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In A Rich Mineralized Area Of Peru, Grenville
Gold’s Silveria Property With Infrastructure, Roads And Tunnels In Place
From Its Previous Production Has Huge Potential
Exploration
Mining/Resources
(GVG-TSXV, GVLGF-OTCBB, F9I-Frankfurt)
Grenville Gold Corporation
Suite 207, 475 Howe Street
Vancouver BC Canada V6C 2B3
Phone: 604-669-8842
A. Paul Gill
President and CEO, Director
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
Published – November 9, 2007
BIO:
Paul Gill
President and CEO, Director
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 a co-founding director with Mr. De Melt.
Company Profile:
Grenville Gold Corporation is a junior resource company seeking prospective,
near-term production properties. The Company has 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 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 your vision for
the company?
Mr. Gill:
“Our vision for Grenville is to get the Silveria Property into production as
soon as possible. The next goal is to take a look at some of the other
properties we have. The Espanola Property, which contains two former copper
mines, and try to get that ramped up to production through a joint venture.
Basically we are in the business of developing and opening mines. We think
that is where the revenue stream is going to be created for this company and
in addition to that, we can then look concurrently at exploration on these
projects for a much larger deposits than the veins that were mined.”
CEOCFO:
Please tell us about the Silveria Property.
Mr. Gill:
“The Silveria property is located two hours east of Lima, Peru area. San
Mateo is a town at the foothills of the Andes and the property itself is
4000-5000 metres high on a plateau. There were four or five producing mines
in the area, the Silveria Mine was the original in 1950 or so. The Germania
mine was also developed in the 1950’s, and between 1970-1990 there was two
other larger mines, the Pacacocha and the Millotingo. In addition, there was
another mine called the Tamboraque (now known as the Corichanca Mine run by
GoldHawk Resources), which is not part of our package but is currently in
production right now. Silveria is a rich mineralized area; it has
poly-metallic vein systems. We have mapped 44 different veins. Of those,
fourteen have been mined and 50% of their ore has been extracted, so we
think that there is a huge amount of potential. Our resource target is
between 40 and 100 million ounces of Silver based on the veins that have
been stopped. We can get production out of it immediately. The previous
group had not taken everything out but they have built the infrastructure,
roads and tunnels.”
CEOCFO:
How did you know this was a good place to be?
Mr. Gill:
“This is a vision that our chairman, Len De Melt had for a number of years.
Len was involved in opening mines in Canada; he has worked in the Ekati
Diamond Mine, and in other gold, oil and uranium mines in Canada. In the
late-1990’s, he saw the opportunity developing in Peru, the Shinning Path
had been shut down by then President Fujimora, and there was a lot of gold
mines that were starting to re-open there; Yanacocha Gold mine specifically.
Len got there and started making inroads with local people, creating
partnerships to develop and vend properties to Canadian companies. That
started a wealth-creation process. He had the financial ability and
financial contacts to stake land in Peru - at $3.00 a hectare - you need a
considerable amount of money to secure a large property. He was in started
doing that for various different companies. He has worked for Vena
Resources, Century, and Norsemont Mining and currently has developed the
current package of properties for Grenville. However, for Grenville
specifically he had the opportunity to hire Jose Rodriguez, who is an
excellent land manager in Peru and has staked land in various different
areas. He staked Espanola Copper Property and more specifically, what he did
was watch and see what opportunities were coming up in Peru. Opportunity
arose in the area of San Mateo. There was a group of claims that came up
because the mining concessions (fees to the government of Peru) were not
paid on time. We knew about it and at midnight of the date they expired,
they became available and then we were issued the minerals titles in January
of 2007, on about 1,700 hectares, which is a nice package.”
CEOCFO:
What is the next step?
Mr. Gill:
“The next step was to asses the whole area, not just the claims that we
have. Let’s fill in the gaps in the claim blocks. There is a real sense of
purpose here. We have bought and staked, and bought and staked until now
there are only two or three people that own claims in the heart of this area
that cover the four producing mines. Our first focus has been acquisitions;
the second has been assessment looking at the topography in the area,
mapping it completely by aerial photography. Looking at the past-production
information on the mines, where the tunnels stopped, what reserves they knew
was there in 1991 when they stopped mining. We have digitized what they
called reserves and created 3D images of that information. That is where the
power of information really comes to the forefront because we have now
created the 3-D model, which shows us where all the tunnels go, where they
stop and the shapes of the stopes, and we know they just followed the
high-grade veins. Almost every single vein system that has been tapped into
has a flat line at the bottom of it where the information stops. That
doesn’t mean that the vein stops, it just means that they stop producing at
that level. The Alancia tunnel that runs for seven kilometers underneath
Lake Pacacocha and the Pacacocha Mine is one of the key features because
underneath that at 4000 meters, there is potential for a large disseminated
ore body and we want to be able to drill that. All this volcanic activity
had to come from somewhere and there is an intrusive there and with
intrusive bodies you get disseminated deposits, you get heavier metals such
as gold, led, and some of the other ones that will stay closer to bottom.
That is what we would like to get at in the long run.”
CEOCFO:
How are you funded going forward?
Mr. Gill:
“We have a good group of people that have put money into the company. We
have one brokerage financing that took place for $1.8 million in June and we
are certainly contemplating other financing going forward. For the most
part, we have lots of warrants in the money that are keeping us going as
well. Everyone could use more money but we want to use it wisely and not
dilute to the company an extreme amount.”
CEOCFO:
What do you like about Peru?
Mr. Gill:
“Geologically it is just the same as Chile. It has the same potential in the
Andes, It has copper-gold-silver deposits that have never been worked or
assessed properly. Politically speaking the risks are getting lower and
lower in operating there. With lots of infrastructure being built, there is
international and government funding, local communities are willing to help
if you have the right attitude. Companies like ours are learning how to work
with the local communities to make sure that they are involved in the
process. What I like about Peru is that people are looking to it as a role
model of how to develop. Peru for the next fifty years is going to be a
long-term supplier of metals to China, India, and it is perfectly positioned
to do so.”
CEOCFO:
The Silveria project in Peru; do you own that 100%?
Mr. Gill:
“All the claims that we own in the area are 100% owned by our subsidiary,
and we will likely covert our loans to the subsidiary to shares increasing
the ownership to 99.99%. With no NSRs and no options. I am very proud of
that. One of the things you always look at later on is does someone own a
chunk of it at the back end? Our subsidiary owns 90%, and soon it will own
99.99% of the three projects that we have in Peru; Espanola, Silveria and
Chorobal. Not to say that the bits of claims are not significant, we need to
purchase, stake or negotiate solutions. That is definitely a very complex
area in which there has been staking for a long, long time. You need to know
how to operate; you need to have your staking taking place on an ongoing
basis and negotiations with communities. We purchased the land underneath or
on top of all of the mineral titles, so there is no one else that can
operate in this area except for us. It is a matter of weeding it out doing
the exploration.”
CEOCFO:
The strength of your management team is all of these little pieces coming
together correctly, is that correct?
Mr. Gill:
“Yes. We have to have a plan. I often look at Grenville as being a Peruvian
mining company with a Canadian finance and marketing arm, which is a
different way to look at it, but it is a reality. Our general manager and
his team are very active and our legal team is very active in Peru. They are
the ones that are running parts of this project. We are assessing their work
from afar. As we get towards production and start doing deals, it is our
local managers that are at the forefront creating value. We are going to
keep an eye on the finances and make sure the share structure is appealing
going forward and well financed for development.”
CEOCFO:
In closing, address potential investors, why should Grenville stand out in
the crowd?
Mr. Gill: “I have been through
this before as an investor, a director and officer of mining companies and a
couple things do stand out; number one, this is a high grade mining
situation. The mines that were there were operating at 16 and 24 ounces per
ton in silver, plus there is copper, zinc and led in the system that we
never even processed. Therefore, there are high-grade mines. Secondly, there
is 100% ownership of all the claims that we have. Third, we have bought the
surface rights. We are in the perfect position to benefit from all the
mining that has previously been done. Fourth, we staked and bought the
tailings, which have silver, gold, copper and zinc, so there is a great
potential to reprocess the tailings, and a great potential for the
underground that is already there that they stop mining half way through.
Fifth - and this is the big one –there is blue-sky potential with the
exploration down below all of these veins. Veins do not just exist in and of
themselves; they have to come from somewhere. They may come from an
intrusion or a magma coming up from the surface, and creating these
epithermal vein systems by boiling and bubbling and pushing all these metals
towards the surface. Those veins come from somewhere and if it is near
enough to the surface, we are going to find it and we think it is going to
be big.”
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