Almost ten years ago I went to central Peru some sixty-five miles east of Lima to see an area that had been abandoned when the Shining Path guerillas moved in. The Chanape Mining District was home to some of the best mining projects and mines in Peru. All were abandoned when the Shining Path moved in. When the leader of the Shining Path was captured and thrown so far in prison that they have to feed him with a slingshot, mining companies began to come back into the region.
A Vancouver mining company with the unlikely name of BCGold Corp. (BCG:TSX.V) did a deal with a private company to acquire a 100% interest in a package of 5,785 hectares of mining concessions in the area by agreeing to issue the vendor a total of 30,000,000 shares over time. They issued 6.67 million shares to the owners in August when they closed the deal and made a cash payment of $60,000.
The various concessions hold a variety of past producing base metals and gold/silver mines. I've been on the ground. The tailings and what was waste rock would be economic today. There is a lot of metal there.
BCGold intends to advance the properties so they can do a deal with a major or midtier mining company to develop the projects. They began a mapping and surface sampling program in mid-September. The $200,000 Phase One program is hoped to confirm the presence of Chanape-type breccia pipe mineralization. A $225,000 Phase Two program will consist of a 3D Induced Polarization study to locate drill targets.
I lost track of how many projects I have visited over the past fifteen years. I was highly impressed with the mines I saw in the area upon my visit ten years ago but the company I went to see was in the hands of a brain-dead crook who had the audacity to post on various chat boards under an alias all the while serving on the board of the company I was visiting. That happens to be illegal. When someone pointed out a couple of his posts to me, I dropped them like a hot rock and removed the very nice piece I was intending to post about the project. It was a great project ten years ago and it's a great project today. Management today is much better.
We are in the final days of a major correction that has been going on since early July. It's time to start looking for cheap lottery tickets. The ground that BCGold holds in Peru is good. It's up to management now to make it work. They have raised $1 million and are financed through the first couple of Phases. I'd really like to see them succeed.
I don't yet own shares in BCGold and at some point the company may want to become an advertiser. So I'm more biased because revenge on crooks should be best served cold. If someone goes in and actually advances the project, there is a crook in Peru who could have done the same thing a decade ago who will be gnashing his teeth for years knowing what might have been.
BCGold is a lottery ticket but it's a cheap lottery ticket in a country that depends on mining to finance their government. They could use some attention because they barely show up on the radar screen and you have to make an appointment to buy shares. That could make the shares explosive on any good news or realization that the correction is over.
$0.055 (Nov 22, 2016)
61.2 million shares
Bob and Barb Moriarty brought 321gold.com to the Internet almost 14 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 820 missions in Vietnam. He holds 14 international aviation records.
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. The following companies are advertisers on 321 Gold: None. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. The companies mentioned in this article were not involved in any aspect of the article preparation. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview/article until after it publishes.