With an increase of more than 150% in just several weeks, North Bay Resources Inc.(OTC:NBRI) does seem like a winner. The question is – will history repeat itself or is this the beginning of a real sustainable growth? There are factors that support both scenarios. On one hand, it is not an unusual situation for North Bay stock to accumulate value on the basis of stock promotions, positive news or speculations. Yesterday was one example, as more than 2.2 million shares were traded, the daily session closing at $0.08. It has been more than two years already, since the shares of the company traded at $0.1, although there were weeks after that when the stock would rally just below this limit, before crashing again. In order to assess the possibility for levels above 10 cents again, however, insight of this industry is needed. SEC filings could also prove useful in that matter. 
The latest 10-K actually provides a very good picture of the current projects of the company, the joint ventures for some properties, yet no particular guarantee that revenues would start flowing anytime soon. In terms, there are geological studies and past operations on some of the above company projects, which split shareholder opinions in two. Some use the estimates as a proof that North Bay is the one enterprise to invest in, while others simply state their reasons why certain projects are never to be profitable.
Speculations aside, North Bay hired a certified professional geologist a few weeks ago, which is usually a good sign since according to the company his duties would be to help develop a portfolio of viable mining projects in the Western US for consideration by North Bay. For this he would be paid with cash and shares.
Speaking about cash and payments, the company entered into a partnership for the acquisition of the Ruby Mine in Sierra County, California last year, for the purchase price of $2.5 million, which would be paid in stages until Dec. 30, 2012. The interesting part comes when a person takes a closer look at the balance sheet. According to it, as of Dec. 31st, 2010, the company had:
- total current assets of 56k; cash of $47k;
- total current liabilities of $879k;
- accumulated deficit of $10,3 million; [BANNER]
Now, while these figures are not uncommon for development-stage enterprises in the mining industry, a question comes to mind as to how exactly the company would fulfil its obligations to pay $2.5 million by the end of next year.
This question, coupled with others, serves as a main factor for the overall uncertainty that surrounds the company. While the present day situation on the stock market is more than positive, the long-term future of the company still cannot inspire the much needed confidence in investors.
