newsFeb25

A couple of the news releases that caught my eye this morning in the resource world and a brief comment on each.

Banks Island Gold (BOZ:TSXV) -  Banks Island has decided to sell 100% of the silver production from the Yellow Giant project moving forward to SilverStream for $250,000. SilverStream (a private company) will still be required to pay $4 per ounce with a minimum monthly requirement of  6667 ounces required from Banks Island. An option to purchase 50% over the minimum amount is granted to SilverStream. Banks Island shareholders will note this is the second royalty/streaming deal on the project as Morien Resources (MOX:TSX) hold a 1.5% NSR. Banks is currently ramping up production and January production was a significant increase from December (1,594 Au eq ounces vs 1,015).  The Yellow Giant mine has measured and indicated reserves of only 57,600 ounces of gold (Feb 2013) but  is very high grade at ~22 g/t. Exploration potential to find more ounces on the property remains high with numerous targets over the 10 km trend. Production is targeted at 28,000 ounces of gold per year.

Read: Binding LOI Signed with SilverStream for US$1.5M Investment in the Yellow Giant Project

Bellatrix Exploration (BXE:TSX) - Bellatrix is out with the year end 2014 reserve report showing 250 million BOE in proven and probable reserves. 2014 was another successful year for Bellatrix with a 100% success rate with the drill bit which increased reserves by 18%.  A big jump in production of 78% year over year had BXE producing 13.9 million BOE in 2014. With lower natural gas and oil prices the capital budget has been reduced 61% from 2014 levels to ~$200 million. Average production is expected to increase 13-15% in 2015. BXE is also fortunate to have 90% of natural gas production hedged at $2.90 CAN for the 2nd and 3rd quarter. Fifty percent of oil production is also hedged from Q2-Q4 at $70.34 CAN/bbl. Management has a calculated a 2P net asset value of  $9.01 per share. Shares are last at $3.80 this morning after being as high as $11.65 on May 8th,2014.

Read: Bellatrix announces growth to 250 million boe in proved plus probable reserves establishing a 2P net asset value of $9.01 per share

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This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence