RE: BGM valuation + extension >bigbab: "market expectations are for 2.4M ounces on the upcoming 43-101 by snowden ...anything above is a bonus...."'
Extension: BGM's 2011 YTH was at 2,33$ at 5/31/2011:
At this time BGM did produce gold and had a resource of only approx. 950 K oz. The mean Goldprice of 2011 was lower at approx. 1400$/ounce. At 5/31/201 goldprice was about 1500$/ounce.
Now BGM is again a producer with much better outlook than before. From NR 1/18/2013:
QR Mine and Mill
Mr. Kevin McMurren, Mine Manager, reports: There are approximately 6,000 tonnes of ore in the mill stockpile remaining to be milled. Repairs have been completed on the secondary ball mill and as a result, throughput has increased. The detox circuit repairs have also been completed and chemicals are now being added to recover the gold from the leaching/CIP (carbon in pulp) circuit. In addition gold is being recovered through the gravity circuit daily. In a couple of days, the mill will ramp up from one 12 hour shift to two 12 hour shifts per day.
Roktek Services Inc. will start dewatering of the underground January 18th. This is expected to take less than one week. Underground mining will commence after the dewatering is completed. Two headings will be driven to two planned stopes. This will provide approximately 15,000 tonnes of additional mill feed.
The Company expects to be pouring gold dore bars in one week and to receive revenue from the sale of such one week thereafter. The revenues received from the sale of the gold dore bars is expected to provide additional working capital to the Company through April 2013.
Bonanza Ledge Mine
Mr. Tom Hatton Mine Superintendent for Wells reports; final clearing of the laydown area for Bonanza Ledge is completed and stump tub grinding for reclamation is nearing completion. Mining equipment including excavators, cats, trucks used at QR Mine for the dam raise were moved to Bonanza Ledge
From poster geobay Nov. 2012:
"Already happening is stockpiling pay-rock at QR Mill, part of a 10,000 oz/Au defined body easily mined, close to the mill. At 400 oz/week, MINIMUM OUTPUT (confirmed with mgt.), production of bars from this low-grade ore takes 6 months = $17,500,000 gross take.... but, if mill gets tweaked sufficiently, 600/800 ozs. a week is possible! After the QR ore is handled, it's a simple task to haul the Bonanza Ledge and Cow Mountain 1/3rd to 3/4s oz/Au/T ore to QR Mill for what will be a terrific cash flow demonstration and totally deflate these many nay~sayers who believe, as shorts they are, that this "penny dreadful" is going into the toilet! We won't be waiting long!"
Conclusion: At present (!) BGM is undervalued even with the official confirmed resource estimation of 950 K oz.
Former resource estimation:
Cow Mountain: appr. 600 K oz
Bonanza Ledge: 257.85 K oz
Island mountain: 92.61 K oz
Summary: 950,46 K oz
Best Regards, Fred