Ask A Navel-Gazing Question, Get A Navel-Gazing Reply

Most of the miners in Val D'or along the Abitibi Greenstone Belt began with the previous works established some 70 years ago, started up the mill, and laid on the exploration results afterwards, if they managed to find anything.

Golden Band Resources (gbn.v) placing great emphasis on Bingo would be like Claude Resources(crj.to) abandoning the Seabee mine, in favour of their exploration results at Santoy 8, in order to set up mining there.

That raises the question on just what these goddamn kooks think they're doing. If the Bingo deposit was such small beer as to produce only 45k. oz. per year, at a grade inferior to the Mill Zone locale, what would be the point of developing Bingo dozens of km. away from the mill unless it was nothing more than a beard-growing competition amongst geologists and a make-work project for the D.F.O. inspectors, hell bent for leather on shutting down gold mining in remote Saskatchewan?

Just do the math. A mining project that produces 45k oz. per year and a mill throughput of 400tpd, would see a head grade of ~9g/t. (Bingo grades 15g/t, but if you go through the drill core logs in the technical report, you wonder why such good results have not changed the outlook since 2002.) Now, historic grades in the Mill Zone are 1.5 - 2X that.

Further to the same thinking, why would you intentionally seek a lower grade with a mill too small by far to handle anything below cutoff grades for the underground mines? Why would you say that you were going to develop a low grade deposit(Tower East) which would require a much, much larger mill throughput by an order of magnitude when you have a 'just put into park and mine' situation a stone's throw from the mill?

The trouble is, the crowded board of directors and investor relations swamis have repeated their responses ad nauseaum. They have their story correct to a fault, but what of it? Even high risk investors have been dumping the stock this last summer. Even some of the locals very familiar with mining in Saskatchewan don't have a clue about what's developing in La Ronge. Why the secrecy?

And then there's the rise in the gold price. Just ignore it. Our 'numbers' of what the gold price should be are correct, not the actual price of bullion per se. Because, you see, its nominal, not real. Oh, and btw, no technical report is available for the Mill Zone, even though a meticulous and very large Soil Gas Hydrocarbon survey was made of the area. They even put in the perfunctory, preliminary, first phishes drill holes so that a technical report could be made, but the technical writers are apparently suffering writer's block.

Anything like en echelon 'stuff' and like, um, for instance, reporting bulk sampling, 'pouring out gold bars,' plunking down a world class core, this all takes a back seat to one phrase:

"Open-pit, Open-pit, Open-pit!!"

~but not, by comparison~ "We reimburse for the risk by paying dividends."

Naked Shorting? No Such Thing.

Daily Long Term

The daily long term chart has broken out for quite some time, which is just slightly different from the log scale charts, or the monthly chart. So we are trading in rally mode, just that its effectively being held off from moving by one trader.

Even so, with the close today they managed to push back the price for the moment below a long term resistance line. So if the gold price moves again as it should or interest rates decline, as the discount rate is declining in the U.S., and money market rates should deteriorate in Canada, then this will place a lot of buying pressure under the share price.

October was the highest monthly volume in company history, but the share price only advanced 2¢ on the monthly close. The stock can trade as low as 35¢ here, though for all intensive purposes, ready for a breakout move. This is the last possible neckline resistance out of many over the preceding months, and the Chaikin Money Flow demonstrates how futile it might be the stand in the way of the bull market.

We basically haven't broken out, its still pending.

supersize: http://www.flickr.com/photos/11747277@N07/5127089328/sizes/l/in/photostream/

stockcharts.com

Sean Boyd With The Outlook For The Gold Price

BNN.ca

Greg McCoach On His Experience With Trying To Set Up An ETF

http://www.youtube.com/watch?v=Jr-7qutkxao

Business Insider On Rare Earth Plays

There's been some crazy action in Rare Earths. The quote I like from this article is 'Trust us, we know what we're doing.'

http://www.businessinsider.com/best-rare-earth-companies-2010-10

Bond Yields

A discount rate of below 0.09% seems to strongly motivate any sell-side brokering in GBN.V shares to settle with gusto, and we are at 0.11% on the three-month treasury(essentially the same thing.) A share price rise in GBN.V shares has the same effect as interest rate declines on leveraged positions selling into the market.

This moves a little slower than any gold price rises may have affected the share price, but it is one of the fundamentals at play here:

http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

-F6