Ian's latest comments on BGM and how GCC is tied into this.
Let’s look at Golden Cariboo (GCC’H/V), which appears to be forecasting a significant upward price move from two different perspectives.In addition to its mining property assets, Golden Cariboo owns 2 million shares of Barkerville Gold. Most of you will know that I am very bullish on Barkerville, because I believe the company has a very large deposit as outlined by Peter George in his NI 43-101.That report must be vetted by Snowden and we are awaiting Snowden’s report. It is difficult for me to envisage that the report will differ significantly from the Peter George’s original NI 43-101 numbers, which uncapped were a total of 12 plus million ounces indicated and inferred and capped 7.5 million ounces with an average grade of about 4 grams per tonne. By themselves, these numbers constitute a very large initial deposit in just one area on Cow Mountain alone. Peter George estimated that the combined gold potential on Barkerville, Island and Cow Mountains is 40 to 90 million ounces.
Even if the Snowden report reduces Mr. George’s resource numbers and the grade by 20% and the potential numbers by 50%, the numbers are still very large – 9.6 million ounces uncapped indicated and inferred and 6 million ounces capped indicated and inferred, grading an average of 3 gms/t. Under my assumptions, the potential resource would be reduced to 20 – 45 million ounces.What is Barkerville worth if the numbers I have assumed are reasonably close to the numbers which Snowden will publish? I calculate 6 million ounces and the very large potential ounces are likely worth a share trading value of $100 (U.S.) per ounce ($600,000,000 U.S.), which when divided by the number of Barkerville shares equates to a value of $5.55 (CAD) per share. Thus, Golden Cariboo’s Barkerville shareholdings would equate to $11,000,000 (CAD) or $1.00 (CAD) plus per share. These very large resource numbers would likely make Barkerville a takeover target. Given some recent history of gold company takeovers, the potential takeover price would likely be between $300 (U.S.) to $400 (U.S.) per ounce or $1.8 billion (CAD) to $2.4 billion (CAD), which is equal to $13.10 (CAD) to $17.50 (CAD) per share. Value to Golden Cariboo would be $26.2 million (CAD) - $35 million (CAD) or $2.38 (CAD) per share - $3.18 (CAD) per share. The Monthly price chart of Golden Cariboo indicates a major price move to the upside is in the offing. This is determined by the pinching Bollinger bands. The closeness of the bands are indicative of a basing pattern that has been taking place over several weeks or months. The move out of the pattern is generally explosive, as I shall demonstrate to you below. There is never any advance indication regarding, the pinching Bollinger bands have been ongoing since February 2010.
I might add that the Monthly chart of Barkerville Gold shows a similar pinching Bollinger band pattern, which has been ongoing since April 2007 and that’s a very long time. We should expect that an explosive upside price move is coming shortly in both Golden Cariboo and Barkerville Gold Mines.