Post by
Theseus10 on May 16, 2010 3:15pm
News
Tough one for BVG, going from an open-pit to an underground mining format and the associated rise in cut-off hurt the numbers quite a bit. I'd like to think the news was priced in, but I think there will still be a drop in the short-term. I can't see any significant rises in the SP until the new drilling is well underway. The risk has definitely gone up and the upcoming drill season will be pretty integral now, as the pressure will be on to delineate the high grade gold at HS Silver and hit on the other six targets. I agree with Kerb....knowing what they did, I'm surprised the movement to spinoff BVA. Who knows though.
Tentatively, I will still wait for the new program to start up and for results to start coming in likely. However, given the change in numbers, this makes BVG look like a lot less of a deal. There are quite a few other companies that have similar resource estimates, low Market Cap and valuation per Oz gold equivalent. The future exploration story still reads well but, in all, risk now is much higher.
GLTA,
T10