Doug Casey on Bravo-Dec/2How High Will Your Gold Shares Go?
BRAVO VENTURE GROUP
(V.BVG, C$0.54, 52.6mm SO, C$28.4mm MCap, www.bravovernturegroup.com)
On November 21, 2005, Bravo Venture Group issued a rather terse press release,
announcing that their JV partner, Placer Dome U.S., has started drill testing at the South
Lone Mountain project in Nevada’s Cortez Trend. The federal permit for 32 drill sites
was approved on Nov. 14, and on Nov. 18 a reclamation bond was accepted. Two deepercapacity
drill rigs are scheduled to test targets on the pediment-covered bedrock shelf
where gold was found by Bravo in old oil well cuttings. A shallower-capacity drill is also
scheduled to test near-surface targets on the northwest margin of Lone Mountain.
The brevity of this press release belied the importance of what was being communicated.
For PDUS to start drilling on one of many long shots along the Cortez Trend with three
rigs is a highly unusual move. The 32 holes they have permitted for this first phase of
drilling is also an unusually high number. Bravo’s management says “[We are] not aware
of any other exploration project that has kicked off with three rigs.” We agree that PDUS
seems quite eager and are very much looking forward to seeing the results.
Of course, even though BVG has several other excellent lottery tickets turning in the
drum, this is the play that put them on the map this year. So, pulling blanks in this drill
program could knock them back substantially—especially if they twin the old oil well
and come up blank. We are already up 50 to 60%, so if you are the nervous type and get
anywhere near a double before the results are announced consider recovering your initial
investment and taking a chance on the results for free. Otherwise, hang on for the ride…
which could be dramatic if BVG and PDUS come up with the goods. The good news is
you shouldn’t have to wait long, as results from the aggressive drill program are expected
soon.