resource company seeking
prospective, near-term production properties. The Company has threeoperating
subsidiaries: 90%-owned Minera Grenville S.A.C. in Peru which owns the
Silveria Property and the Chorobal Property, 90% owned Minera Espanola S.A.C.
which owns the Espanola Copper Property, . Grenville Gold plans to leverage
the experience of its board and management in exploration and mining to
develop its growth strategy in North and South America.
Mr. Gill, what is the current focus at Grenville?
“Grenville is in the process of developing mining properties in Peru
specifically. We have a silver property called Silveria in the San Mateo
district in Peru, which is three hours east of Lima. We also have a copper
property called Espanola, which is three hours south of Lima. These are
focused specifically on high-grade former producing mines and we are
developing Silveria first and then we will focus on the copper project.”
What is involved in the copper project?
“The first element in the development process is to assess the information
as it is on the property, which we have done and reported in a 43-101
national instrument report. In Canada, this is the document which allows an
independent geologist to review the information that exists, visit the
property, and report his findings in a document that is vetted by the
Securities Commission in Canada as well as the TSX exchange in Canada.
Secondly we then develop our concept for the property, what is it, how big
is it, where is the mineralization and what exploration program is
appropriate. We have initially done some exploration and development work
primarily focused on assessing the adits, which are the openings in the
mountain which allow you to access the mineralized veins. The reason for
that is to take samples in large quantities thousands of tons at a time and
process that material to find out what the value of the rock that comes out
is. The next step is to get a grand sweeping exploration program which will
look at other areas of mineralization that haven’t been exploited, the areas
that have been mined and develop a resource, develop a numbers essentially
as to how much there, what the grades are per ton, and then you can start to
develop an economic model.”
Is this 100% owned or are there partners for you?
“We at this point in time have a partner called Journey Resources who had
the geological expertise and the personnel available to get to this
property. Initially we had staked 3,959 hectares of mineral claims and
mineral titles in the area that was a patchwork of claims over top of
forward existing mines. We then optioned that package to Journey so that
they could work on the exploration development and we are going to continue
working on acquisition of other additional claims in the area so that we can
bring that package to 100% of the entire area.”
Is there a lot of silver mining in that area?
“Interestingly enough there are several different mines that are
operational, several deposits that are known in the area and several milling
operations in the area. First, there is the Peru Copper deposit known as
Toromocho, which is located about 35 kilometers north, sort of a neighbor
geologically speaking and contains upwards of 20 billion pounds of copper.
This particular deposit was sold for $ 847 million USD to a company out of
China, and Peru Copper traded to $6.47 US, which was the buy-out price of
course compared to how many shares they had out. There are other mills in
this location, but the primary one for our interests are owned by Goldhawk
Resources, which is a company with properties that are located two to four
kilometers away from our Silveria property. They are now in commercial
production producing 11 thousand tons per day at an average of about 4 grams
per ton of gold, with silver, lead, zincand copper credits. We are waiting
their initial production numbers to hit the books in the 1st or 2nd
Quarter of 2008. Therefore, we expect to see them do some interesting
numbers and be able to report considerable amounts of revenue and perhaps in
profit. The other operations that are in the area include one that is owned
by Panamerican Silver called the Morococho deposit and it is adjacent to the
Peru copper deposit. Secondly, Glen Core, which is the private company that
owns a substantial portion of the Exstrata, a large copper and mining
company based out of Switzerland has a mill that is capable of producing
five thousand tons per day. Vulcan, which is a Peruvian company, also has a
mill and a property nearby that can produce up to three thousand tons per
day. These are all interesting aspects of this area. It is well known, it
has operating mines, huge deposits, and we would like to combine the
elements of both as we develop.”
Are you looking in other areas for property as well?
“Within Silveria there is an additional claim coming up for option or
purchase, so definitely we are accumulating land there.”
What do you look for in a property?
“The main concern when you look for a property is what is it going to do for
your company on a return-on-investment basis for your shareholders. At this
point in time the market in the mining industry is looking for
revenue-positive production, revenue-positive meaning mines that are able to
produce cash flow. That is the kind of operation that will be bought by
mid-tier or large-cap companies looking to expand their bottom-line. This is
a growing industry and because there has been, a lot of money made in the
industry it tends to get poured back into the industry into certain
companies that are well structured cash flow positive and are able to have a
blue-sky aspect to their prospects.”
What is the financial picture like for Grenville today?
“We just completed a financing and we have about $500,000 to work with at
the present. In addition, our joint venture partner is committed to raising
$6 million for the development of Silveria in the next year.”
What do you like about silver at this point in time?
“The main thing I like about silver is that it is one of the few commodities
that is also a precious metal. It can be consumed in industrial production,
it can be used in various different ways, as silver jewelry, medical
purposes, and for numerous other purposes, coins etc. It has versatility and
it is currently one of the few commodities that hasn’t quadrupled. Gold has
done it, copper has done it, and silver is one of the three main commodities
in the mining and metals industry. Silver has not been woken up yet and that
is why I think investing in silver property is going to be beneficial to
Grenville and especially high-grade silver is going to be beneficial to the
ultimate bottom line if we get into a production situation.”
There are many companies to look at in your category; why should Grenville
stand out to potential investors?
“We have a direction and we have a definite plan to develop and acquire
these projects, develop them and get them into production producing cash
flow without significantly increasing the share capital. The ultimate effect
on the individual share once we get into production will be greater. If we
get to the point where we are issuing dividends, it is going to be larger
dividends for the current shareholders. Therefore that is our main focus
here to get as many projects to that point producing positive cash flow
without issuing huge amounts of shares so that the effect of the bottom line
What should people reading this interview remember most?
“We are in the right commodity. We have a high-grade formerly-producing
mines, we have a company producing silver and gold very close to us in Peru
and we have a huge buy-out that has occurred less than thirty or forty
kilometers away. We think that this area is under-known and under-valued and
the company as well is under-known and under-valued.”
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