Interesting that Gold road has terminated discussions with Orion...

Interesting that Gold road has terminated discussions with Orion in relation to the Greenstone mine.No reason is given .
As I said in my last note it all comes down to numbers ,so presumably Orion wanted more than Gold road was willing to pay.There is no information given as to how the purchase was going to be financed and whether this involved the sale of all or part of thier deg investment.GOR share price went up a couple of cents in response to the news.Gruyere production is being impacted by rains washing out the main road to the mine (one of the risks in investing in a single mine ,stuff happens).
Orions share in this mine has been for sale for several months and so far no takers.
POG again down big time overnight ,beginning in May in North America is generally not a good time for gold stocks .”sell in May and go away”.
The question is this correction in the POG and gold stocks a short term correction in a long term bullish gold market or is it something more significant.
I track two technical analysts who have a decent track record Jack Chan and Morrris Hubbard ,they seem to think right now it is a buying opportunity .We will see ,technical analysis of the gold market is extremely difficult and challenging and most are miserable failures.
To deal with this extreme volatility in the gold market,it will be required by banks financing new mines to hedge part of thier production to protect themselves
In the DEG quarterly activities report there was no mention of NVO , this is a company led by pied piper Quentin who sucked in a lot of novice investors when the price was rising from 1$ to 8$ a share.this was on the strength of a belief by Quentin that the Pilbara was “WITTS 2”,this has all turned to dust and NVO share price is down below 20 cents and many many novice investors are now crying in thier soup.
Some insiders in NVO will have made a great deal of money .
Investing in gold mines (especially those that are explorers is fraught with risk and 99% of novice gold investors loose money).
It is important to have a healthy degree of skepticism about news releases from companies .The good results are trumpeted and the bad news is keep quiet.When my own grandfather in the UK died 60 years ago he had a lot of beautiful gold mining company certificates all of which were worthless from mines in South Africa from a hundred years ago,so scamming investors out of money to invest in El Dorado has been going on for a long time.
There is always a new generation of Novice investors sucked in by the allure of gold mining.
So we wait and see what will play out in the future .The two critical elements for DEG if they are going it alone (as seems highly likely)is obtaining the permitting and obtaining the financing and of course the POG.Nothing else matters ,not exploration ,not Ashburton .At the end of the day you have to have cash flow ,selling more paper on future prospects or borrowing money is just a temporary solution pending cash flow.