I spoke with Martyn Element (IR for BLO) and he gave me more info on BLO and what to expect soon.
First of all, he made it clear that out of 11 million shares fully diluted, only 2 million are in the public float. This is good and bad. Good because the stock will jump with any good news. Bad because shareholders really don't have a say in company activities.
Also, much of the buying happened at higher levels (ex: .50 cents +).
Next, the presentations the president Jack Dimarche have been giving to some majors to drum up money for a JV have been going well. So far they have spoken with Teck and Homestake. Teck said they would closely monitor the Dijon results, whereas Homestake has been much more positive. They have actually been calling BLO and are more likely to work out a JV agreement. Homestake president David Bend was reported as saying the BLO has the *best* properties in Suriname. Bema even had an interest.
He also stated that the additional Oelemari Concession they acquired last month was also bid on by Golden Star and Canarc. BLO won not because they were the highest bidder, but their demonstration to be cooperative with the government and work with local miners. For example, they agreed to let local placer miners keep a small section for themselves. BLO now has 70,000 hectares in six concessions which makes them one of the largest concession holders in Suriname.
Another interesting point is that Golden Stars Gross Rosebel property which is proving up the 2 million + ounces is doing it at a depth of only 10 feet!! Deeper drill holes didn't turn up too much for Golden Star. According to BLO, this may be indicative of the geology in that area. If so, they will do much more trenching to determine how much they have down to 10 ft. We shall see...
Gold is not the only play here. The Lawa concession includes diamonds that were recovered in a river bed plus diamond indicator minerals. BLO sounds better all the time.
One last point, some of the assays for Dijon are already at the lab. He was fairly confident that results could be out in 2-3 weeks.
My guess is mid-October.
I'll give more information as I get it. BLO is sending me a 15 page analysis of their propertys they just completed. If I uncover any interesting points, I'll report back.
I don't know what the future holds for BLO, but I do know it can't go much lower at these levels. Good drilling and a major stepping in should easily move this to $1 plus. If one of their properties turns out like Golden Stars, we could see $10 +. But do your homework, call the company, blah, blah, blah... |
