Barkerville Gold Mns Ltd BGMZF

The Gold Report January 20, 2014: a chapter about BGM

[Flintstone60]

Ian Gordon on https://www.mining.com/web/the-longwave-winter-of-ian-gordons-discontent/ about the current situation of Gold, mining and also BGM:

Here the chapter about BGM:
TGR: If gold stays at around $1,200/oz, Schodde expects about $1.3 billion ($1.3B) to be spent annually on exploration in Canada. You help exploration companies arrange financing. How did 2013 compare with 2012 in that regard?

IG: Both were difficult years. Many junior mining companies are fighting just to survive. Toronto, the principle financial hub for the mining sector, was to a large extent put out of the financing game because the gold funds were experiencing significant redemptions and had to sell positions to make those payments. There was no money for financing.

I've noticed that Europeans and Americans along the eastern seaboard remain pretty active in financing the juniors. Europeans understand gold and they understand that paper currencies are in serious trouble.

I suppose my biggest contribution to financing last year was helping Barkerville Gold Mines Ltd. (BGM:TSX.V) raise a $15 million ($15M) gold loan through Eric Sprott.

TGR: Barkerville had issues crop up in 2012 that carried through 2013. Have they been resolved?

IG: Yes. The British Columbia Securities Commission lifted the cease-trade order on the company in 2013.

There were 14 months when the company could not raise capital, but continued to spend money. Snowden Mining Industry Consultants was brought in to do a new NI 43-101. That took time, but the numbers are not hugely different from the numbers that Peter George and Geoex originally came up with. The capped resource is 5 million ounces (5 Moz) and the potential is much larger than that.

I'm extremely bullish on Barkerville Gold Mines. I have visited the property several times and believe Barkerville could become one of the world's biggest gold deposits at a really good grade of something like 3 grams/ton from surface.

TGR: Is Barkerville drilling now?

IG: First, the company is following Snowden's recommendation to use metallic screening to redo assays because the deposit is nuggety. As a result, we expect a possible 20% bump in the resource.

Second, a lot of the drill holes done through visual inspection were determined to be barren, and were not submitted for assay. Now, Barkerville is assaying those drill holes. That could produce another bump in the resource. In addition, a lot of the Inferred will probably be moved into Indicated and some of the Indicated could even be moved into Measured