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What do you folks think of this latest NR?

 

Gold Bullion provides update on its phase 3 drill program

 

The guy over at IKN is really not impressed with what he has seen from GBB so far:

 

Gold Bullion Development Defends Normal Industry Practice

 

Basa defended the NR about his drilling by explaining that (and we quote) "What we do is normal industry standards."

 

That was interesting to take in context, and the context is the accusation of 'smearing' (i.e. taking a short, higher grade intersect, adding in the worthless rock around the hit and making it look like a company has a whole big wide meterage of economic rock on its hands when in fact it's all a big crock). In the main news release of GBB.v in question (though there are plenty of others displaying the same level of BS) the headline offered to the world was that GBB.v had found "80 metres of 1.36g/t gold". But in fact, if you run the breakdown of that 80m intersect through Brent Cook's handy-dandy drill hole interval calculator, you'll see that what GBB.v really has is one single metre of a vein hit at 322.5m downhole which grades 89.83g/t gold, and all the other 79m of width come to a piffling, measley and totally uneconomic 0.24g/t gold.

 

I have to say I am rather concerned....

 

Frizzers you know this one better than most and still seem to like the story. Any thoughts?

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The guy at Inka, Otto, hates Casey. And, by association, all the companies Casey recommends. So he's gone for GBB.

 

But Basa is nothing like what Otto is suggesting he is. Otto has mistakenly gone for someone who is honest. But what can Basa do? As soon as he writes to Inka in private, Otto selects just the bits he wants to use and publicises. His blog benefits from the controversy.

 

Basa has acted according to required Canadian practice. Otto then rants at Canadian practice. What's Basa supposed to do, act according the required practise of an anonymous blogger? He can't sue because Mark Perry who writes the blog does it under a pseudonym. And anyway there are more productive things to be done with Basa's time.

 

So he's been shafted.

 

Perry sees himself as some kind of crusader for truth in mining, outing bullshitters. Sometimes he gets the call right, but often he doesn't and companies and their shareholders suffer for his slander.

 

He's saying GORO are bullshitters FFS. They've built a mine and pay a dividend. Why's he going for them? Because they don't declare actual gold but gold equivalent. They've built an effing mine!

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The guy at Inka, Otto, hates Casey. And, by association, all the companies Casey recommends. So he's gone for GBB.

 

But Basa is nothing like what Otto is suggesting he is. Otto has mistakenly gone for someone who is honest. But what can Basa do? As soon as he writes to Inka in private, Otto selects just the bits he wants to use and publicises. His blog benefits from the controversy.

 

Basa has acted according to required Canadian practice. Otto then rants at Canadian practice. What's Basa supposed to do, act according the required practise of an anonymous blogger? He can't sue because Mark Perry who writes the blog does it under a pseudonym. And anyway there are more productive things to be done with Basa's time.

 

So he's been shafted.

 

Perry sees himself as some kind of crusader for truth in mining, outing bullshitters. Sometimes he gets the call right, but often he doesn't and companies and their shareholders suffer for his slander.

 

He's saying GORO are bullshitters FFS. They've built a mine and pay a dividend. Why's he going for them? Because they don't declare actual gold but gold equivalent. They've built an effing mine!

 

 

Frizzers,

 

Thanks for your comments. I am pleased you are still recommending GBB in your latest gold report.

 

I keep asking myself what I am missing and why GBB is so undervalued (which I expect to change once the NI 43-101 is out). There is an interesting post on stockhouse from Taylor, about Osisko's acquisition of Brett Resources, who had around a 5m oz deposit. Osisko paid $75 an oz with gold at much lower levels. I would say that GBB should be valued around $100/oz given their location. So some back of an envelope numbers...

 

3m oz would be worth $300m

4m oz....$400m

5m oz....$500m

 

The current GBB market cap is $70m so this has to be at least a 4 bagger from here - all other things being equal. I find the Casey endorsement reassuring as they know their stuff (they tipped Medusa mining a while back, which is a fantastic producer with many exciting exploration projects). I'm happy to wait a couple of years for the value to be realised at GBB

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Anyone care to comment on what this implies?

 

Gold Bullion to lower exercise price of warrants

 

 

2011-07-27 16:30 ET - News Release

 

 

Mr. Frank Basa reports

 

GOLD BULLION ANNOUNCES CORPORATE MOVE AND AMENDMENT TO EXERCISE PRICE OF WARRANTS

 

Gold Bullion Development Corp. has opened a new head office in Montreal, Que., effective immediately. The new office is located at Suite 1005, 1155 Rene Levesque St. West, Montreal, Que., H3B 2J2.

 

The company also will make an application to the TSX Venture Exchange to reduce the exercise price of an aggregate of 7,824,073 share purchase warrants to 58 cents per share. All other terms and conditions remain constant.

 

Of these warrants, 7,407,407 form part of a private placement financing which closed on Oct. 28, 2010, consisting of 14,814,814 units issued at a purchase price of 54 cents per unit, with each unit consisting of one common share and one-half of a share purchase warrant, each whole warrant entitling the holder to purchase one additional common share at a purchase price of 75 cents per share on or before Oct. 27, 2011. The remaining 416,666 share purchase warrants were issued pursuant to a private placement financing, which closed on May 9, 2011, consisting of 833,333 units issued at a purchase price of 51 cents per unit, with each unit consisting of one common share and one-half of a share purchase warrant, each whole warrant entitling the holder to purchase one additional common share at a purchase price of 69 cents per share on or before May 9, 2012.

 

The amendment is subject to approval by the TSX Venture Exchange.

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Anyone care to comment on what this implies?

 

Gold Bullion to lower exercise price of warrants

 

 

2011-07-27 16:30 ET - News Release

 

 

Mr. Frank Basa reports

 

GOLD BULLION ANNOUNCES CORPORATE MOVE AND AMENDMENT TO EXERCISE PRICE OF WARRANTS

 

Gold Bullion Development Corp. has opened a new head office in Montreal, Que., effective immediately. The new office is located at Suite 1005, 1155 Rene Levesque St. West, Montreal, Que., H3B 2J2.

 

The company also will make an application to the TSX Venture Exchange to reduce the exercise price of an aggregate of 7,824,073 share purchase warrants to 58 cents per share. All other terms and conditions remain constant.

 

Of these warrants, 7,407,407 form part of a private placement financing which closed on Oct. 28, 2010, consisting of 14,814,814 units issued at a purchase price of 54 cents per unit, with each unit consisting of one common share and one-half of a share purchase warrant, each whole warrant entitling the holder to purchase one additional common share at a purchase price of 75 cents per share on or before Oct. 27, 2011. The remaining 416,666 share purchase warrants were issued pursuant to a private placement financing, which closed on May 9, 2011, consisting of 833,333 units issued at a purchase price of 51 cents per unit, with each unit consisting of one common share and one-half of a share purchase warrant, each whole warrant entitling the holder to purchase one additional common share at a purchase price of 69 cents per share on or before May 9, 2012.

 

The amendment is subject to approval by the TSX Venture Exchange.

 

They don't think we will be over 75 cents by October but still want people to exercise their warrants as they need the cash. Lower the exercise price and you tempt some. Doesn't fill me with a huge amount of confidence.

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They don't think we will be over 75 cents by October but still want people to exercise their warrants as they need the cash. Lower the exercise price and you tempt some. Doesn't fill me with a huge amount of confidence.

 

 

Yep, not good. Sounds like they're burning through cash.

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He's saying GORO are bullshitters FFS. They've built a mine and pay a dividend. Why's he going for them? Because they don't declare actual gold but gold equivalent. They've built an effing mine!

 

C.C on GORO did you see this http://incakolanews.blogspot.com/2011/07/gold-resource-corp-goro-barrons-goes.html Seems also having a pop at insider selling here.

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Had a 25 min phone conversation with Roger yester eve and got a lot of good info making me more bullish on this stock.

 

A lot going to happen in it in next few months.

one point:

CUB will be symbol for Castle mines spin off and this going to happen in 4/5 weeks, will be a cut off date for GBB share ownership to get free shares in CUB, thinking is 1:16 ratio

 

Castle mines drill program was 6000, they extended by 700 due to what they seen. All v exciting stuff

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GBB moved upwards yesterday by 15% to 39c, counter to much of the juniors and exploration market. The only bright light amongst otherwise crappy performance in my portfolio yesterday.

 

I toook a look at the press release on CUB from April yesterday. I take it no-one has been directly offered the shares yet given med you talk about 4-5 weeks?

 

http://goldbulliondevelopmentcorp.com/html-pages/downloads/news-releases/2011-04-11PressRelease_cf582.pdf

 

I just want to make sure I benefit from this, as with a previous Canadian share I held which did a rights issue I was told I couldn't participate as I was not a Canadian resident. I can't remember right now which stock that was and I didn't have a lot in it but I suspected foul play at the time.

 

This one should be open to all shareholders right?

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GBB moved upwards yesterday by 15% to 39c, counter to much of the juniors and exploration market. The only bright light amongst otherwise crappy performance in my portfolio yesterday.

 

I toook a look at the press release on CUB from April yesterday. I take it no-one has been directly offered the shares yet given med you talk about 4-5 weeks?

 

http://goldbulliondevelopmentcorp.com/html-pages/downloads/news-releases/2011-04-11PressRelease_cf582.pdf

 

I just want to make sure I benefit from this, as with a previous Canadian share I held which did a rights issue I was told I couldn't participate as I was not a Canadian resident. I can't remember right now which stock that was and I didn't have a lot in it but I suspected foul play at the time.

 

This one should be open to all shareholders right?

 

It is my understanding that current shareholders up to the cut off date will receive shares in the spin off company. I dont know of any residence issues. PS Roger said he had also added to his GBB holdings lately

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Couple of other interesting points:

 

It is a possibility a Chinese or Korean company may pay to take Castle mines to production in exchange for the mined cobalt. Therefore shareholder dilution would be minimal in this scenario.

 

Core results have a 4/5 weeks turn around in labs. 30 Granada holes have been there a total of 3 weeks this week.

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Couple of other interesting points:

 

It is a possibility a Chinese or Korean company may pay to take Castle mines to production in exchange for the mined cobalt. Therefore shareholder dilution would be minimal in this scenario.

 

Core results have a 4/5 weeks turn around in labs. 30 Granada holes have been there a total of 3 weeks this week.

 

 

Thanks Med. So not long until more results from Granada. I'm hoping we will have the Ni43-101 by end of September, which might be wishful thinking. Patience is the key

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Thanks Med. So not long until more results from Granada. I'm hoping we will have the Ni43-101 by end of September, which might be wishful thinking. Patience is the key

I'm afraid it is wishful thinking.

 

Frustratingly

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I'm afraid it is wishful thinking.

 

Frustratingly

 

Unless I got my wires crossed I think the 43-101 will be within this time frame(3-4 weeks), maybe you heard different?

 

Activity at Granada is supposed to be amazing, and consideration is being given about selling waste pile for roads and gold production to raise cash. Frank also ready to show the core structure as this is what the pro's want to see.

 

Hopefully the next news release when it comes will fill us in.

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As Roger said, Frank is about to show the structure for the mutual funds benefit:

 

Granada mine

 

This looks to me as the start of the build up to the big news.

 

Roger also said that they(other insiders) wont be giving up GBB on the cheap if majors come looking

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As Roger said, Frank is about to show the structure for the mutual funds benefit:

 

Granada mine

 

This looks to me as the start of the build up to the big news.

 

Roger also said that they(other insiders) wont be giving up GBB on the cheap if majors come looking

 

It’s good to see the 3D representation. There’s only about 60% of the drill data in there but it dispels any doubts I had about the deposit.

This is starting to look very good.

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Is anyone else wondering what is going on at GBB? It's now valued at $55m and we have a NI 43-101 due soon. Assuming 2.5m oz then GBB is being valued at $22/oz and it's the best mining jurisidiction in the world. Some of the resource should be Measured and Indicated as well...further supporting the valuation.

 

I know most juniors are struggling at the moment but this is getting beyond cheap. Am I missing something?

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And not forgetting our free Castle silver mine shares Jimbo.

 

We are still hitting economically viable ore in all directions and now the length of mineralisation has been extended to 1500m with higher grade down deep.

No town to move, no lake to drain, and not stuck half the way up a remote Alaskan mountain.

 

For the minute and in this hostile environment we are getting little recognition but I see many explorers in the same predicament.

In terms of gold the PM juniors are as unloved now as they where back in late 08, early 09. My link

 

Note the RSI and what looks like maybe the start of a recovery. The snap back could be rapid.

 

Also worth noting the is the $HUI:$CDNX ratio. My link showing clearly the advantage of HUI listed stocks since Feb this year.

Again tentative signs of a change here - we are coming off three year range highs and an overbought condition.

 

After looking many times at the Corebox data, I'd stick my neck out and say 3.5Mozish with 1Moz in the M&I category.

So despite being under the cosh with thing for the last, going on, 9 nine months I'm optimistic.

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And not forgetting our free Castle silver mine shares Jimbo.

 

We are still hitting economically viable ore in all directions and now the length of mineralisation has been extended to 1500m with higher grade down deep.

No town to move, no lake to drain, and not stuck half the way up a remote Alaskan mountain.

 

For the minute and in this hostile environment we are getting little recognition but I see many explorers in the same predicament.

In terms of gold the PM juniors are as unloved now as they where back in late 08, early 09. My link

 

Note the RSI and what looks like maybe the start of a recovery. The snap back could be rapid.

 

Also worth noting the is the $HUI:$CDNX ratio. My link showing clearly the advantage of HUI listed stocks since Feb this year.

Again tentative signs of a change here - we are coming off three year range highs and an overbought condition.

 

After looking many times at the Corebox data, I'd stick my neck out and say 3.5Mozish with 1Moz in the M&I category.

So despite being under the cosh with thing for the last, going on, 9 nine months I'm optimistic.

 

Thanks for your comments Oddball. It is clear that most (if not all explorers) are massivley out of favour and dirt cheap.

 

If GBB do prove up 3.5m oz then this must be worth at least $50/oz so $175m - or three times the current market cap. I would say $100/oz for a Canadian is more like fair value.

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Basa is convinced brokers are selling his stock down and then are going to try and persuade him to do a financing on the cheap.

 

I think the stock has sold off because the market is shitty and there has been no 43-101.

 

He is hoping to get it done by mid October. The Castle spin-off should happen by then too. Basa has 10,000,000 shares and doesn't want to be taken out by OSK. He seems under a lot of stress.

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Basa is convinced brokers are selling his stock down and then are going to try and persuade him to do a financing on the cheap.

 

I think the stock has sold off because the market is shitty and there has been no 43-101.

 

He is hoping to get it done by mid October. The Castle spin-off should happen by then too. Basa has 10,000,000 shares and doesn't want to be taken out by OSK. He seems under a lot of stress.

 

 

Thanks CC. I hope Basa does not have to do a financing on the cheap.

 

It seems everyone agrees GBB is very cheap now and largely down to a cr*p market. I think there should be a substantial re-rating once the NI 43-101 is released. What is a few months in the grand scheme of things? Assuming this is reasonable (imo minimum 2.5m oz with some in the M&I category) the market will have to accept that this is a mine in the making.

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Just doing my own DD on GBB, and I came across this blog which seems keen on their progress. There are some distilled report information that may be of interest to some - one to keep an eye on for information and analysis maybe:

 

http://goldexplorers.wordpress.com/

 

Here's some substantial independent validation. Van Eck Associates who run the GDX and GDXJ PM miner ETFs have, during this slump, more than doubled their position to nearly 7.5 million shares.

http://quote.morningstar.ca/Quicktakes/owners/MajorShareholders.aspx?t=GBB&region=CAN&culture=en-CA Click the institutions tab.

 

If you doubt your own DD in any way, you can bet their analysis's will have turned both Frank and Granada inside out.

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Here's some substantial independent validation. Van Eck Associates who run the GDX and GDXJ PM miner ETFs have, during this slump, more than doubled their position to nearly 7.5 million shares.

http://quote.morningstar.ca/Quicktakes/owners/MajorShareholders.aspx?t=GBB&region=CAN&culture=en-CA Click the institutions tab.

 

I bookmarked the link as it is handy for researching many companies, thanks - and it does make me feel more confident.

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