$Gold Weekly

I would say that short sellers in the bullion markets are quite literally gambling, rolling the dice, while the buy side is probably not far wrong.

Still waiting for the bottom price flag to come up, which should be as a result of the decline on Thursday. Thursday's decline is mostly due to overworked, excascerbated bearish sentiment and some pestilential notion that tapering affects gold prices.

The analysis in elliot wave terms does not break any of the rules, and fits with a Wave One extension paradigm.

Expecting a 'W'- shaped recovery.

Rent this movie. You will notice the imbd.com website shows palm trees in the shape of a 'W.' There is no palpable difference between what's going on in the markets presently and this comedy:

http://www.imdb.com/title/tt0057193/?ref_=nv_sr_1

http://scharts.co/193dEYD

GBN.V Daily

5m. share cross just before close, and Q2 fiscal 2014 report after the close. They only produced 800oz. A guy could do better with six thousand dollars and a metal detector. But $6000 can buy you 400k shares @ 1.5¢.

But they did leave some sort of trail to follow with a few breadcrumbs.

They have been de-risking since 2009 and stockpiling for almost two years. You would expect that enough ore would be above surface that they could operate for that period.

Taking the numbers, ~$90m. in liabilities minus ~$20m. presumably owed leaves ~$70m. $70m. mostly represents mine depletion in the form of stockpiled ore which is owed to nobody, but gets recorded on the balance sheet anyways.

They say they need a gold price of ~$1400/oz. They perceive this to be the average between the high and the low.

~$70m. divided by $1400/oz. is 50,000 oz.

Now the numbers start to look familiar. 50koz./yr. is the presumed production rate of the Jolu Mill. You have approximately 1 yr. of production sitting in stockpiles of various grades.

The total approximate grade has worked out to be ~6gr./tonne.

50,000 X 31.1 is ~1.55m. grams / 6gr./tonne gives you ~259, 167 tonnes of ore grade material for processing. ~693 tonnes per day processing. If stockpiles were not counted as liability share equity would be worth 33¢/shr.

Minus ~187,000 tonnes from Komis already stockpiled, you get a total of 72,166 tonnes stockpiled from Roy Lloyd and whatever they dragged out of EP.

EP is still a wild card in the whole game, but it might be correct that grades were substantially below projections, by 6X. Or this might be kept secret.

The share price @ 1.5¢ represents an option without expiry should the gold price average better than $1400/oz. U.S.

So they require 2yrs. of production @ 50k oz. and a gold price averaging above ~$1400/oz. Engineering studies undertaken in the new year will bear this out.

Company only processed inventory after startup and shutdown was already a foregone conclusion months ago.

http://scharts.co/1kvZ51E

-F6