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  • Bullfrog Gold Corp. (BFGC) Expands Arizona Footprint With Two New Leases At Newsboy Project 6 comments
    Dec 17, 2012 5:29 PM | about stocks: BFGC

    Bullfrog Gold, the domestic mineral developer with a deep management bench of seasoned industry veterans and a firm gold project acreage footprint in Arizona and Nevada, reported good news out of their Newsboy Project today, which has expanded to 4,958 acres (including state lands) with the leasing of two new patented mining claims in the Queen of Sheba (QoS) area, 2.5 miles northwest of the main deposit.

    The new leases are a beautiful little patch of geology covering some 38 acres containing numerous mineralized outcrops and adits, having similar geophysical characteristics overall with the main Newsboy deposit. Shallow shafts and prospect pits exist in the QoS target area, but there is no historical record of production on-site from former owner Moneta Porcupine Mines, whose last work on the site was in late 1994.

    The last data points we have are from the outcrop chip and channel sampling done by Moneta which showed a 260-foot strike length on the surface, with 0.064 opt over 54 feet on average, in addition to the 1995 core hole (intercepts ranging from 0.024 opt Au and 0.14 opt Ag over 16 feet to 0.124 opt Au and 0.31 opt Ag over 2 feet). So we have clear indications from the component data sets that the surface sampling is the hallmark of a deeper 492-foot wide geophysical anomaly which was traced over a strike (open on both ends) length of some 1.64k feet.

    Considering the recent expansion of the thick, high-grade mineralization area as a result of Phase II drilling on the main deposit at Newsboy reported back in late August (pit limit expanded by an 800 by 1.2k-foot area via a 24-hole program, high-grade gold upwardly revised 20% from the previous 0.044 opt Au figure), these leases make a great deal of sense and Bullfrog will test for expansions to that newly found yellowy goodness in the upcoming program slated for the QoS target area. Bullfrog plans to put in some 24 holes over the next few months to test the excellent intercepts from extant Moneta data, as well as for that possible extension to the newly discovered thick slice of mineralization at the main deposit, with resource estimates and a preliminary mine plan shortly thereafter.

    Newsboy is just 45 miles outside Phoenix (excellent logistics) and sits just 10 miles east of one of the states highest-grade, largest gold mines, the Vulture Mine. Historic resource estimates are 235k oz Au with 3.4M oz Ag (5.4M tons at 0.044 opt and 0.64 opt respectively) and the last production data point is from 1942, where 11k tons of ore grading on average 0.07 opt Au, with 8 opt Ag were shipped to a local smelter.

    Reported terms of the lease call for a one-time $100k work commitment for the next year on the QoS target area, a $10k annual payment, and royalties in the 1% to 5% range based on gold being in the $1.2k to $5k price range. A solid move that is in the interests of BFGC shareholders and one that reinforces the company's overall regional position.

    For more information, visit BullFrogGold.com

    Please see disclaimer on the QualityStocks website: disclaimer.qualitystocks.net

    Stocks: BFGC
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  • Peter Epstein
    , contributor
    Comments (1658) | Send Message
    Bullfrog Gold CEO David Beling is the real deal. I've spoken with him at length a few times now. He has 40+ years of experience and he's 100% on Bullfrog. That's an essential component of the story. Some management teams stretch themselves.


    Bullfrog Gold runs very lean, just 2 full-time employees and 2-3 Geologists / Advisors. The Geos are highly experienced guys who have known Beling for decades.


    This could be the last venture that Beling undertakes as he's of retirement age. He chose Bullfrog VERY carefully. Upcoming drill results could make 2013 a tremendous year for shareholders.


    Beling's reputation got Bullfrog the $4.2 million credit facility that ensures that Bullfrog has 2-3 years to hit the ball out of the park. Beling and key investors believe BIG news is a 2013 event.


    It's highly unusual for a relatively early stage company to get a significant loan. The due diligence performed was substantial, but the clincher was Beling himself. Beling has the experience, funding and contacts to make Newsboy a winner. Less known to investors, (in my opinion) is how prospective the Klondike near-surface silver project is. And there's a real possibility of base metals at depth.


    I bet on U.S. assets and on strong experienced management teams. I'm in this for the long haul. I'm shooting for $1 per share, but I'm not expecting that price next week or next month.


    Traders will trade this around, but I think this has fundamental value to fall back on.
    13 Jan 2013, 12:48 PM Reply Like
  • Peter Epstein
    , contributor
    Comments (1658) | Send Message
    From the January 11th Gold Report newsletter...Interview with Rick Winters of RMB Resources....


    One example of such a transaction is Bullfrog Gold Corp. (BFGC:OTCBB). We have funded Bullfrog Gold as a quasi-equity opportunity because it has a very attractive project that's had a significant amount of work done on it in the past—a feasibility study, initial permitting and the like. But now, it needs funding to confirm what was done in the past and to expand the project. The transaction uses the project as security for the facility. We have a significant warrant package associated with that facility that represents the return we need for the risk profile.


    Bullfrog Gold is a relatively new company and has a current market cap of about $11M. It has an advanced exploration project in Arizona called the Newsboy project. In the 1990s, an Australian company did quite a bit of work and actually defined a resource of about 5 million tons (Mt) at about 1.5 grams/ton (g/t) gold. It completed a feasibility study and started all its permitting work in Arizona, so the state regulators are aware of the project. It then fell by the wayside in the mid-1990s. A Canadian company had it for a period of time, did a bit of work and then dropped the project in the late 1990s. In the early 2000s, a private group restaked it, and Bullfrog optioned the property from that private group.


    Bullfrog is now working hard on it and is doing a lot of drilling to confirm the historic resources. It's gone a long way in doing that. It started to expand the deposit beyond the limits that were known in the 1990s. We think there is likely a deposit there that will be around 7 Mt at 1.5 g/t. Our facility, which is $4.2M, is to fund work at the project for the next 18 months. The work is intended to do the additional drilling and resource evaluation to complete the initial resource re-estimations and to begin, if not complete, feasibility and get the final permitting under way. It's a new opportunity that the market hasn't known about because it was in private hands, but we think it will become a mine.


    TGR: Do you think that the management at Bullfrog has what it takes to go beyond what previous operators could do?


    RW: Yes. The management is led by a gentleman named Dave Beling, who is a very experienced mining engineer. He's been involved with several different junior companies and has done lots of consulting work. We see eye to eye with Mr. Beling on what work needs to be done to bring a project to a development decision. Right now, it's a very lean and mean management team, but that's by design. At this point, the focus needs to be on the geology of the project area in the drilling and the resource estimation. But Mr. Beling also has all the experience to bring a development team together when the time comes.


    TGR: Sounds like a lot of what your job is in this business is not to see what a project is but what it could become. What could the Newsboy gold-silver project in Arizona become?


    RW: If it develops as we think it should, it will be a project that should be producing around 35–40 Koz/year and probably generating annual earnings before interest, taxes, depreciation and amortization of about $25M. On paper at $1,700/oz gold, it preliminarily has a net present value (NPV) at a 5% discount of around $90M in comparison to a market cap of around $11M.
    13 Jan 2013, 12:48 PM Reply Like
  • Peter Epstein
    , contributor
    Comments (1658) | Send Message
    Bullfrog Gold looks very interesting. Rick Winters mentions the company's Newsboy Project which I agree is attractive. Substantial work was done on this asset in the 1990's, work that can be re-calibrated and updated much faster than for a typical green field project. In other words, I don't consider Bullfrog to be a green field project.


    I've spoken at length with CEO David Beling. I'm visiting with him next week in Phoenix, where I will visit the Newsboy site. He has 40+ years of experience and an amazing number of valuable contacts in Arizona and Nevada. It's highly unusual for a company at this stage of exploration to get a loan. Winters is a big fan of Beling, which helped in the loan process.


    RMB did a tremendous amount of due diligence and believes that the Newsboy project is a development project, not an exploration target. RMB believes Newsboy will be a mine, otherwise they would never have loaned $4.2 million. IMPORTANTLY, I think the 3-yr term of the loan is telling as to what RMB expects. They must believe like I do that Newsboy is a 3-yr project to get close to production. Most exploration projects are 5-10 years away.


    Completely ignored in the interview with Rick Winters is Bullfrog's other two projects! Winters points to an estimated $90mm NPV, but that's for Newsboy alone. The company also has the Bullfrog project in Nevada and the Klondike near-surface silver play, also in Nevada.


    The Bullfrog project needs more drilling to improve visibility, but it too looks very promising and has a good chance of becomig a mine. Klondike is a potentially huge asset that the company has optioned for essentially nothing. High grade silver (1-7 ounces per tone) is the target, very shallow, within 50 feet of surface. The company has locked up the majority of the district, close to 5k acres.


    In buying Bullfrog Gold Corp, an investor is more than fully covered from Newsboy alone and gets the Bullfrog and Klondike projects for free. Positive drill results this year on one or more of these projects would send the stock materially higher in my opinion.


    Clearly a high risk play, but a strong vote of confidence from RMB, (who looks at 100's of projects each year and only invests in a handful). Of the dozens of junior gold stocks (the ones with 100% U.S. assets), I feel Bullfrog Gold has been significantly de-risked and validated by RMB. I like Pershing Gold and Bullfrog a lot for 2013.
    13 Jan 2013, 12:49 PM Reply Like
  • Peter Epstein
    , contributor
    Comments (1658) | Send Message
    Bullfrog's announcement today sets the stage for a BIG catalyst later this year. The drilling campaign described in the press release could find ample gold resources, enough size and/or quality to warrant a re-rating of the stock substantially higher.


    The chances of a successful drill campaign are good, that's why merchant bank RMB was willing to loan $4.2 million specifically for the Newsboy project. It's highly unusual that a party is willing to loan money to an exploration stage company unless that party believes a mine is likely to be developed. The three year term of the loan is telling, RMB must have felt that 3 years was sufficient time to largely de-risk the Newsboy project. A strong vote of confidence for a junior gold miner.


    I'm spending an entire day with David Beling and a senior geologist at the Newsboy site near Phoenix, AZ tomorrow. I will update this board on Thru night or Friday.
    16 Jan 2013, 11:43 AM Reply Like
  • Peter Epstein
    , contributor
    Comments (1658) | Send Message
    GRAND JUNCTION, Colo., Jan. 16, 2013 (GLOBE NEWSWIRE) -- Bullfrog Gold Corp. (OTCBB:BFGC) ("Bullfrog" or the "Company") is ready to start its third drill program at the Newsboy Gold Project ("Project") located 45 miles NW of Phoenix, Arizona. A 30-hole drill program in the area of the main Newsboy deposit and the new Queen of Sheba exploration target area is scheduled for completion by early April 2013. Thereafter the Company intends to engage an independent firm to update estimates of mineral resources on all Project lands. The Company also plans to complete a fourth drill program before mid-June 2013 to further explore and expand resources.


    Drilling approximately 12 holes is scheduled to start towards the end of January 2013 on a State of Arizona Exploration Permit and the two leased patents described in the December 17, 2012 press release. Completing the remaining 18 holes on Federal lands is awaiting imminent approvals from the U.S. Bureau of Land Management and from the Arizona Department of Water Resources. On January 11, 2013 the Company was issued an Authority to Operate under an updated General Permit, thereby fulfilling all requirements of the Maricopa County Air Quality Department for this third program.


    Layne Christensen of Chandler, Arizona completed the first two drill programs on the Project during 2012 and has been engaged for this third program. Skyline Labs of Tucson, Arizona will continue to provide analytical services. Clive Bailey, CPG will continue to plan and manage field operations and provide sample and assay quality assurances and controls in accordance with United States and Canadian standards.


    The program is designed to further explore the higher grade zones intersected in the main deposit area during the first two drill programs. The Company is also excited about drilling the Queen of Sheba exploration target area, where mineralization appears to be higher grade than in the main deposit.


    Good luck junior gold stock investors!
    16 Jan 2013, 11:53 AM Reply Like
  • Peter Epstein
    , contributor
    Comments (1658) | Send Message
    On Thursday, Jan 17th, I spent the entire day with CEO David Beling of Bullfrog and Chief Senior Consulting Geologist, Clive R.G. Bailey on a site tour of Bullfrog's Newsboy project and subsequent dinner presentation to the Phoenix Society of Mining Engineers, I found the site visit both fascinating and informative. I'm no geologist, but there is very clear evidence of significant mineralizations, (several minerals) at surface.


    In fact, the company has done, "chip-rock" sampling of the Newsboy property and the results were promising. Access to the site is excellent, a regular paved highway, then hard compacted, county-maintained road for just a few more miles. A huge power line runs within 3 miles of site. The historic towns of Wickenberg and Morristown are both within 10 miles. Both are very supportive of the Newsboy project as the unemployment rate is elevated and Newsboy would employ up to 100 people. The combined population of the two towns is only about 8,000-9,000. One hundred high paying direct jobs, + perhaps a hundred or more ancillary jobs would be a big deal in the region.


    Newsboy has an historic resource of 235k ounces of gold. This figure is only for a proposed pit that a prior owner planned on developing in the early 1990's. Since the early 1990's, more than $10 million (in today's dollars) has been spent. It's difficult to over-estimate the importance of the historical data that Bullfrog has obtained on Newsboy including 800 lbs of recently acquired maps, reports, data logs, etc from the previous owner.


    The data is in very good condition, I saw all of this data and more at the company's field office. The extent and detail of the data is impressive, lots of environmental, archaeological, water studies, mining plans, mill plant, flow charts, surveys, detailed maps, drill logs, waste dump designs, lists of equipment needed, estimates of labor requirements, etc. The key takeaway is that a lot of actual permits and approvals were obtained 20 years ago. Obviously, these permits and approvals would need to be updated, but historical precedent is very important in the mining industry.


    Speaking further to the Newsboy site, I was surprised to see a number of mining shafts and cement workings dating back as far as 100 years. Prior mining clearly took place. Importantly, any mining done 100 years ago would have been on high grade (by today's standards) deposits. Think about that for a moment. The old-timers found enough gold (and possibly some silver, copper and lead) to warrant digging shafts as much as several hundred feet deep. Obviously, the technology back then would not have been able to find lean mineralization zones. Nor would miners have had to go after lean zones anyway because plenty of higher grade gold and silver was still (relatively) easy to find all over the west.


    At dinner on Thursday, over 50 people, including a handful of investors like me, attended a full hour long presentation of the Bullfrog Gold story. Beling did an excellent job of clearly describing the company. To be clear, given the audience, he did not actually, "pitch" his company as an attractive investment opportunity. Making strong investment presentations is a skill that MANY mining company executives lack. Beling mixed humor, high level detail, candor, historical context and compelling information in an entertaining and much enjoyed speech.


    I will go into greater detail about the compelling risk/reward of Bullfrog stock in coming days, but I wanted to say at least something about my site visit. Keep an eye out for my comments on Seekingalpha going forward. Thank you.
    19 Jan 2013, 01:52 PM Reply Like
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