I feel there is an increasing flight to quality, especially among junior companies. The emphasis is on companies that have a definitive plan for what they expect to achieve in the next two years or so, and a definitive exit strategy. It's been a pretty tough year or two for a lot of junior companies that don't have cash flow or feasibility/prefeasibility studies and the ability to finance operations. There have been some casualties along the way. I think GDW is/will be one of them. Higher gold prices will not salvage every company out there. A good one-third to one-half of junior companies with sub-$50 million (M) market caps will have to consolidate or do something creative to get to a stage where they will be appealing, or they will go out of business. There is not enough money for exploration plays for every company out there.

I still think that precious metals are a good place to be in the next year, especially gold. I think you have to be choosey. You have to go for quality and to look for companies that have a great defined plan in the next two years, and a path to achieving that plan by spending a reasonable amount of capital. If they can show those catalysts, then I think there is a good possibility that stock will do well.

GDW has a project that with proper management and financing would give the company a fighting chance but at this point it is highly unlikely it will survive IMO.