Lawrence Roulston - FebruaryYes slightly old article. However our sp is down to where it was when he recommended the stock.
BC Gold Corp. (BCG-TSX.V)
BC Gold has numerous exploration projects in British Columbia and Yukon, including a past producing gold mine. The company is working toward a resource estimate for the gold mine, and is also advancing its various other pro- jects. Joint venture partners are providing a share of the funding.
The company has a highly experienced management and exploration team. Brian Fowler, president, has more than 30 years of experience as an exploration geologist, having worked with both ma- jors and juniors. Directors and advisory board members bring an enormous amount of mining industry experience to the company.
The company’s Engineer mine on Tagish Lake in northwestern British Columbia was discovered in 1899 and operated intermittently until 1952. The property was explored off and on from the 1960s through the 1980s. Develop- ment work and limited mining occurred in the 1990s.
BC Gold optioned the property in 2007. They have earned a 60% interest under a deal that allows them to acquire 100%. The final 40% can be acquired for $600,000 in cash or shares. The company also has an option to earn 100% of the surrounding property. For the first time, one company controls the entire property and is conducting a comprehensive geological review.
Over the past couple of years, BC Gold compiled the decades of historical results and conducted further drilling. Those results are now being worked into a resource estimate, due for completion in the next few weeks. The company estimates a target size of 100,000 to 150,000 tonnes at 8-12 grams per tonne (26,000 to 57,000 ounces). A fully permitted 25 tonne per day mill is in place and underground workings are accessible. Additional drilling is planned in order to extend the known mineralization. Further underground rehabilitation will support mining of a bulk sample and perhaps the start of mining. Other targets on the property will also be tested this year. The present resource is very small, but with near-term production potential, it could partially finance a larger exploration program on a property that has larger-scale potential.
BC Gold has several other exploration projects in BC that will see work over the summer. The company has earned a 50% interest, with an option to go to 70%, on the Voigtberg property in northwestern BC. The property is located 20 km west of highway 37 and just 5 km north of the Galore Creek access road. Work to date, including 11 drill holes, suggests the presence of a copper- gold-moly porphyry system.
BC Gold discovered a new porphyry copper-gold occurrence on the Sickle- Sofia property, just north of the Kemess mine of Northgate. That project and several other early stage projects in BC are being offered to potential joint venture partners.
BC Gold has an extensive property position in the Yukon. The company has a 100% interest in 17 properties in the Carmacks copper-gold belt in the south- western part of the territory. The company is the largest property holder in that district, which encompasses Capstone’ s Minto mine and the development stage Carmacks project of Western Copper. Minto is one of the highest grade open pit copper mines anywhere, and has more than a billion pounds of reserves and resources.
The company staked the properties in early 2006 based on results of previous work in the area. Two joint venture partners are active and the company is seeking further partners to fund work this year.
The Yukon properties have yet to produce results that would impress investors. The results of the historic work suggest that there is a great deal of potential. With one mine in operation and a second set for development, the area is becoming increasingly important. Even modest success by BC Gold could generate a valuable satellite deposit for a nearby mine. The presence of two large copper deposits in the trend supports the potential for a large discovery.
The package of a mine headed to production, a strong exploration team and several high potential projects makes this company attractive at the current share price.
Price February 18, 2011: C
.115 Shares Outstanding: 82 million Shares Fully Diluted: 106 million Market Cap: C$9.43 million Contact: Investor Relations 604-646-1589
www.bcgoldcorp.com