via Kitco.com - 60 Day Gold Price Chart

It's very difficult to conceive how gold production might be held in escrow, or that the entirety of production be subordinated to a bridge loan agreement. There is no mention of any follow up, and to confuse matters, Waterton appears to be out of the picture.

The Waterton bridge loan agreement now conferred on Procon is meant to last until 2015. Since fiscal 2015 opens on May 1, there are only three months left. The substance of that agreement is a payment-in-kind of the first 100k oz.

This is the only way that last two years makes any sense, and if you go back through the recent most atrocious results, they seem to fall exactly in place, and that market is grossly undervaluing the property as an asset.

There would only be so much time left to acquire shares until a certain price level in gold is reached, which I believe has already occurred. The $1400/oz. CAD mark has been reached, and we still have options expiry on Tuesday.

The price bottom preceded the price low in bullion by only a few days:

60-Day Gold Price Chart in $CAD

Of course, the mill has been processing stockpiles in advance of the closure of the bridge loan agreement, a precursor for a larger mezzanine capital arrangement.

Two factors to keep in mind are:

1. a possible reverse split (shares are cheap enough to fill out any requirement)

2. a new PEA. (The old one is obsolete)

$Gold Daily

Indeces are updated after the close on stockcharts.com. It appears that the bottom is in, and indicators are in reversal mode. The next stop would appear to be the 300-day MA, since the 200-day is so close to the market price.

http://scharts.co/1d4VPeW

-F6