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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Jamey who wrote (3861)	8/13/2003 3:00:24 PM
From: sandintoes	Read Replies (1) \| Respond to of 4051

Bema's Russian resource By: Nicole Mordant VANCOUVER – Those with high hopes for Bema Gold’s [TSX, AMEX: BGO] Kupol project were not disappointed today [Wednesday] by the expansionary junior’s first drill results from its gold-silver property located in remote far-eastern Russia. The risk of disappointment is high given the lofty expectations of the project held by some in the market. Brokerage Canaccord Capital recently published a report in which it said Kupol had the potential to be a “company maker” if it turned out to host the near-surface, multi-million ounce, high-grade deposit that Bema’s management believes exists. Others view Kupol as the highest grade deposit currently being drilled anywhere. The Vancouver-based firm’s share price is up 25% in the past three weeks, largely on the back of the market discounting promising drill numbers. Returning after a mid-week holiday of Canada Day celebrations, the market was greeted with assay results from 16 initial holes out of a total of 43 drilled so far on the property in the Russian region of Chukotka. The holes confirm grades recorded by earlier Russian activity on the project and extend the depth of the mineralised epithermal vein system 100 metres down to 250 metres and strike length five-fold to 2 km. Bema, which last year acquired an option from the Chukotka region to purchase up to a 75% interest in Kupol, says the system remains open along strike to the north and south, and to depth. From their limited work at Kupol, the Russians had calculated what translates into an inferred resource of 780,000 tonnes containing 835,000 oz gold and 9.35 million oz silver at an average 33 g/t gold and 373 g/t silver. Bema says it is too early to recalculate a new resource, but one analyst said the new data expands the Russian resource base approximately three-fold. The drill results sent Bema’s stock price further north, to close up 8.6% or 15 Canadian cents to C$1.89, getting back to levels last seen in early February. Assay results from the remaining holes, plus additional additional drill holes, should be ready for release around the third week of July. Go it alone? Analysts reckon that if Kupol was to be developed, Bema would be able to go it alone without the deep pockets of a major. Although the deposit's remote location increases development risk and cost, Bema’s experience at Julietta, its operating Russian-based mine 1,000 km south west of Kupol, would stand it in good stead. Bema’s minority partner at Kupol should also not have a problem carrying its portion of the costs. There are some concerns in the market that for an aspirant mid-tier, Bema is spreading itself rather thin across its producing operations and exploration projects in South Africa, Russia, Canada and South America. Highlights Highlights from the 16 holes include hole 9, which intersected 65.05 g/t gold and 1,021 g/t silver over 18.30 metres and hole 4 which over 29.90 metres intersected 27.97 g/t gold and 220.9 g/t silver (see table at end for all drill results). Bema has been making much of installing an on site fire assay laboratory at Kupol to expedite results from the remote region, but the initial samples were assayed at Julietta's mine site laboratory after the construction of the assay lab at Kupol was not completed on time. Bema is earning its stake in Kupol through a combination of direct payments to the regional government, exploration funding on the project and a payment per ounce for reserves identified in a feasibility study. The Chukotka government retains the remaining 25%. mips1.net