March 2008 Interview with: A. Paul Gill, President and CEO, Director, Grenville Gold Corporation (GVG-TSXV, GVLGF-OTCBB, F9I-Frankfurt) - featuring: their three operating subsidiaries: 90%-owned Inversiones Mineras Alexander S.A.C. in Peru which owns the Silveria Property, Espanola Property and the Chorobal Property, Minera MineGreville S.A. in Ecuador which has an option to acquire the La Tigrera Project, and Parkman Diamond Corp. in Ontario, Canada which owns the Parkman Diamond Prospect.

Grenville Gold Corporation (GVG-TSXV, GVLGF-OTCBB, F9I-Frankfurt)

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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

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Grenville Gold Corporation

208 – 905 West Pender St.
Vancouver, B.C. V6C 1L6

Phone: 604-669-8842

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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.

Company Profile:
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.

CEOCFO: Mr. Gill, what is the current focus at Grenville?
Mr. Gill: “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.” 

CEOCFO: What is involved in the copper project?
Mr. Gill: “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.” 

CEOCFO: Is this 100% owned or are there partners for you?
Mr. Gill: “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.”

CEOCFO: Is there a lot of silver mining in that area?
Mr. Gill: “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?
Mr. Gill: “Within Silveria there is an additional claim coming up for option or purchase, so definitely we are accumulating land there.” 

CEOCFO: What do you look for in a property?
Mr. Gill: “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.”

CEOCFO: What is the financial picture like for Grenville today?
Mr. Gill: “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.” 

CEOCFO: What do you like about silver at this point in time?
Mr. Gill: “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.” 

CEOCFO: There are many companies to look at in your category; why should Grenville stand out to potential investors?
Mr. Gill: “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 is minimal.” 

CEOCFO: What should people reading this interview remember most?
Mr. Gill: “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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“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.” - A. Paul Gill does not purchase or make
recommendation on stocks based on the interviews published.