I agree with probability of success...I also believe in order for Great Basin to achieve protection in the canadian courts they, the representatives, the monitor would have to have convinced the courts that there was adequate value in the properties to support the expenses of protection i.e. legal/administrative/sale/dip loan expense to allow the company to continue and still have enough value leftover to pay the creditors more than they could otherwise reasonably expect to receive under an outright bankruptcy liquidation proceeding. If this were not the case GBG would have gone straight to bankruptcy and not protection and this whole drama would have been over months ago. Because they must have successfully convinced the courts that the value of the assets exceeded the then a future liabilities they achieved protection instead of bankruptcy. If burnstone's estimates were not true or if it was impossible to develop we would not be in the situation we are in right now.
In regards to the value of burnstone I am becoming more optimistic. The chinese have recently purchased Gold One at a 60-70% premium valuing it at 660 million with 4 million proven probable. Burnstone with its 6 million ounces proven probable, if reliable would push burnstone over a billion with this metric. The reason i think the chinese will be the ultimate buyers is this sale is being tailored for them because the bids have to be in US dollars of which China has a mountain of. The value of their dollar reserves has in the past and potentially in the future has been under pressure. They have been seeking to purchase resource properties worldwide using this mountain of dollars. It is to their advantage to acquire the properties rather than buy the commodities that these properties produce on the open market. The chinese have been trying to diversify their currency reserves. They had hoped the euro would be a competitor for the dollar. They wanted to diversify their currency reserves via the euro. This has not worked out very well as the european economy has been weaker than the US. That leaves gold as a reserve. The same reasoning applies that it is to the chinese advantage to acquire gold producing properties with the dollars they have in their reserves rather than buy gold on the open market. When they buy gold on the open market it helps push the price of gold up which works against them. If they acquire the properties with cheap US dollars they don't have to sell the gold they produce. If they don't sell the gold they produce they reduce the supply of gold on the market which would push the price of gold up working in their benefit now, not against.
Again I am confident the Chinese will be buying burnstone at a price that will make us all very happy...holding 150k now at .08 average...buying 100k end of next week...I believe finbar is correct that burnstone is a bargain at a billion
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