RE:The view from Stockhouse (no rose-coloured glasses there).
Barkerville hopes its money problems will lessen once it obtains permits to truck ore from its Cow Mountain gold project near Wells, B.C., to its QR mill near Quesnel. The drive is about 110 kilometres. In the meantime, Barkerville has started looking for custom milling opportunities.
I realize this is a Canjex story but am wondering where they might have gotten the idea that obtaining permits to truck ore from its Cow Mountain gold project near Wells, B.C., to its QR mill is an option.
Question 1: Does BGM have any permits for open pit or underground mining on Cow Mountain? I don't believe they do so another mining permit application cycle would be required.
Question 2: What is the typical life cycle for a mining permit application in BC? Well, it may not take as long as New Prosperity but I expect the time frames are on the order of years not weeks or months.
So, although I can see easily see Cow Mountain, with 1M + 4M oz of Indicated + Inferred gaining value when the price of gold resumes it rise, I don't see any relief for BGM's money troubles. Mining relief can only come from Bonanza Ledge which probably has enough ore to easily hit the current permit limits.
Question 3: How long will it take to extend current permit capacity limits and what is the status of such change requests?
Question 4: Would custom milling options include BGM milling ore mined by other operators? Maybe an artisan model that is sometimes used in South America?
Seems to me the only hope that BGM has a rising price of gold. Looking at past quarters of production, the pattern I see is one of the biggest bottom line losses occurred when there was top line revenue (i.e. production). It is a bit like producing widgets at a cost of $10 per widget, selling them at $5 per widet and then thinking you'll it all good by cranking up the production volume. I don't think that will work so well.
Maybe we need a new contest to focus everyone... what about something on total ounces produced in Q2 2014 and total ounces for all of 2014? Any interest?