via AUReport - Cambridge House Panel

Rick Rule, John Kaiser, Brent Cook, Mickey Fulp all discuss the junior market. John Kaiser for one believes that the gold bull market is over, and gold will drift down to $1400/oz. I think it's unlikely for copper or oil or perhaps uranium to compete with gold, now that gold prices are firming on the realization that QE is here to stay.

I look at it very simply, that Gold belts are very hard to come by, and there are basically two left in Canada to choose from. Committee Bay and La Ronge. The Gogama in Ontario was bought by IAMGold. Committee Bay in Nunavut is far from production, leaving La Ronge.

Larger companies have no interest whatsoever in narrow vien deposits that you would find in La Ronge, they prefer widely disseminated deposits requiring billions in capex expenditure.

La Ronge was once thought as the "New Hemlo," all the discoveries having been made in the 80's and 90's.

The one obstacle that operators in La Ronge have not been able to overcome is Capex requirements for a minimum installation of a 2000tpd. mill.

I think Netolitzky should set that aside and wait for a higher gold price. GBN.V should pay out all of its free cash flow as dividends for the moment, out of its producing properties, since it has prepared for the eventuality of financing for a larger mill by stockpiling the entirety of the EP Zone high grade ore, and thoroughly tested every last possible avenue on its property in the intervening years since the PEA.

The money will come eventually, as long as the gold price remains robust. The cycle has not ended for gold as it might have for iron ore.

http://www.theaureport.com/pub/video/2-25-13-gold-recovery.html

-F6