I made some good coin on BMG when it was known as Lefroy. It seems to be calling me to return to its fold, but I must resist the lure of The Sirens.
Announcement out today that tends towards this being a decent stock for a speculative punt on future drilling results.
HIGH GRADE ASSAYS RETURNED AT TREASURE COPPER-GOLD PROJECT
Recent rock chip sampling at the Black Pine area has returned very strong copper-gold-nickelcobalt assay results, consistent with known mineralisation
New very high-grade gold (18.25 g/t Au) and nickel (1.98 % Ni) assay results collected from Eastern Lode at Black Pine – Pevkos Prospect
Rock chip assays from Black Pine – Laxia Prospect confirm consistently strong copper-gold mineralisation across all eight samples, with copper grades (and associated gold) ranging from 0.44 % copper (9.47 g/t gold) to 1.37 % copper (0.56 g/t gold)
Contract for initial drilling programme awarded with drilling scheduled to commence at Black Pine
Unfortunately with the last capital raising (430m shares @1c for $4.3m) the dilution puts the company into an area I am not comfortable investing in.
With a market cap of $6m and cash holdings now around $4m, the MC:Cash ratio is good and should well fund an exploration program. The 600m shares on issue figure is just too high, I have been caught making exceptions for stocks like this before and generally it doesn’t end so well.
Lesson learnt. I will stick with what I know, but wouldn’t be surprised to see BMG do ok in the short-to-mid term.
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