Bayfield’s Grades and Location Make It a Takeover Target
By Ted Niles
Bayfield Ventures’ Burns Block property is what you might call a no-brainer. It is surrounded on all sides by Rainy River Resources’ imaginatively named Rainy River Gold Project, which has resources of 3.4 million ounces gold measured and indicated, another 2.7 million ounces inferred, and is expecting results of a preliminary economic analysis by the end of the year. Bayfield Chairman and CEO Jim Pettit Says, “We haven’t produced [a resource estimate] yet, and I don’t think we’ll be around long enough. It’s one of those things. This is a potential mergers-and-acquisitions deal and a hell of a good gold story.”
Indeed, Rainy River might have already acquired the Burns Block—located in the Rainy River district of northwestern Ontario—were it not for the 2008 market crash, which forced a termination of its option on the property. Thus, explains Pettit, “[Bayfield] decided in April-May 2010 that we would just raise the money and start drilling it and prove the extension of their ore body as it moves west to east—it comes right across our property—and that’s what we’re doing.”
The decision has proved to be more than worthwhile, as Bayfield’s drilling has shown that while the main ore zone of the deposit tends toward low-grade gold and silver, the system contains many high-grade shoots the company is hitting time and again. Bayfield has nearly completed 50,000 metres of drilling on the Burns Block and has the cash to do another 50,000. Pettit elaborates, “We’ve got three rigs turning. Two of them are step-outs—we’re stepping out to the east gradually, in four picket lines of holes. One of them is doing definition drilling and infill drilling behind, because the system that runs through the region has these high-grade shoots throughout it. We hit these shoots, and they are just spectacular.”
June 27 assays of the Burns Block include 8.66 g/t gold and 57.67 g/t silver over 79.5 metres (including 60.05 g/t gold and 362.96 g/t silver over 11.2 metres), 0.79 g/t gold and 23.22 g/t silver over 60.3 metres and 0.64 g/t gold and 32.48 g/t silver over 13 metres. Of the first result, Pettit comments, “I’ve never seen a hole like that before. And that would be in [Rainy River's] pit, because it starts at 15 metres and goes to 95 metres deep. ” Assays of June 3 include 0.81 g/t gold over 77.3 metres, 1.56 g/t gold and 34.69 g/t silver over 12 metres, 0.46 g/t gold and 5.87 g/t silver over 44.3 metres and 0.51 g/t gold and 23.46 g/t silver over 27.4 metres. Bayfield has two other properties in the area—the B and C Blocks, which adjoin the east and west boundaries of the Rainy River project.
Needless to say, Bayfield has no ambition of taking the Burns Block to production. Apart from anything else, the very fact that it is landlocked by Rainy River would make it a rather difficult undertaking. “We’re just going to make it enticing enough,” Pettit declares. “That’s our goal, and we’ve got to create that value so they understand that they’re better with it than without it.”
We’re just going to make it enticing enough. That’s our goal, and we’ve got to create that value so they understand that they’re better with it than without it. —Jim Pettit
He continues, “Everything we’ve done so far is within 200 metres of our western border where Rainy River’s pit would normally end—they’ve got a pit plan that comes right up to the border. Their last resource deepened their pit by 50 metres, which generally means you extend the walls out.” He adds that because the Burns Block provides one of the only outcrops in a region that is largely swamp, the property would make an ideal location for a mill.
It would appear that the market shares Pettit’s confidence. After an exceedingly active trading week, Bayfield’s share price sits at $0.76—a rise of almost $0.20 from the previous week. Pettit concludes, “We’re doing what we said we would do—prove the overall extension of their deposit. The project is really going great. The phones are ringing off the hook.”
Bayfield Ventures currently has a market cap of $31.6 million, with 41.5 million shares outstanding. The company also has properties in Pickle Lake and Red Lake, Ontario.