by Greg Klein | October 8, 2013
A cease trade order that lasted over a year ends October 9 as Barkerville Gold Mines TSXV:BGM stock returns to market. The company was slapped by the CTO in August 2012, one day after filing an updated resource estimate for its Cow Mountain project on SEDAR. The British Columbia Securities Commission, apparently lying in wait, found the numbers over-enthusiastic.
Although the stock initially spiked on the original June 2012 announcement, that event was followed by criticism, even scorn. One malicious story claimed that rescue teams were searching the Cow Mountain region for a geologist who had fallen out of a helicopter.
Ordered to re-do the NI 43-101 to NI 43-101 standards, the company engaged a new team, Snowden Mining Industry Consultants and APEX Geoscience, to work with the original geologist. They produced a radical revision that was submitted last May. Using a 0.4 gram-per-tonne cutoff, the study now shows a resource with shallow open pit potential including:
- an indicated category of 16.11 million tonnes averaging 2 g/t for 1.04 million ounces gold
- an inferred category of 44.66 million tonnes averaging 2.74 g/t for 3.94 million ounces
That compares with the June 2012 announcement claiming 10.62 million ounces indicated.
Maybe testing the bounds of imagination, not to mention BCSC patience, Barkerville’s June 2012 report had gone even further. It said the project’s Island-Cow-Barkerville trend had a “total geological potential” of 65 million to 90 million gold ounces.
The Snowden/APEX version omitted that claim.
Now satisfied, the BCSC lifted its CTO last July and Barkerville applied for TSXV reinstatement. Meanwhile the company’s flamboyant president/CEO Frank Callaghan continued his promotions, including a one-hour presentation at last month’s Toronto Resource Investment Conference. Around the same time he landed a $15-million loan from a company wholly owned by Eric Sprott.
Barkerville’s central B.C. properties cover 1,164 square kilometres and include the Cariboo gold project, the Bonanza Ledge gold project and the Barkerville Mountain/Island Mountain exploration targets. About 110 kilometres south, the company’s QR mine and mill resumed gold production in September, having previously operated between September 2010 and December 2011.
Barkerville’s website says that once its Cow Mountain resource is approved, the company “will choose its strategic direction moving forward.” At press time Callaghan hadn’t responded to a ResourceClips.com interview request.