Hope this isn't another ASM Sitting, selling, buying or undecided, I would strongly suggest you take a look at the power the BCSC has in these matters. It is not Deadlock's article that is the risk to any selling. As he stated, it currently trades like a company with a 2 1/2 to 3 million ounce gold deposit. If they estimated 10 million ounces and it came in at half that, there is definitely more upside. Very few would dispute that.
However, what you need to be concerned with, is the report itself. And if you think it is a minor event, then take a look at Avino Silver the past few months and the first week of July in particular. ASM was suspended from trading on July 3rd. And for many of the same issues that are being debated here.
I am surprised Barkerville has not been suspended already. Maybe they won't be. However it is that risk that has many concerned. And rightfully so. I will hold a small amount in case that big deposit is validated and approved by the securities commission. But I will only hold what I don't mind risking a large percentage of or having halted for any extended period of time. Just in case.
I am most concerned that the company will not be able to properly validate these big numbers. That being the case, what is the outcome ? If they get halted soon like ASM did, what needs to be done to bring it back ? If they are allowed to keep trading but then the BCSC finds their new report does not validate the numbers, do they "then" halt it ? And pending what to get it to resume ?
WAY more risk here than I am comfortable with. I agree 110% with Deadlock's comments. The CEO and the two senior geologists involved should have used some common sense with this. The company could have forecasted lower resources. Maybe 3 to 5 million ounces. And everything would have hummed along fine. Instead they throw out this 10 million ounces and forecast another insane 60 to 90 million ounces. Why ? All they did was put everyone's investment at risk and caused irreversible damage to their own credibility.
If I was a long time sharholder of BGM I would be furious for two reasons. One, they took forever to finally issue a resource report. And two, they completely screwed up how they prepared and released it ! Don't be hating on the media, newsletter writers, posters on this board, etc. Redirect your anger at a CEO that should have known better. HE has put shareholders in this messy situation along with his senior geologist and the consulting geologist.
Sludge rolls downhill and there is a lot to roll here.
2012-07-03 19:41 ET - Cease Trade/Suspend Company
A cease trade order has been issued by the British Columbia Securities Commission on June 29, 2012, against Avino Silver & Gold Mines Ltd. for failing to file a new or amended technical report for the Avino property to support the company's disclosure of mineral resources and the results of a preliminary economic assessment completed March 12, 2012.
Upon revocation of the cease trade order, the company's shares will remain suspended until the company meets TSX Venture Exchange requirements. Members are prohibited from trading in the securities of the company during the period of the suspension or until further notice.