The Face-Saving Excercise

In a way, borrowing from Waterton gives the GBN.V management the ability to save face, because they can always claim that amortizations are resulting in losses, rather than poor mine planning.

The truth is out.

In a lucky web search, I found the following technical report on the Edgar online website on the Seabee mine. Seabee saw the same great drill results as Lloyd. In fact, the mining history of the La Ronge Gold Belt is the same for all of the mines, including Seabee. Given the once over and dumped by Placer Dome. Nobody needed to look at the Bingo deposit, because the results were in long ago. (unless these liars are not actually lying)

What you will get are the same results out of Roy Lloyd as Seabee.

Seabee Operating Results, pg. 23, including a diagram of shrinkage stoping mining method used:

http://ow.ly/e8JGc

GBN.V is very highly likely to obtain exactly the same operating results indefinitely out of the Roy Lloyd mine without adding Komis, and Golden Heart. (There is also the possibility of expansion of the Roy Lloyd mine with a parallel shear with the same or similar disposition that is much larger, 150- 200m. due west, which they don't want to tell anyone about.)

7g/t. That's it. That's what they're going to get from the shrinkage stoping mine method, (a must-read article) which they have absolutely no choice to use.

So what, exactly is required in all this for GBN.V management to save face, and not look like lying, face-saving, shareholder-diluting, grade-diluting, money-borrowing, money-losing no-dividend scumbags like every other imbecile gold miner that you know?

a ~$2800/oz. average gold price. (lower gold price if grades actually higher, but min. ~$2000/oz.)

• If you will remember, Seabee actually got bank financing to get the project going.
• Seabee also suffered the same mishaps described in the shrinkage stoping mine method article.
• Grades were consistent, but modest over its operational history of some 20 years.
• They continue to find gold, but the share price hasn't advanced since 1997.
• If you use Tom's Inflation Calculator with a shadowstats option, $400 U.S. in 1991 had the purchasing power of $2145 U.S. today. Canadian dollars were perenially 30% lower until lately, so could obtain a premium with every ounce sold in U.S. dollars. Every Canadian gold mine provided returns on that basis.

Waterton might actually be helpful, because they will be crawling all over GBN.V like a forensic analyst, as the deal was signed in Q2, so no more screwing around.

-F6