via FTAlphaville - Pretium

Pretium again. I have found that the discussion around Pretirum's recent bulk sampling results to be helpful in comparison with development in the La Ronge Gold Project.

FTAlphaville

As you might have realized, GBN.V has gone through substantial de-risking of the mining project as a whole. Bulk sampling, unannounded drill programmes, results shelved and sitting on the backburner, infrastructure improvements including mine building, road building, tailings management, stockpiling. The JV with Masuparia is a poison pill.

The Alimak Zone was bulk sampled, as is evident in news releases and in aerial photos. What was unnannounced was an intensive drill programme over the extent of the Rod Zone, while only releasing news about the Roy Lloyd mine.

But the key would probably be the EP Zone which had only the low grade material processed, while the rest sits in stockpiles or perhaps remains unmined. Any developments about the EP Zone has been guardedly been kept under wraps. The Komis deposit has had the low grade material processed, while the mined portion sits in a stockpile, the rest unmined.

The Roy Lloyd mine has two stockpiles sitting beside it, building since May 2010, while the underground has been reconfigured. Low grade development material is being processed along with a small portion of high grade material.

My guess is that there's enough ore to keep the mill going for two years at full tilt. They would not need to issue more shares for development. They release news about modest developments at one end and then drill at another. They operated the mine in penury once they realized a profit. They also diluted the shares unnecessarily, which leads me to believe that funds were necessary for off-balance sheet purposes, though directed towards an as-yet unmentioned forward looking plan. There are no further proposed off balance sheet transactions considered, so no more unexplained dilutions. They borrowed money as a poison pill measure, probably to fend off hypothecation of the asset.

The share price has been impacted very negatively, as if the company had no gold.

They may still have to reverse split the shares, but that might also be unnecessary.

So when do they get going with the business plan? Surely they must have one in their back pocket.

-F6