Netolitzky Sells Aurcana

The insider selling record in Aurcana minerals shows that Ron Netolitzky is getting a bit of his own bitter medicine in the atrocious mismanagement of the float at Aurcana and is forced to sell because the stock is being massively diluted and financed at a price less than half the closing price of the shares. All the red squares on the following chart are all attributable to insider sales by Netolitzky, which started well in advance of the financing:

http://canadianinsider.com/coReport/allTransactions.php?ticker=aun

Aurcana 193,548,380 share private placement!!! At 31¢ A SHARE!!!

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WOULDN'T YOU SELL TOO, UNDER THE CIRCUMSTANCES????

This is the most blatant swindle I've seen yet, save horribly mismanaged companies like Queenstake Resources. This virtually doubles the float(if you fully dilute with warrants) which is already sitting at 330m shares prior to financing. So they will have roughly 600m. shares out. ABSOLUTELY INSANE.

GBN.V can avoid this fate by reverse splitting the shares, otherwise, its a blatant swindle. Tabling a discovery here may finally turn the tables.

Getting Your Ducks In A Row

Getting your ducks in a row on the environmental front is of a primary importance these days. This is why obtaining an amendment to the MMER schedule 2 for a tailings impoundment area at Mallard Lake makes or breaks Golden Band Resources as a company. GBN.V stock is pretty much worthless without it.

Why? Because GBN.V can now think about a major expansion to the La Ronge Gold Project with the addition of the Jolu/Decade Mine (comprising the sizeable Mallard Lake gold showings.) This would not have been possible without a tailings impoundment area. From a small four year project, they can now expand to at least a minimum of ten year mine life. But I think, also that the Roy Lloyd mine's Bingo ore shoot will finally be upgraded to a productive vein status.

A couple of examples of companies that hit the environmental brick wall:

Century Mining Suspends Peru Milling Operation

Reuters

EPA Opposes Romarco Mine Plan

Bloomberg

Conclusions: 1. Competition in the junior gold space kindly being taken out for us by the environmental NGO's and wildly enraged shareholders is ultimately very positive for GBN.V.

2. The La Ronge Gold Project will expand with the 'discovery' of a large mineralized structure in the vicinity of the Jolu Mill.

Cautions: 1. The company may consider a reverse split at this time, though they may actually pay out dividends if my assumptions about the grade of the Roy Lloyd mine are correct.(~17 - 20g/t)

2. The end of the fiscal year 2011 is April 30, so the company may not be obliged to table any news whatsoever about production numbers until the year end report, which may be as late as the end of June!!!!

The Gold Bull Market

The Gold bull market continues, with some price points coming into view. If you are a holder of bullion, you will obviously be betting on the peak price and looking for your exit at that time. But with a producing gold miner, you get the benefit of the average gold price, and the leverage to the price above all-in costs, especially if they pay dividends. The bull market in gold prices has been compared with the Dow bull market. Ross Clarke with his latest interview: HoweStreet.com

supersize: http://www.flickr.com/photos/11747277@N07/5603191940/sizes/l/in/photostream/

supersize:

http://www.flickr.com/photos/11747277@N07/5602607025/sizes/l/in/photostream/

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$IRX Weekly

One of the salient details about the market which nobody watches because they believe interest rates are manipulated, is the decline of the discount rate. My assumption is that the discount rate will eventually turn negative, due to massive liquidity injections into the short term money markets. Haven't looked at the weekly chart in a while.

supersize: http://www.flickr.com/photos/11747277@N07/5602921721/sizes/l/in/photostream/

stockcharts.com

GBN Weekly

The GBN weekly chart cuts out all of the noise.

supersize: http://www.flickr.com/photos/11747277@N07/5603561464/sizes/l/in/photostream/

stockcharts.com

BNN.ca

Interview discussing how the derivatives market may have affected gold mining shares:

http://watch.bnn.ca/thursday#clip445412

-F6