Mill Output

The mill output referred to in the latest news release is probably the ball mill output. The inventory of some 1800oz. is the result of several days of accumulated output. In the news release they referred to this assumed total is a result of seven days of production.

Seven days of production capacity @400tpd yielding 1800oz. accumulated inventory gives you a head grade of ~20g/t.

Now, since the previous total of production in the preceding weeks was 2671oz., that means you could not have had more than 20 days total in production since commissioning, including oz. in inventory. If we use this estimated time of days of production we get a mill head grade of around ~17g/t.

Conclusion: The estimated time of production of the mill and the resulting grades of the Roy Lloyd mine are consistent with known grades out of formerly producing mines in the La Ronge Gold Belt.

http://www.goldenbandresources.com/html/news/press_releases/index.cfm?ReportID=203226

Daily GBN.V Chart

With the final capitulation in the stock @42¢ on high volume, we saw the finale of a lengthy correction in the stock. The sum total of 58 days in correction to the capitulation is right along with the rule of thumb that a correction in the markets usually take 55 days to complete.

The stock closed on the week @46¢, giving us an interesting formula for the correction, that each propagation of the wave was a multiple of .09, which works out to 27¢, 18¢, 13¢ moves, corrected to 9¢ on the close friday. So you have a wave propagation on multiples of 3-2-1 X .09. (or 3-2-~1.4ish)

The wave form analysis does not conform with elliot wave theory, and since the rally to 55¢ was too high and broke the rules, I assumed a failed wave, but this did not prevent an aggressive price intervention, or capitulation on day 58.

The correction to 42¢ brings the total correction very near the .382 level of the total upward move from 20.5¢ to 75¢, which means the stock will spend some time gathering up steam now, much like it did in the previous year and a half.

This does not preclude that a pennant has formed.

supersize: http://www.flickr.com/photos/11747277@N07/5499082417/sizes/l/in/photostream/

stockcharts.com

Rita Mirwald/Murray Pezim

'Rita Mirwald, an SMDC spokes-person, said the Star Lake mine is dwarfed by the Seabee and Jolu deposits. Seabee has more than one million tons of ore grading at 0.32 ounces of gold per ton, while Jolu has more than 750,000 tons grading at 0.74 ounces per ton. Star Lake has grades of gold in the range of half an ounce per ton, but reserves of only about 230,000 tons of ore which will be mined out in three years.'

Star Phoenix

http://www.newswire.ca/en/releases/archive/January2011/04/c8438.html

'Murray Pezim, president of Canadian Premium, said earlier that the Jolu property could support a 500 ton-a-day mine and mill complex costing between $50 million and $70 million. Estimated reserves were announced at 345,000 tons grading at .52 ounces of gold per ton.'