Barkerville Gold Mns Ltd BGMZF

Barkerville Gold is highly undervalued @ 26 cents.

[Czechlate]

Summary (from last analysis - 09/14/2014)

Barkerville Gold is highly undervalued. They have potentially 5 to 20 million oz (2 gpt) of gold in British Columbia, Canada with a FD market cap of $36 million (145 million FD shares at .26 cents). It is in a good location, and not in the extreme north where there are infrastructure issues. The risk with this stock is they are out of cash and have $14 million in debt. They need additional financing. In 2013 the stock was halted because they released a 43-101 resource estimate of 10 million oz at 5 gpt (surface) and created a firestorm. They are currently updating the 43-101, which should be out in early 2015. 

They have excellent properties on 300,000 acres. They have a mill and are producing about 25,000 to 30,000 oz per year from their high grade Bonanza ledge deposit. Then they have Cow Mountain, which is an open pit project with a pre-feasibility study. It currently has 1 million oz inferred and 4 million oz indicated, although current drilling will increase the indicated total substantially. Then they have Island Mountain with a target of 5 to 20 million oz based on preliminary drilling. And they have Barkerville Mountain which has 3 to 6 million oz based on preliminary drilling. Combined they are targeting 9 to 27 million oz of gold at 2 gpt. 

Management has not done a good job. They recently replaced their CEO and hopefully that will turn things around. However, they should have never got themselves into a debt situation with no cash flow. If they can survive, they have 50 bagger potential. 

Once they get some cash flow they have excellent growth potential. But they are an ideal takeover candidate for a mid-tier producer. They are trading for less than $10 per oz for future reserves. By the time they get Cow Mountain into production (around 2017), a mid-tier is likely to have purchased them for a very cheap price. From my experience, companies with assets like this rarely make into production without getting taken out by a larger company. I own the stock and don't expect to be disappointed.

https://www.goldsilverdata.com/company/70-Barkerville-Gold-Mines-Ltd.html