via National Post - Strathcona Says No Gold Deposit

It's really a matter of semantics at this point. The bulk sample so far has results of ~4g/t gold and ~10g/t silver. That means this is a silver mine with gold by-product, which is being sold as a gold mine.

The company is looking for ~12g/t overall grade in gold, but the results so far are 60% lower than expectation.

What a disaster. Throw it on the pile of junior gold disasters.

North Country already went bankrupt as Committee Bay during the financial crisis and can't catch a bid. Barkerville is looking for 4g/t over a very widely disseminated deposit claiming tens of millions of ounces and has been through a CTO for falsifying estimates. Rubicon saw both Goldcorp.(they really should be called Coppercorp.) and McEwen sell their stakes. The spin-offs from Rubicon failed. Gabriel, a hold-over from the 1990's is still clinging to the hope of building a huge gold mine in a hotly contested pristine mountainous area after an environmental disaster occurred with another gold mine in Europe. Even Sprott is in the game of building on disaster by claiming to buy into San Gold, but resorted to bought deals increasing an already bloated float to astronomical levels. Lakeshore Gold has an equally astronomical float and cannot seem to make grade controls work. Osisko's grades are far below estimates, even after spending hundreds of millions on a massive plant and moving a town. Wesdome saw its CEO resign after Tom Stanley moved on the company as an activist investor.

I think the disaster that awaits GBN.V management is operating in penury and their resorting to a production strike this year, which has meant zero pricing power. Unless they come up with another feasibility study, and a long-term outlook or a financing for an expansion, this play is finished. (They are in production after repair/refurbishment/upgrade and have some COH after Q1 stoppage)

Rather than grossly overstating or making grandiose claims, they have grossly understated their deposits and do not have a production outlook.

http://business.financialpost.com/2013/10/22/pretium-shares-sink-as-geologists-declare-no-valid-gold-at-b-c-project/

-F6