Conclusions

GBN.V started actually mining ore in May, 2010. By Spring/Summer of 2011, there would have been a year's worth of stockpiling at Roy Lloyd, and by the Jolu Mill.

Roy Lloyd stockpiles are easily visible by the mine portal:

http://binged.it/QJumpe

And by the mill at the same time, you have a burgeoning stockpile:

http://binged.it/116fh1U

After several months of production, the stockpile by the mill actually grew. These are the facts. It did not get depleted. The mill was totally underutilized at the time, so this makes a lot of sense.

http://binged.it/QJuFQO

And yet, the Q4, fiscal 2012 report has us believe that they were running out of ore and had to borrow money. But their saved up money was sitting in a huge pile right behind the mill. They cannot claim depreciation if the stockpile is sitting behind the mill unprocessed and they did not sell any dore bars. But regulators have breezily signed off on all of it.

An 1800kg capacity front end loader would require roughly 200 trips per 24hrs. to feed the mill, running @350tpd. And yet, despite months of delivering ore to the mill and pumping out 'bad boys' one after another, the stockpile actually grew.

Plus, they were blowing immense amounts of cash that was raised in 2010/2011 and 2012 on a secretive development parallel to what they were telling shareholders, as is evidenced by aerial photography in Waddy Lake and elsewhere. They raised $21m. in excess of startup CAPEX, as per the PEA, and $28m. of amortized loans in 2012, which they really didn't need to borrow.

That has made for a falling knife scenario, where the share price never recovered and incurred staggering losses for the shareholders.

What that has meant is that short selling has become like a feeding frenzy, despite that fundamentals such as gold prices and developments remain positive, overall. There's no way that stockpiling is negative in aspect. Spending money on development is not negative, either. Mill underutilization or production rollbacks are negative. Withholding information is negative.

With the advance in treasury bond prices, short selling has intensified, because of the abolishment of the 'no down-tick' rule. And in the absence of buyers, the sellers are in control.

I still believe based on the facts that short selling is the wrong position to take, despite that mining haters have made fast gains.

-F6