Today's Action - News

We had a day with a rally in the bonds, probably initiated by open market operations with The Fed that brought long term treasury yields lower. That should have been a downward pressure play on GBN.V shares, but with the news release, you wound up with a neutral response.

Any intervention in the long dated treasury market will make calling a decline which should otherwise naturally occur a problematic guessing game. Therefore, calling a rise in GBN.V shares will also be problematic. New releases really have no effect unless the bond market price goes into a rout.

What the news with GBN.V is telling with the market response today is that geological information is not necessarily going to lead to share price advances. What we are looking at for this company now is primarily a balance sheet play.

Waddy Lake Resources and Placer Dome Development have probably overlooked an important detail in the Komis and nearby EP Zone. What you have is a deposit formed by multiple depositions of at least two geological types that have come through the same structural fault in close proximity. This might indicate that the size of the deposit is unknown, and that previous exploration efforts discarded the results as non-compatible with only one geological type over a sizeable area.

Along with this you have the possibility of either bulk tonnage mining or narrow vein. Very good results overall, but the market is not amazed by this.

The company will have to be assessed on the benefits of its clean balance sheet, just as you would any other company. The geological proofs keep coming up roses, which should form a very strong basic fundmental, but after all is said and done, the important thing is how profitable the company is.

Not too many other junior mining companies out there are looking profitable, so this will be a definite advantage. A company is always assessed on its balance sheet, so this is the most important thing going forward.

-F6