Anticipation Builds Over Bayfield Ventures’ Rainy River Drilling
By Jared King
It is a rarity in today’s market to find a junior resource company that possesses such a diverse property package, experienced management team and tight share structure as Bayfield Ventures (TSXV: BYV). Bayfield is involved in exploration for gold in Northwestern Ontario, copper-gold and coal in Mongolia and diamonds in Central Saskatchewan. And although Bayfield has solid JVs with major players including both Goldcorp and BHP Billiton, Bayfield is trading at only $0.58 with a market cap just over $9 million. Value situations like this can turn pennies into dollars, and average traders into wealthy investors.
It seems Bayfield needs look no further than right next door to see the tremendous potential of its Rainy River property. The Rainy River property is located to the immediate east of Rainy River Resources’ recent mammoth gold discovery. Rainy River Resources Ltd. (TSXV: RR) has been very successful on the adjacent property, most recently drilling 55.7 meters true width interval grading 4.01 g/t Au (uncut) including a 27.8 meter true width interval of 7.20 g/t Au (uncut). It is important to note that Rainy River is currently trading at $5.15 with a market cap of over $220 million. With a matching geology, Bayfield has been employing the same exploration methods as Rainy River Resources in its initial fieldwork. Overburden sampling and tight grid electromagnetic and a magnetometer surveys have already been conducted. With these results Bayfield has defined the most promising targets for the Spring/Summer 2007 diamond drill program, which commenced at the end of May this year.
Bayfield’s president Donald C. Huston has a lot to be excited about. Speaking about the summer drill program at Rainy River, Huston said he was confident that drills would be turning as early as July 12th, and by the latest August. Bayfield has already had 300 overburden samples collected from the Rainy River properties this spring alone. “The gold grades in the samples have been very impressive to date,” Huston said. Mr. Huston also mentioned that Rainy River Resources relied heavily on overburden drilling to define their drill targets. This exploration method has proven very successful in its ability to focus drilling, resulting in cost efficient exploration.
Considering Bayfield’s tight share structure and recent interest in the Rainy River area, it’s increasingly possible that one or two solid assays will take this stock from the current price of $0.58 to over the $1.00 mark. When analyzing the technical position of BYV investors will find less potential for near turn downside that Bayfield’s peers. The chart shows strong support at the $0.55 level, and the diverse property package held by this micro cap company provides a high level or risk abatement. Speculation alone may carry this stock upwards in a somewhat slow summer market.
Not only does Bayfield have exciting properties, focused exploration programs, and large upside potential, it also has the management team to make it all come together. President Donald Huston and CEO James Pettit have over 40 years combined experience in the resource industry. Both men have had tremendous success with numerous public resource companies. Exploration Manager David Busch, P.Geo, has over 30 years experience working in Northwest Ontario alone, and has held position with Phelps Dodge, Brinex Ltd, and Getty Canadian Minerals Ltd. Busch was directly involved with the discovery of the Courageous Lake gold deposit – one of the 15 largest undeveloped gold deposits in the world.
Conclusion
Bayfield has a property package that is diverse, yet focused, and a management team that has an outstanding track record for success. The Rainy River property has the proximity and geology to host a major gold discovery and an aggressive exploration program is underway to find just that. At a price of $0.58 and a very tight share structure BYV provides huge upside potential with very little downside risk. This summer should be interesting with constant news and drilling underway. As investors start to recognize how undervalued BYV is, the price should climb steadily in anticipation of fall results. All there is to do from here is accumulate shares at these low prices and trust in this proven management team to bring up some holes similar to their successful neighbor.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article. |
