Significant Size, Grade, Returns

The spectacular discovery back around 2008, a little no-name junior called Aurelian Resources announced a drill hole, I think it was about 242 meters of 5 grams gold, including about 60 meters of around 30 grams gold; that's a giant drill hole, that's the stuff that multi-million-ounce deposits are made out of. That kind of a drill hole actually makes my job easier when I see something like that because big drill holes like that don't tend to be in the middle of small deposits, they tend to be in the middle of the really big to giant ones.

Maurice Jackson: Not asking for a shopping list, I just want to know some of the ingredients that have made your clients some handsome returns over the years. Do you have some examples to provide readers on the merits of adding companies with significant new discoveries to their portfolio?

Steve Todoruk: Well, that's a bit of a tricky question, if investors are going to try doing that on their own to identify significant new discoveries, even looking for that first drill hole, in a news release headline, that's tough if you're not a geologist. For me it's second nature, there are a number of current significant discoveries to my standards, I'm quite happy and my clients are almost full right now. If there's a brand new, good-looking discovery, and now it's tomorrow I have a bit of a problem because my clients don't just continuously send money into me, they tend to say, okay, sounds nice Steve, what do we sell to fit that in? It's almost to the point where I like the ones we have, it better be really good if I'm going to say let's sell someone one of our current positions.

Maurice Jackson: Mr. Todoruk, this has certainly been an eyeopener and is quite intriguing. Before we close, what keeps you up at night that we don't know about?

Steve Todoruk: My hockey team, the Chicago Blackhawks, they won three Stanley Cup Championships, and as a result of being successful, they had to let their good players go.

Maurice Jackson: I'm not a hockey fan, but I tend to be inclined to Detroit teams, I always liked the Detroit Pistons, the Detroit Lions, don't laugh, and the Tigers. I'll go with Red Wings, although I'm not a hockey fan. Last question. What keeps you up at night that we don't know about?

Steve Todoruk: What keeps me awake at night? Not much, I sleep pretty well. I believe gold is going higher. I'm not a raging gold bull. When I started working for Rick 16 years ago, gold was $425 an ounce, it's almost $1,700 today. From the simple geological perspective, there's lots of gold deposit out there to find yet, but they're getting harder and harder to find. Mostly meaning they're getting deeper and deeper. That means that if investors, for whatever reason, want gold in their life or in their portfolio, they're going to have to pay the going rate for it. Mining companies are not going to dig gold out of the ground, losing money just to give people gold. Then you add in all the other reasons why gold probably continues to go up like it as the last 16 years. In general, I feel good about investing in this sector, I think it will always be around in a good place, and for a portion of investors investing dollars. Pretty happy overall.

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