Apart from the fact the price of gold is near important support...

Apart from the fact the price of gold is near important support above US$840, there is no knowing how far down it will go. However its price is a function of the US$ which has suddenly taken off big time. Bill Buckler in the "Privateer" puts this US$ rally down to short covering of huge short positions. It may have been kicked off by central bank intervention (James Turk). The point is that when the short covering ends there is no more cushion, and US$ holders (countries) seeing all the fundamentals such as the debt siuation and a recession (depression ?) in the US where the Federal Govt has no hope of servicing the debt without further borrowing, will want to get rid of all their dollars, and the down trend will resume this time without the cushion. So once this rally in the US$ tops out, then unless the CBs acting together, can hold it by intervention and manipulation, the decline will be gruesome. See the recent rally in the US banking sector for what a short covering rally looks like.
What I hope LGL is doing is storing their production in anticipation of the rising seasonal trend after August, if they can afford to do that. In other words not selling at these prices. I doubt they hedged their production recently when the signs were there that gold would be taken down, which would have been nice. Hedging is a dirty word in gold mining now, but there is nothing wrong with that if it covers your short term production