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Barkerville Gold Mns Ltd BGMZF

Barkerville Gold Mines Ltd is a Canada based company operates in the business of Gold. It is engaged in the production and sale of gold, and the exploration, development, and acquisition of mineral properties in British Columbia. The mineral tenures cover approximately 2,000 square kilometres. The company primarily holds interests in Cariboo Gold Belt District, Island Mountain, Cow Mountain and Barkerville Mountain.


OTCQX:BGMZF - Post by User

Bullboard Posts
Comment by ovison Nov 19, 2012 1:08pm
259 Views
Post# 20618234

RE: RE: RE: RE: This is no Rubicon

RE: RE: RE: RE: This is no Rubicon

cobalthead, Sherrit? S.TO? Not really a gold or silver interest so I have no interest. Besides, I like to keep my options open for crossing the US border and holding shares in a S.TO with its huge interest in Cuba is a non zero horrible risk.

 

If Snowden says the ounces are there, at grade then we can talk valuation. Rubicon gets a well deserved high grade premium because are 10km away from the very best Canadian gold mine ever, Campbell/Redlake.

 

I doubt many other camps in Canada are going to get a Red Lake valuation. No, for BGM, I'd say a much better comparable is San Gold which is getting about $80 EV per ounce of gold resource. San Gold is in production and has many issues behind them, so I'd expect BGM to be further discounted to say roughly $50 per ounce to account for development risk and issues still in front of the company. 

 

So $50 per ounce * the Snowden Resource Ounces (Inferred + Indicated) is my guesstamite for BGM's fair market valuation. If after the CTO, the stock prices dips below that fair market valuation, I will probably take a small position. I would never in a million years short a junior that is potentially sitting on 10M oz of gold.

Bullboard Posts