Tag Archives: Osisko

Barkerville Gold: Quickly De-Risking And Undervalued

Barkerville Gold (BGMZF, BGM.V) is advancing it Cariboo Gold Project in British Columbia.  The Cariboo Project is a district-scale, massive land package loaded with gold mineralization (over 110 gold-bearing streams on the property).  Osisko Mining took operational control of the Project, with the transition beginning in mid-2015.  Chairman, Sean Roosen, took the old Osisko Mining’s Canadian Malarctic Project purchased for about $90,000 and developed it into what is now one of the largest gold mines in the world, selling it to Yamana/Agnico-Eagle in deal worth nearly US$3 billion.

BGM currently has a resource consisting of a little more than 3 million ozs of measured, indicated and inferred gold averaging 6 grams/tonne.  It also has an operating mine at the Bonanza Ledge/BC deposits which has been successfully tested recovering over 20,000 ozs of gold at a 91% recovery rate.  This is important for two reasons:  1) the mine will used to generate cash flow to help fund the massive exploration program in progress; 2) it confirms that the ore can be extracted economically at the current price of gold.

The current market cap of BGM using the 555.6 million fully-diluted share-count is US$194 million. It would be a mistake to dismiss this investment opportunity because of the high share-count.  The resource could easily end up at least 3-4x larger than the current 3 million ozs. with a production profile of 400-500,000 ozs of production  per year.  With a higher price of gold, this company has $1 billion market-cap potential. Even if there’s 1 billion fully-diluted shares outstanding at the time, that’s a triple from the current price.  That said, I can guarantee that Sean Roosen did not just invest another $1mm of his own money for only  a triple.

You can view a webcast presentation of Barkerville by BGM’s President/COO, Chris Loder, with intermittent comments from Sean Roosen by clicking on the link below.  The webcast is hosted by O&M Partners, which produces live management presentations of mining stocks for retail/high net worth/small institutional investors.  I have found these webcasts to be invaluable. I was invited to give brief opening remarks on gold and junior mining stocks  (note: you will need to fill out form with your name and email information – this will only be used by O&M to invite you future webcasts):

BARKERVILLE GOLD MINES Management Presentation

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You can learn more about Vista Gold and other highly undervalued junior mining stock in the Mining Stock Journal:   Mining Stock Journal information