Bonterra Soars on Drill Results
The latest Bonterra drill results have driven the shares from $.45 two weeks ago to a new high of $.70. Expect more high-grade results and higher share prices in the near future.
One of the very great pleasures I have in running a gold site is that every once in a great while, one of the companies I follow does what it says it’s going to do when it says it. It doesn’t happen all that often, the promises when doing a private placement rarely match the drill results. But now and again. . .
I talked about Bonterra eleven months back in an interview, “ I bought a stock called Bonterra Resources (BTR.V) with a stink bid at $C.22 and they are going to be announcing drill results in early January. To give you an idea of the potential that I see, on the 8th of December they announced 2 meters of 64.8 grams per tonne gold. They’re going to have 3 or 4 million ounces in Canada and somebody is going to take them over. They have a market value of about C$20 million and they’re really cheap.”
I keep talking about buying things cheap and selling things dear and few people seem to get it. They want all kinds of complicated reasons to buy things and even more complicated reasons to sell. Making money is no more difficult than buying cheap and selling dear no matter how complicated you wish to make it. Bonterra was $.22 and it seemed cheap. The market values the company six times higher and the shares three times higher today. And they are not expensive yet.
I talked about the company even earlier in a piece I wrote in September of 2016. It was a good piece and explained what the company was doing. Readers new to the story should go back and read that piece.
Bonterra’s 2017 drill program consisted of 50,000 meters planned. They have completed 45,000 and 48 holes of that program. During the 2018 winter drill program they plan on doing an additional 26,000 meters at Gladiator and 12,000 meters at the Coliseum.
Bonterra has been delivering bonanza grade results all year. They included 3.8 meters of 12.0 g/t gold in July, 9.4 meters of 8.2 g/t au in early November and the latest results show 22.2 g/t gold over 1.9 meters.
The company is well cashed up, having completed a $20 million raise at the end of June 2017. Shareholders include Kinross, Eric Sprott, Van Eck Gold Fund and Kirkland Lake Gold.
Bonterra last posted a 43-101 in 2012. They anticipate releasing an updated 43-101 in the 2nd half of 2018. It will include the results of 100,000 meters of drilling completed from 2015-2018.
I was saying they had 3-4 million ounces at the end of the day a year ago. Based on all the results since then, I think the updated 43-101 will be on the high end. They keep extending the deposit and finding new high-grade shoots. The company presentation shows many of the high-grade intercepts and is excellent. Potential investors should view it closely. The company does an excellent job of telling a compelling story.
Bonterra is an advertiser and naturally I am biased. I was buying shares at $.22 a year ago. Do your own due diligence.