via YouTube Dr. Berninger

You know, its funny, but Dr. Berninger put up his name at long last where I only knew him as jberni. If you will remember, he stated that assets don't multiply. Only liens against those assets as a consequence of money printing.

We have certainly seen the effect of central bank policy and deregulation of the banking sector in favour of derivatives. GBN.V is trading strongly inversely correlated with the 30-year U.S. Treasury bond price, rather than indexed to gold. Its also trading below asset value. No value is being attributed to the project, the gold in the ground, or the prospect.

His youtube video discusses where to put your money in a crisis by avoiding scams, and eventually goes over to gold mining companies. The greatest potential to be scammed by a lifestyle operator is in the mining sector, where their lifestyles are provided for by the shareholders while producing nothing. Gold exploration companies are holes in the ground with a liar up at the top. (they used to dig adits to prove that work was being done)

So you need a producer with cash flow, because then you can look at the balance sheet, the cash flow, the income statement. But I would say that guidance, production numbers and grade controls are equally important. Year end fiscal 2012 (which ended April 30, 2012) should be in the area of ~$80m. and a total of 45,000+oz. Venture listed stocks have 120days to report year end results.

Mostly gold companies are in the crapper because gold prices need to be maintained over $1800/oz., and the fact that Canadian markets are a swindle. Even if the ore geometry is complex in the narrow vein scenario presented here, GBN.V will remain profitable if grades fall by half. Its really a macro call on the gold price.

GBN.V can greatly improve on the investment case by paying a dividend.

Dr. Berninger

http://youtu.be/MYcA3P6ERrs

-F6