The La Ronge Gold Belt

Every ten years since the late 1940's, somebody would come along and make a bona-fide gold discovery in Saskatchewan.

Almost 70 years has gone by since gold was first discovered, and sporadic, small-scale mining was subject to provincial royalties and market downturns.

But raising capital was problematic, since none of the deposits were seen as competing with those in Ontario. In fact, short sellers had a ready excuse to damage the viability of the prospect, by resorting to academic arguments that were out of date for decades.

To make matters worse, interest was often divided over the prospects, and corporate brinkmanship, infighting over the deposits were the norm.

Any capital raised was an opportunity to profit on the short side, and ventures were unsuccessful at implementing a mining project. In fact, mining startups failed at the same location 3 times in the 70's, 80's and 90's.

Indeed, the current bull market in gold offers the opportunity to make more money in equity swaps, in the structured trades held against gold mining companies as a whole.

Geologists were anxious to keep secrets, since they desired a controlling interest, but keeping secrets presented no difficulty, because nobody would believe them anyway. They ended up jibbering old fools, ranting on about level playing fields, the banks and regulators in cahoots.

The La Ronge Gold Belt is historically ground zero for the gold mining swindle, irrespective of the fact that there are viable mining prospects throughout the property.

Gold Band Resources

Golden Band Resources is one of the last surviving gold exploration companies operating in the La Ronge Gold Belt. And has consolidated all of the prospective ground, comprising the major deposits.

They have a multiple ore site prospect with room for organic growth on the property. They have no debt and zero capital requirement.

Golden Band Resources as a producer, however, is a 'black box' producer of gold that does not report operational, financial, and resource compliant information as is required by law. The great bulk of information provided is of NO SUBSTANCE.

Golden Band Resources is presently a shell company of no value. Heavy reliance on loopholes in the regulatory requirement, and rubber stamping by auditors allows this to occur.

Golden Band Resources' source of capital is an off balance sheet arrangement, the indemnity which has been prepaid to Sprott.(2010), as opposed to being a 'lending' arrangement, in the normal course of finance, or borrowing money.

Sprott entered into an agreement and obtained the right of first refusal to obtain all of the production out of the La Ronge Gold Project concomitant to the IPO of its physical trust. Sprott does not say where and how the gold was obtained, merely that the bars were refined at the mint. Very likely the EP Mine 'pay streak' is the source of the gold.(presumed 40 tonnes, 1.28 m. oz.)

All of the money raised in the physical gold ETF IPO was used in payment-in-kind off-balance-sheet arrangement called an asset-based financing with GBN.V, the sole provider of gold initially to the bullion trust. All of these bars were refined at the Royal Canadian Mint.

GBN.V raises capital by swapping doré for cash, and uses it for operations. Capital is raised OTC in this manner, and not declared as earnings. They do not SELL anything. This has been one of two tranches of capital available. The company has not raised capital by issuing shares in years, and does not borrow any money at all. The notion that their mining subcontractor as the source of capital is preposterously absurd.

They have implemented an expansion phase to exploit four mines. Roy Lloyd, Jolu, Star Lake and EP. The expansion phase consists of building additional concentrating mills at the Star Lake and EP.

Much noise was made about exploiting the Komis Mine, which was intentionally misleading, as the EP Mine, which is adjacent was the mine actually exploited.

The Komis has actually to be exploited at this time.

Presumed:

The company was in expansion throughout fiscal 2010. When they declared commercial production, they had completed expansion and were producing, providing the required bars for the Sprott Physical ETF.

A second tranche of financing, called a revenue-based financing was engaged with The Royal Canadian Mint. The asset-based tranche was used to pay costs for the revenue based finance, and to provide the necessary capital for a deficit write down.

Much of the information the company provides is based in false assumptions or is entirely misleading, or meant as a diversion. Any source of information the company possesses to shed light on the operation has been suppressed, and has been a consistent practise since 2002.

You have:

Undeclared operations

Legally administered "facts" that satisfy the regulatory requirement but are a complete departure from reality.

Partial truths in grades and reported spending. Ex: 'I completed painting the entire house by painting this one small strip of the wall in glaring, bright orange'

Some of the numbers have to be correct in the annual audited reports. 'Taxes Paid On Drilling' is actually a Cost Of Revenue figure.

No visible source of funds, such as borrowing or raising capital, yet hundreds of millions in spending.

Forward-looking liabilities that accrue, which are swapped from The Royal Canadian Mint's balance sheet, are not the companies' liability.

Liabilities on the balance sheet are a pro forma method, where actual revenues fall under the rubrique of liabilities, until a contractual obligation is met.

Assets, which themselves are deducted from liabilities are also false assumptions. Assets cannot be deducted from liabilities if the liabilities arise out of nowhere.

What is claimed as mine, mill and equipment is really the EP Mine pay streak, and is the asset used in the asset-based financing.

Asset-liability mismatch

What has arisen is an asset-liability mismatch, where incomplete assets are deducted from liabilities that arise out of nowhere.

For example, mine, mill, and equipment do not include any reserve, the numerous mills in operation, or leases for a fleet of trucks and mine equipment in operation. And this is deducted out of liabilities that arise out of nowhere, when the company did not borrow any money, or had not raised capital in years.

Throw out anything to do with Waterton, technical reports, statements of care and maintenance, claims of water diversion, or reported grades. All of it is patently false.

The Waterton agreement, which is much discussed is of no substance whatsoever. The company has gone to great lengths in order to deceive.

The link library is a good source of information to fill in the gaps.

Government Involvement

One aspect that should not be missed in the overall discussion is the involvement of government agencies on both the federal and provincial level.

The federal government is involved through several agencies, The Dept. Of Fisheries, Minister Of First Nations And Northern Affairs, and a special parliamentary meeting of the Privy Council was convened to approve a modification of Schedule II of the metals, mining and effluent act. The Royal Canadian Mint is the counterparty in a revenue-based financing.

The Province Of Saskatchewan upgraded the transmission line running across the property, and is complicit in maintaining a ban on information about the property. They also approved an above-ground tailings management facility before federal approval was obtained for a much larger facility using Mallard Lake.

You also have the top geologists in the mining industry, the top mining finance providers, the top mining subcontractor in the country as operator. You also have Canada's two largest banks involved as facilitators in the mine finance aspect.