Barkerville Gold Mines Ltd are a gold focused junior near-term producer with three mines in development in Canada and four exploration properties. They have approximately 6.8Moz. of gold in the reserves and resources category of which 2.8Moz. are in the measured and indicated category. They have a market capitalisation of ~C$262.78M which is a rise of roughly 5% over the last six months. As of 06/30/2017 they have ~C$1M debt and ~C$39.56M cash. They have 393M shares outstanding and trade on the Canadian Venture Exchange and the over-the-counter markets.
Email from their Investment Relations in November 2013:
With regards to your question, Snowden are working on, and are close to having ready, a PEA for the Bonanza Ledge Mine. This is largely a reworking of a PFS that we had done in 2009 that was calculated with a $750 oz/au premise and with that price the project was viable and showed an IRR of 44%. Snowden have updated the costs and done a reconfiguration of the pit shell design to maximize ore content in the first year and we are proceeding with that design as we put Bonanza Ledge into production this month. We are permitted to produce 76,000 tons per year under our permit and should have that mined by the end of March 2014.
Snowden have calculated that we can expect to get about 30,000 oz/au from that tonnage so you can see it is quite a high grade open pit mine. It is our intention to start on the second year’s production as soon as we have produced this years. The original PFS gave a five year mine life but we have done considerable extra exploration drilling since then and the deposit is still open in two directions horizontally and at depth.
The major mine we envision for the project will be Cow Mountain, initially also open pit, and we have had done some scoping designs that then increase the original Cow Mountain pit into a super pit to enable Island Mountain production as well. It is the Company’s feeling that just the Island, Cow, and Barkerville Mountain’s potential would support a 1 million oz/au per year with a 20 year mine life potential; and these three hills are just a fraction of our land position in this area.
We have been involved in the permitting process for Cow Mountain for a couple of years now and we could be finished by 2017. The Cow Mountain Mine would also have a higher grade than many similar sized open pit mines now in production or just coming on stream. At over 2 grams/tonne it would be double the grade of that of Detour Mines or Osisko’s Canadian Malartic Mine.
I hope these answers have been useful and I will be happy to answer any further questions you may have.
Gold Price (last analysis) ($)
Silver Price (last analysis) ($)
Stock Price (last analysis) ($)
1 Yr Stock Price High ($)
Stock Price Change From 1 Yr High (%)
Stock Price USA 5-Year High ($) (including date)
$4.25 - 3/13/2006
Stock Price USA 5-Year Low ($) (including date)
15 Cents - 9/12/2015
New management team. Focuses on high grade underground mining.
CEO/Chairman: Sean Roosen (also Chairman at Osisko Mining and Osisko Gold Royalty
They have excellent properties in Canada, British Columbia. 500,000 acres.
Cow Mountain has 2.8 million oz indicated and 2 million oz inferred.
Island Mountain: Target of 5 to 10 million oz.
Barkerville Mountain: Target of 3 to 6 million oz.
I'm estimating that have 4 million oz of inferred based on previous drilling.
QR Mine: 17,000 acres. Past producing mine of 10,000 oz in 2011. QR Mill.
They released a 43-101 resource estimate in 2012 and it created a firestorm. They claimed to have 10 million oz at 5 gpt. This caused their stock to be halted in Canada for an extended period. A new 43-101 was released in 2015 with 4.8 million oz at Cow Mountain at 2 gpt.
They think they have 9 to 20 million oz at 2 gpt. If they have 9 million oz, this stock is going to do very well long term.
Once we get a pre-feasibility study for Cow Mountain in 2017 we will have a better idea of their direction.
They have $16 million in cash and no debt.
They plan to begin production in 2017 at 30,000 oz. The capex is only $7 million.
Shareholder Friendly (wag)
Likely to get diluted
Island Mtn and Barkerville Mtn and Cow Mtn
Ore Grade (wag)
Avg of about 2 gpt
They are drilling 50,000 feet at Barkerville Mtn in 2013 and 2014.
They are drilling 100,000 feet at Island Mtn in 2013 and 2014.
7/9/2017: Increased rating from 2.5 to 3 because they decreased in FD market cap.
5/19/2017: Decreased rating from 3 to 2.5 because they increased in FD market cap.
9/12/2015: Increased rating from 3 to 3.5 because they paid off their debt.
9/14/2014: Decreased rating from 3.5 to 3 because of debt issues.
10/18/2013: Increased rating from 3 to 3.5 after they got financing from Sprott and gave guidance to increase production. And began trading in Canada after a 1 year hiatus.
9/13/2013: Decreased rating from 4 to 3 because they stopped production and no longer have cash flow. Production is not likely to restart until 2016 or 2017. Because the stock was halted for more than a year, it slowed down the time until production and opened them up to a takeover.