Short sellers take note. Barkerville Gold Mines Ltd. (TSX: V.BGM, Stock Forum) has set the stage for a possible resumption of trading in its stock by announcing a considerably more modest estimate for a British Columbia gold project that sent its stock rising to $1.67 in July 2012.
That was before the British Columbia Securities Commission (BCSC) and the TSX Venture Exchange stepped in in mid August, 2012 to halt trading in the stock amid concerns about the junior’s mineral resource estimates for its Cariboo gold property in central B.C.
Barkerville raised eyebrows when a technical report by consultant Peter T. George of Canmore, Alta., estimated that an area encompassing 10% of its Cariboo project could host up to 90 million ounces of gold, including nearly 11 million ounces in an area known as Cow Mountain.
This sparked complaints that the company was allowed to release such outlandish numbers and not be held accountable for weeks by Canadian regulatory authorities.
According to a new estimate, which was released on June 18, 2013, Cow Mountain is now thought to host an indicated resource of 1.04 million ounces, and an inferred resource of 3.94 million ounces.
The new estimate also says the area that was thought to host up to 90 million ounces, may contain between 9 and 27 million ounces.
In response to the BCSC review, the company says it retained Snowden and APEX to co-author the new technical report with previous author Peter T. George. Snowden and APEX are both independent mining and geological consulting firms that had not previously been involved in reporting on the property.
As for when trading in the stock will actually resume, BCSC spokesman Richard Gilhooley said it depends on how quickly the company files its application to have the cease trading order revoked.
Gilhooley said the application is necessary for any company that has been cease traded for more than 90 days.
For his part, Barkerville President and CEO Frank Callaghan was none the wiser about when trading will resume. “The CTO (cease trading order) is still in place,’’ he said in an email to Stockhouse. “Hope to have it off soon.’’
Prior to the cease trading order, Barkerville shares were priced at $1.22, leaving the company with a market cap of $132.9 million, based on 109 million shares outstanding. The 52-week range is $1.78 and 31 cents.