$CDN Gold - Weekly

The Canadian dollar gold price is an extremely important value to determine the financial turnover in GBN.V from the point of view of currency fluctuations, insofar as currencies are bound to fluctuate wildly as they had during the 2008 decline in the stock market. But what we are facing now is bond market sell-offs.

The $CDN dollar being the measure of company performance, the U.S. dollar could temporarily decline sharply below the $CDN or vice-versa. Thus, its important to keep this in perspective.

Since Q2 fiscal 2012 is already over, it would be appropriate to guestimate the average realized price in $CDN. The midpoint is @$1748/oz. CDN, so it would not be far off the market to use a round number such as $1750/oz. CDN.

My guess is that the Alimak zone grade is being kept under wraps, because GBN.V is seriously intent on keeping this secret for as long as possible. The tonnage rate has also been kept under wraps, though its very likely that the mill would have been under-utilized @500tpd.

So, taking the grade from Q1, 11.25g/t, and the tonnage rate of 500tpd, and an average gold price of $1750/oz. CDN, you would get an estimate very close to ~$30m., ~$15m. of which is likely to be the operations and development, counting on the presumed cash cost of ~$900/oz. CDN.

We could be looking at a change in production outlook from 45k oz. per year to 60k oz. per year.

supersize: http://www.flickr.com/photos/11747277@N07/6363625331/sizes/l/in/photostream/

stockcharts.com

-F6