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890 Meters of Ore and No One Cares?Bob Moriarty I wrote about Barisan Gold recently. The stock is up about 20% since then. It should have been up 200%. They just announced drill results from another pair of holes. Hole 8 showed an incredible 890 meters of $53 rock. That’s giant and one of the best holes I have ever seen. It literally should be a company-making hole.
Hole 07 was almost as good with 824 meters of $50 rock. This was a vertical hole. If you measure the surface expression it appears to be a 300-meter by 500-meter porphyry from the surface to at least 824 meters. Obviously they have to do a lot more drilling to define fully a resource to 43-101 standards but a back of the envelope calculation looks like about 350 million tonnes of $50 rock. That’s a giant project and they have seven more porphyries to drill. This is going to be big.
The company has completed two more holes and expects results to be released later in September. They are drilling hole 11 now. With $1 million still in the bank and about 40 million shares outstanding, the market values the company at about $6 million. That’s nuts. Obviously the company is going to have to continue to raise money to drill but these are company-making holes. Most of them bottom in mineralization so we know the project is big, we just don’t know how big. Barisan Gold has another project, the Abong epithermal gold project that has a 43-101 resource containing 405,000 ounces of gold and 2.9 million ounces of silver. If you value the gold at $15 an ounce, you get the 350 million tonnes of $50 rock for free and the 2.9 million ounces of silver as a bonus. If you value the silver at $2 and it was worth that a couple of years back, you get 405,000 ounces of gold for free and a free giant high-grade gold rich copper porphyry. Barisan owns 80% of the porphyry project and is carrying to production two local companies. They also own 80% of the Abong gold project. Granted Indonesia has done some really stupid things in regard to mining in the last couple of years and is considered radioactive but a new, pro-mining government will take office in a month. This is the time to be investing, when there is blood in the streets. Barisan will be the owner of a billion dollar project down the road. When I saw the results a month ago, I promptly bought shares in the open market and will probably participate in the PP. I am biased. Barisan is not an advertiser. Please take some responsibility for your own decisions. Barisan Gold Corp ### Bob Moriarty 321gold Ltd |
