For those not following – the comparison to Reservoir (RMC- TSX , $4.50) is very appropriate. Reservoir was the darling of PDAC last year and one of few stories of higher grade porphyries. Beyond the similarity in terms of intercept and grade, the differences between the two of us plays in our favor. Reservoir key discovery hole (266m @ 1.23% copper eq.) was in July 2012 and sent the stock on its way from change to multi-dollars -
If you look at their hole (~1700 meters in length):
1) they hit nothing until the ~600 meter mark which means they basically have ~600 meters of "overburden" (our mineralization – ie copper/gold starts within 20 meters of surface). That means they are 100% stuck into an underground mine whereas ours is likely to be open pit plus it also means we get a lot more in situ metal then them – ie larger resource)
2) they only hit mineralization until ~850 meter mark. The rest of the hole from 850 to 1700 meters is also barren (all our holes remain in mineralization to the end of each hole and beyond). That means that they have little to no upside. Their deposit is a flat layer 250 meters thick. The question is how wide. For us, the question is not only how wide but more importantly how deep. So far we have identified a 900 meter thick layer that remains bottomless. One can imagine the upside there.
3) their grade distribution is 80/20 Cu/Au in terms of value whereas ours is 50/50 Cu/Au. What does this mean? Well that probably only base metal players will look at their deposit in terms of a takeover whereas we've got the door open to precious metals players as well. Now the market favors copper over gold this year but if gold rallies, watch out as we have a gold deposit with a copper by-product rather than the other way around should gold prices rally.
All-in-all, I would say:
> grades are similar at similar depth (1% Cueq at 500-800 meter depth)
> BG has economic/copper gold between the high grade layer and surface (they do not)
> BG hasn't delineated the bottom of that layer (they not only have determined the bottom of the layer but also the bottom of the deposit)
= BG has upside ,i dont think they do!
do your own research
general kesef