Meeting with Management – GCU-V

I had lunch with Akiko Levinson and Gary Smith yesterday, to discuss the progress the company has made recently. Gary was recently appointed the VP of exploration, and I have to say that within 5 minutes of talking to him I was already immensely impressed with his attitude and the contribution that I think he can make for the company. This guy will keep the trains running on time, of that I have no doubts.

At Cordero, the drilling program is completed, and they are working to assemble all of the assay data and build that into a computer model. Once they have an idea of the size of the deposit, and all indications are that it will grow substantially as a result of the summer drilling, they can advance to look for options to develop the resource. A big unknown at this point will be the metallurgical characteristics. Gallium is a tricky metal to work with, and most of it is recovered as a by-product from other metals. So there is really no certainty at all what kind of recovery efficiency we can expect at this point, so how can one accurately project economics? Getting a metallurgical specialist to design a pilot plant will erase those issues. The Scandium also presents similar challenges. Thereafter we can approach JV partners and put together a marketing plan for the end users. Since both Gallium and Scandium are extremely rare and in high demand, there will be consumers lined up at the door to get into business with GCU once they have concrete numbers on the table.

As for Springpole, I think Gary will make a big difference in the results we can expect this winter. He has a detailled understanding of the geology of the region, and will put a greater emphasis on selection of drilling targets that can yield better results going forward. That are several areas that have yielded high grade intercepts in past work that have never been properly followed up on, and that will be one priority.

I am happy that Akiko made time available on a saturday to meet with me, and she was flying out later that day to get to another city for a meeting with a metallurgist on sunday. She works very hard to advance the company and I do not think she gets much credit for that. Perhaps the results will begin to be reflected in the company share price next year.

I think the company is much more focused right now on what they need to accomplish than they have been for a long time. I have very high expectations and now that they have raised more money to get to the next level, I think we can look for the stock to be trading a lot stronger this year.

cheers!

mike