Rimrock Gold Corp (RMRK)

[alj14]

I appreciate your perceptive comments, Dobie Lama. IMO, if it had not been clear to management that there will be enough funds to explore both the Abigail lithium property, but also (whenever) the new Nevada property, that step would not have been taken. Let's say, the right slant on this – the bevel – always lies in the details. In a financial situation like this, of competitive devaluation between fiat currencies, it may not be such a bad idea to own the right kind of goldmine.

On the question of a new form of recognition just given to gold as a "zero risk weighting" asset, I'd like to quote following short article, courtesy of Shaun Connell:

Banks About to Buy Billions in Gold?

On June 4th, the Federal Reserve, the Office of the Comptroller of the Currency, and the FDIC all circulated a memo asking for review of a proposed policy change. The policy change includes several things, but this is the biggest possible game changer:

Gold will be considered “zero risk weight” if it’s “gold bullion held in the banking organization’s own vaults, or held in another depository institution’s vaults on an allocated basis…”

If this proposed rule change goes into effect, then banks and financial institutions will be able to buy gold without it being considered risky, meaning the reserve ratios suddenly fundamentally change.

This means that gold would be considered with the same risk as treasury bills. This is huge, huge, huge. It would mean big banks would suddenly dump money into gold without having a lot of the negative consequences gold currently has in terms of reserve ratio requirements.

Note that the policy hasn’t, that we can see, gone into play yet. Still, this is an incredibly, incredibly important development we should be watching. If this does happen, the gold market would have just fundamentally changed, and this is one of many reasons to regularly buy gold.

POST FROM DOBIE LAMA:

There are many junior miners that acquire promising properties in their portfolios for various reasons.

Gold properties are always in vogue and just plain sexier to the investment public than lithium is.

I'm assuming they will do some exploration work, raise money, sell the property ( I really don't know the final plan) and use some of the funds to continue with exploration of the lithium property.

Check out AZM and the different properties it owns. AZM is just an example of a junior that buys properties, does some work on them and then sells them to mid range miners.

www.reuters.com/finance/stocks/AZM.V/key-developments