BJORKDAL, Sweden – “Battered Honduras gold piker now steady Sweden miner” is the headline CEO Glen Dickson puts on his overlooked Gold-Ore Resources.

We are this week touring Gold-Ore Resources’ Bjorkdal Mine in Sweden. The pull for value investors, including a fresh 10 percent Toronto accumulator of the stock, include declining operating costs (as in, kicking out most of the mining contractors) and exploration that easily could double mine life to 10 years and boost its one million-ounce (all categories resource.

Gold-Ore (TSX: T.GOZ, Stock Forum) just produced a one millionth ounce of gold from its longstanding mine here, not far from the far-north town of Skelleftea. The once-Honduras prospector that director Ron Ewing launched in 1997 likely will earn $8.2 million in its fiscal 2010 year, or 10 cents a share.

The Canada-operated company, as it lowers operating expenses for the (until now) mostly contracted mine under the stewardship of President Robert Wasylyshyn (in photo with mine map), will quadruple in stock value in six to nine months. There are no fresh veins at the open-pit and underground mine needed for this to happen. Quarterly output from the 22-year-old Bjorkdal Mine is rising steadily every three months.

Yearly output at Bjorkdal could double to 80,000 ounces by 2013 (my estimate) with precision engineering, improved recovery methods and Scandinavian mojo. Bob Wasylyshyn is with us at the mesothermal deposit this week. “My goal is to get to at least 60,000 ounces at the least … in 1997 the high was 93,000 ounces for the year,” the 55-year-old geologist says.

Toronto’s Resolute Funds, a value seeker for mining stocks, is “at least 8.4 million shares filed and climbing,” Mr. Dickson, Gold-Ore’s CEO and also a geologist, tells me.

What brings me here (before two autumn trips scheduled back to Antioquia in Colombia starting next week) are points hammered home to me by Patrick Abraham (pictured here with rock), whose Panama brokerage controls more than five percent of Gold-Ore shares.

Gold-Ore Resources appears priced at a three-year mine life when Bjorkdal’s life looks set to run 10 years or more. Yearly gold output is running at a 44,000-ounce pace as of the August quarter.

Market cap of $50 million Canadian is less than one times yearly revenue. The company has no gold hedges against production.

• $10 million in the bank, no debt and a fully-owned operation whose replacement cost for a technologically advanced mill and other facilities is $50 million.
• A gradual transition away from contractors who “just do things their own way, which are not our way,” says Bob W. “We are getting the elephants out of the room.” Full-time employees at Bjorkdal, some 600 kilometers north of Stockholm, number 60 (with contractors it is 150-plus workers here.)
• New quartz-streaked veins – we can see them everywhere here – almost surely will boost grades and in turn lower operating costs to $650 an ounce or lower from about $720 an ounce. “We have lots of ore tied up in the stopes, and our previous contractor drilled these way too wide for our tastes,” Mr. Dickson says. At least 50 veins are what he says are “exploitable.”
• Gold at €1,000 per ounce (euros) makes this yet another reason I am here this week. If the euro were to decline against other currencies, primarily the USA and Canadian dollars, Gold-Ore’s operating expenses would slide, making for thick gross profit margins.

We just saw Glen Dickson and director Ron Ewing off to London this morning for the start of a six-city tour of asset managers and brokers. Gold-Ore just published what appear to be exemplary production and recovery data.

Mr. Abraham, a director of our Ticker Trax Planetary Prospect Bellhaven Copper & Gold (TSX: V.BHV, Stock Forum), accompanies me on this Sweden visit. Patrick, son of the late newsletter writer Larry Abraham, owns about five percent of GOZ shares, along with clients of his brokerage. (Gold-Ore insiders, led by Bob W. and Glen Dickson, own about 10 percent of the company.)

Bob W., Gold-Ore president, is also a Bellhaven director. As we tromp across an open pit that has two million metric tons of 0.6-gram gold, Bob leads us toward one of several entrances to 18 kilometers of tunnels, all dug out by Gold-Ore. “We see a $90 per ounce savings in operating cost just for bringing in a new contractor and doing our own stoping,” he says.

Bob W. is second in command on the executive chain. He is the most plain-speaking, data-enriched and pragmatic miner/prospector I have done business with since Dr. Paul Zweng of Bellhaven, my ultimate Colombia and Panama gold-copper prospector.

“I know of your reputation in the industry, Thom,” Bob W. says, and I think, Hmmm, am I about to get dinged once more for regulatory events that shut me down—for good reason -- in the commodities melt-Up of 2003? But no, Mr. Wasylyshyn is referring to my roles as a co-creator of MarketWatch.com and as a project-specific researcher and reporter for Canada’s Stockhouse and our Ticker Trax paying audience.

“Our Bjorkdal deposit is in the super-safe jurisdiction of Sweden and our deposit is expanding faster than the mining,” he says. “We have not hit the edges of the ore body in several directions. We are wide open to take this for another 10 or 20 years.” (Photo above: Patrick Abraham, longtime shareholder Derek Williams, Bob W. and Ron Ewing at the open pit this week in Sweden.)

What I like about Bob W. (and his team here) is the same reason that drew me to Bellhaven’s Dr. Zweng when he was developing QGX in Mongolia eight or so years ago. He gives the possible melt-Down possibilities equal time. “Every story has two sides, as you well know,” he says. “Our other side is the cost of production and we are dealing with that. We use an underground contractor for mining and his costs are significant.”

Gold-Ore’s board in May dealt with the sticky tasks of purchasing fresh mining equipment and becoming “much more owner-operator oriented,” as Glen Dickson, CEO, tells me just before hopping that flight to London. “We are making adjustments to our mining methods to reduce dilution, to boost grade.”

I could go on (and will in future reports). The takeaway is that Gold-Ore Resources is 10 percent into a process for optimizing its underground mining, its area exploration and its open pit. That is vast upside for an operation that already achieves almost 90 percent recovery rates on its ore. “It is what we put into the plant (which is superb, with innovative ABB electronic controls and a KNELSON Concentrator) that matters here,” Bob W. says as we pour 20 kilos of 65-percent gold ore (almost $500,000 worth) into buckets that will be shipped to a Germany processor (Please see photos – all by Thom Calandra.)

This is the third of several reports from Bjorkdal. The first ones already are in the hand of Ticker Trax subscribers. I own 12,000 shares of Gold-Ore Resources.

NOTES: Searching for dirt-cheap Colombia gold and copper prospects? The new Gran Colombia Gold (TSX: V.GCM, Stock Forum) looks fairly valued or less than fairly valued when compared with several other junior prospector-miners in that nation. Please see technicals. … Batero Gold (TSX: V.BAT, Stock Forum) in Colombia is also “new” as a stock but appears to be rich in terms of its $50 million to $55 million stock price when viewed against a primary holding at Quinchia near El Marmato, some two hours outside the city of Medellin. Brandon Rook, Batero CEO, has not been back to me on my general queries for weeks and weeks. Batero stock is still in its non-free-trading period. The shares look poised to decline when they come free trading later this year. Still, I know geologists who tell me that Batero’s porphyry Au-(Cu) deposit in the mid-Cauca Belt of Colombia is promising. … In contrast, Gran Colombia Gold, Serafino Iacono’s new company, has at least five confirmed property irons in the fire, including working (and producing) projects at the once prolific Frontino Mine at Segovia and at Zancudo next to Sunward’s Titiribi. Slightly larger market worth than Batero. Please see more. … This just in from Ian G. Park of Seafield Resources (TSX: V.SFF, Stock Forum), which is next to Medoro’s (TSX: V.MRS, Stock Forum) El Marmato and to Batero’s Quinchia property in Colombia, not far from the gold-dusted Antioquia: “Seafield is an older company with quite a bit of stock outstanding,” says Park, a financier from Toronto who has been active in Colombia since the 1990s. This is the same decade served there by CMJ’s Bob Carrington, by Fino Iacono and by Continental Gold’s (TSX: T.CNL, Stock Forum) Bob Allen and three other pioneers I know personally. “Seafield has almost 6,800 hectares of ground compared to Batero’s 1,400 ha.  There are quite a few porphyries in the cluster and most are on Seafield’s ground. We also have 776,000 inferred to date on Miraflores, where we are currently drilling 3,500+ metres.  Next to be drilled is Dos Quebradas North, which has historical resources around 800,000 ounces. I think that the buy is Seafield, with more liquidity and compared to Batero should be at least a double.” That is Ian speaking … not me.

THE NOVEL: It’s here, complete and for your reading pleasure: PABLO BY NUMBERS by Thom Calandra. It’s about the world of natural resources … and pain … and joy.

NEW ORLEANS & SF: This autumn I will be making two or three appearances outside of prospect tours. One of them is in New Orleans, where I appear each year at Brien Lundin’s New Orleans Investment Conference. On the conference scene, there are only two this autumn where I am scheduled to present workshops: San Francisco and New Orleans. A third possible is the Oct. 6-8 Medellin Metals Trade Fair in Colombia.

If you’d like to join our Stockhouse and Ticker Trax audience at the late-October New Orleans show, please register and pay up at this link: REGISTER FOR NEW ORLEANS. You get a discount on the price at that address. It’s my favorite investment show – along with the longstanding San Francisco Hard Assets conference in November, when I will be presenting a workshop on structural geology – as a reporter, not a geologist.

Ticker Trax™ started in November 2008. The service researches a select group of Planetary Prospects™ with legitimate shots at rising significantly in the span of two years, maybe less and maybe more.  It is at www.tickertrax.com.

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All photos by Thom Calandra. Thom and his family own shares of each of the 12 Planetary Prospects. Thom’s personal holdings are available for all to see on Stockhouse, the Canada publishing company. Subscribers are informed well in advance of any shift in research regarding Planetary Prospects and any purchase or sales decisions.

Ticker Trax™ For an index of free Thom Calandra articles, please click here. For an entire explanation of our strategies, research methods and disclosure procedures regarding all aspects of Ticker Trax and our Stockhouse reports, please visit our readily available Stockhouse articles. Please see this one in particular: Core Box Revealed. Thom Calandra’s on-site tours of properties are paid in part by the hosting companies and in part by Stockhouse and Thom Calandra. For the password-protected Ticker Trax library, please see: www.tickertrax.com/Login.aspx.

HOLDINGS: Thom’s holdings are listed for Stockhouse members at www.Stockhouse.com under the “portfolio setting” for user TCALANDRA. It is public and free to view. He and his family own recently minted gold and silver coins and shares of about 30 public and two private companies.

THOM CALANDRA of Ticker Trax helps his audience find value in a quagmire of investment choices. Thom co-founded CBS MarketWatch and MarketWatch.com. As the voice of Thom Calandra's StockWatch and The Calandra Report, Thom pegged $300-ounce gold as a long-term hold in 1999 and in 2000. He has been covering life-sciences and natural resources since 1988. Thom Calandra and Stockhouse produce this and other free reports. Please visit www.Stockhouse.com. Also, see: PABLO BY NUMBERS – The Novel.

Ticker Trax™ is published by Stockhouse Publishing Ltd.  Ticker Trax is an information service for subscribers and neither Stockhouse nor Thom Calandra is a broker or an investment advisor. None of the information contained therein constitutes a recommendation by Mr. Calandra or Stockhouse that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Ticker Trax does not purport to tell or suggest the investment securities subscribers or readers should buy or sell for themselves. Subscribers and readers of Ticker Trax should conduct their own research and due diligence and obtain professional advice before making any investment decisions. Ticker Trax will not be liable for any loss or damage caused by a reader’s reliance on information obtained in the reports. Subscribers and readers are solely responsible for their own investment decisions. Opinions expressed in Ticker Trax are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in Ticker Trax should be independently verified. The editor and publisher are not responsible for errors or omissions or responsible for keeping information up to date or for correcting any past information. Ticker Trax does not receive compensation of any kind from any companies that may be mentioned in the report. Any opinions expressed are subject to change without notice.  Owners, employees and writers may hold positions in the securities that are discussed in Ticker Trax.  PLEASE DO NOT EMAIL THOM SEEKING PERSONALIZED INVESTMENT ADVICE, WHICH HE CANNOT PROVIDE.  Copyright 2010 all rights reserved.