RE: Swimming with the Sharks - Lundin Refreshes BR Josa:
[S] I have added my own comments in red
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Lundin refreshes Brigus buy
2013-03-07 19:56 ET - In the News
Brien Lundin, in the February, 2013, edition of the Gold Newsletter, refreshes his buy of Brigus Gold Corp., recently 89 cents. Mr. Lundin said buy four times between August, 2010, and November, 2012, at prices ranging from 75 cents to $1.52. Assuming a $1,000 investment for each buy, the $4,000 position is now worth $3,401.
1. Brigus is drilling at its Grey Fox project in Timmins, Ont., with the goal of extending the 147 and Contact zones to depth.
2. Mr. Lundin says, based on assays from drilling below the 200-metre level, the company has an excellent chance of expanding the project resouce.
3. Grey Fox contains 480,850 gold ounces, indicated, and 91,061 gold ounces, inferred.
4. Recent assays include 67.2 metres of 3.4 grams per tonne gold and 35 metres of 13.97 g/t gold.
5. The gold bug says if future assays are consistent with these, then Brigus could build a profitable underground mine at Grey Fox, after depleting the near-surface resource by open-pit mining.
< S > It is my own speculation that UG access to the downfaulted ore block on trend with Ross and Hislop North is POSSIBLE via an adit/decline/ramp from an already permitted SAS (with a JV or other partneship) Hislop North pit thus obviating any OP stripping and permitting issues from attendant OP development. I reiterate ...all speculation of course.. DYODD. This way the higher grade can be explored & LH stopes developed earlier with minimal development....resulting in a quicker pay-back. BWDIK?? Combine the two properties for some serious BRD/SAS pps re-rating.
6. The company expects to release a feasibility study in the second half of 2013.
7. Mr. Lundin says the stock has fallen with the majority of junior explorers because of the current volatility of gold.
<S> Josa: BRD's recent pps shrinkage is the result of recent market activity be it manipulated by banksters/others or not. From the PDAC we learn that many of the T1's that would normally be interested in BRD in past mining cycles have "wasted" a lot of money on big bets in far away places paying huge premia, resulting in some serious writedowns. Meaning that they have little money left to take over NA juniors. All BRD can do is to focus on cost and grade control until a re-rating finally happens. The BRD recommendations of BNN at the PDAC is huge promotion; however the retail shareholder acting on this valuationédiscount are met with certain hostile activity by +é- four brokers apparently harvesting stops or other apparently unethical activity.
8. Buy Brigus, which carries a good value at current prices.
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