via RT - Kaiser Interview Fekete

Just what hyperdeflation means is anyone's guess. One of the indicators of a deflationary round would be negative nominal rates, of the kind we've seen in TIPS.

A negative rate regime would provide impetus to further improvements in the gold prices, since the gold futures market would then become a money market for a time, with very little in the actual way of physical delivery and settlements in cash.

The bigger trend really has to be negative rates at the short end of the curve, and negative rates going out along the whole real return bond curve. (rather than a complete bond market collapse.)

http://www.youtube.com/watch?v=iS5HPCTpSqY&feature=youtu.be&t=12m52s

http://scharts.co/14kiKfc

via Kitco.com - Gold Lease Rates

Why should gold prices move up now? The simple answer is in lease rates going positive after going negative during the period of the correction.

Gold prices are also mildly in backwardation, which is becoming chronic.

Gold Prices Forecast

Mostly people who are invested in gold are giddly comparing the gold price advance to that of the 1970's.

But since we are going into deflation with low interest rates and possibly negative nominal rates, and the fact that gold prices fit with a Wave One elliot wave paradigm so well, a mania such as occurred in the last gold bull market may be just a pipe dream.

1033.90/253.20 = 4.083333

4.083333 X .618 = 2.5235

2.5235 X 1179.40 = 2976.

If the gold price advances according to a Wave One Extension elliot wave paradigm, then all of the gains were made in the first leg of the bull market. The smallest wave should be the last one.

The average value should be in the ~$1500/oz. range. This is in U.S. dollar terms, Canadian dollar terms may be a fair bit higher, based on the decline of the loonie.

https://twitter.com/ASXtrader/status/431213477072343041

Conclusion: The value is in the gold miners, which are the producing asset.

via Google Search - The La Ronge Northerner

In the past, company officials have mentioned briefly numbers which seem to be adhered to. They also perhaps felt that they should be more forthright to the locals, since they are operating in their territory. The political consequences of a swindle here will be long lasting.

Rodney Orr, who presumably resigned, but is still on salary for 250k/yr according to proxy forms, mentioned 70k. oz. as the production rate at the time, which was quoted in the La Ronge Northerner.

If you take some of the production and use it to pay costs, while the rest is subordinated to fulfilling the terms of the Waterton agreement, then GBN.V could very easily provide 100k oz. of production over two years.

The asset-liabilities mismatch and company losses make sense in light of the Waterton Bridge Financing Agreeement, and previous comments made by Rodney Orr.

My guess in light of this possibility is that Sprott is being kept at a distance, while Waterton might still be in the background. If you made a move on the company, you would certainly be obliged to come up with ~$140m US. on the spot for the dore in bars in escrow, and mezzanine capital to boot.

From a $CAD perspective, GBN.V is quite capable of carrying out their plans.

"Orr said, adding, Golden Band will pour gold bars at the mill and the three mines will produce about 70,000 oz per year."

The average grade coming through the mill should be higher than reported, the numbers we've seen are a gross mis-characterization and meant to fulfill the minimum legal requirement.

http://ow.ly/tlKqf

via Sound Cloud - Rick Rule

Rick Rule discusses junior mine finance and market conditions in an interview. They're still taking usurious interest rates, but clarify their perspective on companies. Rule mentions Canada in the context of laws where subordinated assets become the property of the lender as a priority, and where by comparison in the United States, assets are allocated to various interests.

What Sprott might not realize is that the door was slammed shut on them long ago, but they might merely be strung along at length.

Like everyone involved with GBN.V.

https://soundcloud.com/debtwire/episode-5-talking-mining-with

-F6