Barkerville Gold Mns Ltd BGMZF

"GOLD REPORT" Q&A ON BGM

[delazus]

SELECT GOLD STKS FOR NEAR TERM ACTION

Magna Opportunity Fund

BO CHEW

Source: Zig Lambo of The Gold Report (3/7/12)

TGR: Can you tell us about some of the companies you particularly like at this point and what you're expecting from them in the next couple of years?

BC: One of those would be Barkerville Gold Mines Ltd. (BGM:TSX.V). Barkerville is a $90M market-cap company with 117,000 hectares in the Cariboo Gold Belt in British Columbia that has produced 3.8 Moz of gold historically. It has seven past-producing mines; three gold deposits, including the QR Mine and a 900-ton-per-day (tpd) mill; and recently permitted the Bonanza Ledge Mine. I like this particular company because there's been a lot of gold produced in this area. It has really beefed up its advisory team and insiders own about 10%.

In 2012, Barkerville intends to process ore from Bonanza Ledge to produce about 20–30,000 ounces (20–30 Koz). At $800/oz cash cost and $1,700/oz gold, operating cash flow will be between $18M and $27M. There is potential to develop additional mineable reserves at the QR Mine to boost that production to 50 Koz in 2012. It's waiting for results on 33 more holes. One hole at Cow Mountain returned 52 meters of 14.2 grams/ton (g/t) gold. Within 24 months we would expect over 100 Koz of annual production. At a conservative $3,000/oz, we've got a $300M value to the company, which triples its $90M market cap.

TGR: Well, those are pretty substantial numbers.

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The above info was an xcerpt from BO Chew

interview by "GOLD REPORT".

Rgd`s, delazus