GBN.V vs Gold

One chart that never fails to astonish is comparing a gold miner with the gold price. The heyday was in the 1990's. There was a rally against gold in 2002, but that petered out. Most if not all gold companies are trading at their lows against the gold price.

None pay dividends better than credit market rates to their shareholders, in fact, only debenture holders are getting a return, almost all are leveraging up very heavily. Investors will take one look at this sector and say: 'how quaint' and move on. If you ask me, there are bound to be major collapses in the gold mining sector, because of the use of leverage. The short sellers were correct, and everyone hoping to make money in the sector have been hopelessly wrong.

It remains an open question whether GBN.V management can pull this one out of the abyss. Their greatest fear is a hostile takeover, yet they are dishing it up on a silver platter with a sprig of parsley on top for anyone that wants to take this project on a do a better job of providing a return to their shareholders.

The 20-year average share price of GBN.V shares against gold is roughly 10X the low, which was tested this week. That would make for a share price of ~$1.

http://scharts.co/OyXFEJ

Bing Maps

It turns out Bing Maps did not necessarily rely on Satellite imaging for their highly detailed maps. Their satellite maps are basically terrible, but their close-up maps, which are aerial photography, beat out Google. Its simply a lot cheaper to have an aircraft do the job of detailing.

http://www.bing.com/community/site_blogs/b/search/archive/2011/06/24/global-ortho-imagery.aspx

What we found out was that The La Ronge Gold Project is essentially two projects at once, the one that is in public view, which is piecemeal at best, and the second one, a massive drilling campaign completely un-announced and kept secret.

Information that has been made available satisfies the legal requirement, and no more.

You might want to bookmark these locations:

Star Lake, Bing Maps

http://binged.it/PW9EAZ

Benjamin Lake, Bing Maps

http://binged.it/XgDWCw

Waddy Lake, Bing Maps

http://binged.it/XgEk40

Weedy Lake, Bing Maps

http://binged.it/PW9KbJ

Tower Lake(near Hump Lake), Google Satellite Map

http://goo.gl/maps/P6BVq

You can compare any location, such as exploration around Brich Crossing with the massive areas under development such as north and south of Dog Creek on the western shore of Waddy Lake, and the Mill Zone.

Birch Crossing compares as a mere distraction. I would say that Greywacke is also a mere distraction, as the Golden Heart deposit is much more massive, and going into development.

All locations are searcheable by Lake in both Google and Bing maps.

NRC - Overview Of Development In The Mineral Sector

If what I hear is correct, that drilling costs are astronomical, and that it costs over $800/m. to drill off a deposit, then $40,000,00 (amount gone missing from GBN.V financials) will buy something like 50,000m. That's some 300 holes of 150m.

If the NRC is correct, and that the average cost is ~$225/m, then that amount of money will buy 175,000m. of drilling. Or perhaps a thousand drill holes.

And yet, all of this activity has mostly gone on with no announcement to the shareholders, who have purposely been kept entirely in the dark.

http://www.nrcan.gc.ca/minerals-metals/business-market/canadian-mineral-exploration/2009/3461