Conclusions

Quarterly reports are increasingly devoid of any reality.

There has been absolutely no open pit mining effort on Komis whatsoever, though there has been an obvious major drilling campaign unannounced.

If there had been any roadbuilding, there would have had to have been a major sustained effort north of the Komis location, rather than to the Golden Heart mine after the aerial photo was taken.

http://binged.it/1kiOVmd

Considering the size of the EP Zone pit, the pay streak must have been utilized, and considering the size of the Alimak Zone open pit, this mine was in operation at the time, though it was called a bulk sample. The open pit over the Roy Lloyd mine has grown, along a length larger than any information available in the technical reports. The Alimak Zone was not considered in the 2009 PEA.

This source of ore would have been high grade and very cheap, lasting a period of three years so far, though stockpiling of ore from Roy Lloyd began almost exactly four years ago. The underground ore is still sitting in stockpiles. Very likely these open pit mines will continue to produce very cheap high grade ore.

The costs would have been extraordinarily low to achieve production, and yet the mill was presumably shut down three times and production drastically curtailed. What actually occurred during the period the mill was reported shut down was that ore was processed and dore bars were held in escrow. The escrow agreement has not been made public.

Any costs were paid out of the escrow account, rather than from any reported cash flow. Accounts payable are liabilities to do with the gold obligation, rather than owing money for operations over several years to the subcontractor. All accounts payable will be discharged when the gold agreement is realized, due to a payment-in-kind mezzanine capital arrangement, which has to be concluded by May 9, 2015.

The company has been in the habit of not reporting truthfully and falsifying costs and development through unnannounced bulk samples and drill programmes, as you can see by the Google Map of the mill zone, prior to commercial production. There is no technical report available for any of the deposits in the mill zone, despite all of the apparent work:

http://ow.ly/ve8Pl

-F6