My post 8/9/16 on CEO.ca https://ceo.ca/bmg?028c0f702d30https://ceo.ca/bmg?028c0f702d30
Going to ramble a little about gold stocks today.
DRILL PLAY: I was going to do a full blown write up on Battle Mountain Gold $BMG (h/t @dirkdiggler) but decided it was better to just provide the bits of research I've done so ppl here can do their DD and get in ahead of the drill results. A fully-funded 12 hole drill program starts next week.
Why $BMG is interesting: The Lewis project is on strike and adjacent to the 5Moz/1.75B lbs Cu+Ag Fortitude-Phoenix mine operated by Newmont. Newmont mined out the 2Moz Fortitude skarn deposit and is now mining the disseminated gold via open-pit. Barrick previously drill tested the Lewis project but most holes were shallower than 150m. The interpreted extension of Fortitude-Phoenix is below the Golconda thrust between Copper Canyon and Virginia faults. $BMG spent the last year doing geophysical surveys and re-logging holes to better understand and define the targets. Also interesting is that Gold Standard Ventures $GSV owns a 28%+ stake in the company and provides for 3rd party validation of the project.
I should add that $GSV exercised all their warrants in $BMG to buy down the 5% GSR on the Lewis Project ahead of the upcoming drill program. They also converted from Gross to Net royalty. They can buy down another 1% by paying $2.15m, half in cash and half in $GSV shares. The fact that $GSV shares are involved indicates to me that this royalty buydown provision was only recently negotiated. Further signals the prospectivity and that $GSV is very keen to see what lies beneath at Lewis.
$BMG some historic results:
Note that only the Southwest Peak was drilled (by Barrick) deeper than 150m.
fortitude type mineralization
Antler Peak Limestone in pit.
schematic showing Antler Peak Limestone/Golconda Thrust. Please note that $BMG's Virgin is east of the Copper Canyon Fault. The schematic below shows the Antler Peak Limestone/Golconda Thrust at depth in the hanging wall west of the Copper Canyon fault, which is only relevant to $PXA's El Dorado and Filippi projects. The Virgin, Buena Vista and Meager-Silver targets are much shallower. As you can see, the Antler Peak Limestone/Golconda Thrust is much shallower in the footwall (east of Copper Canyon Fault).
$BMG Fortitude pit looking south
There are a few other projects surrounding the Fortitude-Phoenix mine. Cibolan Gold $CIBG claims that the Wilson-Independence deposit immediately southwest and adjacent to Fortitude-Phoenix, contains 800k oz of high grade gold (skarn) and 300k oz of low grade disseminated gold (epithermal). They've gotten in trouble with the SEC for claiming that the ounces are NI 43-101 compliant.
Phoenix Gold $PXA (in the middle of business change) holds an option on Plumas, Filippini and El Dorado patents, together referred to as the Phoenix Gold projects, straddling the Fortitude-Phoenix mine. Here is a very interesting NI 43-101 technical report:
https://phoenixgoldresources.com/wp/wp-content/uploads/2014/05/NI-43_101_Phoenix-Gold-Projects-March-2014.pdf
Below is a claims map:
$BMG Lewis Project is in orange
$PXA Phoenix Gold Projects are in lime green
$CIBG Wilson-Independence Project is in pink
Newmont put two drill holes into El Dorado and never disclosed the results to $PXA. $PXA is a no touch because the team is incompetent, is out of money, has title issues on their projects, and is in the middle of a business change via RTO with a forest products company. $BMG