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Mining Company Boasts 'Good Deposit Moving Quickly Toward Development'

Streetwise Reports, Streetwise Reports
0 Comments| December 14, 2018

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An iA Securities note reviewed the latest news about drill results and financings for this firm's Canadian project.

Click to enlarge

In a Dec. 6 research note, analyst George Topping reported that Barkerville Gold Mines Ltd. (BGM:TSX.V) announced "more high-grade hits" at its Cariboo project's Cow Mountain, however, recent financings have been dilutive to the share price. As such, iA Securities lowered its target price on the Buy-rated company to CA$1.05 per share from CA$1.40. Barkerville is currently trading at around CA$0.34 a share.

Topping reviewed results from the 63,000-meter (63,000m) drill program at Cow Mountain. Infill drill holes returned averages of 14.1 grams per ton (14.1 g/t) gold over 1.3m beginning 180m deep. "Today's results bring the overall raw average at Cow Mountain to date to 11 g/t Au over 1.4m at a depth of 218m before dilution ( about 6.5–7 g/t post mining dilution)," Topping indicated.

As for specific assays, one hole, CM-18-124, demonstrated 10.5 g/t gold over 7.8m starting at 209m down. This was down dip of a prior hole, CM-18-034, that showed 9.3 g/t gold over 2.7m. A second highlight hole, CM-18-128, intersected 24.1 g/t gold over 6.5m beginning at a 94m depth.

Topping explained the results also exhibit continuity of high-grade mineralization at Cow Mountain in the quartz veins and extensions down dip and down plunge, with vein corridors remaining open. "Continued infill drilling and a higher cut-off grade (4 g/t) should push the resource to a profitable roughly 7 g/t," Topping noted.

The analyst pointed out that despite the positive drill results, Barkerville's stock has been negatively impacted by the cumulative, dilutive effect of two recent financings. The newest of those transactions, which took place in November, was a CA$25 million capital raise. Earlier, in September, Osisko Gold Royalties (OR:TSX; OR:NYSE) acquired another 1.75% net smelter royalty (NSR) on Cariboo for CA$20 million, taking its total NSR to 4%.

Barkerville, however, remains focused on advancing the project, now working on updating its mineral resource. That is expected to be ready in Q1/19, followed by a feasibility study in Q2/19. Both reports "should be positive," wrote Topping.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Osisko Gold Royalties, a company mentioned in this article.

Disclosures from iA Securities, Barkerville Gold Mines Ltd., Research Update, December 6, 2018

Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

Analyst's Certification: Each iA Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst's personal views about the issuer and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analyst Trading: iA Securities permits analysts to own and trade in the securities and or the derivatives of the issuer under their research coverage, subject to the following restrictions. No trades can be executed in anticipation of coverage for a period of 30 days prior to the issuance of the report and 5 days after the dissemination of the report to our clients. For a change in recommendation, no trading is allowed for a period of 24 hours after the dissemination of such information to our clients. A transaction against an analyst's recommendation can only be executed for a reason unrelated to the outlook of the stock for the issuer and with the prior approval of the Director of Research and the Chief Compliance Officer.

The analyst has visited the issuer's operations. No payment or reimbursement was received from the issuer for the associated travel costs.

In the past 12 months, neither iA Securities, its officers or directors, nor any analyst involved in the preparation of this report have provided services to the issuer for remuneration other than normal course investment advisory or trade execution services.


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