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Grenville Gold is focused
in Ecuador and Peru where there are great prospects for developing gold, silver and copper
Grenville Gold Corporation
Suite 207, 475 Howe Street
Vancouver BC Canada V6C 2B3
A. Paul Gill
President and CEO
Interview conducted by:
Lynn Fosse, Senior Editor
Published - February 1, 2007
A. Paul Gill
Mr. Gill developed significant experience in the strategic development of resource
companies such as Norsemont Mining Inc. and Lomiko Resources. 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 with Mr. De Melt.
Grenville Gold Corporation (TSX Venture: GVG) is a mining and exploration company
developing gold, silver and copper assets in Peru and Ecuador. Our mission is to acquire
majority interests in advanced exploration projects in South America that have previous
exploration data and/or extremely strong evidence of economic grades of mineralization. We
create value for our shareholders by cost-effectively bringing prospective properties up
to National Instrument 43-101 compliant resource standards.
Our exploration and acquisition office in Lima, Peru has been a hub of mineral property
acquisition for over ten years, and has been instrumental in the development of some of
the richest ore-bodies in the country. Your new management team is committed to advancing
these properties efficiently while continuously evaluating new prospects brought to us by
CEOCFO: Mr. Gill, Grenville Gold is a reorganized entity;
tell us why you are with the company and about your vision?
Mr. Gill: My vision with Grenville is
a company that has assets in different parts of the world and in the best parts of the
world for gold, silver and copper. That is our primary area of interest and why we are in Ecuador,
where there is an excellent opportunity to develop gold prospects. We are in Peru where
there is an excellent opportunity to develop copper and silver prospects. We recently put
out a news release in regards to sticking 80 thousand Hectares in Ecuador with our joint
What do you look for in a property?
Mr. Gill: The main thing to look for
is an area that we have some concept that there is potential for a large disseminated
deposit. When you are in resource mining and in a junior resource situation, what you want
to look for is something that will give you the ultimate blue sky. That is why our
projects are focused on getting in there with a low cost, making sure we have it open
ended and make sure we can develop it down the line.
What do like about Ecuador and Peru for your exploration?
Mr. Gill: What I like about Peru is
that it is now on its second term with a stable government. It has all of the fantastic
geology that Chile has and the potential to go fifty years with development and
infrastructure upgrades without political upheaval. I think that is the advantage of Peru,
fantastic geology, stable environment and they really want to attract investment and that
is what corporations like for long-term success. With Ecuador, I think they have gone
through the process of developing the country to a point where they can attract
investments and they have had major discoveries in that area. IAMGOLD Corporation (IAG) in
Ecuador has a deposit with 2.8 million ounces on it of gold. Aurelian Resources Inc. has
had a fantastic discovery in the southern part of Ecuador and in the area that we have
announced the Rio de Oro acquisitions - the Portovelo-Zaruma regions there has been
4.5 million ounces of gold pulled out of the ground. Therefore, there are substantial size
deposits (in Ecuador) and I think that potential fits right into our plans.
You mentioned a joint partner in the Ecuador venture; do you partner for most of your
Mr. Gill: We have several different
projects in Ecuador. The one very interesting project is the La Tigrera gold project. That
has a defined pre-43-101 report of about 700 thousand ounces of gold based on a historical
estimate by an Australian company called Climax Mining. We try to garner 100% of these
kinds of properties. What we do with large-scale areas like the 80,000 Hectares of the Rio
de Oro Project is to have other companies get involved. Our current joint venture partner
gives us an opportunity to share costs. If they cannot raise the money, we will kick in
extra and be able to buy the portion back or vice versa depending on how things go. We are
able to have options with other joint venture partners and that is the key for any public
company is always planning for contingencies. It is also a way of mitigating risk. We know
this is a risky business; we want to make sure we have plenty of options out there so we
can manage risk to our shareholders and the company.
Development is very expensive; how are you funded?
Mr. Gill: Right now, we have about
$1.1 million Cdn in the bank. We have 21 million shares issued and 32 million fully
diluted. If we were to get the extra money in from warrants, it would be another $1.5
million. Currently the actual float is 15 million shares and we think that is very small.
We have the potential, with the different projects, of financing again at a premium. We
are always talking to investors and always interested in talking to people that have an
interest in investing in these countries.
What is the timetable going forward to get started with these projects?
Mr. Gill: We hope to be on the ground
and sampling in the next few weeks in Peru. We are still in the process of acquiring
different land packages in and around Ecuador and certainly other packages around Peru. We
are still in the acquisition and growth phase as opposed to getting into full term
exploration, but we soon hope to be out there exploring, discovering targets and looking
at a drill program.
Many people are looking for projects at a good price; what separates you and enables you
to see the potential that others may not?
Mr. Gill: That leads to management and
what our management has that others might not. Len DeMelt is running our Peru operation
and he has ten years of experience in Peru and 30 years of experience in the mining
industry. He has opened 6 different mines and participated in different levels of mine
management, so he is well experienced. He went to Peru and fell in love with Peru because
of the geology there. He is down there now and he is down there constantly always looking
for properties. He has been able to build a team that has the ability to acquire property
in different parts of the country. We have lots of good information coming from Peru and
we are able to use that for find the best property. The same applies to Ecuador; one of
the reasons we are happy to have our CFO, Stephen Brown on board is because he brings that
expertise; like Len in Peru, he brings the same expertise to the company in Ecuador. What
he has is experience in talking to the local people there. He has worked with different
people that have developed mines in Ecuador. He has also talked to government,
governmental agencies and he is well respected in that country. We need that kind of
person because that is how you get the best information on which areas are the most
It sounds as if you put the company together and you are ready to rollout and do it!
Mr. Gill: Absolutely! When I came
aboard with this company, I first came on as a director in October (2006) and the whole
concept was very new. What they were able to show me is that they had a plan to acquire
properties, raise money and talk to shareholders to make sure they understood what the
potential of the company was. I knew could fill a valuable roll communicating that to the
entire team and to all of the shareholders. We are committed to making this company a very
good investment for our shareholders.
Where does the commodities price cycle fit in for Grenville?
Mr. Gill: Many analysts tend to view
the commodities cycle as something that stops and starts on a dime and it is not something
that happens that way. Gold has gone for a bit of a sideways movement in the latter half
of 2006 and I think that there have been all kinds of predictions for it to go to $700,
but I do not think anyone was predicting that it would go to $500. We think going forward
that gold is a very good investment and the way to do it is to leverage that investment by
getting into the junior mining companies that you can buy for inexpensive prices and be
able to leverage those as their deposits grow. Silver has not has its full run in a long
time. It has had a good year in 2006 and we anticipate it will have another decent year in
2007. It has many industrial uses that have yet to be adopted, it is much cheaper than
gold, but has some similar conductive properties, so that has serious potential in
industry and there will be many different uses for silver. The base metals used in
production, molybdenum, copper, zinc and cobalt are all in great demand. You have
fluctuations form time to time. When prices were really sky rocketing in copper, there was
a news story that some companies in the U.S. were switching to plastic piping; that may be
the case for a short term softening of copper prices. Copper has come off considerably and
a lot of that was due to people covering their losing option trades and getting out of the
trade. Things look good going forward with the kind of demand that is out there, the Asian
market and the kind of development that is happening worldwide. The middle class is
growing around the world and developing countries are coming on line with China and Asia.
You are going to see a lot of demand for base metals such as copper, zinc as well as gold
and silver. All of these new folks in the middle class have to get married and have their
cars, houses along with the silverware and gold used as part of their marriage ceremonies.
Therefore, we see a long run for commodities.
Why should investors be interested in Grenville and what might there be that people dont
realize about the company?
Mr. Gill: The reason I came to
Grenville is that I saw the potential. I was involved in a company called Norsemont Mining
I for a long time and we saw the company develop from 25 or 30 cents to a $4.00 stock and
develop a fantastic copper asset in Peru. We know what Peru can do. Peru can make
companies and that is why we are there. Ecuador can make companies and that is why we are
there. My vision for Grenville is a company that has great gold, silver and copper assets
in the most prospective mining areas in the world. That is our primary focus. We are in Peru
where there is an excellent opportunity to develop copper and silver prospects. We are in Ecuador
where there is an excellent opportunity to develop gold prospects. Our management team is
motivated and will build on past success.
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