From another poster (elsewhere) once again:
Lets do some math
BCG has 14,000 tons grade 51 gpt. That means we have the potential to achieve roughly 1300-1500 oz of gold per month. At $2500 an ounce because we all know the economy is not poised to correct itself in 2012. Come spring 2012 BCG could be reporting 3.25-3.75 million in monthly gross earnings. By the end of first 12 months production BCG is poised to earn 39,000,000 gross assuming $2500 gold. The company has lots of information and confidence that these tons and grades can be obtained. This isn't a matter of if, just a matter of when and the when appears to be September. If the company feels as though it can push the drill program to next year, that means they are confident with what they have seen with this program and do not see the need to drill the bulk zone while the concentration is put forth to ramp up production. It would not surprise me to see the 1500m drilling program expanded with the infusion of non diluting capital BCG stands to earn in spring 2012.
Based on these forward looking statements BCG is significantly under priced at a 9 million dollar market cap. Century mining is a small scale producer. They have gold procution next quarter expected to be 8,000oz. They have a market cap of 125 mil. BCG at 30 tpd will be producing 4,000-4,500oz per quarter. To me that means BCG is still undervalued by several hundred percent. CMM was also worth as much as 360 million in 2011 and that was when gold was making its move through 1500. Now its 1850! So is CMM undervalued because they aren't solvent but have ounces? BCG doesn't have the ounces but they are verrrry profitable.
BCG did the first resource estimate strategically in my view. They mapped the mined out sections of Engineer and Double decker which 90% of the ore has been mined and thats why there is only 14,000 tons of bonanza grade left. The Boulder, Shaft, Governer and Shear B will add likely 100,000-250,000 tons of material because they are 95% untouched, also I was told the Jersey lily looks very promising for the future as well. I venture to guess based on historic numbers these areas will average in the 1 oz per ton range (give or take 10 grams going either way). Could you imagine a NR that says BCG increases resources at Engineer mine by 1000%. That would be 250,000ozs If the company has this many tons left in the underground.
I think the company will announce plans in the fall for construction of a shop around the mill or perhaps a new mill would be built and a shop all together to ramp up production in 2012?? That mill we already have can pay back in three days the refurb costs we just spent. So I have zero issues if BCG wants to put in a 100-300tpd mill in for mid 2012 production. If BCG makes announcements like this, then the stock will react ferociously in a good way! Remember they have long term plans of discovering a bulk tonneage open pitable resource so doing a little construction doesn't sound like a bad idea. Just because you install a 300 tpd mill doesn't mean you need to use the entire capacity. Also dumps could be set up for other companies in the area looking to mine and mill product (Blind creek and Eagle Plains are in the area). The company could get earnings from the mill this way. How much is a mining permit worth these days, we have one. Meaning no long delays just point and shoot!
Considering these short term expections.... What should our market cap be on our way to? The PP should close this week. I still think based on what we know right now 25-40 million is a reasonable valuation for this soon to be gold producer.
BCGold Corp. Announces Trench Assays Up to 979 g/t Gold and Prepares to Commence Milling at Engineer Gold Mine
8/16/2011 5:12:46 PM - Market Wire
A HUNDRED YEARS FROM NOW IT WILL NOT MATTER WHAT MY BANK ACCOUNT WAS, THE SORT OF HOUSE I LIVED IN, OR THE KIND OF CAR I DROVE...BUT THE WORLD MAY BE DIFFERENT BECAUSE I WAS IMPORTANT IN THE LIFE OF A CHILD.
