Milk,
Spend some more time going over the 60 page annual report. You will notice the last fiscal year's income was a little over $20,000--hardly enough to do any "extensive exploration". A couple of years ago, BCMD tried a little placer mining at Ruby and wasn't successful. No mining was done in FY97 at all, nor do I think any was done in FY96 either, since total revenues of approx $40,000 all came from interest--same as FY97. With no income, obviously they are not going to do any exploration, and plainly stated so. This is why a JV partner is so crucial--a cash infusion to develop claims and embark on an ambitious drilling program.
BCMD's business plan in year 1 ( with JV partner) calls for:
(A) Diamond drill for the down-dip extension of the Golden Gate ore shoot at five 200' intervals to a depth of 1,000' below #6 level. Cost: $1,300,000. Goal: to define 127,000 oz. gold.
(B) Diamond drill to explore for the potential lateral off-set continuation of the Golden Gate ore shoot above the Cassidy level which may have been displaced by a post-mineralization fault. Cost:
$140,000. Goal: Define a resource of 20,000-40,000 oz.
(C) Diamond drill upper Brush Creek for extension of the 2 known ore shoots and potential delineation of a new ore shoot. Cost: $1,500,000. Goal: Define a resource of 107,000 oz.
(D) Dual rotary drill Gardners Point placer. Cost:$500,000. Goal: Shift 220,000 oz resource to a proven and probble reserve.
You can ask IR to fax you BCMD's business plan--above is only one year out of 4 in the plan.
Read in the AR the historical notes about the claims--this is not playing around in the sand hoping to find glitter--ALL of these claims are over a century old and have had decades of past production---and NONE have ever been explored via diamond drilling. As of October 1932, a complilation was published which lists a total gold production of 1.77 million oz from all the mines in the district--which does include mines that BCMD does not have claims upon. |
