Normally there is a delay before I share info that I write for my investment group. Under the circumstances I thought I would share right away and see what others have dug up.

Webs

Talked to Fraser, brief: The NR that's probably coming will probably state they will work to resolve the issues. I expect they will spit one out quickly.

Given the grades and tonnage it's obvious to us the investor that this is being blown out of proportion. Allowing for a robust mill there would be 150 years of mining. If a gigantic plan were to be built you could get the LOM (Life of Mine) down to 50-70 years. But, we know the footprint would not be allowed and the Capex would be too high. Reasonable heads must prevail. I see in the report sufficient language to indicate to us that not all of the gold will be mined.

We do have to question the motives of the management. They knew this would happen? Ya, they probably knew there would be some heat. The company is adamant that the report is accurate and feels they properly warned as required. So at first it was "Misleading" and then it was the "methodology" and now it's the "report format". I do know where the lack of local data is applicable. I have examined the data myself and I'm still happy. What they did was extend the descriptions of the geology over a broader area without enough drilling and a little too much historical. One thing I noticed was the continuity of the results. I think this is why they pushed the limits of what's acceptable in a 43-101. In addition, the ranges given reflect the fact that there is not enough evidence to suggest how this should be mined to get the most out of it. In the report the author states this clearly. Open pits have limits do to wall slopes. At some point they will have to go underground. Teck's Highland is using this approach.

I don't think Frank will jump out of a helicopter. I do question the motives. My first question is "why would they do this". As I said before, if we don't see a trading fraud then why did they do this? Fraser is obviously limited in what he can discuss so we have to examine the tea leaves to figure out why this was done. Aside from the short position I don't see any smoking gun. So now comes the "who dun it part". Did Cook do this on purpose (short position)? Is the BCS over doing it? Now that the BSC has stuck their foot in it will they exhaust all avenues before they have to print a retraction or will a small fine settle the issue? How long will this drag out? Was the infraction so serious that they will be delisted?

I'm going to send a copy of this to Fraser for comment when he can. I'm not sure what he can address but we will see.

From a blogger:

Barkerville Gold Mines Ltd. (TSX: BGM.V) has found themselves in a precarious position following Tuesday’s Cease Order Trade issued by the British Columbia Securities Commission and the TSX Venture Exchange. The suspension of trading will remain in place until BGM.V files a technical report that supports their recent disclosure regarding a change in mineral resources in the Cow Mountain area of their Cariboo gold property in central British Columbia.

BGM.V’s troubles date back to their June 28, 2012 news release that reported the findings of Geoex Ltd., which had been retained to complete an independent estimate of the mineral resources and geological potential at the Cariboo property. According to Geoex’s findings Cow Mountain had the potential to contain between 8 million and 13 million ounces of gold, material that would potentially be accessible by underground and open pit mining methods.

Investors ran with that news and shares pushed as high as 1.67 on July 3, 2012, this after BGM.V shares had closed at 0.81 just prior to the Geoex report. That sudden surge took a quick turn south on July 4, 2012 when BGM.V received a technical disclosure review letter from the BCSC asking the company to provide additional information to support the indicated resource estimate and exploration target that had been disclosed in the Geoex report.

Of course what BGM.V provided in the way of a technical report for the Cariboo property on August 13, 2012 did not meet the required standards that the BCSC requested and as a result the Cease Order Trade was implemented.

Sign up here for the full article http://www.otcequity.com/exclusive.php?post=2505

It's free!