*All* I've done some research over the weekend to see how the
industry is doing overall. Since many of us, including myself, have invested heavily in BCMD, I'd like to compare notes.
Here is what I am concerned about:
Most of the gold mining stocks are not doing too well
(see biz.yahoo.com.
Despite the fact that many of them report gold deposits much greater than those of BCMD, backed by detailed exploration reports, they are in the $1-4 per share range.
BCMD's production engineer "expects production costs at the lower Brush Creek to be $150 per ounce", which is much lower the the '97 average of $220 per ounce in the US. This, of course, is based on 1oz per ton figure. These figures, however, as well as the projected amounts of gold, can only be confirmed by geological exploration and drilling, encountering "visible gold" just won't do it.
I haven't found any evidence of the extensive exploration, have you?
Their yearly report doesn't cover the lower Brush Creek mine (why?), but here is what it says about the Ruby Mine, whose figures were used by Cambridge Research:
"Consequently, no assurances can be given that future production will result in grades of similar or historical amount.
Furthermore, the Company has not completed sufficient geological activities and drilling to establish proven or probable ore reserves at the Ruby Mine. The Company has no present intention of conducting further geological exploration and drilling to establish ore reserves at the Ruby Mine at this time."
BRE-X, the greatest scam since the Brooklyn Bridge transaction, blew investors away by gradually raising their estimates of AU deposits from 30MM to 70.95MM(!) ounces, which is MUCH higher than BCMD's (again, I have to rely on Cambridge Research here).
We shouldn't grow emotionally attached to this stock, but rather stay alert. Let's save the excitement for the day we sell at a nice profit.
Charger and Darlene are doing an excellent job researching, let's help them out.
I'd like to know what you folks think about it.
Milk
P.S. I am not a geologist (as if you haven't noticed<g>) |
