re: lake frome: i have done the research the Lake Frome project...

re: lake frome: i have done the research the Lake Frome project is a joint venture with Heathgate Resources.

As Heathgate is a privately owned US company it is difficult to receive much information on the project from them, and they will actually refer you to any ASX announcements by GIR. It is a private company, therefore, they do not have to answer to shareholders.

Giralia owns land directly to the East of Heathgate's Beverly Uranium mine - which is one of the 3 operating uranium mines currently in Australia.

Giralia sold its 75% stake in the land to Heathgate when uranium prices were low, therefore, they are now contingent on Heathgate doing the work. In today's environment, there is no way they would have given up their 75% stake.

The nature of the deal, off the top of my head, is similar to the agreement that Heathgate has with AGS (Alliance Resources). AGS owns land to the WEST of Heathgate. GIR owns the land to the EAST.

In simple terms, Heathgate has been drilling the land AGS owns, and that is why their share price has jumped from 20cents to $1.80 in the last 4 months. When Heathgate decides to do the spend and begin further drilling on Giralia's land, you can expect similar results.

In reality, this is not likely to happen until Heathgate has exhausted AGS' land.

Therefore, in my opinion, the equation is simple:

Giralia own a stack of ground IMMEDIATELY SURROUNDING the operating Beverly Uranium Mine. But this won't get taken out of the ground until Heathgate begins making the spend on drilling etc and progressing the potential of the ground. Therefore, GIR becomes a long term uranium play.

Given the enormous potential of this project, and let's not kid ourselves, there is ENORMOUS potential to this project, Giralia, therefore, becomes a long term uranium play, as they will benefit from a mass of cash flow, once their ground gets mined. Remember, Beverly is an already EXISTING AND OPERATING mine, so they don't have to deal with any politics etc... to get things going.

Some of the directors of Giralia recently went over to the United States, and spoke with some of the owners of Heathgate. In those discussions, they urged them to speed up the exploration of Giralia's land. Hopefully this will prompt some action.

Also, in May, Giralia spun off most of its uranium assets into a company called U3O8 (ASX code: UTO) which is also worth looking at, as they have a shallow calcrete uranium deposit which is near approaching JORC compliant stage. The reason why Lake Frome wasn't part of that package, is because Giralia thought that the project was so good, they wanted to keep it. This has been stated by the GIR directors.

I have recently bought some GIR and will be keeping them in the bottom drawer, as I have bought them predmoinantly for the longer term exposure to uranium prices, and the cash flow that will be realised from Lake Frome. It is a very cheap entry into a uranium stock, IMO.

Short term, however, shareholders should note that:

GIR intends to begin production at its 100% owned Snake Well gold project in late 2007, which will start bringing in some decent cash flow... AND

GIR will be spinning off its ZINC tenements into a solely focussed zinc exploration company early in 2007. The ZINC assets were accumulated many years ago when prices were depressed, therefore, they are quality tenements. One of the GIR directors Mick Clifford had an interest in zinc years ago, and gobbled these up when nobody else wanted them. GIR shareholders will receive free shares in this ZINC company (via an in-specie distribution), and will also receive priority entitlement to the IPO capital raising. I have again spoken with the company on this, and they anticipate that the capital will be more tightly held than Red Hill Iron (RHI), which has gone up 750% since listing earlier this year. The capital structure for the ZINC company will come out early in 2007.

The bottom line:

GIR was an exploration company that accumulated an absolute massive amount of land back in the 1990's when resource prices were depressed, and nobody wanted to touch them with a bar of soap. Fortunately, GIR managed to survive the troubled times with all their land in tact, and now have the ability to realise shareholder value through some of their promising projects they have and the spin-offs of companies which allow dedicated teams to focus on exploration of their tenements.

This is one of those companies with a great deal of promise. Of course, with any resource stock, it is speculative in nature, but I am prepared to cash in on this one over a 5 year period.

I will be looking to accumulate more on dips back toward 50cents.