Geological Concept

Its a pleasant surprise to see the Golden Heart deposit considered for an underground exploration and development, especially since the grade previously sat in the ~2g/t range, and now ranges ~9g/t. What we have now is a definitive proof of geological concept, that deposits in the La Ronge gold belt have robust grades, and that the geology is identical to those of the Timmins and Val D'or areas. This should be the strongest indicator that the deposits under consideration for mining do not just merely occur at the surface, but continue to depth. If we compare to a long mining tradition in comparable gold belts in Canada, its likely that Golden Heart will continue to deliver for many years.

A major change in the grade at Golden Heart is a complete turnaround, where investors must now consider the long term mining option, and not just an open pit scenario. Not only this, but the locale hosts the RKN and 'A' zone, which are proximate and under-explored. This news is a positive step in the right direction, even though the grade calculation reduces the available oz. by a significant percentage. The advantage here is not having to move and process several million tonnes of rock to achieve the same thing.

http://www.goldenbandresources.com/html/news/press_releases/index.cfm?ReportID=203180

Monthly Chart

The monthly chart is still showing a rally, with a long way to go. We have moved from the very bottom last December, a year ago, to a much more optimistic posture. The momentum indicator has reversed unexpectedly, once again the gold price level gives an indicator of where the share price and the fundamentals diverge. The big test now is to see how the share price fares in the coming correction in gold prices.

Stockcharts.com

Weekly Analogous Chart

The Weekly Analogous Chart is showing an almost identical development in the advances and declines in the gold price as it had in the last run-up. So we are now looking at a correction to the 13-week EMA, which should occur in the next two weeks' time. That means a ~$150/oz. drop in price. Afterwards, a six week consolidation should follow. The fact that we did not meet with a target value set in using fibonnaci overlays says that a parabolic rise is unlikely. An eventual rally past ~$1254 will be the starting point for another advance .

Stockcharts.com

We are still a few months' time away from a major reversal in price, given that these have occurred once every two years, and our correction starting this week will probably be analogous to previous corrections in the same time frame, imo.

Stockcharts.com

A Timely Article

Adam Hamilton has a timely article:

http://www.safehaven.com/article-15198.htm

A Point Of Interest

http://www.miningmx.com/news/platinum_group_metals/Wesizwe-is-being-hijacked.htm


F6