Important Documents Going Forward

A very important document for the gold investor going forward is the Edson Report, which takes global averages of ounces in the ground into two categories, inferred resources and measured and indicated resources:

files.me.com/fransix/rz2686

A second very important document in terms of a forecast for gold prices which has held up over the years and seems an acceptable point of view for the advance of gold prices in the medium term is the following Chartworks from Institutional Advisors:

files.me.com/fransix/k95iib

And you know what? PEOPLE ABSOLUTELY HATE THE EDSON REPORT!!!

Casimir Capital

Very likely Casimir Capital is the New York based investment bank which will eventually be the source of financing for the La Ronge Gold Project:

http://www.casimircapital.com/int.php?id=192

A few weeks ago, BNN.ca had the following interview on mine finance:

http://watch.bnn.ca/clip278602#clip278602

Deferring To The Bond Holder's Interest

Given that the entire market is rife with derivatives of every stripe, I believe that very likely GBN.V is deferring to the bond holder's interest, and has been doing so for quite some time, where, in the face of a lack of market interest and the onset of regulatory hurdles, the company may very well have taken on a hedged position in the form of credit default swaps, or equity swaps in the event of company failure.

Its the only thing that makes any sense when looking back over the previous drill programmes, which have missed their targets, and financing opportunities put aside. They might have even believed that the gold price was going to crash and were determined to hold onto the property. In the meantime, the company continued to mind its p's and q's by setting everything in order, but development has clearly not made much progress and the float greatly enlarged.

But that means that if you hold the risk of the company, then likely you will defer to that interest rather than prioritize discovery or growth, until something occurs that green lights the forward development. imo, this thoroughly explains the course of action taken with the onset of the difficulties in the financial sector and the lack of development. It may also explain the resignations, the cancellation of winter drill programmes, the abrupt changes in exploration targets, the several months delay at producing drill results.

I firmly agree with Peter Grandich that many junior exploration companies, especially in the gold sector after the crash will be looking at a reverse split. The float in GBN.V is now sitting at 260 million shares fully diluted, this is one thing that sorely needs to be fixed, or it will continue to present a major obstacle to investors and traders alike.

The thing that will save everybody's bacon is a strong advance in the gold price, or perhaps since derivatives may be involved, a decline in discount rates may set off a bid to cover the swap position, if it exists.

http://www.goldenbandresources.com/html/investors/share_info/index.cfm

And you know what? PEOPLE ABSOLUTELY HATE TO HAVE THIS POINTED OUT TO THEM!!!!

Regulatory Hurdles

The Department Of Fisheries And Oceans took a self-serving khafkaesque turn when they declared a licensed tailings management facility a fish habitat. Nobody really cares about mining, thus nobody will raise a ruckus, but if you look at it, the sheer arbitrariness and incompetence of this ruling should have caused heads to roll in the DFO. (look for 'DFO' in red on the daily chart, the timing is exquisitely bad - you can see how the company may well have been justified in taking out a swap position.)

Rodney Orr acquitted himself very well by writing an editorial on the subject Nov 20, 2008:

files.me.com/fransix/m1psp3

The CEAA page on The Laronge Gold Project is here:

http://www.ceaa.gc.ca/050/document-eng.cfm?document=41459&mode=1

My advice would be to contact the CEAA (same person with the DFO - how strangely unusual, hey?) with the factual information presented here that the former Mallard Lake is actually a licensed tailings management facility and has been so for at least 20 years.

The Daily Chart

Both on the daily and the weekly chart, we have important technical crossovers of the 50-day with the 200 day MA, and the 13-week EMA with the 34-week EMA:

supersize: http://www.flickr.com/photos/11747277@N07/4548135520/sizes/o/

Insider Buying

Insider buying is occurring here, as it has been in the last three years:

supersize: http://www.flickr.com/photos/11747277@N07/4547500143/sizes/o/

Weekly Analogies In The Gold Chart

The weekly chart presents interesting analogies, since we are testing a fibonnaci price level, which gives us an eventual target of ~$1400/oz. U.S. should it be passed:

supersize: http://www.flickr.com/photos/11747277@N07/4548135520/sizes/o/

Forecasts In The Gold Price

Either we will spend the summer months in consolidation after testing the high of ~$1200/oz., or we will see something entirely unprecedented in the bullion markets out-of-season. The COT positions between the commercials and the long contracts provides a clue, and the numbers are saying an advance here is not impossible, since the liquidity in the bullion market has advanced steadily yoy from very small beginnings. But more than likely the COT numbers will have to decline as some of those positions will have to be worked off. We have a seasonal bias peak in May, surprise, surprise.

http://www.321gold.com/editorials/hoye/hoye042310.html

supersize: http://www.flickr.com/photos/11747277@N07/4547550253/sizes/o/

source: http://www.timingcharts.com

Sources From The Web

Goldsilver.com

http://goldsilver.com/newsletters/newsID/7835/

Bloomberg

Dr. Marc Faber Discusses Precarious China Bubble

Investor's Digest

http://www.zerohedge.com/article/sprotts-john-embry-discusses-gold-manipulation

San Gold Recent Drill Results (pdf)

http://www.kitco.com/pr/1629/article_04222010194031.pdf

-F6