Brian Gracey is a Vancouver chartered accountant and mining promoter, but he doesn’t make his money by finding minerals. He makes it by charging fees.

Gracey works out of a shabby office in the Howe Street financial district, but appearances can be deceiving. He makes a good living, good enough to live in a $2.2-million home in West Vancouver.

He has done this by running a stable of TSX Venture Exchange companies that are ostensibly exploring for minerals. However, financial statements show exploration is secondary; their main business is paying fees to Gracey and his associates.

The companies are typical of many listed on the TSXV. With large salaries, bonuses, stock options and/or fees, those who run these firms can shorten the odds of speculation and ensure a good living, regardless of whether they drill any holes or not.

One of Gracey’s companies is Rose Marie Resources Ltd. (formerly Previa Resources Ltd.). Gracey has been a director — along with associates Donald Pepper and William Diston (also a chartered accountant) — for more than 11 years. During this time, the company has raised almost $12 million but has virtually nothing to show for it. As of Jan. 31, it had only $10,834 in total assets, including a resource property valued at just $1.

As president, Gracey collects only $2,000 a year in salary. But his management company, Chara Acquisitions Ltd., gets $3,023 a month for management services and $9,860 a month for providing office space and equipment, regulatory compliance and accounting services. That adds up to more than $150,000 a year. In comparison, the company has not spent a cent on mineral exploration during the past two years.

Alcor Resources Ltd. follows a similar pattern. Gracey ceased being a director and officer in 2002, but the company still operates out of his office on West Hastings; and the board is run by Pepper, Diston and another associate, Sammy Cheng.

By March 31, Alcor had raised $4.4 million from shareholders, but had almost nothing to show for it. Assets totalled only $3,995 including a resource property valued at $10. Meanwhile, Gracey’s management company has been charging Alcor the same fees it charges Rose Marie — more than $150,000 a year. In comparison, the company spent $4,000 on exploration.

Lyra Resources Ltd. follows the same pattern. Gracey resigned as president and director in 2002. The board now consists of Cheng, Elvis Glazier and Hayden Ross.

As of Jan. 31, Lyra had raised $5.8 million in share capital, but had only $193,853 in assets. Where did this money go? A lot went to Gracey and his associates. Cheng is paid $2,750 a month ($33,000 a year) for management services, while Gracey collects $10,136 a month ($121,632 a year) for office space and equipment, regulatory compliance and accounting services. But in the year ending Jan. 31, Lyra spent only $4,900 on exploration.

Then there is Probe Resources Ltd. Gracey has been president and a director — with Pepper and Diston — since 1996. As of Aug. 31, 2006, Probe had raised slightly more than $2 million, but its assets totalled $280,973.

Gracey has the same management deal with this company as with Rose Marie and Alcor: He gets $12,883 a month, or more than $150,000 a year. The firm spent only $7,500 on exploration in its last reporting year.

Alcor is trading at 11¢ a share, Rose Marie at 12¢ a share, Lyra at 8¢ a share and Probe at 50¢ a share. None has generated a cent of revenue for shareholders.

They are prolific cash cows: They eat money like hay, give lots of milk to promoters and spew out manure for shareholders. IE