via YouTube - South African Gold Refinery

This is what has to happen to all of the dore bars still sitting in escrow since production began. Dore bars have to be melted along with flux and refined before they can be sold. Dore bars are not counted as an asset until they are refined and sold into market, which then is counted as production.

What GBN.V has been doing is holding to an escrow agreement which has not been made public, and the gold commitment. Liabilities are counted as loans owing to Procon/Kitsaki. Stating liabilities this way and attributing cash costs to minimal production is wholly misleading.

There has been a beneficial change of ownership, meaning Procon 'owns' the company until they are paid-in-kind by dore bars held in escrow in the full amount of 100k oz. No mining subcontractor in their right mind would allow that a mining company go into arrears for tens of millions of dollars over a period of years. They would pull the carpet out from under the mining company by not providing services and take possession.

You can see dore bars being delivered to the refiner, who then takes the dore and melts it again. The final product is arrayed on a conveyor.

http://youtu.be/nQ37SFKahc0

Boliden refines its own bars:

http://youtu.be/FfOVlnzGzOc

via NowAndFutures.com - Blog

Interest rates...

3/24/2014

The daily amounts of the Fed's Securities Lending Open Market Operation have substantially increased lately, going from $10-11 billion per day to over $17 billion today. This strongly suggests lower Treasury interest rates in the near future.

http://blog.nowandfutures.com/index.html

$Gold Daily

The first impulse leg up from the December bottom was the biggest impulse in terms of the ADX in years. Very satisfied with the results so far.

Lower treasury bill rates means higher gold prices, because bullion lease rates are above the benchmark rate. Treasury rates are near zero, so if a correction in the market is apparent, then interest rates can go nominal negative.

http://scharts.co/Q421uO

via BNN.ca - Charles Oliver discusses gold mining companies

http://watch.bnn.ca/market-call/market-call-march-2014/market-call-march-25-2014/

-F6