What Is The Game?

A 'Netolitzky-type' of mine finder who has already found a mine would not otherwise bother to enter into development of a sub-par property.

Notwithstanding, the optics of the Roy Lloyd deposit and economic assessments go out of their way to underline the inconsequential status and minimal returns of the deposit.

Moreover, a priority deposit under development would have to have some room to expand, but this particular deposit has spent all its time in a rubber room in a straighjacket.

All of the legal requirments have been met on a very basic level, with the exception of the conclusion of federal permitting. Nine months have gone by since commissioning of the mill, a major financing(~$25mil. est.) grossly diluting the share float was concluded unannounced, the head grade at the mill is a total mystery, and underground development at Roy Lloyd, which should have completed in prior months, or at least by now, is not information that is necessarily forthcoming to the shareholders.

Either they have absolutely nothing to go on, or there is a strenuous, concerted effort to waylay any possibility that any important, salient facts will see the light of day.

It should come as no surprise then, that Roy Lloyd is set to expand and thus the La Ronge Gold Project. But they could be on the verge of shutting down, since no information has been made available that would give you any clue that development continues apace. The gold is there, the geology is correct, commercial production is achieved(so they claim) and gold is in a bull market.

So we are left to struggle futilely with comparisons. One historical mine that compares closely with the Roy Lloyd mine is the Leitch Mine.

The Leitch Mine

The conventional wisdom about the La Ronge gold deposits is that they are smaller than other comparable deposits in Canada and not worth the bother. Most of the attention in the gold sector has been to emphasize low grade disseminated gold deposits over huge widths.

A narrow vein deposit is not likely to attract much attention, but during the depression, it was this type of deposit that payed out dividends and lasted for decades.

Now, Roy Lloyd may seem so much small beer at the outset, especially if you look at the share price. But something most people may not realize is that the Dickens Lake prospect, comprising the Roy Lloyd mine and Bay Zone may resemble the Beardmore - Geraldton gold belt very closely. And that the Roy Lloyd mine may turn out to be the same type of structure with the exception that it is an order of magnitude larger than the Leitch Mine.

One thing that really is missing here to compare Roy Lloyd with the Leitch mine is a crosshatch of veins perpendicular to the main deposit veins. We have already had reports of en echelon structural duplication. Perpendicular veins is something not seen in the Roy Lloyd mine, but I suspect that this will prove out to be factually correct.

Here is an example of the veins at the surface of the Leitch mine. Reading through the Goldstone technical report of the Sand River - Leitch mine says that only a small portion of the vein(s) actually outcropped. Sand River - Leitch is an east-west trending structure, while the Dickens Lake prospect (which includes the Roy Lloyd mine) is North - South trending.

Is there not some mention of something similar in one of the GBN.V presentations, that there is a very strong possibility that sub-crop veins have yet to be uncovered? (I would assert that they actually have been discovered, just that this information is not forthcoming.)

supersize: http://www.flickr.com/photos/11747277@N07/6049748810/sizes/l/in/photostream/

source: http://goldstoneresourcesinc.com/leitch.php

Russian Roulette Of Debt

Tuesday August 16, 2011 10:47 AM