Barkerville Gold Mines (BGM-X)

He's owned this for a long time. Caribou gold project is uncovering good grades. This will get taken out as the bigger guys buy the little ones in this space to replenish reserves. He has even bought a little more of this stock. (Analysts' price target: $1.39)

This is sort of betwixt and between a small producer or a large exploration project. Until he sees the fruits of the most recent drilling campaign, a very aggressive one, he has a difficult time tying a deposit together. There is gold all over the place, but he hasn’t seen enough data to construct what he thinks of as an ore body.

The bad news is more historic. The original management team did a lot of drilling. Sprott took the company over. He hopes that modern exploration technology and an aggressive drill budget will lead to success.

Thinks that new people, Sean Rosen and the Osisko (OSK-T) people, have come in is very important. The system has a lot of gold in it, but it hasn’t been consistently/thoroughly explored. It is really going to feel the drill bit in the next 12 months. This is a great big system, but they don’t have the data to tie it together. The potential is gigantic.

His knowledge of this company is a few years back when he worked at Sprott Asset Management. Thinks there may be permitting issues. He likes the gold space in general which has a lot of momentum behind it.

This is going to become one of Canada’s highest producing gold mines. It is in BC with low political risk. High grade gold and they start production sometime this year.

(Market Call Minute) It is early days and will not produce gold tomorrow.

His partner is a senior shareholder. It has always been known as a location with superior exploration potential. He suspects the next 5 years will be much better than the previous.

New management was brought in and is very favourable. Eric Sprott holds 40% of the stock. They have tremendous grades which they can exploit. It can have a long way to go if gold goes up.

(Market Call Minute.) Wait to see the resource. He is dubious on this.

In the Barkerville gold camp in the middle of BC. BC securities commission raised some doubts about its gold claims and have requested additional information, which is probably what is keeping the stock underwater. Wait to see how the commission comes out and buy it once everything is clear.

It would appear that they have got themselves into a whole mess of trouble. There are a lot of questions as to what is going on here. He had concerns that the high-grade mineralization was not being properly constrained and therefore being blown out across the whole thing. Currently it is under Cease Trading order.