Conclusions-

Interest rates are in decline. In Europe, and Japan negative rates are extraordinary policy tools for use by central bankers. They don't mention that failures to deliver in government bond markets are rife, and will lead to lower rates. But what was without precedent was the jawboning necessary preceding a rate hike in the US.

If Wall St. believes that rates are going higher, let them labour under the delusion.

This is good for gold prices, since the commodities permabear and equities permabull aught to be trading places. The one commodity that will benefit will be gold from the simple fact that it has not yet entered into backwardation. Others, not so much.

My guess is that in the last year insider buying has been very active, that Netolitzky perhaps doubled down on his position. TD Securities is doing the buying daily, sometimes in the millions of shares. Could be as many as 40 million shares sold in the last year. Now, a year later after the declaration of a reverse split, shares aren't being offered at 1/2 cent. A limit order is likely to get filled for 0.005 cents in the range of 100k-200k shares. Perhaps he will achieve his goal of billionaire status.

The company balance sheet is showing $20m. of liabilities added during the quarter, which suggests that operations are ongoing, in the same manner as previously, for the last six years. Not the least the MD&A reads like a long disclaimer, with some sophistication added. There are perhaps four mines in operation, Roy Lloyd, Jolu, Star Lake/Fork Lake, and EP.

The amount of money spent in construction probably exceeds the amount reported as the deficit + impairments. This amount has to written off at some point before distributions can be paid out. Normally it would take years of production or raising capital at market before writing off the deficit, but I believe the gold held in the EP Mine 'pay streak' was meant as the capital raise portion, and provided Sprott with the initial portion of their physical gold.

Afterwards, the company may come to resemble the declared operational status in the Q2 report. This is something they re-iterated many times over. Using these numbers and a production goal of 250k oz. per year, you can come up with a value for the company. Fiscal 2017 is at the beginning of May, 12 weeks away. For those numbers to work, you would need 21 g/t @ 1000 tpd.

If they were to double processing capacity, then these numbers could work. This is all firmly within the realm of possibility, should they have raised capital in the manner described. If they added a fourth concentrating mill at the Roy Lloyd mine site, as I believe is depicted in Sat photos going back to 2013, 2300 tpd. would make a 9g/t operation feasible.

The first step may be to reverse split the shares(open debate whether this is actually required), then table an engineering report - a preliminary economic analysis, declare a capital raise, write off the deficit, square the balance sheet, provide detailed information on operations to date such as how much construction was accomplished, all before the fiscal year is out at the end of April.

Given that their timing on short sales of company shares twice over, and over a lengthy period, then you could expect that having run out of games to play, they may actually have to run a business instead of giving people the business.

-F6