Investment Advice

Is following insider buying without knowing anything about what you're investing in good investment advice? I have no answer, except to say don't drink the ant poison just yet:

Aurora miner commits suicide

Apr 8, 2011 2:35 PM | By Sapa

A Pamodzi Gold miner who was owed R170,000 in outstanding wages by Aurora Empowerment Systems has committed suicide, the Solidarity trade union said on Friday.

Marius Ferreira, 52, died last week after drinking ant poison. He is survived by his wife and daughter.

http://www.timeslive.co.za/local/article1010220.ece/Aurora-miner-commits-suicide

Information Not Forthcoming

By using a method of not revealing anything about what you're doing and leaving it up to the shareholders to draw conclusions about what you're up to through insider purchases is a method that has probably seen its day.

What this had led to is an egregious dilution of the share float.

How long has Netolitzky known about the Mallard Lake deposits?

"Netolitsky, R.K. (1984): Report of the Jolu Property, Mallard Lake Area,

Northern Saskatchewan; Taiga Consultants, July 16, 1984, 25p.;"

He wrote a paper on it.

Just how BIG is the Jolu complex?

Geochemistry, proton-magnetic surveys and backhoe trenching have extended

the length of the Rod Main to 3000 ft (914m) while diamond drilling has 

confirmed 1485 ft (453 m); it is currently open ended 

(News Release, 11 September 1985).

This is just ONE zone in the collection of Mallard Lake zones.  Much larger than Roy Lloyd, but even there we are uncertain as to the extent of the vein, as it goes unreported.

Even as far back as 2003, any results from glacial till sampling has gone unreported:

"In 2003, Golden Band Resources Inc. completed bulk till sampling around 

the Jolu Mine site (AF 64D04-0191)."

Quoted from this file:

http://www.ir.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=1877a

Glacial till sampling also took place in the Roy Lloyd mine area at the same time, which would have led to the decision to pursue drilling and eventual production at the Roy Lloyd mine first.  Wouldn't you as a shareholder have a right to this information?

"Between 2002 and 2003, Golden Band re-sampled the core from drill hole 

WD1-71 and completed a resource estimate for the deposit (AF 73P10-0172).

In the same year, they completed a bulk till sample survey over the 

deposit that remains confidential (AF 73P10-0174). "

Quoted from the following file:

http://www.ir.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=2627

Conclusion:  Information not forthcoming to shareholders has made for a severely oppressive investment environment with virtually no information to go on.

As it stands, the Jan. 31, 2011 MD&A would have you believe that they only produced one gold bar since the end of November 2010.

Can Gold Really Be This Boring After All?

BNN.CA

http://watch.bnn.ca/#clip449746

Background Information On Banking Sector Activity In Bullion

http://ftalphaville.ft.com/blog/2011/03/24/526361/oh-my-precious/

(Note:- Since margin requirements have been increased several times with no result, banks have been attempting to get out of the way of the price rise.)