$Gold Monthly

Gold prices came within a negligible spread with the previous low before opening the new year with a bounce. A risk reversal in main indeces and an opposite of the same in gold is probably called for, though a definitive move remains elusive. The low was 1179.40 in June and December's low on the last trading day of the year was 1181.40.

Notable pessimism, even amongst the experts and long term gold boosters marked the close of the year.

A Wave One extension in elliot wave theory is still valid, and has remained so.

http://scharts.co/18SFo10

http://scharts.co/1d4VPeW

Bing Maps

No lack of activity in the Roy Lloyd mine. The open pit portion has grown northward, where it was once much smaller.

Stockpiles have expanded, which had been started in May, 2010. The company shareholder presentation clearly shows these stockpiles, but not their extent.

No work has been undertaken from surface of the supposed en-echelon structural duplication of the main ore deposit in an adjacent shear just west of the northern extremity of the open pit.

Just about all activity in the Roy Lloyd mine is underground, with an open pit at the surface. A second mine portal appears to be going in due east of the main portal, just behind the offices.

http://binged.it/1i1gKPr

Komis used be thought of as a small deposit with not much to recommend it, confined to the northeast corner of the Round Lake area, according to historical and NI 43-101. It was once an 80m. strike length deposit, but actually ranges over 800m.

But since 2013, and new information obtained via Bing Maps, Komis ranges over several hundred metres, north west to south east just north of Round Lake, with multiple veins over a 1.8km area, north to south.

Since almost all of the company information provided is clearly bogus, aerial photos are the only source of information with which to compile an outlook.

I count about 20 veins and assume that the more intensively drilled off are economic.

http://binged.it/1a6563U

Vehicular activity near the Jolu Mill suggests that stockpiled ore, which likely came from the Alimak Zone, which was supposed to have been a bulk sample, is being processed. The mill was presumably under repair/upgrade/maintenance during this very period.

Toggle to bird's eye view from aerial view to see a noticeable difference.

http://binged.it/1gwboLI

Confirimations -

Komis is much, much larger a deposit than indicated by any available information save aerial photos. Historical and compliant information are clearly intended to dissuade curiosity.

Activity continues at the Roy Lloyd mine, and is expanding.

The Jolu mine is apparently in operation beyond just a bulk sample and historical information claiming that the gold has been mined out is patently false. Grades are probably much higher than stated in the bulk sample.

Mill shut-downs are complete fabrications. Mining operations may have been suspended, but certainly this does not prevent other operations to continue such as processing.

Conclusions -

Further, if a certain amount of ore was processed but not yet sent to refiners, then this presumably accumulated dore metal once ready for shipment will cause a payout according to the original lending agreement with Waterton conferred onto Procon. The presumed threshold for initiation is probably the ~$1400/oz. mark.

Procon will not have the available cash for this outcome, so it is likely that Sprott will have the agreement conferred onto them, which will then allow Sprott to purchase this gold out of the mine at a 10% discount to market. The $CAD declined 6% in the last year, so this makes up for a discount somewhat.

Sprott settled their equity swap agreement with TD Securities in 2012. Very likely Netolitzky had a similar agreement with RBC (Richardson) that was settled in the last few minutes of trading on Dec. 20. Thus the two biggest shareholders are no longer in equity swaps held in financial interest against GBN.V share prices.

Go over the news releases in prior years.

-F6