Barkerville Gold Mns Ltd BGMZF

RE:RE:RE:Eric Sprott

[hammer161]

Don't you think it would be far better for the company and shareholders if BGM could pay back the loan in dollars from mining profits rather than shares? Mining operation have been so dismal that isn't happening. So far the overall dilution hit is on the order of 15% and all that has been paid back is the interest and PART of the first payment. So the rest of the first payment is outstanding and accumulating interest and a second payment is due soon (July I think) - and unless they get some more ounces at a good profit out of BL or issue additional share with additional significant dilution there is no way they pay that. If they do they would still need cash for ongoing operations and exploration - more dilution. Not a good financial situation from ANY point of view. Opinions go both ways - your side thinks that the resource report will bring huge stock price gains to eliminate this scenario - don't share that point of view. I don't think the resource gains, or increase in share price, if any, will be big at all - I don't give the geological potential number (the 90 Moz) any credence at all and don't think that the CM update will be that large as it includes second pass sampling on top of the exiting database. The grades and volumes on second pass will not give huge gains in resource tonnes or grade, in fact it may lower the global resource grade. IM is based on a lot historic data with some new holes that had disappointingly narrow widths and to some extent low grades as well. Most will probably be classed as inferred. What does it add up to? In my opinion over the long run BGM loses control to Sprott. Huge money is still needed to move whatever resources there are and the project to a higher level of study PFS or BFS and this will take a long time - many years. Remember this is not a greenfields project - the kind that gets the market really excited. It is a brownfields project of a high grade gold camp that has already seen a lot of exploration and production.