Company Quotes

You have to wonder to which extent the company has lied about grades, production and finances when you come across certain quotes from the company website.

For instance, I made the assumption that the Alimak Zone provided the bulk of ore material for the Jolu Mill. But that would mean the grade was a lot higher than was reported:

"The Company's historical files for the area also note the existence of the high-grade Alimak Zone plunging to the west adjacent to the existing underground workings at the former Jolu mine. This zone was identified during operations of the former Jolu Gold Mine as a reserve and was partially mined from underground. The known mineralization extends from surface to 125 metres deep and the mining records note underground grab samples of up to one ounce per ton gold. This new drilling program will include step-out drilling to test for the existence of gold mineralization along the projected strike to the southwest and northeast, and along the projected plunge of the Alimak Zone where a previous property boundary precluded drill testing of this area. Drill spacings will be such that an updated resource can be defined. With the Company’s plans to restart gold production at the Jolu mill in 2009, an open-pittable resource only metres from the mill is a very attractive target."

The Alimak Zone was reported to be a bulk sample with only 5g/t grade. It was an open pit mine in operation and provided ore for the gold backed commitments. Notably production out of Lloyd is showing similar numbers.

Alimak Zone, May 2013

http://binged.it/1kcWuwR

If they really started production in 2009, rather than the end of 2010 calendar year, then the time stamp on the following photo makes a lot of sense. They would have begun mining and stockpiling on the Roy Lloyd mine before signing the Sprott Prepaid Gold Notes deal. You have to have gold on hand to sign a gold backed deal:

http://www.goldenbandresources.com/includes/gallery/dsp_large_picture.cfm?pictureID=86

-F6