Barkerville Ceases Production The Barkerville website has been down almost 2 months. News releases regarding the recent $24M PP and drill results have been posted. But how many investors will have checked the MDA and Financial Statements on Sedar? Likely not many but this is the only source stating the company has ceased production.
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00005589
"During the period, the Company has also made additional staffing appointments to manage on site mining and production activities at the QR Mine and Mill. Subsequent to the period the Company has ceased production at the QR Mine and Mill due to normal winterization and care and maintenance. Resuming operations is dependent upon obtaining and meeting the conditions established in the necessary permits at QR and Bonanza Ledge. The amendments proposed for the QR Mines Act permit will require provisions for the permanent closure of the West Zone underground, the raising of the tailings dam at QR and provisions for a definitive plan to plug the leaks in the dam all of which the costs have not been quantified at this time"
Though Barkerville has received the permit to mine the open pit Bonanza Ledge they must now meet conditions to receive the required permitting to process such ore.
"The Company’s Mines Act permit M-238 for the proposed open-pit mine at
Bonanza Ledge was obtained on December 5, 2011. The Bonanza Ledge permit has a number of
conditions that must be met before production can begin including receiving amendments to the QR
Mines Act Permit and Environmental Management Act Permits at QR and Bonanza Ledge."
Barkerville's Current Liabilities are $14M, other Liabilities include a Converible Note of $4.6M, and Deferred Tax of $2.3M. Accum Deficit is $96.1M.
Barkerville's burn rate is $9.5M/quarter, including $6.1M Exploration Expenses.
Prior to the $24M PP Financing, Barkerville has $500,000 Cash. The $20M PP is expected to pay for the $5M acquisition of Mosquito property, $5.4M Procon termination payout, $4M liabilities owing such as Goldstream Mill acquisition payout.
It must be apparent to investors that Barkerville will be in need of another PP soon.
As far as GBN. I expect production for Jan/Feb is slightly lower than anticipated, at 4000 oz/month, with the developments occurring at Roy Lloyd. I would expect that flexibility of production levels has been slightly impaired due to surface drilling, the building of the underground platform, and underground drilling. Producing 4000 oz/month is still well above the 45,000 oz/yr guidance but will have to increase soon if GBN is to meet a 70,000 oz guidance following an April 30 year end.