Conclusions - The Road To Golden Heart

Consider if you will, the exact timing of drastic curtailments to production in the La Ronge Gold Project.

After gold prices corrected in 2011, the onset of the first drastic curtailment of production was implemented using the likely story of resorting to shrinkage stoping in Roy Lloyd. All of the below-cut-off grade development material available to hand was then processed, while higher grade EP Zone material delivered to the mill was never processed.

Losses from that time period are attributable to the amortization of loans, and mine depreciation for ore that was counted but never processed and stockpiled instead. The only guiding light in all this time: costs remained far below the spot price.

Now in the final correction for gold prices in about the same time frame a year later, production was again virtually shut down. Things to look for in the balance sheet are very little depreciation of ore, while costs are attributable to capital expenditures. (namely, highly artistic interpretive civil-engineering project spandex-clad dance ensembles:"The Road To Golden Heart")

Gold mining equities are in a bear market, not gold prices. But gold miners see the gold price as crashing to which they attribute their difficulty in raising capital.

In reality, gold miners are doing everything they can to shoot themselves in the foot in their haste and aggressiveness to save face while they see the gold price as crashing.

OTOH, the shares very incredibly cheap.

-F6