Monday, February 27, 2006

Gitennes May 2005 AGM

As per usual, when I attend these AGMs, I feel like the Lone Ranger. There was probably one other investor or broker, everyone else was GIT staff, directors, auditor, etc. Mr. Blackwell spoke for half an hour, the geologist at Tucumachay the other half.

These are my impressions and tidbits -

-the main focus is Tucumachay; not much happening elsewhere; Buffalo working Red.

- Talked a lot about the geology etc, way over my head, jasperoid, breccia, mentioned Carlin once. My take: It's no Kupol.

- GIT has applied for Permit C, a 100 page tome to satisfy the government, the environmentalist, the anthropologist, et al. The Peruvian people has 20 days to look at it, then the govt has 20 days and GIT has 10 days, but this is Peru, so it can take anywhere from 2-4 months.

- Once permit is out of the way, GIT wants to drill approx. 30 holes, core drilling, likely last 2 Qtrs, end of July the earliest.

- there's snow in the morning there, but it melts within hours, right now. Apparently, no seasonality so can drill anytime, but this is the Andes.

- GIT has spent $150K so far, needs to spend $1.6 M by 2008.

- after 12000 meters drilled, Inmet can look at the database and can clawback in for 60%.

- deal done that way because Inmet does not want to look bad should there be a multi-million oz there. Inmet has a large office in Peru, but they are like the Maytag repairman, not much to do.

- Tucum. has potentially lots of zinc. Inmet would be interested but only if huge amount. Apparently, they passed on another area close by, so may pass at T if it's not huge.

- geochem testing turnaround time for gold samples is 4 days. Other minerals will take longer.

- Re Urumalqui - nothing much happening there. When I was at the gold show in January, I stopped by Meridian's booth. Their map showed the JV but their rep knew nothing about it. I mentioned this to Mr Blackwell, he said companies like Meridian, being a producer, don't want to be cluster in with exploration companies with their speculative cycles. Supposedly, Meridian haven't mentioned U in their annual reports since 1999

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