GBN.V Reciprocated

The share price chart for GBN.V reciprocated is a clear demonstration on how uniquely GBN.V is strongly inversely correlated with the 30-year U.S. treasury bond price.

Higher interim bond yields have not materialized under Quantitative Easing (in Canada, the central bank is swapping bonds - same thing), thus the gold price must come under heavy buying pressure as yields remain behind inflation, and inflation is looking for places to go. The new wrinkle this week is the gold prices are noticeably in backwardation of the spot price over the near futures price.

But higher eventual bond prices means lower GBN.V share prices, completely devoid of any fundamentals. A higher gold price means more cash flow, but the company insists on a dumbfoundingly stupid policy of withholding all information, including financial. And this in a publicly traded company.

Because the 'no-down-tick' rule was abolished in Canadian securities law, that means you have the right to automatically sell as many shares as your trading algorithm can foist on the markets, as long as the financial liability is hedged against treasuries. No need to actually own any shares.

The buy point should have been late July, early August according to the inverse correlation ratio, but here we see GBN.V share prices continue to languish, as if there were absolutely no fundamentals to support the share price whatsoever. (if there were larger shareholders, the management would be in litigation or a proxy battle due to staggering losses)

So essentially, your shareholding in GBN.V, which is a hard asset and producing gold in a bull market, has become merely an option in a share price rise, essentially a swap position of an equity swap.

You might see why I so strongly advocate dividend payouts. There is plenty of money washing through the company, siphoned into god knows what.

supersize:

http://www.flickr.com/photos/11747277@N07/8169511803/sizes/l/in/photostream/

http://scharts.co/O5gjsE

Bing Maps

The highest resolution maps we can find of the La Ronge Gold Belt are found in Bing. You would think Google has the best, but that is now thoroughly open to question.

I had once asserted that a certain amount of work had been engaged in the Bingo West/Northwest area, this without shareholder knowledge. But Bing maps shows that results obtained so far are commensurate with news releases.

The area north of the Mallard Tailings Management Facility shows that there had been prior line cutting, meaning very likely a Soil Gas Hydrocarbon survey conducted, though only the outline remains. A significant amount of drilling has been completed on this area, due to the many clearings. No technical report has been tabled, and this is one of the areas where very little up-to-date compliant data has been released at all. Yet, this was an area of major focus.

One area where there had been a fairly recent Soil Gas Hydrocarbon survey, is near Upper Waddy Lake, due North of Komis/EP.

You can see the lines with enough resolution, and Google maps shows the summer activity. I presume that this map is dated for Spring 2011, since snowmobile tracks on the lakes are still there on still frozen lakes, while some of the other lakes are completely free of ice. So the SGH would have been during winter, and drilled in the summer prior.

Google Maps, Summer 2010

You can't see the grid lines, which come out on a spring snowshower some months later, but you can clearly see the roadwork and drilling pads that extend through a large area north of Komis/EP:

http://goo.gl/maps/rIRn1

Bing Maps, Spring 2011

With enough resolution(50m), you can make out the grid lines of a SGH survey, along with all of the roads and trails necessary for drilling over a wide area. North of the creek emptying into Upper Waddy Lake, you have clearly extent grid lines, perfectly straight and perpendicular cut through the bush:

http://binged.it/S0wbJ2

In this last one you can see the grid lines due to snow infill @50m. resolution. No information was released to shareholders, except the results of ONE drill hole. You would expect a compliant technical report in this case.

Bing Maps, Spring, 2011

Compare the previous Bing Map north of the Komis deposit with the Waddy Lake prospect, where you can clearly see tracks through the bush, where drilling was undertaken. No perpendicular lines or any trace of SGH survey, only tracks. There is a very clear difference between North of Komis and Golden Heart.

http://binged.it/T9E68R

There is also no technical report available for this prospect, either. So there are three areas which require that the company reveal what they've been doing with shareholder money, and fess up on secrets which they are trying to keep. Jolu, North of Komis, Golden Heart. (and of course, work on West of Bingo since then)

You would think that if GBN.V had tabled technical reports and showed the extent of the resource in La Ronge, and if they showed a profit and paid their taxes, instead of amortizing to a loss, and that the share price would go up?

Stupid me.

(Since these satellite photos were taken, the company has blown upwards of $40m. on something they have not yet revealed to shareholders, delayed production, under-utilized the mill, and not reported anything substantive. They have also lied directly to shareholders, that the Komis deposit is costing 10X as much as the contingency provided in the PEA, March 2009.)

-F6