Welcome To The Golden Band Resources HUB On AGORACOM
Saskatchewan's SECRET Gold Mining Development.
Message: Charts & Comments
The following 'Charts & Comments' should be considered pure entertainment, and not to be construed as investment advice. As a matter of fact, I'm completely off my rocker and unless you're "down with my disease" don't read anything I have to say.
Insider Activity In The Last Year
There is one sure sign that there is still some mental activity in a company with a board seemingly suffering from collective alzheimer's. This is one thing I look at when things look grim, and boy, do things look pretty grim this week. (actually, I've been pacing around saying WTF? WTF? WTF? for a couple of months now.) Along with news of yet another gold discovery the share price declines and the gold price goes up, up, up. Couldn't be worse.
The insider activity reflects one of very long term participation over the last three years, where Ron Netolitzky was accumulating millions of shares in the company at various prices. In the last year there has been more participation in insider buying amongst the board members. The insider buying started when results from Bingo were bouying the share price from 2003 - 2006 and continued while the results of Birch Crossing came out. The company continues to make gold discoveries, but the market remains totally unconcerned.
Supersize: http://www.flickr.com/photos/11747277@N07/3910646872/sizes/o/
A Summary Of Gold Showings
The least the company could do is draft a summary of all of the known gold showings so that investors can at least discern whether any claimed discoveries by the company are really not just a rehash of older drilling campaigns during the gold rush in La Ronge in the 1980's. A large tag with the word "NEW" beside any additional finds on a gold showings map would be extremely helpful.
As it is, I snapped a screen shot of this diagram from the Tower East Technical Report:
Supersize: http://www.flickr.com/photos/11747277@N07/3909862987/sizes/l/
I know what you're going to say. Holy crap. That GBN.V can add to an already crowded map pockmarked with gold showings is quite a feat. There was, at one time, a total of 50 companies active in La Ronge, along with Placer Dome. They spent millions and this is the result.
What Is So Damn Special About Bingo, Anyways?
The Bingo mine will be the flagship property in the Golden Band Resources mine plan, with many years of PROLIFIC production. The company calculations on grade and resources do not even begin to outline exactly what Bingo really means, and how this mine will change the mine plan going forward. All the mine plan shows is two years of production, and a pitiful, miniscule reserve. How are we supposed to find out what the mine is actually capable of? Without resorting to taking an MBA in mine finance, you can resort to a simple comparison.
It so happens in the last year that the Bingo deposit was extended by several hundred metres during the drill campaign. Now, Bingo extends over 800 metres from end to end, including the Cockrum and Quarry showings. Almost a kilometre, as a matter of fact.
Any gold deposit that extends to a kilometre of strike length with a consistent grade of 6g/t or better is a FAIRLY LARGE MINE.
The company, however has ensured that the Bingo deposit just doesn't look that way, because they know that nobody who ever does their due diligence on mines will only look at things like size of the float (which is wrong on the website) how many shares are traded daily, or whether its in Africa and there are lots of wretches clad in rags involved in artisanal mining or not, or whether China has said something about it.
Remember we referred to Tower East. Here is a picture of a deposit which extends to over 800m, to about the same depth that Bingo is presently drilled, which contains some 330k oz.:
Supersize: http://www.flickr.com/photos/11747277@N07/3910646810/sizes/o/
Now here is a picture of the Bingo deposit from the latest corporate presentation, which is said to contain 50k oz.
source: Recent Corporate Presentation
The scale shows that the deposit is almost 1km in strike length, or approximately the same strike length of a 330k. oz. deposit, Tower East, but which the company says only contains 50k. oz.
The grade of the Bingo deposit is much higher than that of Tower East, though the mineralized halo is much thinner. Just the same, if you were to assume that Bingo only had 6g/t, which is a fairly conservative estimate, then the Bingo deposit is highly likely to contain almost 1m. oz., which is three times the grade of Tower East in the first 300m or so of depth.
Insiders have quoted 8g/t as the overall grade, but I'm using 6 g/t. Does anybody see that there is a major discrepancy and that the company claims grossly underestimate the resources in the Bingo mine and the forward projection in the mine plan grossly reduces its outward aspect?
The geology of porphyry gold deposits low in sulphides like those of Timmins or Val D'or greenstone belts run very deep, over 2 km., as a matter of fact. The Bingo deposit sometimes has bonanza grades over .30m. (the halo of these bonanza grades is about 3m wide usually.)
The following is a picture of the vein from a deposit in Timmins with exactly the same geology as Bingo from about 2km. underneath the surface with a vein of approximately the same width of the high grade portion, not uncommon for this type of deposit, from a former 10m. oz. deposit:
© All rights reserved.
source: http://gsc.nrcan.gc.ca/mindep/synth_dep/gold/greenstone/index_e.php
The Bingo deposit has the same quartz carbonate veins and albitite dykes, or known as feldspar dykes which are found as a result of quartz diorite intrusives. But don't believe me, just read the Bingo Technical Report.
The same goes for the entire La Ronge gold belt, which is why they call it a greenstone belt.
Conclusion: The Bingo mine is a fairly large mine, will be prolific and run for many years. I say again: The Bingo mine will be prolific, is a fairly large mine and run for many years.
Now, Why Be Anxious About Drilling At Depth? Why? Why? Why?
Northgate finds gold in Young-Davidson property
2009-09-11 23:55:00
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VANCOUVER 9Commodity Online): Northgate Minerals Corporation has discovered a new zone of gold at its Young-Davidson property near Matachewan in northern Ontario.
The discovery was made by two geotechnical holes drilled in the location of the proposed shaft that intersected a zone of syenite-hosted gold mineralization.
Ken Stowe, president and chief executive officer, stated, “This is an exciting and significant discovery as we have identified what appears to be a down faulted eastern extension of the Young-Davidson ore body at a depth of 600 metres. The new zone is completely open and untested to the east and down dip and although much more work will be required to define the size and grade of the zone, it has the potential to add to the 2.8 million ounces of reserves currently on the property. The new zone is immediately adjacent to the proposed shaft and any reserves that are ultimately identified in the area will be easily minable using the infrastructure that has been contemplated in the recently completed Young-Davidson Prefeasibility study.”
The two diamond drill intercepts are located in the same plane as the existing Young-Davidson ore body to the east of the known reserves and resources at depths of approximately 600 and 800 metres, respectively. Follow up diamond drilling will commence later this month to test the extent of the new zone of mineralization down dip and along strike to the east.
(Courtesy: PRNewswire)Cripes, Just What The Heck Drives The Performance Of Gold Stocks????
Better get an Aynalyst
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