BARKERVILLE GOLD M NEW COM NPV (OTCMKTS:BGMZF) shares started to rally in anticipation of the news about the Bonanza Ledge Deposit, and on March 24th they took their last look at $0.34 cents, and doubled in price testing the $0.70 cent level during this week’s trading action. This was done on big volume passing the 1.5 million share mark.
The driver for the rally came in the form of the permit amendment process required by the Mines Act (British Columbia ), and and the company received the required permits to begin the development and mining of the Bonanza Ledge Deposit on Barkerville Mountain near Wells, British Columbia. Mine development is expected to begin immediately, with processing of the mineralized material expected to occur approximately three months thereafter. Bonanza Ledge mineralized material will be processed at BGMZF’s 100% owned QR mill facility located 110 kilometres from the deposit by road. The mill and tailings facilities are currently permitted and operational. The Bonanza Ledge mine is permitted to produce up to 150,000 tonnes per year.
BARKERVILLE GOLD M NEW COM NPV (OTCMKTS:BGMZF) President and CEO, Chris Lodder comments: “This initial production is important to our growth plan in the Cariboo Gold Project. In addition to generating positive cash flow, this underground operation allows BGM to train a local workforce and gain expertise in mining and processing in the district. This experience will assist in the development of other deposits in the camp and the eventual construction of a new centrally located processing facility. In conjunction with this production, BGM’s aggressive exploration program continues and will eventually lead to a property scale mineral resource estimate.”
As a follow on to the previous announcement the company said an updated mineral resource estimate for Barkerville Mountain at the Company’s flagship Cariboo Gold Project was in hand. The undiluted and in-situ mineral resource estimate incorporates the Bonanza Ledge and BC Vein deposits reported at underground cutoff grades.
The updated mineral resource estimate is supported by a new understanding of geological controls on gold mineralization at the Cariboo Gold Project developed by the Company’s technical team. In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects, an updated technical report for the Cariboo Gold Project will be filed within 45 calendar days of this disclosure.
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Lodder commented, “These mineral resources on Barkerville Mountain are anticipated to support our recently announced initial underground operation at Bonanza Ledge on Barkerville Mountain which received all required permits as per News Release on April 4 , 2017. BGM targets a mine life of just over 2 years from Bonanza Ledge and 2 further years from the nearby BC Vein. After completion of mining of these two deposits, we aim to have a new larger milling facility on site provided results at the larger targets we are presently exploring justify the facilities. Mine development is already initiated with mining contracts having been awarded and all required mining equipment delivered and assembled at site. The Company has also began commissioning its 100% owned and fully permitted QR mill with low grade stock pile. Processing of material from Bonanza Ledge is expected to begin in July 2017. The Company will provide regular operational updates as production advances throughout the course of 2017. At the same time, we continue to aggressively explore with eight drill rigs on Island Mountain and the Valley Zone between Cow and Island Mountains. The objective of this drilling campaign is the definition of a larger resource to support our principal business objective which is to develop a long life, low impact mine with a new on site processing facility.”
The 2017 mineral resource for Barkerville Mountain was created in GEMS software using 3D block modelling and the ordinary kriging interpolation (OK) method. The resource area measures 1,525 metres along strike, 250 metres wide and 500 metres deep. The resource estimate is based on a compilation of historical and recent diamond drill holes and wireframed mineralized zones constructed by InnovExplo Inc.
The diamond drill hole database contains 659 surface diamond drill holes and 109 underground drill holes. A selection of 680 holes was considered for the resource estimate. From these, a subset of 496 holes (436 from surface and 60 from underground) cut across the mineralized zones. The database also contains 7,688 production blast holes, which were used as guidelines for interpretation purposes only.
Barkerville’s stock price cannot remain parabolic, it will pull back, and it should, and expect this to be in the .50 cent range for sure. It is nearly impossible that stocks rise this way with repercussion – so expect volatility and volume – as the company gets their footing at Barkerville Mountain. For continuing coverage on shares of $BGMZF stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!