Pacific Booker: A Giant Among Juniors
By Jane Perry
06 Jun 2008 at 03:58 PM GMT-04:00
resourceinvestor.com
VANCOUVER (ResourceInvestor.com) -- These are interesting times for Pacific Booker Minerals [TSX-V:BKM] as it moves into the advanced stage of its feasibility study on its Morrison copper-molybdenum-gold deposit in central British Columbia.
Wardrop Engineering has recently made the final revisions to its High Pressure Grinding Rolls (HPGR) Trade-Off Study. This report is part of the feasibility process and compares HPGR vs. conventional Semi-Autogenous Grinding (SAG) milling process. Wardrop concluded that the company stands to realize a significant reduction (more than 23%) in operation costs using HPGR.
The Morrison Project
The Morrison porphyry copper-gold-moly deposit is located in the Babine Lake area, 35 kilometres north of Granisle, and within 29 kilometres of two formerly producing copper mines, the Bell and the Granisle. Interest in the area dates back to the ‘60s when the property was first explored by Noranda. Pacific Booker optioned it from Noranda in 1997.
The most recent figures show a (43-101 compliant) measured/indicated mineral resource of 206,869,000 tonnes grading 0.46% Cu equivalent- consisting of 0.39% Cu, 0.20g/t Au, and 0.005% Mo.
Plans are for an open-pit structure, with a 30,000 tonnes per day Cu/Mo mineral processing plant.
According to its website, the company is at an advanced stage of its feasibility study, and expects to receive the relevant permits and licences in mid-2008, with mine construction to follow.
The company has a healthy cash position with which to move forward. According to its most recent news release, dated May 1, all warrants from the private placement announced on March 1, 2006 (good to April 11, 2008) have been exercised. This netted the company C$4,365,900 in general working capital, from 970,200 warrants exercised at $4.50 per share.
Investment Outlook
There are reasons why BKM trades above $6 - well beyond the range of most juniors. Investors (and the management of many a bloated issuer!) could learn a great deal by adopting this play as a case study in discipline and tenacity. As you know, dear readers, the market never lies. As you also know- it’s never a question of price, it’s a question of value. Here are the ingredients:
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10.1 million shares outstanding - the tight issue says it all;
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Focus: One good project is all it takes, and Morrison is a big one;
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Size matters: large tonnage - volume, volume, volume - and a long mine life (16 years, with an additional 3 years processing low-grade material);
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Low production costs - with the open-pit approach as well as a with HPGR milling;
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Central location - well-developed infrastructure, a road network, power within 20 km and an 1.5 hour drive from Smithers;
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Feasibility study is at an advanced stage;
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The stock is currently trading at its 52-week low - at this time of year, many juniors start coming up off their lows- traditionally a good time to pick up some near to mid-term bargains.
It’s worth considering this company’s impressive 25-year history. BKM is one of the only juniors to have weathered the commodities market meltdown of the 1990s without a rollback.
It’s a remarkable testament to the company’s management that there are only 10.1 million shares outstanding so many years later.
BKM traded at C$6.35, up $0.15 Friday. |
