Jump to content

Gold Bullion Development Corp


deeper

Recommended Posts

I am concerned.

 

The press release yesterday was, yet again, appallingly written. It was positive news, yet so unintelligible that the stock sold off. They have not learn from the disaster of previous press releases.

 

The stock has held 35c all through the summer. It has now broken to the downside. Now at 30.

 

The market has showed no interest in the excellent grades being found at the Castle Mine.

 

And the 43-101 we're told October. I'll believe it when I see it. And when I do, god, do I hope the PR is properly written.

 

But that Van Eck is increasing its position is very positive. If it makes it into GDXX that would help a lot.

Link to comment
Share on other sites

  • Replies 152
  • Created
  • Last Reply

I am concerned.

 

The press release yesterday was, yet again, appallingly written. It was positive news, yet so unintelligible that the stock sold off. They have not learn from the disaster of previous press releases.

 

The stock has held 35c all through the summer. It has now broken to the downside. Now at 30.

 

The market has showed no interest in the excellent grades being found at the Castle Mine.

 

And the 43-101 we're told October. I'll believe it when I see it. And when I do, god, do I hope the PR is properly written.

 

But that Van Eck is increasing its position is very positive. If it makes it into GDXX that would help a lot.

 

 

Agree the PR needs improving but surely at 31c all the bad news is in the price? GBB is valued at about $15/oz gold in the ground. For an explorer in Quebec this is unbelievable...even if we do have to wait a while longer for the NI 43-101!

 

Edit - ps CC perhaps you can contact the company to have a word about the PR - they need to get this right for the 43-101. Any chance of getting Frank on your podcast?

Link to comment
Share on other sites

Yes I was hoping that you could help out with an interview as the guys writing the press releases (and approving them) seem like a bunch of clowns. In particular the mess of the explaining Canadians only get shares in Castle mines - what a load of confusion!

 

Surely Frank must know by now the press releases have been a disaster and killed momentum in this stock when it was truly needed.

Link to comment
Share on other sites

Sorry - what press release, the one re drill results from 15th Sept? What was the comment re Canadians only on the Castle Mines shares? This is what I had feared from one of my previous experiences on a rights issue.

 

 

It refers to yesterdays PR here My link

 

This being the offending paragraph.

 

"Spin-Out" to Shareholders of Gold Bullion

Concurrently with the initial public offering, Gold Bullion Development Corp., the sole shareholder of Castle Silver Mines, will distribute an aggregate of approximately 1,950,000 common shares of Castle Silver Mines to the shareholders of Gold Bullion resident in Canada, by way of dividend in kind.Gold Bullion shareholders will receive one common share of Castle Silver Mines for approximately every 85issued and outstanding Gold Bullion shares on the distribution record date.The record date for the distribution of the Castle Silver Mines shares will be set by the Board of Directors of Gold Bullion in accordance with the policies of the TSX Venture Exchange.Gold Bullion will issue a press release announcing the record date and the distribution ratio.Gold Bullion will retain approximately 7.8million shares of Castle Silver Mines.

 

This statement has been corrected today, here My link

"All Gold Bullion shareholders to receive one share of Castle Silver Mines for approximately every 85 shares of Gold Bullion held on distribution record date."

 

So all is well with the Castle mine share distribution.

 

I'm probably just bombed out grasping for straws but is that a morning doji star reversal forming on the GBB.V daily chart.

 

http://stockcharts.com/h-sc/ui?s=GBB.V&p=D&b=5&g=0&id=p73445420128

 

Morning doji star reversal http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_pattern_#morningdojistar

Link to comment
Share on other sites

Regarding the poor public relations approach. I’m in agreement and have voiced my concern some time ago. Too ignore this aspect in my opinion is folly. But to be fair market conditions are far from ideal.

 

Dominic’s comment about Frank not wanting to be taken out by Osisko is interesting. After all Franks fears are not unfounded. They are looking back at us over the fence in the Adanac. It’s not hard to see his predicament. I mean just how much flesh do you show the vulture and still try to look sexy to the market.

 

The thing is, he need only be fearful IF he has the goods. Say +3Moz at this stage.

If the case is that we have less than 1Moz in the stated volume, as the market is giving us credit for, then I doubt they would be interested.

 

As I’ve said before, by my amateur observations of the Corebox data I can come up with roughly 3.5Moz. But I could be waayy wrong!

Van Eck however, is a different kettle of fish. They can and do employ some of the smartest brains out there! There answer to the question “Does Gold Bullion Development Corp have a economic multi million Oz gold deposit” is - Buy 7.5M shares!

 

Just a few thoughts………

Link to comment
Share on other sites

In my conversation with Roger some weeks ago he told me that "they know what they have" in terms of the deposit and that they are determined not to let it go cheap. How they can prevent this I don't know. He replied to me about they have some sort of shareholder rights plan coming up.

 

Regardless I would take it that they have a goods. It's a difficult one to deal with for Frank with market forces, predators and need for cash.

 

 

Regarding the poor public relations approach. I’m in agreement and have voiced my concern some time ago. Too ignore this aspect in my opinion is folly. But to be fair market conditions are far from ideal.

 

Dominic’s comment about Frank not wanting to be taken out by Osisko is interesting. After all Franks fears are not unfounded. They are looking back at us over the fence in the Adanac. It’s not hard to see his predicament. I mean just how much flesh do you show the vulture and still try to look sexy to the market.

 

The thing is, he need only be fearful IF he has the goods. Say +3Moz at this stage.

If the case is that we have less than 1Moz in the stated volume, as the market is giving us credit for, then I doubt they would be interested.

 

As I’ve said before, by my amateur observations of the Corebox data I can come up with roughly 3.5Moz. But I could be waayy wrong!

Van Eck however, is a different kettle of fish. They can and do employ some of the smartest brains out there! There answer to the question “Does Gold Bullion Development Corp have a economic multi million Oz gold deposit” is - Buy 7.5M shares!

 

Just a few thoughts………

Link to comment
Share on other sites

  • 4 weeks later...

In my conversation with Roger some weeks ago he told me that "they know what they have" in terms of the deposit and that they are determined not to let it go cheap. How they can prevent this I don't know. He replied to me about they have some sort of shareholder rights plan coming up.

 

Regardless I would take it that they have a goods. It's a difficult one to deal with for Frank with market forces, predators and need for cash.

 

Here is an interesting post from the "mine and dine" held by GBB. Still no sign of the NI 43-101

 

http://www.stockhouse.com/Bullboards/MessageDetailThread.aspx?p=0&m=30295672&l=0&r=0&s=GBB&t=LIST

Link to comment
Share on other sites

Thanks for that Jimbo.

 

I like all the long-term prospects, but the short term is not rosy.

 

That 43-101 isn't coming any time soon. I said Xmas a couple of months ago. We'll be lucky to have it by then. Meanwhile all those warrants are about to expire worthless. It won't be long before he has to do another raise.

 

Once 35c broke it was obvious we were going back to low 20s. Now what's he got to stop the stock going back to 10?

Link to comment
Share on other sites

10c!...........That is quite a bleak assessment Dominic.

What I can't fathom is why they reduced the price of the warrants but didn't extend the time if they were in doubt about the release date of the 43-101. ie not before 27th Oct.

Or do they have other news that would bring the SP up to 58c.

 

As for the cash position, on the 30th of June they had $3.3M in cash. Also they have the rebate from the Quebec government coming of $4.4M.

Also, won't we be receiving $3M back from the Castle silver mine IPO?

 

I'm not sure what the burn rate is now - I seem to remember $600K/month now that the access roads have been built. Down from roughly $1M/month and surely the Phase 3 drill program is nearing completion bringing the burn rate down further.

So maybe they will last a while yet before another financing.

Link to comment
Share on other sites

Here is an interesting post from the "mine and dine" held by GBB. Still no sign of the NI 43-101

 

http://www.stockhouse.com/Bullboards/MessageDetailThread.aspx?p=0&m=30295672&l=0&r=0&s=GBB&t=LIST

 

Frank feels that 2012 will be a good year for the company and the share price. Lets hope everyone can do their job properly in a timely manner and move the project forward.

 

I hope this does not mean 2011 is going to be a right off then - I am still hopeful for a 43-101 before Oct end - always the optimist

Link to comment
Share on other sites

I hope this does not mean 2011 is going to be a right off then - I am still hopeful for a 43-101 before Oct end - always the optimist

 

The tone of the post seems to suggest that the initial MI 43-101 (when it is finally out!) could be lower than some expect and Frank has highlighted the importance of emphasising the economics of the project (i.e. cost of production). I don't have a problem with this as I can see the longer term picture but wonder how the market might react. Any thoughts on how much we are looking at? Given the delay, I would guess around 2.5m oz, with most in the inferred category but it's just a guess

Link to comment
Share on other sites

The tone of the post seems to suggest that the initial MI 43-101 (when it is finally out!) could be lower than some expect and Frank has highlighted the importance of emphasising the economics of the project (i.e. cost of production). I don't have a problem with this as I can see the longer term picture but wonder how the market might react. Any thoughts on how much we are looking at? Given the delay, I would guess around 2.5m oz, with most in the inferred category but it's just a guess

 

I got that feeling also that Frank was trying to manage expectations from Oscars comments:

 

It is important to understand that it is not just a number. Frank pointed out that the economics are important. You could find a lot of gold in a location where it is just too expensive to recover it. In that case the gold would be worthless.

 

I think 2.5m oz would be an excellent start given the drill is an NQ 2' from what i understand, however I get the feeling we are coming in lower than that now.

 

If only they had done some RC drilling to prove up actually grade more accurately.

Link to comment
Share on other sites

  • 2 weeks later...

So all the data is available for the 43-101 and it is now over to Genivar to decide when it is finished, who knows when.

 

Interesting 10% of the drilling has been completed on the property that is desired and "We hope to achieve this with minimal or no future share dilution."

 

The last sentence sounds very promising

Link to comment
Share on other sites

As far as I can gather from the various forums and blogs,

 

There still remains approx 100 cores in the yard awaiting assay.

 

Financing - Plan B is to undertake further large bulk samples in order to firm up the near suface grade and provide exploration income.

 

80,000 tons have already been screened and are awaiting transport to the mill once the cold winter closes in - I'm not sure why that is.........something to do with the loads!

 

Non of which has been confirmed to the market - I'm not sure why that is either.

 

If this is true that for a time GBB can finance operations in this way then this would be positive short term as the threat of dilution at these levels will have been removed.

But if the plan is to exhaust all financial avenues to produce the biggest RE possible then the 43-101 might not be turning up until sometime next year.

 

It's now six weeks since we had any news/drill results regarding Granada. Frank please give us an update.

Link to comment
Share on other sites

all the core required for the 43-101 is now with genivar and they are not waiting for more results

 

no news release about delays as could be treated negatively

 

and Frank is going on site this week to talk to Genivar about the 43-101 progress

 

Roger had mentioned to me before about not financing at these levels and using bulk samples as a means to raise capital

Link to comment
Share on other sites

Interview with Osisko CEO Sean Roosen on BNN http://en.video.sympatico.ca/index.php/en/video/home/1/featured-content/1/celeb-gossip/1/osisko-mining-update-11-01-11-1150-am/1253058912001

 

They are very active and prudent. He mentions Quebec and they look at deposits in the 3-5 million ounce range.....open pit-bulk tonnage. No doubt they are watching GBB

Link to comment
Share on other sites

Closed up 28.2% at 25c on a volume of 1.169M shares.

 

This is the highest positive volume since the Casey buy recommendation in early April this year.

 

All on no news. Has anybody heard anything?

 

As yet, I wouldn't say this constitutes a change in trend but at least its some relief from the relentless grind down.

Link to comment
Share on other sites

  • 3 weeks later...

http://goldbulliondevelopmentcorp.com/html-pages/downloads/2011-11-16%20Press%20Release%20%28logo%29%202_dd23d.pdf

November 16, 2011

Gold Bullion Development Corp. (TSXV: GBB, OTC PINK: GBBFF) (“Gold Bullion” or the “Company”) is excited to report on the recently-completed Phase 3 Drill Program results from their property located along the Cadillac trend in North-Western Quebec, 5 km south of the city of Rouyn-Noranda. Just under 80 kilometres (78,414 metres) have been drilled since December 2009 confirming extensive mineralization potential on the Granada Property. Gold Bullion’s originally-defined LONG Bars zone of 600 metres long by 300 metres wide, striking east-west and dipping approximately 50° to the north, has been increased 6 fold to approximately 1500 metres long by 750 metres wide. With the documentation of an historic hole: 90-01, the mineralization in this area, north of the current exploration, extends to a depth of approximately 700 metres and remains open in all directions and at depth. Highlights include 1.12g/t Au over 304.36 metres including a 23.55 metre interval grading 5.46 g/t Au.

Link to comment
Share on other sites

 

I hasn't mattered what news GBB release, the SP relentlessly grinds down, now at 16.5c.

Maybe it'll hit Dominic's 10c. After all it has hit every downside price target so far.

 

The implications of the recent news release in my opinion were huge. But after brief respite the SP continues down. It is said to be Euro terror, Canadian Tax Loss selling and the expiry of warrants in Dec.- I d'know!

 

Is GBB good value at 16.5c - in my opinion, yes. But I thought that at 30c.

I'm I selling? No. I think they have the goods so I'll weather the storm and see what the 43-101 comes in at in the new year.

 

Joakim has some great info on GBB here, http://goldexplorers.wordpress.com/

Link to comment
Share on other sites

The implications of the recent news release in my opinion were huge. But after brief respite the SP continues down. It is said to be Euro terror, Canadian Tax Loss selling and the expiry of warrants in Dec.- I d'know!

I saw the little bump in the price mid-November, but obviously the thing is just sliding. I do wonder if sentiment can get even worse, but it looks pretty bad already. It's amazing how many operating miners can be bought at price levels of, say, 2007. Just take Kinross, Yamana or Gold Fields. Anyway, Frizzers has warned me, but I might buy some of their shares soon.

Link to comment
Share on other sites

I saw the little bump in the price mid-November, but obviously the thing is just sliding. I do wonder if sentiment can get even worse, but it looks pretty bad already. It's amazing how many operating miners can be bought at price levels of, say, 2007. Just take Kinross, Yamana or Gold Fields. Anyway, Frizzers has warned me, but I might buy some of their shares soon.

 

I have a fairly small holding (now!). I still believe in the story so am looking at averaging down - the question is when?! We still have a few months I would have thought before the NI 43-101 and that's what it will take to put a floor under the share price imo.

 

Goldfinger - have you heard about the gold bullion purchase plan that GBB have? I think you need a minimum of 50,000 shares, which is about £5,000. It seems a great idea to me although the company have not gone in to details yet

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.


×
×
  • Create New...