Big Ridge Gold – Unpacking The Key Metrics And Growth From the Mineral Resource Estimate At The Hope Brook Gold Project
Mike Bandrowski, President and CEO of Big Ridge Gold (TSX.V:BRAU – OTCQB:ALVLF), joins us to unpack the key metrics just released today from the new Mineral Resource Estimate for the Hope Brook gold deposit located in southwestern Newfoundland.
Global Mineral Resource Estimate Highlights:
- 1.2 Million Ounces grading 2.32 g/t Au in Indicated and 231,000 Ounces grading 3.24 g/t Au in Inferred categories.
- Open Pit Mineral Resource Estimate: 1.0 Million Ounces grading 2.14 g/t Au in Indicated category.
- 43% Increase in total Indicated Ounces and 110% Increase in total Inferred Ounces compared to the April 2021 Mineral Resource Estimate.
We’ve discussed how the resource is resilient in the face of lower metals prices, due to the 0.4 g/t cutoff used and $1750 gold price assumptions, but still has the optionality to higher gold prices, and the potential for the copper credits to contribute to the operating capital as more work is done to factor those into future economic studies. We also discussed the potential to keep expanding the 400,000 ounces of gold resources at depth, both under the 240 Zone and the Main Zone for a growing underground mining scenario, beyond the 1 million ounces now in the open-pit resources. In addition, there are 13 exploration targets the exploration team has identified for exploring for additional open pits that could be brought into a future mine plan.
If you have any follow up questions for Mike regarding the Big Ridge Gold, then please email us at Fleck@kereport.com and Shad@kereport.com.
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It will be interesting to look back in about 2-3 years on this time period and environment in the resource sector, where ounces in the ground are being valued $5-$20, and where they will likely be valued $50-$100+
That of course means that many companies with defined resources will have fantastic optionality to a better sentiment in the sector where companies are more properly valued, not to mention the upside potential from higher metals prices (which will also help out with sector sentiment). I could see a number of these advanced explorers and developers with ounces in the ground going up 3x, 5x, or more in that kind of an environment, and the valuations today being laughable in retrospect.
CDNX, maybe this piece of crap index is finally starting to move. I have been trading as if most of these companies are in the pump and dump faze, that has been working well.
EX……………..bull runs are characterized by FOMO……constant take out of the ask side…………bear runs are characterized by everyone heading for the exits at once and bids disappearing…………..in both cases it is emotion dictating the direction………..only greed or fear…………..common sense or logic seems to always disappear in both directions…………..watching this for 45 years, I still am often amazed by moves I don’t comprehend !
Maybe it’s just buy when nobody seems to want a good deal………….and sell when they can’t seem to get enough ! Treat everything as just a trading vehicle…………don’t get attached !!!!! After all you can’t eat a stock !
Great points LarryC. Agreed and well-stated.
Big Ridge Gold has done a great job of expanding their resources to 1.4 million ounces now with both indicated and inferred together, but with a market cap of $15.7 million they getting about $11.21 of value per ounce of gold in the ground, which is silly, but on par with many other resource-stage companies in this wild market.
Meanwhile, there are drillplays with 2x-10x times as much market cap, with no defined resources or history of mining where their deposits are located. If the market is always right, then how it is getting these valuations for what has actually been defined so wrong? We are seeing the same things with many developers with economic studies in place that clearly outline the value propositions trading for a tiny fraction of what their projects are worth, and then hot cult-stock pre-resource drill-plays with nosebleed valuations just…. because they are hot and have put out some good holes…
These markets are incredibly inefficient, and those investors with discernment, can spot both the undervalued and overvalued companies out there with just a few minutes of research.