Sask Mining Conference Presentation

This is my opinion and what I take away from the presentation.

Click here for Sask. Mining Conference presentation.

The company does not normally provide guidance as to the production rate, nor delays. So they do not state the facts or have lied in the past.

But the takeaway from the presentation is that they have produced ~6koz. for the quarter and the expectation is that they will produce another 6koz. to round out the Q4 fiscal 2012 with ~12koz.

Total revenue for the year should be around ~$74m., or ~$18m. for Q4, using an average price of $1650/oz.

Expected Cash From Operations should be in the vicinity of $7m. So the Cost Of Revenue would be in the range of ~$14m. or ~$4m. net earnings, barring any unforseen "investments" or inexplicable, undocumented accounts payable exceeding earnings.

The total revenue is well within expectations for an operation producing ~350+tpd @10g/t.

None of these results will be available until the end of fiscal year financial report at the end of August, 2012.

They don't say exactly when their capacity increase is supposed to happen. They also grossly misrepresent the status of of GBN.V deposits in the La Ronge Gold belt by stating unequivocally that they will acquire outside of the project.

They actually SOLD a property in Iskut River when Pretium has made a major discovery in North Western B.C. in preference for the North Lake and Preview Lake deposits. (I don't disagree with these acquisiitons.)

They are falsely promoting shareholder opportunity as equity gains when gold mining stocks are clearly underperforming the gold price, esp. GBN.V. The gains should clearly be in the form of a dividend payout. Investors in gold stocks will demand this going forward, as the word is out. They also fail to mention how financing is not an issue, that production rates can sustain growth and development. Investors will require this information.

They still maintain that Lloyd is open on strike and to depth, but do not explain why they spent tens of millions drilling off the Bingo deposit(presented as a tiny ore-shoot) and commencing a mining operation with a breathless rush to dilute the shares that might be considered inferior to Golden Heart with the available information on hand. What are they hiding about this deposit, that they don't want any information to be revealed, such as the Soil Gas Hydrocarbon surveys taken on the Dickens Lake prospect?

We have seen definitive statements and drilling results revealing the mine expansion of the Komis deposit, and a definitive strategy to implement the Golden Heart operation, but no material information at all has come to light for mine expansion for the Lloyd mine. Investors will require this information.

This is all, of course, imo.

-F6