Conclusions

After looking at the aerial photos of the Komis deposit area, I have to conclude that there is probably one vein ranging in the ~800 - 900m length, and the rest of the area is glacial till.

Much to the southwest of the deposit along the road departing westward and south from the Komis deposit, there is a lone drill pad where likely barren rock was tested.

It would not seem strange if glacial till moved first southwest of the EP Zone, a known source of glacial till, and then began streaming southwards. This whole area is covered with test points, but the real drilling occurred along the north side of Round Lake, meaning the focus was on the vein.

If you will remember, Chuck Fipke moved some 1200km due east along glacial till to find the Ekati diamond mine, whereas DeBeers was rummaging around near the Mackenzie hills with no luck. Comparing with these well-known results, it would not be a stretch to say that gold from La Ronge, if it initially moved southwestly and wound up in the South Saskatchewan River, hundreds of km. away - much like Fipke's diamond till moving due west.

That means they have another deposit in the size range of the Rod Zone, adjacent to the Jolu Mill, if that's what the aerial map is showing, test points south of Round Lake, and drill points immediately north, extending from the known Komis deposit area.

A small stockpile of ore in dark grey near the EP Zone pit from the paystreak above the outcrop has gouges, meaning that it was on its' way to the mill stockpile last spring. There is a large waste rock stockpile over the area where EP Zone glacial till was to be mined, but probably abandoned. My guess is that this was to be used to prepare the road for Golden Heart.

IF there really were a number of adjacent veins, then news would have gotten out a year ago, or before that, and the picture would be somewhat different.

A 5000m drill programme probably means that an engineering study requires results to confirm newer revelations, which has probably already concluded.

I can only surmize that EP Zone was a major disappointment as long ago as 2011, and that GBN.V entered into the bridge loan agreement with Waterton because financing could not be had any other way. (or that EP had to be ditched)

That means instead of easily stripped glacial till providing the bulk of financing for the next step, the bridge loan agreement subordinated all production from that time, as early on as February 2012 or sometime earlier in fiscal 2012.

Unrefined dore would be sitting in an escrow account until a trigger price is reached, which is where we are today. Maybe they should announce a mill shut down for the fourth time for good measure.

My guess is that we are awaiting engineering study results, since gold prices are firm here, ~$1400/oz. CAD, and that possibly a mezzanine capital arrangement will follow.

http://binged.it/LrQjH0

-F6