Shrinkage Stope Mining

If anyone wants to appraise themselves of just how shrinkage stope mining is done, then the following article may give you enough information to go on as regards the Roy Lloyd mine.

http://www.greatmining.com/shrinkage-stope-mining.html

The Next Phase

After the contrived loss in the yearly financial results for fiscal 2012, I am feeling like my head was caved in. Not only that, but price control over the stock after what is an exceptional trio of drill cores has destroyed my confidence. Not only that, but I do not have the pleasure of being able to justify my investment to anyone.

If I understand correctly from reading the MD&A, mining will now move into the lateral phase of producing ore from shrinkage stopes meant to exploit the several ore shoots within the Roy Lloyd mine. The company has focussed on the main ore shoot using long hole stoping until now.

But that means the mine is deep enough now to engage a different method of producing ore. They went out of their way to discourage any optimism by making it seem as if the mine was on its last legs, but in reality the Roy Lloyd mine consists of the following:

"Based upon the 2005 drilling, the Bingo deposit is presently interpreted as containing at least four higher-grade north-plunging shoots within the main north-south Bingo structure. If the upcoming drilling confirms the continuation of this structure, the overall Bingo deposit would be at least 600 metres long. The known true-vertical extent of these higher-grade shoots is at least 120 m, as based on drillholes WD-105 and WD-33 which are interpreted as being at the upper and lower levels, respectively, of one shoot. WD-111 may represent the upper end of a fifth, high-grade shoot. This winter's drilling will test both the strike extent and down-dip potential of the northern extension of the Bingo structure."

http://www.goldenbandresources.com/html/news/press_releases/index.cfm?ReportID=123001

I had completely forgotten about this particular news release, not recognizing its content at the time. All of the drilling was completed in 2005, but none of the results entered into a resource calculation. (thank-you, conscientious stockhouse posters)

In order that GBN.V enter into the lateral phase of mining the various ore shoots, they must now table a new NI 43-101 compliant resource calculation based on some 200m+ depth of the various ore shoots that had been drilled off years ago. None of the presentations or any information subsequent to 2005 factor in this information at all, including the PEAs.

The mine is now set up for shrinkage stoping by first having mined out the main ore shoot to a certain depth, and then moving into the lateral phases of the deposit. Grades on average might be lower, due to complex ore geometry. So be it, the gold price advance is taking up the slack.

One might infer from the recently posted drill results that all of the ore shoots in the Roy Lloyd mine widen and develop in the same way to depth.

GBN.V Daily

Barkerville got around having its shares hypothecated because of equity swaps to a bigger player by tabling a patently illegal resource, thereby triggering a CTO. GBN.V, by comparison, got around having its shares hypothecated to a bigger player seeking a cheap buyout over which they have no control, by signing on a pre-paid loan to Waterton. Which is better, really?

I probably won't get over my discouragement for quite some time, or at least until share price performance obliterates my losses.

Still waiting for a reversal in the long-dated treasury bond price in the U.S., and a decline of short term rates in Canadian treasury bills. imo, these two conditions are required for an advance in the share price, regardless of whether fundamentals have improved for GBN.V.

The daily chart is very nearly showing a breakout:

supersize:

http://www.flickr.com/photos/11747277@N07/7951471252/sizes/l/in/photostream/

http://scharts.co/SqZwln

-F6